Boosting Success with
Corporate Culture and Values

What drives your business forward? Is it just the products and services you offer, or is there something more? Successful leaders and HR professionals know that a company’s success is intrinsically linked to corporate culture and values. It’s the invisible force that shapes employee behavior, influences customer perception, and ultimately determines a company’s long-term success or failure.

But what exactly makes up a strong corporate culture? Why are shared values more critical than ever in today’s rapidly changing world?

Defining Corporate Culture and Values

While often used interchangeably, corporate culture and values are distinct elements. Understanding corporate culture and values is important for any business success.

• Corporate Culture: This encompasses the shared beliefs, behaviors, and assumptions that shape the everyday experiences within a company. Think of it as the personality of your organization, influencing everything from communication styles to decision-making processes and employee engagement.

• Corporate Values: These are the fundamental guiding principles that dictate a company’s actions and behaviors. Values are the non-negotiable beliefs that shape how decisions are made, how people are treated, and ultimately what a company stands for.

Think of your values as the roots of a tree (which informs its growth) and culture as the branches (which are visible to the world). A strong corporate culture is built on a solid foundation of shared values. They work in tandem to create a cohesive and thriving work environment. Without strong roots, the branches will falter.

Why a Strong Corporate Culture Matters More Than Ever

You’ve poured your heart and soul into creating a successful business strategy. But here’s the thing: PwC’s 2021 Global Culture Survey showed that business leaders with a distinctive company culture were 80% more likely to report employee satisfaction than companies without a strong culture. Without a strong culture aligned with your company’s values, all your strategic plans might fall flat. This is why organizational structure is so important, as it can make or break company goals.

Here are several compelling reasons why you should be prioritizing corporate culture:

1. It Attracts (and Retains.) Top Talent

Seventy-seven percent of workers seriously consider a company’s culture before applying for a position. Nearly half of all employees said they’d be willing to accept less pay for a job at a company with a better culture (source). In today’s competitive job market, a positive company culture is essential for employee retention, and it can make or break your recruitment efforts.

2. Higher Employee Engagement

Employees who feel connected to their company’s culture and resonate with its values are more likely to be fully committed. In fact, companies known for having a positive workplace environment have 72% higher employee engagement. Higher levels of employee engagement translate to increased productivity, reduced turnover, and a more motivated workforce.

3. Improved Customer Relationships

Customers don’t just buy products or services; they buy into the values a brand represents. An MIT Sloan Management Review article references a large-scale B2B customer study. They found that shared values deeply impact consumer decisions. When consumers believe in a company’s ethics, they’re more likely to become loyal advocates.

4. Drives Innovation

A culture that encourages open communication, collaboration, and creative thinking helps foster a breeding ground for new ideas and innovative solutions. When employees feel safe to experiment and take risks, your organization will stay ahead in today’s fast-paced business world.

5. Impacts Your Bottom Line

Did you know companies with engaged employees experience higher profitability (up to 21% higher)? This was a key takeaway from a Gallup study. While it might seem counterintuitive, focusing on people, rather than just profits, is good for your financial performance.

Defining Your Values

While defining your corporate culture development might seem overwhelming, breaking down the process can be surprisingly straightforward. Let’s explore some of the key values that many of the most admired companies share:

Customer Focus

Companies that truly prioritize customers make sure it’s reflected in every aspect of their operations, not just customer-facing roles. For example, Google, often cited as having a strong customer focus, is known for data-driven decision-making. Their products and services are created around providing a seamless customer experience. It’s no coincidence they’ve consistently been a market leader. Their internal culture revolves around putting the customer first.

Innovation

When employees are encouraged to experiment, share ideas freely, and think outside the box, magical things start to happen. But real innovation needs a supportive environment. Adobe’s values specifically include “genuine” and “exceptional.” This is reinforced internally by only celebrating successes that meet these criteria, leading to more purposeful creative results.

Sustainability

These days consumers are placing greater emphasis on brands committed to making a positive impact on the environment and in their communities. When considering their overall company values, Coca-Cola has integrated sustainability initiatives such as minimizing their water usage and reducing their carbon footprint. These initiatives demonstrate their values in action.

Diversity & Inclusion

Workforces comprised of diverse perspectives with equitable systems in place not only attract a wider range of talented people but also contribute to a richer, more inclusive environment. A company known for its strong diversity and inclusion efforts is Airbnb. In addition to numerous employee-led resource groups for people of different ethnicities, sexual orientation, and those with disabilities, Airbnb has implemented strict anti-discrimination policies. This helps them create a better work environment for all their team members.

Turning Values Into Actionable Steps

It can be easy to fall into the trap of viewing corporate culture and values as just trendy buzzwords. This can have a damaging effect, especially when employee perception doesn’t reflect a company’s stated values. Research suggests that a wide gap exists between the corporate culture many leaders believe they’re promoting and the actual experience of their employees. A traditional corporate culture does not have this problem.

The key to avoiding this is transparency and authenticity. To build a corporate culture that genuinely resonates, you must be intentional about translating your values into actionable initiatives. Consider the dress code, employee benefits, and the overall organizational culture. All of these play a factor.

Communicate Openly

Don’t just relegate your values to some dusty employee handbook no one reads. Incorporate your mission and values into regular internal communication, performance reviews, and even day-to-day interactions.

Lead By Example

Employees are far more likely to buy into your values if they see their leaders truly living them, not just paying them lip service. Remember the saying, “People don’t leave jobs; they leave managers?” This is a clear indication of the critical importance of values-based leadership in all levels of your organization.

Measure and Adapt

Just like with any other critical aspect of business, periodically measuring your progress is important. Implement systems to collect anonymous employee feedback on a consistent basis through simple surveys or even during all-hands meetings to gauge the health of your corporate culture. Collective problem-solving is a great way to improve company culture.

Conclusion

A thriving company culture, carefully cultivated and built upon clear values, is no longer a nice-to-have; it’s essential for success. When leaders prioritize corporate culture and values, they attract top talent and drive business results. They also create a more engaged, motivated, and happier workforce. This results in an organization poised for greater innovation and sustainable growth. As business leaders and HR professionals know, your people are your greatest asset, and nurturing a company culture that reflects this belief should always be a top priority.