very company is a small world of its own, made up of people, things, and values. For this reason, recent years have seen a growing recognition of the importance of shaping a corporate culture that permeates every moment of working life and beyond.
But what exactly is corporate culture, and why is it so important to design and implement it? Let’s explore where this concept originates, who helped popularise it, and some tips to ensure your company reflects clear and consistent values.
What is meant by corporate culture?
Corporate culture refers to the set of values, systems, policies, and behaviors that make a company unique and define its essence. Also known as organizational culture, it influences how people relate to the company, whether employees, customers, or suppliers.
From the dress code to working hours, and the benefits offered to employees, there are many aspects that reveal how management has decided to shape and run operations. Going beyond this classic definition, we can say that corporate culture is reflected in every action taken within the company.
But how do you create one? It’s not that simple, because the essence of organisational culture is rooted in a general attitude that must be coherent, clear, and easily recognisable. For example, it can become evident in how a sudden crisis is managed or how a significant mistake is addressed.
While it’s common to draft ad hoc policies to outline a vision of corporate culture, complete with best practices and rules to implement it, true culture only takes root when it is deeply ingrained. It’s not enough to write it in official documents; it must be applied at all operational levels.
Corporate culture according to Edgar Schein
One of the leading theorists of corporate culture is American psychologist Edgar Schein (1928 - 2023), a renowned MIT professor. His model, developed in the 1980s, helps us understand the levels of organizational culture.
Schein defined corporate culture as a dynamic model created to solve problems, made up of shared assumptions within a group. He recognized culture as complex and multifaceted, shaped by various factors. His model is visualized as an inverted pyramid with three levels, from top to bottom:
- Artifacts: the most visible aspects of organisational culture, including tangible elements like office layout and observable behaviors.
- Values: this level includes declared beliefs and standards promoted within the company, such as the mission statement and other official communications.
- Assumptions: the deepest level, made up of deeply rooted beliefs and values taken for granted, often unspoken. These are the true core of corporate culture, influencing decision-making and behavior.
Why corporate culture matters
Applying Schein’s model allows companies to identify different levels of culture and align their corporate culture with strategic goals. If you run a company, identifying your core values can help you create a more positive and efficient work environment. This deep process takes time but can lead to various benefits in how your company operates, engages with people, and makes winning decisions.
With a well-defined corporate culture, you can achieve:
- Greater employee engagement and commitment
- Improved overall staff well-being
- Higher and more consistent performance
- A competitive advantage over rivals
- Lower turnover rates
- Stronger talent attraction during recruitment
How to build a strong organizational culture
Schein’s model offers the tools to assess the current organizational culture and plan for a new one. By analyzing the three levels described, employers and managers can identify strengths, weaknesses, and areas for improvement.
The ultimate goal is to implement targeted initiatives to achieve desired outcomes. Of course, there is no single recipe for success: every company is unique with specific needs. However, there are some universal examples of positive corporate culture.
Examples of corporate culture
Companies can foster a positive corporate culture in many ways, such as promoting open dialogue and cultivating a growth mindset. They can also implement one or more of the following initiatives:
- Create a welcoming workplace environment
- Optimise HR management to truly center around people
- Encourage innovation in every aspect of the company
- Develop thoughtful leadership practices
- Use inclusive communication strategies
- Implement real sustainability policies
- Offer flexible task management
- Provide opportunities for personal and professional growth
- Establish a diverse corporate welfare plan
Corporate welfare and organisational culture go hand in hand
Without an effective corporate welfare plan, you can't truly transform your organisational culture. If you run a business, choose the right solution to optimise your tax benefits and create a positive environment: with Coverflex’s corporate welfare, you can reward staff with a wide range of benefits. From family assistance to leisure activities, shopping vouchers, meal vouchers, and much more, everything is easy and just a few clicks away.
Want to learn more? Explore the Coverflex website to find out how to shape your organisational culture through corporate welfare!
