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What Is Company Culture?

what is company culture

Key Takeaways

  • Company culture is the shared values, attitudes and behaviors that shape what’s normal and expected in the workplace.
  • Culture starts with leadership but is carried out daily by team members who embrace and reinforce the organization’s values.
  • Healthy cultures put people before profits, promote clear values, and maintain consistent accountability.
  • You can often identify a company’s culture by reviewing its mission and values, checking online reviews, and talking to current or former employees.

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Every business has a culture. You either create it . . . or tolerate it. Think about that local restaurant that should be on Kitchen NightmaresCulture is probably the last thing on the owner’s mind. We get it. When you’re growing your business, sometimes it feels like you’re doing all you can just to keep people hired and make payroll.

But that mindset is exactly why 15% of U.S. workers describe their workplace culture as toxic—it’s not a leadership priority.1 Turning a blind eye to the attitudes and practices you allow in your company leaves it wide open for a culture you never wanted.

Here’s some good news, though: When you understand what company culture is and why it matters, you’ll see it’s possible to care for your team and hit your business goals.

Company Culture Definition

Company culture isn’t just about leadership styles, pay and benefits, policies, or the types of people on your team. All those things affect how people feel about work—but culture runs deeper.

Company culture is the values, attitudes and behaviors that shape your organization’s standards. It’s like a silent language that tells people what’s normal, what’s encouraged and what won’t fly. A strong, healthy culture builds unity and sets the tone for communication, teamwork and work ethic.

We all know teams that send emails and texts 24/7 and make jabs at anyone who doesn’t respond immediately. That unspoken culture screams, “No work-life balance here!” But smart leaders think and act differently. They build a culture of effective communication—no expectation for 24/7 responsiveness, no gossip, and no hamster-wheel burnout.

Maybe you’ve been told company culture flows from the top down. Well . . . yes and no. Leaders decide the values and behaviors they want for your organization and then stamp them into your playbook. But in your day-to-day business, culture flows from the bottom up. Your team members become your chief culture creators (and keepers) once they’re on board with the direction you’ve set in motion.

How to Build a Healthy Culture

Just like your company’s mission and vision need to be passed down through every level of the team, your values should be too. They’re not just nice words printed in a handbook or hung up in the office—they’re the everyday guardrails for how your people work and make decisions.

Here are some basics to help you shape and protect your culture:

  • Identify your values and involve key team members to boost buy-in.
  • Plaster your values everywhere: on your company’s website, your walls, even your bathroom stalls and mirrors!
  • Repeat them clearly and often—at onboarding sessionsweekly staff meetings, training sessions, one-on-ones, reviews, etc.
  • Hold your team accountable to your values and praise them publicly for being culture keepers.

Pro tip: Refresh your leadership skills. The way you lead has a huge impact on shaping company culture.

Common Traits of Strong Company Cultures

Job seekers aren’t just chasing paychecks anymore—they’re looking for employers who care about every aspect of their lives (mental, physical, emotional and career) and inspire work that matters. And the companies with strong, lasting cultures usually share a few common traits.

People Before Profits

Great cultures start by putting people first. Leaders in these organizations see their team members as whole people—not just productivity machines. They understand every person has a story, family, goals and dreams. And when team members know they matter beyond what they produce, loyalty and engagement go through the roof.

Some companies even create intentional spaces for this kind of care. Take Salesforce, for example. They built Trailblazer Ranch—a retreat in California where team members can step away from the grind, connect with each other, and come back recharged.

Clear, Actionable Values

Another trait of strong cultures? Simple, consistent values that guide everyday behavior. When values are clear and easy to remember, they shape how people work.

Chick-fil-A models this well with values like “We are purpose-driven.” That one line reflects a deeper commitment to stewardship and impact. And they’ve backed it up with bold choices—like closing on Sundays—proving their values aren’t just talk.

Accountability That’s Consistent

Strong cultures also come with strong accountability. It’s not about policing behavior—it’s about reinforcing the values that make the team great.

At Ramsey Solutions, leaders talk often about being culture keepers. Team members are celebrated when they live out the values. And when something’s off—when attitudes or actions don’t line up with the culture—leaders step in quickly to address it. That kind of consistency turns values into habits.

How to Identify a Company’s Culture

So, what’s the silent language of your business and the values driving it? Before you answer, look at companies you admire, and see how they’ve designed their cultures. Here are a few ways to do your research:

  • Visit their website. The About page often includes mission, vision and values. If it’s unclear, that might be a red flag.
  • Search reviews. Add words like review, rating, news or testimonials after the company name to get additional insights.
  • Ask around. Talk to people who work for the business or in a similar field to see what they say about the company. Check out LinkedIn or Facebook to see what connections you have to the company.

Now, repeat those steps for your own business. Chances are, you fall into one of three categories:

  1. You have clear core values and amazing team members guiding your culture. Keep doing what you’re doing!
  2. You have core values no one knows (or follows). Time to plaster them everywhere, repeat them often, and hold your team accountable to them.
  3. You don’t have core values at all, and it shows in your culture by default. It’s okay. Start defining your company values now with your key leaders, then share them with your team to get buy-in.

Why Is Company Culture Important?

Caring about culture sounds like a lot of work . . . because it is. But the payoff is unbeatable!

Think of it like sharpening an ax. If you were a lumberjack, you could chop all day, but eventually your ax would dull. Without sharpening it, you’d slow down, blister up, and burn out.

Your company culture sharpens your business. Investing in it creates an atmosphere that engages your team, delights your customers, and helps your business reach new levels. (Paul Bunyan would be so proud.)

And let’s be honest—you and your team spend about half your waking hours together. Who wants to be miserable half their life? Create a culture where people actually love what they do, how they do it, and who they do it with.

Steve Jobs said it this way: “Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do.”

Unfortunately, there’s a whole lot of loveless work happening. Only 21% of global workers are engaged in their work, and just 33% say they’re thriving in their lives.2 That leaves the majority just doing a J-O-B.

But when you create a culture of work that matters, your team gets excited about Mondays. And that affects:

  • Productivity
  • Creativity
  • Team-member retention
  • Customer loyalty
  • Growth and revenue
  • Impact on others

Culture Is Your Competitive Advantage

Here’s the reality: Products can be copied. Strategies can be duplicated. But a strong culture? That’s your secret weapon.

Don’t settle for a workplace that’s just okay. Create a culture that people want to be part of—a culture that outlasts trends, outperforms competitors, and brings real joy to the workday. That means no culture by default. No tolerating toxic behaviors. And definitely no Kitchen Nightmares reputation.

 

What’s Next: Sharpen the Ax

If you’re ready to sharpen your leadership and transform your culture, EntreLeadership Elite™ offers the coaching, leadership events and practical resources to make it happen. 

  • Define your company’s core values with your key leaders.
  • Join Elite for expert coaching and support.
  • Start transforming your culture into one your team is proud to be part of.

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EntreLeadership

About the author

EntreLeadership

EntreLeadership is the part of Ramsey Solutions that exists to help small-business owners thrive by mastering themselves, rallying their teams, and imposing their will on the marketplace. Thousands of leaders use our proven EntreLeadership System and resources to develop as leaders and grow their businesses. These resources include The EntreLeadership Podcast, EntreLeadership Elite digital membership, books, live events, coaching sessions and business workshops. Learn More.