<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=277773366320008&amp;ev=PageView&amp;noscript=1">

Subscribe to Email Updates

Text Size

- +

Why-Corporate-Culture-Matters---compressor.jpgYou’ve probably heard the term “corporate culture” at some point. Whether you’re the hiring manager or a CEO, you’ve probably used the term yourself. 

It’s something that gets talked about frequently. Savvy human resources managers know corporate culture matters to your organization. Here’s why.

Download our free guide to find out how small businesses are saving time and  money on HR admin.

What Is Corporate Culture?

Corporate culture is embodied in your mission statement, your brand values, and your company ethics. It’s reflected in every action you and your employees take. 

Many people now realize corporate cultures need to become more positive than they traditionally have been. Many organizations are taking steps to renew their values and shift their focus to create better corporate cultures.

It Affects Your Workplace

Human resources staff talk a lot about corporate culture. This is because its effects are primarily felt in the workplace. Employees are more motivated and engaged when their values align with corporate values. 

Corporate culture also affects the “feel” of the workplace. Most employers and employees want the workplace to be a positive place. It should be somewhere employees actually enjoy being. Not every day is going to be a fantastic day at the office, but wouldn’t it be great if your employees truly looked forward to getting to work? 

Corporate culture can make it happen. A positive culture in the workplace fosters better interpersonal relationships among employees, recognizes talent, and makes the office a better place to be.

It Reduces Turnover

Corporate culture is sometimes given as a reason for considering a new job. Employees may express the idea they weren’t appreciated. They might say they just weren’t a good “fit” for the company. Their values didn’t align with yours.

Most hiring managers look for cultural fit since it reduces the chance newly hired employees will leave shortly after. Someone whose values aligns with those of the company will likely stay on longer. They might be more engaged and even more productive.

Even your long-term employees may eventually fall out of step with the corporate culture. Working toward a dynamic and positive culture can help you retain employees over the short term and the longer term, reducing turnover.

It Influences Customer Interactions

Whether you’re selling direct to a consumer or to another business, you and your employees no doubt have some interactions with your customers. How you interact with those customers is, in large part, influenced by your corporate culture.

How does corporate culture influence customer interactions? Keep in mind your values and your ethics are embedded in your culture. Those values and ethics guide how you interact with everyone around you, including vendors and clients.

Corporate culture also influences your employees’ attitudes. A positive culture motivates employees and engages them in their work. The more motivated and engaged your employees are, the more likely it is they’ll have positive interactions with your customers. They’ll be willing to go the extra mile and deliver fantastic customer service or to look for innovative new solutions for a loyal customer.

It Affects Your Reputation

If you’re consistently delivering great customer service, and your employees are always pleasant to interact with, your customers will recommend you. If you uphold your values and ethics in the public arena, even those who don’t do business with you will have a more positive opinion of your company and what you do.

If your corporate culture emphasizes being environmentally friendly, for example, think about actions that can demonstrate this value. Maybe your company contributes to a wildlife preservation fund or you encourage your employees to go on tree-planting excursions. Your visible actions show the world what’s important to you and what your organization stands for. 

As you can see, corporate culture is important. It has far-reaching implications for any organization. Now’s the time to consider your own organizational culture and begin working toward an even brighter future.


Kaneez Jaffer

Kaneez Jaffer

Kaneez is a Certified Human Resources Leader (CHRL) with an advanced knowledge of human resources and organizational structure and design. She has extensive experience with HRIS systems and understands the need to move HR from a transactional model to a transformational one. She has worked in the investment banking, insurance, and legal industries, as well as with large not-for-profit centres helping to simplify and streamline their internal systems. Kaneez is an expert in building relationships and affecting change in a positive and productive way. She acts as the key HR business partner at Apri Insurance Services Inc, managing the implementation of JungoHR, while providing expert advice and counsel on a range of HR matters. Kaneez holds a Graduate Certificate in Human Resources Management as well as a Certificate in HR Law for HR Professionals from Osgoode Hall Law School in Toronto, Canada.