what is corporate culture 
corporate culture refers to the values beliefs and behaviors that determine how a company s employees and management interact perform and handle business transactions often corporate culture is implied not expressly defined and develops organically over time from the cumulative traits of the people that the company hires a company s culture will be reflected in its dress code business hours office setup employee benefits turnover hiring decisions treatment of employees and clients client satisfaction and every other aspect of operations investopedia paige mclaughlinunderstanding corporate cultureawareness of corporate or organizational culture in businesses and other organizations such as universities emerged in the 1960s 1 the term corporate culture developed in the early 1980s and became widely known by the 1990s corporate culture was used during those periods by managers sociologists and other academics to describe the character of a company 2corporate culture emanated from generalized beliefs and behaviors company wide value systems management strategies employee communications and relations work environment and attitude it would go on to include company origin stories put forth by charismatic chief executive officers ceos as well as visual symbols such as logos and trademarks corporate culture is not only created by the founders management and employees of a company but is also influenced by national cultures and traditions economic trends international trade company size and products there are a variety of terms that relate to companies affected by multiple cultures especially in the wake of globalization and the increased international interaction of today s business environment these include companies often devote substantial resources and effort to create positive cross culture experiences and to facilitate a more cohesive and productive corporate culture the awareness and importance of corporate culture is more acute now than ever big four accounting firm deloitte found that 94 of executives believed that a distinct corporate culture is important for business success 3importance of corporate culturea carefully considered even innovative corporate culture can elevate companies above their competitors and support long lasting success such a culture can types of corporate cultureclan cultures are about teamwork and collaboration in such a culture those in management function as enthusiastic mentors who provide guidance to subordinates good relationships encouragement trust and participation are key aspects the contribution potential of every employee is a component of a clan culture also clan culture can easily adapt to change and implement needed action quickly adhocracy culture creates an entrepreneurial workplace in which executives and employees function as innovators and risk takers in this flexible environment agile thinking is nurtured employees are encouraged to pursue their aspirational ideas and take action to achieve results that can advance company goals new and unconventional products and services are the main outcome of the adhocracy culture market culture is focused on meeting specific targets and bottom line goals this culture creates a working environment that s competitive and demanding management is most interested in business results employees are encouraged to work hard and get the job done to enhance a company s market presence profits and stock price while employees may feel stressed in such a workplace they can also feel enthusiastic and excited about their work a hierarchy culture is a traditional corporate culture that functions according to a company s executive management and staff organizational structure that is it follows the chain of command from top down where executives oversee employees and their work efforts to meet specific goals the hierarchy culture prizes stability and conventional methods of operation the work environment can be seen as more rigid than some other cultures but employees can clearly understand their roles and objectives they may also feel a sense of security because of the more conservative approach to running a company examples of contemporary corporate culturesjust as national cultures can influence and shape corporate culture so can a company s management strategy in top companies of the 21st century such as google apple inc aapl and netflix inc nflx less traditional management strategies that foster creativity collective problem solving and greater employee freedom have been the norm they are thought to contribute to business success alphabet googl the parent of google is well known for its employee friendly corporate culture it explicitly defines itself as unconventional and offers perks such as telecommuting flextime tuition reimbursement free employee lunches and on site doctors at its corporate headquarters in mountain view calif the company offers on site services such as oil changes car washes massages fitness classes and a hairstylist its corporate culture helped it to consistently be regarded as one of the best places to work progressive policies such as comprehensive employee benefits and alternatives to hierarchical leadership even doing away with closed offices and cubicles have been trends that reflect a more tech conscious modern generation of corporate culture these trends mark a change from earlier aggressive individualistic and high risk corporate cultures such as that of former energy company enron high profile examples of alternative management strategies that significantly affect corporate culture include holacracy this has been put to use at shoe company zappos owned by amazon amzn and agile management techniques applied at music streaming company spotify holacracy is an open management philosophy that among other things eliminates job titles and other such traditional hierarchies employees have flexible roles and self organization and collaboration is highly valued zappos instituted this program in 2013 and has met the challenge of transition with varying success and criticism 4similarly spotify a music streaming service uses the principles of agile management as part of its unique corporate culture agile management in essence focuses on deliverables with a flexible trial and error strategy that often groups employees in a start up environment approach to creatively tackle the company s issues at hand characteristics of successful corporate culturescorporate cultures whether shaped intentionally or grown organically express the core of a company s ideology and practice they affect every aspect of a business from each employee and customer to a company s public image when an organization strives to be multicultural it hires workers from diverse backgrounds to work in every department and at all levels of management the harvard business review identified six important characteristics of successful corporate cultures in 2013 5first and foremost is vision whether communicated via a simple mission statement or a corporate manifesto a company s vision can be a powerful tool values while a broad concept can embody the thinking and perspectives necessary to achieve a company s vision they can serve as a beacon for behavior necessary to progress toward all manner of success examples of values include fairness trustworthiness integrity performance excellence teamwork and a high quality customer experience for example google s famous slogan don t be evil is an expression of values practices are the tangible methods guided by ethics by which a company implements its values for example netflix emphasizes the importance of knowledge based high achieving employees and as such netflix pays its employees at the top of their market salary range rather than through an earn your way to the top philosophy people come next with companies employing and recruiting in a way that reflects and enhances their overall culture plus people are the key to bringing corporate culture to life and obtaining the high value performances that can lead to favorable business outcomes lastly narrative and place are perhaps the most modern characteristics of corporate culture having a powerful narrative or origin story such as that involving steve jobs and apple is important for growth and public image the place of business such as the city of choice and also the office design and architecture is one of the most cutting edge advents in contemporary corporate culture other characteristics of corporate culture can include employees should be encouraged and trained to work together with camaraderie and trust toward common goals the benefits of teamwork such as problem solving the development of innovative ideas and improved productivity should be demonstrated to the workforce companies should provide the means for employees to improve their skills and enhance their knowledge so that the vision and goals of the company can be more reliably reached training and education can also provide employees with a path to new opportunities within their companies this can motivate individuals to learn and do more innovation is exciting and can underscore the spirit of a company s vision it can instill pride confidence and loyalty in the workforce a company s management including c suite executives should be accessible and open to providing assistance that supports all employees 