What are the Four Types of Corporate Culture? (And How to Choose Yours)

What is Corporate Culture?

The term “corporate culture” is ubiquitous, it’s everywhere and anywhere. But that doesn’t mean it’s easy to define, or defined correctly. Generally, it describes the overall environment within an organization.

Inc. magazine provided a commonly used definition: “Corporate culture refers to the shared values, attitudes, standards, and beliefs that characterize members of an organization and define its nature. Corporate culture is rooted in an organization’s goals, strategies, structure, and approaches to labor, customers, investors, and the greater community.”

→ Read more: What is Company Culture? Importance and Best Practices

— Why is it Important?

Every business has its own vision for success. Executives and founders then develop a set of goals for achieving it. Employees bring their diverse skills and abilities to the mix. These elements make up the best types of corporate culture, which sets out how the company is going to do business and treat its customers. Ideally, the company culture brings employees together and helps to propel everyone in the organization forward so that the company reaches its goals.

— The Role of Corporate Culture

1. Companies with good corporate cultures have higher employee engagement ratings.

A healthy corporate culture makes employees feel that their contributions are valued. Engaged employees are more productive in their work, which has a direct impact on the company’s bottom line.

2. A good corporate culture reduces turnover rates.

When employees don’t feel as though they fit in, they will start looking for work elsewhere. They may not feel welcome due to a negative environment at work or when the company culture does not fit with their values. A good company culture is inclusive and recognizes the value and contribution of each employee.

3. A positive company culture can help attract higher-quality candidates.

Job seekers will evaluate the corporate culture as part of making their decision of whether they want to work for a particular organization. When the culture is a positive one, it attracts top candidates and makes them excited at the prospect of working for the company.