Author: Martin Di Lorenzo - mb&l consultores

Corporate Culture: Origins, Definitions, Advantages and Disadvantages

Corporate culture, also known as organizational culture, is a central concept in modern management. Even if we’re not always aware of it, every company has – and sometimes suffers from – its culture.

A company’s culture defines the set of values, beliefs, norms, habits, and shared practices that shape the behavior of its members. It directly influences how people interact, make decisions, respond to change, and represent the organization to the world. We can say that culture is the DNA of a company, because it begins to form from the very first sale. Growth and evolution can often blur that original culture.

The term “organizational culture” emerged in the late 1970s, influenced by anthropological and sociological studies applied to the business world.

From an academic standpoint, corporate culture can be described as a system of shared beliefs that defines what is considered “normal” or acceptable within an organization. At the same time, it functions as an emotional environment that impacts motivation, engagement, and overall well-being. It also plays a role in organizational alignment, ensuring coherence between the company’s stated mission, vision, and values, and the actual behaviors seen day-to-day.

A clear and healthy corporate culture offers many benefits. First, it provides a shared sense of direction: when the culture is well defined, all members understand what is expected of them. Second, it promotes internal cohesion and a sense of belonging, which improves the work environment and helps retain talent. It also enables faster and more aligned decision-making, as shared values reduce ambiguity. Lastly, it can serve as a sustainable competitive advantage, since a strong culture is hard for competitors to replicate.

However, a poorly managed culture comes with significant risks. For instance, it can lead to resistance to change when deeply rooted values block transformation. It can also create non-inclusive environments, where certain profiles or ways of thinking are excluded. Furthermore, there’s the risk that the culture may become misaligned with strategy, especially when informal or toxic practices undermine declared goals. Finally, a culture that is too rigid or complacent can hinder innovation and adaptability.

These problems are quite common. Many of our clients struggle to implement changes or improvements simply because, in some cases, their culture acts as a barrier.

So, the question is: “Can a company’s culture be changed when it gets in the way of progress?” The answer is that it’s very difficult and sometimes takes decades. And the better a company is doing, the harder it is to change, because — why change what seems to work?

So, what do we do in these cases? At mb&l, we understand that changing a company’s culture is difficult, costly, and sometimes impossible. But we know how to work around it — and we do it through commercial processes. Because when commercial processes are in order, everything else tends to fall into place behind them.

If you believe your culture is working against your strategy, don’t hesitate to reach out. We’re here to help.

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