We always hear some top management of large corporations mentioning their corporate culture. So what exactly is a “corporate culture”?

Corporate culture is an organization’s unique culture consisting of its values, beliefs, and ways of doing things. Corporate culture is an implicit interpersonal rule in an organization. If it can be properly combined with individual values, motivations and needs, corporate culture can be a strong driving force that pushes the team to pursue common goals, and facilitate strong business growth.

Corporate culture may seem abstract, but research shows that corporate culture can be managed. “Harvard Business Review” summed up eight measurable corporate culture styles:

1. (1) Caring. Emphasis on relationships and mutual trust. The working environment emphasizes collaboration, inclusiveness and openness, and members of the organization support each other. Leadership emphasizes authenticity, teamwork, and positive relationships.
2. (2) Purpose. The work environment is inclusive and empathetic, members of the organization are committed to creating long-term value for the future. Employees’ cohesion comes from a focus on sustainability and the global community.
3. (3) Learning. Characterized by exploration, extraversion and creativity. The working environment is innovative and open-minded, and members of the organization actively seek creative inspiration and explore different possibilities. Leadership emphasizes innovation, knowledge and risk taking.
4. (4) Enjoyment. The working environment is relaxed and pleasant, and members of the organization tend to do what makes them happy. Employee cohesion comes from games and stimulation, and leadership emphasizes spontaneity and a sense of humor.
5. (5) Results. Emphasis on achievement and winning. The working environment emphasizes results and capabilities, and members of the organization pursue excellence. The cohesion of employees comes from the desire for ability and success, and leaders emphasize the achievement of goals.
6. (6) Authority. Characterized by strength, determination, and boldness. The work environment is highly competitive and members of the organization strive for personal advantage. The cohesion of employees comes from strong control, and leaders emphasize self-confidence and dominance.
7. (7) Safety. Emphasis on planning, prudence and full preparation. The working environment is stable, and the members of the organization are well thought out. The cohesion of employees comes from being protected and anticipating changes, while leaders emphasize down-to-earth and pre-planning.
8. (8) Order. Emphasis on respect, structure, and collective codes. The working environment is orderly, members of the organization abide by the rules, the cohesion of employees comes from collaboration, and leaders emphasize compliance with rules and regulations and traditional habits.

Corporate CEOs and founders often express their views on corporate culture in public, helping us understand the culture that linger in their minds and lead their companies. Let’s look at some of the examples:

Unique corporate culture

Each cultural style has its pros and cons, and none of them is superior. An organization’s culture can be defined by styles of absolute and relative advantage, as well as by employees’ identification with particular styles. Corporate culture is a kind of value and management concept, which leads employees to achieve the mission and goals of the company. Therefore, every company needs to establish its own corporate culture. Enterprises with different operations or scales require different management methods, and more importantly, different corporate cultures. Business owners should ask themselves what kind of culture does the company need?

After understanding what corporate culture is, in the next article, we will share how to shape corporate culture.