When a company wants to attain sustainable positive results, the changes in the organisational culture are required. The changes determine new patterns of employees’ behaviour, communication, and thinking (Tilchin & Essawi 2013). The changes in the organisational culture may be accomplished in case the goals, vision, and mission statement are formulated by managers, and the subordinates are motivated for the achievements of the desired results by newly adopted organisational values (Braica 2013). All given aspects of the effective transition to cultural change within the enterprise are related to knowledge management that nowadays is considered an intrinsic part of effective organisational performance in the dynamically changing environment.
The recent research draws significant attention to corporate philosophy and value creation. The concept of organisational value is interrelated with the principle of matching the internal resources with the external social and economic demands (University of Liverpool 2015). The creation and conceptualization of values are the leadership’s strategic choices through which they attempt to determine the fashion of interrelations with organisational stakeholders. According to the ideas of the stakeholder theory, the consideration of the stakeholders’ interests on the broader scale is beneficial for companies’ profitability and sustainability (Vidal, Berman &Van Buren 2015). Therefore, it is possible to say that value creation and customer accountability is the key element of organisational success.
By addressing the broader social values such as regional economic development or environmental sustainability and protection, a firm can target both internal and external interests. This management strategy is thus mutually beneficial. For example, the Abu Dhabi National Oil Company (ADNOC), a representative of the oil and gas industry in the Middle East and African Region, includes the corporate social responsibility policies and regulations into the corporate culture (Corporate social responsibility 2016).
The organisational values of the enterprise address the issues environmental protection and the issues of the social, economic, and academic development in the local community. In this way, ADNOC contributes to the creation of the positive organisational image of a good corporate citizen. Through the adjustment of the organisational strategic goals with the principles of the corporate citizenship, ADNOC attains the opportunity to develop the consumer loyalty and attraction, enhance organisational culture, and increase employee’s motivation which, in their turn, positively affect working productivity and financial outcomes (Stolz & McLean 2009).
Value creation is also considered an important element of knowledge management. According to the researchers, knowledge itself may be regarded as an organisational value, and through the effective knowledge management managers may significantly enhance the knowledge-related practices in the company, i.e. organisational learning, adaptation of new skills, integration of new business and corporate ideas, etc. (Kianto, Ritala, Spender & Vanhala 2014; Steenekamp, Botha & Moloi 2012).
Value-based knowledge management and consideration of stakeholder interests are relevant to the company’s success in business. Through the incorporation of the social values into the organisational culture and practice, such companies as ADNOC raise public awareness regarding the up-to-date social problems and encourage the movement towards their resolving. In this way, the firm manifests itself as a responsible corporate citizen and gains public trust.
Therefore, the establishment of the stakeholder dialogue and the improvement of stakeholder relationship through the policies of business transparency and practices of the value creation are highly beneficial. Development of organisational values and knowledge capital is the competitive advantage that helps managers to sustain business in the modern ever-changing economic environment and achieve positive productive and financial results.
Reference List
Braica, A P 2013, ‘Fundamentals of change management’, Studia Universitatis “Vasile Goldis” Arad.Seria stiinte economice, vol. 23, no. 4, pp. 138-149. Web.
Corporate social responsibility 2016. Web.
Kianto, A, Ritala, P, Spender, J & Vanhala, M 2014, ‘The interaction of intellectual capital assets and knowledge management practices in organizational value creation’, Journal of Intellectual Capital, vol. 15, no. 3, pp. 362-375. Web.
Steenekamp, K, Botha, G, & Moloi, K 2012, ‘Sustaining change in a learning organization’, Africa Education Review, vol. 9, no. 2, pp. 380-394. Web.
Stolz, I & McLean, G 2009, ‘Organizational skills for a corporate citizen: policy analysis’, Human Resource Development Review, vol. 8, no. 2, pp. 174-196. Web.
Tilchin, O & Essawi, M 2013, ‘Knowledge management through organizational culture change”, International Journal of Business Administration, vol. 4, no. 5, pp. 24. Web.
University of Liverpool 2015, Key concept overview: back to the future, Laureate Education, Liverpool. Web.
Vidal, N G, Berman, S & Van Buren, H 2015, ‘Stakeholder Theory and value creation models in Brazilian firms’, Revista Brasileira de Gestão de Negócios, vol. 17, no. 55, pp. 911-931. Web.