What Does Culture Mean In Business? | Why Is Company Culture Important

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Culture illustrates the accepted norms, values and the acceptable behavior of a group.
Culture can be defined as an evolving set of collective beliefs, values, ethos, and attitudes.
Culture is a key component in business because it impacts on the strategic direction of your business.
Business culture is its own unique dimension that includes dress codes, brand messages, how to conduct meetings, hiring decisions, employee relations, customer service, and social media use.
Business culture is related to behavior, ethics, etiquette and more. A business culture will encompass the organization's values, visions, working style, beliefs and processes.
Derivation of "Culture" - In late Middle English the sense was ‘cultivation of the soil’ and from this (early 16th century), arose ‘cultivation (of the mind, faculties, or manners’)
A company’s culture is the only truly unique identifier. It is like a finger print, it may be similar to others, but is uniquely distinct to your business. Everything else (products, strategies, marketing, even innovations) can be replicated, but the only truly unique identifiers are the values and norms of the organization – its culture, or personality. A positive culture in business today is unfortunately the exception rather than the norm, but a strong organizational culture can clearly differentiate a business from its competitors in the mind of its stakeholders.
Organizational culture consists of shared beliefs and values established by the organization’s leaders and then communicated and reinforced through various methods, ultimately shaping employee perceptions, behaviors and understanding. Simply speaking, a company’s structure and design can be viewed as its body, and its culture as its soul. The definition of organizational culture is a shared set of shared values and norms that characterize a particular organization. A strong culture, in which members agree upon and care intensely about organizational values, can improve business performance by motivating employees and coordinating their behavior towards a vision and specific performance goals that benefit the company.
Companies with strong cultures tend to be higher performers.
Typically, companies with a strong culture tend to produce superior results as compared to those with weaker cultures. When a culture is strong, it leads to motivated employees and high performing managers. Over the past few decades, both academics and practitioners have spent time focusing on the issue of corporate culture and whether a company’s culture does in fact impact its overall performance and effectiveness.
Strong culture leads to ongoing involvement and participation by a company’s employees, and can predict current and future financial performance. A recent study shows that culture can be an integral part of the ongoing change process (all company’s are in a constant state of change due to competitive market and other pressures), and that certain cultural traits may be utilized as predictors of an organization’s performance and effectiveness (Toward a Theory of Organizational Culture and Effectiveness By Daniel R. Denison and Aneil K. Mishra - Organization Science, Vol. 6, No. 2, March-April 1995).