What is Company Culture?

Company culture refers to the shared values, beliefs, behaviors, and practices that define how an organization operates and how its employees interact with one another. It includes the environment within the workplace, the company’s core purpose, its leadership style, and the expectations of how work should be approached. Company culture can be observed in day-to-day interactions, decision-making processes, the way employees collaborate, and the overall atmosphere in the office (or remote workplace). A strong company culture is intentionally built through policies, leadership behaviors, and the company’s overall approach to employee engagement, while a weak culture can lead to misalignment, low morale, and lack of direction.

Company culture is like the personality of your business. It’s how people feel when they work there, how they treat each other, and what values guide the work. Culture influences everything from how employees communicate to how decisions are made. For example, some businesses might have a relaxed and fun culture where creativity and innovation are encouraged, while others may have a more formal culture focused on structure and reliability. It can also impact your work environment—whether it’s friendly and collaborative or competitive and fast-paced. A good company culture helps employees feel aligned with the business’s goals and motivated to contribute, making work a more enjoyable place to be.

Yes, building a strong company culture is critical for small businesses. As a small business owner, your company culture can be a major driver of employee satisfaction, productivity, and retention. When employees feel valued and aligned with the company’s mission, they’re more likely to stay and perform well. In small businesses, where resources are often limited, creating a positive culture can make a big difference in employee engagement and overall business success. While you don’t need to have a formalized culture-building plan right away, setting clear values and showing them through your actions is a great place to start. A positive culture can also attract the right kind of talent, which is key when your team is small but mighty.

• It’s Just a Buzzword. Some think company culture is just trendy jargon, when in reality, it has a measurable impact on employee engagement and business success.
• It Only Matters for Big Companies. Many assume culture is only important in large corporations, yet even small businesses thrive when their team feels connected and valued.
• Culture Is Innate and Unchangeable. A common misconception is that culture is set in stone, but it can be intentionally shaped through consistent values, behaviors, and leadership practices.