What Is Corporate Culture?

Corporate culture, or organizational culture, refers to the set of values, behaviors, traditions, norms, practises, and more that characterize the way a company operates.

What Makes Up a Corporate Culture?

A corporate culture is generally made up of:

  • The company’s history: its foundation, the organization’s major achievements, long-standing employees, etc.
  • The company’s vision and mission: the organization’s goals, vocation, milestones, etc.
  • Shared values such as respect, innovation, creativity, expertise, etc.
  • Actions taken: benefits offered, established measures, practises within the organization, dress code, etc.

Why Focus on Corporate Culture?

Corporate culture sets an organization apart from its competitors. It also makes it easier for employees to identify with the company’s values and embrace its mission.

Corporate culture typically conveys a positive image of an organization, which makes it easier to recruit staff and earn a better reputation with customers.

It also contributes to internal cohesion, employee commitment and motivation.

Organizations that capitalize on their corporate culture generally find it easier to recruit and retain staff. This is an interesting strategy to implement in times of labor shortage.

What Are the Benefits of a Strong Corporate Culture?

A strong corporate culture helps to:

  • Attract and retain both talent and clients
  • Ease recruitment
  • Improve employee performance
  • Increase employee commitment
  • Improve employer brand positioning
  • Simplify the onboarding of new employees
  • Improve internal consistency
  • Improve customer experience
  • Increase employee retention
  • Promote the achievement of corporate objectives

How Do You Develop your Corporate Culture?

An organization wishing to develop its corporate culture can implement a number of strategies, such as:

  • Promoting its history
  • Defining its mission and values
  • Communicating its vision with employees
  • Creating traditions or events such as team-building activities
  • Maintaining the corporate culture over the long term
  • Surveying employees to better understand their needs and wishes

A corporate culture usually develops over a long period of time, and must be nurtured in order to endure and to bring benefits to an organization.

What Are the Different Types of Corporate Culture?

The different types of corporate culture generally include:

  • Clan culture: promotes long-term cohesion within the company
  • Challenge culture: encourages employees to innovate and to constantly challenge themselves
  • Authoritarian culture: limits employee freedom and improvisation
  • Hierarchical culture: defines a specific role for each employee

What Are Some Examples of Companies That Have a Strong Organizational Culture?

The best-known examples of companies with a strong organizational culture include:

  • Facebook
  • Google
  • Adidas
  • Apple
  • Zoom
  • Patagonia

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