����ý

What is corporate culture?

Corporate culture is normally defined as The way things are done around here. This means the way in which the attitudes, beliefs, values and norms of the firm are visible and evident and shared by all employees in the organisation.

Examples of corporate culture can be found in:

• staff uniforms
• the corporate logo and colour scheme
• the mission statement
• company policies
• incentives and rewards for staff
• training and development of staff
• teambuilding for employees

What are the benefits of corporate culture?

Staff

Staff will feel as if they belong to the firm, and this will increase their loyalty. As a result fewer staff will leave.

Staff are more likely to feel valued and want to work for a firm if it promotes excellence or quality in their culture. This can boost staff motivation as they will want to be seen as part of a successful or innovative company.

Company values and perks can attract high quality staff, resulting in a higher quality service.

Customers

A corporate identity will be seen by customers and will be associated with the company’s brand. Customers may become aware of the standards and culture the company stands for, which may increase profits.

For example, the Animation Studio Pixar have a strong corporate culture of creativity, excellence, continuous improvement and innovation. Pixar only allow their employees to pitch ideas for their next blockbuster.

What are the costs of developing a corporate culture?

• It can take a long time to develop or change the corporate culture of a business.
• The most successful corporate cultures are often created when a business is founded. It can be difficult to change a company’s corporate culture once it is imbedded.
• Not all staff will feel comfortable with a business’s corporate culture. This could lead to less creativity within the business.