Corporate culture

Corporate culture is the values, ideals, beliefs and expectations (VIBE) shared by members of a business that drives actions, decision making and impacts on the entire business.

A business will want its corporate culture to be described and acknowledged as being one that is positive in the eyes of all key stakeholders.

Managers play a big part in determining the culture of a business, they must play a role in monitoring and putting in place strategies to develop and alter the culture of a business.

What does a positive corporate culture look like???

• Hard work and high standards is the accepted behaviour amongst employees

• Diversity and inclusion is embraced

• Employees are encouraged to improve/develop themselves

• Strong, social bonds are acknowledged as being an important part of the workplace

• Working collectively as a team is prioritised

• The workplace aims to accommodate the individual needs of its employees e.g. flexible working arrangements

Official corporate culture

Official corporate culture is the values and beliefs of the business revealed to the wider community through company mission statements, slogans, policies and the overarching objectives of the business.

E.g.: Below are some of the official VIBEs included on the website of one particular clothing manufacturer (Patagonia): Build the best product Cause no unnecessary harm Use business to protect nature

Real corporate culture

Real corporate culture reflects how things actually are within the business and can often be identified in the way people behave, treat each other (employees and customers), dress and communicate with one another.

What does real corporate culture look at like at Patagonia…

• Patagonia’s workplace culture rewards the ensemble player, not those who want the limelight

• Encourages peaceful environmental protests

• After 1 year of employment, employees can take up to two months off, with pay, to volunteer with an environmental organisation or project

• The business actively encourages employees to pursue a sport they love

• Provides employees a 3-day weekend every fortnight

• Onsite childcare

• Provides 1% of sales revenue to environmental groups

• Actively campaigned against Black Friday sale

Benefits of having a positive corporate culture and one where official and real corporate culture match up

• Increased productivity as employees are motivated to do their best for the business

• Reduced behavioural issues, as all employees embrace the same approach to work

• Enhances a business reputation

• Reduced staff absenteeism and turnover as employees are less likely to leave a business when they experience a positive corporate culture

• The business is attractive to new employees, allowing the business to pick from the best candidates in the field

The benefits experienced by Patagonia

• 91% of employees at Patagonia say it is a great place to work compared to 59% of employees at a typical U.S. based company

• An employee turnover rate of only 4% (average is 13%)

• The business has over $1 billion in sales revenue annually and over 3000 employees

• Will have upwards of 9000 applications for jobs when they become available