Preliminary study the relationship between organizational culture and implementation of independence principle: Indonesia public listed company case study

Company's success in implementing the principles of Good Corporate Governance (GCG) is highly dependent on the values of the corporate culture that embraced and practiced within the company. This is proven by the fact that some world-class companies and multinational companies have succeeded in implementing GCG after adopting a corporate culture consistently. Furthermore, this study aims to investigate the impact of culture on the successful implementation one of GCG's principles, namely the independence principle. This study uses seventeen companies that listed on stock exchanges. At each company, the questionnaire is delivered to approximately 71 people that include the internal's and external's company party. The internal company party consists of directors of company, board of commissioners, managerial staff, and non-managerial staff. The external company party consists of supplier, customer, insurance companies, and other stakeholders who have a relationship with the company. Overall, there were 840 participants out of seventeen surveyed public listed companies. The conclusion from this study is that uncertainty avoidance cultures and invidualistic cultures have a positive significant relationship with independence of Directors and Board of Commissioners. Furthermore masculine cultures and power distance culture have negative significant relationship with independence of Directors and Board of Commissioners.