Corporate culture is the backbone of any organisation, shaping its identity, values and way of working. It influences the atmosphere in the workplace, the effectiveness of teams and the external image of the company. As the eminent management expert Peter Drucker aptly put it: "Every time you see a business succeeding, it means that someone once made a brave decision.". Quotel perfectly captures the essence of corporate culture - it is the bold decisions and consistent actions of leaders that shape the working environment that can lead an organisation towards success or failure.
What is corporate culture?
Corporate culture comprises a set of values, beliefs, behaviours and practices specific to an organisation. It shapes the way employees collaborate, make decisions and represent the company externally. The importance of corporate culture extends far beyond the internal workings of a company. It directly influences:
- Employee involvement
- Efficiency of teams
- Innovation and creativity
- Ability to attract and retain talent
- Relationships with customers and business partners
- The company's reputation in the market
Corporate culture, however, is not limited to the company's mission or vision statements. Instead, it manifests itself in day-to-day interactions, decision-making processes and the way the company responds to challenges and market changes. An authentic and consistent culture builds trust among employees and customers, creating a solid foundation for the long-term development of the organisation.
Organizational culture in your company matters.
Create the desired image and attract the best employees.
Types of corporate culture
Corporate culture takes different forms, adapted to the specific industry, the organisation's goals and the values of its founders. There are four main types of corporate culture, each carrying unique characteristics and challenges:
Clan culture - It is characterised by a family atmosphere, strong bonds between employees and an emphasis on collaboration and personal development. Companies with a clan culture often resemble an extended family, with leaders acting as mentors and guardians. Example: Zappos, an American e-commerce company, is renowned for its culture based on trust and close relationships between employees. Their 'Deliver Happiness' approach goes beyond standard HR practices to create a unique working environment.
Culture of adhocracy - It focuses on innovation, flexibility and risk-taking. Organisations with this culture value creativity, rapid adaptation to market changes and individual initiative. Example: SpaceX, the company founded by Elon Musk, epitomises a culture of adhocracy. Their motto 'Fail fast, learn fast' encourages employees to experiment and push technological boundaries.
Market culture - It focuses on results, competitiveness and achieving goals. Companies with this culture often operate in dynamic industries where speed and efficiency are important. Example: Amazon, known for its customer and results-oriented culture. Their 'customer obsession' approach shapes every aspect of the company's operations - from logistics processes to new product development.
Culture of hierarchy - It is based on clearly defined structures, procedures and controls. Organisations with this culture value stability, predictability and operational efficiency. Example: Banks and financial institutions often adopt a culture of hierarchy due to the need for strict control and regulatory compliance. JP Morgan Chase is an example of a company that balances traditional structure with innovation.
The importance of corporate culture goes far beyond the internal workings of a company. It directly affects employee engagement, the effectiveness of teams and the organisation's ability to attract and retain talent. Corporate culture also plays a major role in employer branding (employer branding). In an environment dominated by social media and platforms such as Glassdoor - where employees openly share their experiences, an authentic and positive organisational culture becomes a key factor in attracting the best talent.
How to build a positive corporate culture?
The clearly defined foundations of the organisation are the starting point for shaping the corporate culture. The mission statement should answer the question "why do we exist?", the vision statement defines the long-term goals and the values define the principles that guide the company in its daily operations.
Example: Patagonia, the outdoor clothing company, has a clearly defined mission: "We're in business to save our home planet".. The declaration shapes every aspect of the company's operations, from production to community involvement.
Building a culture of trust requires transparency in action and open communication at all levels of the organisation. Regular team meetings, townhalls with management or platforms for sharing ideas foster commitment and a sense of belonging. Investing in the development of employees improves their competence, but also builds loyalty and commitment. Mentoring programmes, training or the possibility to rotate between departments allow employees to develop within the organisation. A culture based on strong interpersonal relationships fosters effective collaboration and innovation. Organising team-building events, supporting employee initiatives or creating spaces for informal interaction builds a sense of community.
Systems for rewarding and recognising employees should be consistent with company values. It is not just about financial rewards, but also about public recognition, development opportunities or flexible working arrangements.
Example: LinkedIn has introduced a programme "InDay"where, once a month, employees can dedicate a day to personal projects, volunteering or personal development. The initiative is part of the company's culture based on innovation and personal development. To better understand how InDay works at LinkedIn, we encourage you to watch the video below:
Building a positive corporate culture is a long-term process that requires commitment at all levels of the organisation. It is essential that the declared values are reflected in everyday practices and business decisions. Only then does the culture become authentic and able to make a real impact on the success of the organisation.
Toxic corporate culture - how to avoid it?
A toxic corporate culture can have a devastating impact on an organisation, leading to a decline in productivity, high employee turnover and a negative corporate image. Recognising the symptoms of a toxic corporate culture and taking corrective action is important for the long-term success of the organisation.
Symptoms of a toxic corporate culture:
- Lack of trust and transparency
- Excessive control and micromanagement
- Lack of work-life balance
- Favouritism and nepotism
- Lack of development and promotion opportunities
- Toleration of unethical behaviour
- Poor internal communication
- Focusing on mistakes instead of solutions
Research by the MIT Sloan Management Review found that a toxic corporate culture is a 10.4 times stronger predictor of employee resignation than dissatisfaction with compensation.
Building a healthy atmosphere
To effectively improve the atmosphere in a company, it is worth starting with an analysis of the problems faced by employees. Conducting anonymous surveys allows you to identify areas that need attention. Based on the data obtained, workshops and training on communication, conflict management and business ethics can be organised. It is also an important step to set up a secure whistleblowing system that ensures anonymity for whistleblowers.
At the same time, it is worth reviewing HR policies, including recruitment procedures, employee appraisals and promotion processes, to make sure they are fair and transparent. Supporting work-life balance through flexible working and well-being programmes significantly contributes to employee well-being. Regular team meetings and individual feedback sessions foster a better understanding of employees' needs and build trust.
Executives should be included in mentoring and coaching programmes to help develop their competence in managing a team. At the same time, it is worth celebrating successes and regularly recognising employees' contributions to the company.
Trends in corporate culture
Analysing the practices of market leaders and observing the latest trends in corporate culture provides valuable insights for organisations seeking to improve their working environment. Let's take a look at some inspiring examples shaping the future of corporate culture.
Google - a culture of innovation and openness Google is famous for its '20% time' policy, which allows employees to dedicate one day a week to projects not directly related to their duties. An example of the success of this initiative is the creation of Gmail, one of today's most popular email tools. The company also organises weekly 'TGIF' (Thank God It's Friday) meetings where employees can ask questions directly to management. According to research, these activities translate into more engaged teams, and Google has been ranked high in the world's best places to work for years.
IKEA - a culture of equality and sustainability The Swedish furniture giant promotes a flat organisational structure, where hierarchy is minimised and employees are encouraged to express their opinions regardless of their position. IKEA also engages in sustainability initiatives - such as material recycling and carbon-reducing projects. Through these activities, the company attracts people who identify with its values.
Netflix - a culture of responsibility and freedom Netflix has built a unique 'culture of freedom and responsibility', where employees have a high degree of autonomy in decision-making but also take full responsibility for their decisions. The unlimited leave policy, although initially controversial, has made the team feel more free to manage their time. This fosters both creativity and work-life balance. As the data shows, this approach promotes faster problem solving and increased productivity.
Corporate culture is the foundation of any organisation's success. Its conscious shaping, based on authentic values and consistent practices, can become a factor of competitive advantage. Today, when talent and innovation are at a premium, it is a unique and positive organisational culture that can determine a company's ability to attract and retain the best employees and build lasting relationships with customers.