Organizational culture influences how a company presents itself and how others perceive it.
Where the idea of organizational culture begins
To understand organizational culture, it helps to consider how groups form and work together.
The Latin word societasrefers to association among people. Communities form through relationships and shared activity.
Humans have long depended on interaction and cooperation with others.
The source article describes social development through several dimensions. The practical point is that relationships influence individual and group experience.
Connections with others can help people grow and build valuable relationships.
Society provides the setting in which institutions and businesses operate.
Companies are one kind of institution, creating products, services, and economic value.
Definition
Organizational culture brings together shared beliefs, values, knowledge, and perceptions. It affects employees as well as customers and the public.
Within a company, culture is visible in the values and practices that guide people toward common goals.
Culture also influences corporate identity and reputation. Clear, consistent practices can support more stable processes.
Characteristics
Important aspects of organizational culture include:
Values, standards, and rules
The organization communicates principles that guide employees' conduct and decisions.
Structure
Guidance should account for teams, departments, senior management, and the board of directors, so responsibilities are clear across levels.
Corporate image
Internal culture can be reflected externally in the public's experience and perception of the company.
Components of organizational culture
The foundations of culture often include:
Mission
A statement of why the companyexists and what it seeks to contribute.
Vision
A future-oriented goal that can inspire employees.
Values
The beliefs and principles that guide decisions, including ethical expectations that people can put into practice.
Philosophy
Broader ethical and moral principles, often recorded in company guidance and available to members of the organization.
Culture and workplace climate
The two concepts are connected. Culture is the shared pattern of values and practices; climate is how people experience their interactions and working conditions day to day.
Without useful ethical guidance, relationships can deteriorate and the workplace may become less productive.
How can organizational culture develop?
People learn and relearn culture. Simple, practical language helps everyone understand the values and expected conduct.
Key tools for corporate culture
Three tools can help put ethics into practice:
Code of Ethics and Conduct
Senior leaders should introduce the code, express their commitment, and explain its goals.
Ethics hotline
A channel can receive concerns or questions that people may be afraid to raise directly.
Measuring ethical culture
Assessments can show whether messages are reaching people and which expectations need clearer explanation.
EthicsGlobal and organizational culture
Organizations seeking improvement need an ethical culture that is clear, transparent, and practical. EthicsGlobal can support its development.
We value high ethical standards and believe cultural differences need not prevent a strong corporate culture from developing.
You have read What Is Organizational Culture? We also recommend: What Is Corporate Governance?
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