What is Corporate Culture?

Corporate culture refers to the beliefs and behaviours that determine how a company’s employees and management interact and handle external commercial transactions. Corporate culture is reflected in company’s dress code, work ethics, business hours, turnover, hiring decisions, and professionalism etc. For instance, many big multinational companies are known for their employee-friendly corporate culture. Google is one such company. It calls itself as unconventional in terms of company culture. It is known for providing all kinds of facilities to its employees which includes free lunch, on-site medical facilities, on-site services such as massages, fitness centers, car wash, etc. It is because of such a culture that Google is one of the most sought after companies in the world.

The term corporate culture was developed in 1980s and by 1990s it became a widely known term. During this period, corporate culture meant the character of the company which had generalized beliefs and behaviour, company’s value systems, management strategies, employee communication and relations, work environment, attitude, logos and trademarks as its parameters. Today, the top companies have redefined corporate culture when the companies such as Apple, and Google have moved to creating a culture of collective problem solving, greater employee freedom, mitigation of the hierarchies, doing away with closed offices, cubicles etc., a trend which is different from aggressive, individualistic and high-risk corporate cultures of earlier decades.

The Harvard Business Review identifies six important characteristicsof corporate culture. First and foremost is ‘vision’. In this context, a company’s vision acts as a powerful tool. This can be seen in different types of slogans framed by diferent companies. Secondly, ‘values’ generally embodies the mentalities and perspectives necessary to achieve a company’s vision. The third is ‘practices’ which refer to tangible methods, guided by ethics, through which a company implements its values. For example, many companies emphasize on the importance of skill-based and efficient employees. The fourth is ‘people’. In this the companies employ and recruit in a way that reflects and enhances their overall culture. Fifth and sixth features are ‘narrative’ and ‘place’ respectively. A powerful narrative, such as that of Apple, is important for growth and public image. Similarly, the ‘place’ of the company and transaction, such as the city of choice and office design and building, also come up as one of the most cutting-edge advents in contemporary corporate culture.