What is Corporate Culture and Why is Important?


As a business owner or a manager, you need to invest time in creating and improving your company’s culture. It’s like the personality of any organization, it portrays the company’s, values, mission, ethics, beliefs and goals. It is very important to an organizations success and overall health. It’s the DNA of any organization and it is reflected in everything from how the employees would describe the organization to the quality of service the company renders. It isn’t something that just happens, it is something that has to be planned, developed and nurtured.  If as a business owner or manager you haven’t given much thought to developing or improving your corporate culture, then you should definitely keep reading this article, this article is going to highlight why corporate culture is important.

What is Corporate Culture and Why is Important
Source: Questback

First, let’s define what corporate culture is; corporate culture is the organization’s vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits (Needle, 2004). It is essentially the way things are done in an organization and it is important because of the following reasons:


It gives an organization its identity. It goes a long way in creating the brand’s image, which is what distinguishes it from other brands. Your corporate culture is how customers and employees perceive you. It resonates across all aspects of your business because it represents the way you do business. Your corporate culture is simultaneously your identity and your image.


A shared corporate culture promotes unity among employees. It unites people from different backgrounds, giving them a common goal. When your culture is clear, boundaries are broken. It also improves the overall workflow, guides decision making and promotes better communication.


A great corporate culture breeds healthy competition among employees, with the right culture employees, will strive to perform better so as to earn recognition. It motivates the employees to give in their best and encourages them to make improvements to areas where they are weak.


It gives your employees a sense of direction, it helps them understand their role and how important it is to accomplishing the goals of the company. It keeps employees focused on their tasks and discourages focus on unproductive tasks.


Everyone one wants to be appreciated and wants to truly feel like they are a part of a community. A good corporate culture motivates your employees and promotes loyalty. If employees view themselves as part of their organization’s culture, they would work tirelessly to contribute to the company’s success. They would see a win for the company as a personal win.

These are a few of reasons why developing a great corporate culture is important. For the overall health of your organization, it is crucial you start to develop and improve your corporate culture today.


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