Corporate Culture in a New Era: Views from the C-suite | Journal of Applied Corporate Finance

Leadership & Culture

Many leaders recognize the vital role of organizational culture in enabling organizational success. But how effective are organizations at utilizing their culture as a source of competitive advantage? This article explores the perspectives of 1,348 chief executives and financial officers on multiple aspects of corporate culture within their firms. The findings are based on survey data and in-depth interviews with executives representing over 20% of the US equity market capitalization. While there are too many insights from this paper to cite here, one notable finding is executives’ indication of a lack of alignment between companies’ stated values and the actual norms within their organizations. This inconsistency may manifest in several ways, such as hiring or promoting individuals who do not embody the organization’s values or employees feeling hesitant to express their honest opinions despite the organization’s emphasis on open communications and transparency. This article offers valuable insights for leadership teams as they assess the alignment of their organization’s professed values with actual workplace practices and behaviors, including decisions on remote work, promotion criteria, reward allocation, and fostering innovation. Additionally, a PDF version is available for further reference.