Corporate Culture Examples and Benefits

Updated October 31, 2022

Company culture has a significant impact on business goals and employee morale. Corporate culture can grow organically within an organization or you can take specific actions to create a postive environment at your company.

In this article, we discuss what corporate culture is, how it develops and how it can benefit your company.

What is corporate culture?

Corporate culture refers to the beliefs, values and overall behavior of employees and how they interact with each other. It also includes how management and employees interact with outside sources, such as third-party vendors or customers. Corporate culture is often a vague concept that's implied rather than expressly defined. It develops organically over a period of time and all those involved learn from and adapt to it.

Corporate culture provides small businesses with a way of gauging how employees interact with each other, how they celebrate victories and how management encourages innovation. Well-defined cultures attract like-minded professionals who will thrive in the type of environment you have created.

Why is corporate culture so important?

Corporate culture is important because of how it caters to individuals and their beliefs and behaviors. Employees prefer to work for companies whose corporate culture aligns with their own beliefs. It also makes for happier and more effective employees.

Traditional corporate cultures create environments with rules and strict dress codes that promote high performance. Alternatively, casual corporate cultures provide a more relaxed and enjoyable atmosphere with fewer rules and are often more conducive to creative ideation.

How does corporate culture develop?

Corporate culture can be developed either organically or through a conscious strategy. Organic cultures develop over time with the right amount of like-minded individuals within the same workspace. For instance, employees often emulate their managers in both dress and behavior. Alternatively, pre-planned cultures are derived to align with corporate goals and objectives. For example, a modern technology or gaming company might offer a casual dress code and include in-office amenities such as a video game room and a gym.

Creating the culture you want

Creating a culture that aligns with your personal preferences begins with explaining to employees what those preferences are. Outline specific behaviors you want to encourage as part of your corporate culture. And remember to lead your team by setting a good example of company values yourself. You can further encourage company culture by rewarding certain behaviors and values.

There's no one right way to create a corporate culture. Culture works best when it's uniquely tailored to individual teams, industries and working environments. For example, creating a relaxed dress code and a fun environment may not work for a banking institution.

You can also collaborate with your teams to develop a corporate culture. Ask your employees for their opinions and what they value. Make a list of priorities and guidelines for everyone to follow. As the business grows, schedule frequent meetings and collect employee feedback on areas of operation and communication.
Finally, promote your values and beliefs through your marketing efforts. Let both clients and potential employees know who you are and what you stand for as an organization.

How does corporate culture affect employee performance?

Strong corporate cultures encourage better communication among employees, which in turn guarantees your company a competitive advantage over the competition. Employees feel valued and empowered within a strong culture, as though they have more control over their job. Even remote workers often feel more valued and achieve higher levels of performance. Strong cultures also give employees the opportunity and encouragement to grow within their roles. Promotions and training motivate employees and add to the overall corporate culture. In a comfortable environment that challenges employees to be better, the organization as a whole reaches and exceeds its goals.

Benefits of a corporate culture

The following are some of the many benefits of corporate culture:

Employee retention

Companies that value their employees and place high importance on developing corporate culture experience greater office morale. Employees who think favorably of their work environment are more likely to remain loyal to the organization, which greatly reduces employee turnover. This in turn reduces human resources costs with less hiring and training required.

Reputation

Healthy corporate cultures build a positive reputation among clients, employees and the general public. It attracts like-minded, talented professionals, as well. A high-quality reputation allows companies to charge higher prices for products and services, which increases the overall value of the company. Even with higher prices, customers may prefer to work with a more reputable business.

Employee unity

Employees emulate the behavior of management and new employees take their cues from current ones as they form their opinions about a workplace's corporate culture. Once all parties adopt these behaviors, a culture forms and bonds strengthen between employees and management. Unification makes employees feel like they're valued members of a team. Corporate culture often encourages employees to feel more invested in the success of the company as a whole, rather than just focusing on their own accomplishments.

Better decision-making

A defined company culture with a shared mission, vision and values encourages employees to make better decisions. Ultimately, they are left with a clear impression of who the business is and what it stands for and this can be a guiding force in their decision-making.