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What is Corporate Culture?

If you own a company, you are probably concerned with costs, profits and market share.  But have you ever considered adding corporate culture to that list?  If you haven’t, you should.

 

Culture, simply defined, is a shared set of customs, beliefs and norms of a particular group of people.  While you may think of culture as something that exists on a global scale between different groups of people, the same principles apply to the work environment.

corporate culture in the boardroom

Corporate culture is defined as the social and psychological atmosphere of a workplace.  A company’s ethics, behaviors, and core values all work together to influence how the public and the company’s employees feel about the company.  Strong corporate cultures work to bring people together while weak ones fail to create a cohesive work environment.

Strong corporate cultures work to bring people together while weak ones fail to create a cohesive work environment. Click To Tweet

 

Why Is Corporate Culture So Important?

Every company has a corporate culture, whether they realize it or not.  For companies that see the concept of corporate culture as a “nice-to-have” but not worth noting, they may be encountering problems right now.  Low employee productivity, poor customer relations or high employee turnover rates are all symptoms of a poor corporate culture.

 

On the other hand, companies with strong corporate cultures often find they get the opposite results.  When employees believe in and care about the values of their company, they become motivated and productive.  They want to see those corporate values advanced and will do their part to see that happen.

 

Why Does Corporate Culture Matter?

A corporate culture defines how a company conducts business, how it interacts with customers and suppliers, and how it treats its employees.  As Peter Ashworth points out, companies with strong corporate cultures tend to produce the best results when compared to companies with weak corporate cultures.

 

Back in the day, the ambition of the average worker was to find a job they could stay at for 25 years.  Stability and job security were seen as priorities while fostering a strong corporate culture was not.   It was more common for a worker to “toe the company line” rather than seek out a company better aligned with their own personal values.

 

That all changed as the millennial generation became the largest generational cohort in the workforce.   Having grown up in a time of financial prosperity and social freedom, the millennial generations’ career goals have changed gears.  Nowadays, finding a company whose corporate values and beliefs align with your own is now just as important as finding a company offering job security.

 

The Benefits of a Strong Corporate Culture

Focusing on building a strong corporate culture is not without reward.  While it may take time and hard work to achieve a strong corporate culture, companies can reap some pretty important benefits.  The following are some of the benefits companies can expect.

 

Financial

Companies with strong corporate cultures see an increase in productivity and performance.  They also see a decrease in costs.  When employees feel connected to their company, they have a greater buy-in to the overall success of the company.  This feeling usually translates into employees looking for new ways to increase productivity while cutting costs.  This all results in greater profits for the company.

 

Positive Work Environment

When strong corporate cultures exist, mutual trust and cooperation amongst team members increases.  This leads to fewer disagreements, less internal politics and a greater attitude of respect.

positive corporate culture

 

Improved Communication

When there is a clear corporate mission, employees are able to work together to reach a common goal.  By having a shared goal, open communication is encouraged.  This results in better collaboration and increased productivity amongst coworkers.

 

Better Talent Pool

When a company creates a cohesive work environment that inspires its employees, great work is produced.  When great work is consistently produced that company’s reputation skyrockets and everyone wants to work for them, including the best and brightest in the industry.  The end result is that companies can hire quality employees who will only help to keep the company strong.

 

Final Thoughts on Corporate Culture

A strong corporate cultures is important for setting your company apart from the competition and establishing your corporate brand.  It allows your company to reach new levels of business success and new opportunities for recruitment.  By taking the time now to establish and build a strong corporate culture, you are setting your company up for long-term success.

 

 

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