We believe in companies who’s taking their agency beyond their operations, who stands firm in their belief in their own significance and who doesn’t compromise with their core values. Corporate culture in closely tied to the indicators that we measure in the human centered business framework – purpose, empathy, systems approach and resilience.
So what is corporate culture? According to Edgar H. Schein, Organizational and Corporate culture can be described as the shared norms, values, beliefs and attitudes that companies and their employees possesses – both formal and informal. Every company has a corporate culture, and each is unique. There is a big difference between companies and their various corporate cultures – some have more formal cultures with clear set rules, and some have a more informal culture where the norms and values are embedded in the core of the business.
The conventional view of business is focused on economic goals rather than a holistic view of value and value creating for a diverse array of stakeholders. Economic goals and values are of course one important part of business, but can’t solely be the focus area of a company that strives to thrive in a global context – where challenges and demands are changing and are becoming increasingly complex.
Instead, purpose-driven companies are the game-changers – the ones who will survive, and thrive in the future.
All business activities should be aligned with the company’s purpose, including the corporate culture of a company. This requires that it is built upon a deep understanding of what the company is about – corporate culture needs a firm connection to the company’s purpose to be constructive, healthy and positive.
A healthy corporate culture has to start with the leaders and management (Edgar Shein, 2004) for a company to be successful and stay relevant in an ever-changing environment. They need to value and be connected to the company´s purpose in order to facilitate a great corporate culture that enables them to reach their goals and make sure their company is prepared to thrive in a future climate.
Corporate culture strongly relates to a company’s performance and success, it can be a great asset if it consists of the right components, but it can also serve as an inhibitor for growth and development. A company that displays an attitude that embraces change, and has a forward way of thinking respond better to future needs and demands. Companies that consider futures needs, rather than looking back on past performances, are also better equipped to sustain and prosper in the long-term run – true to their purpose.
Purpose-driven companies have employees who are more engaged, loyal and perform better, which findings from Aaron Hurst also confirms. Purpose also has a positive effect as a driver for implementing strategy and decision-making for businesses, and those company’s who has a clear purpose benefits from higher growth rates and success when it comes to transformation processes and innovation initiatives.
Human Centered Business is our way of tackling the importance of moving companies beyond sustainability, and giving them the tools to respond to future needs. Human Centered Business Index measures, compares and communicates businesses development and success in facilitating purpose into core business – a necessity for top management to ensure a healthy and productive corporate culture.