What is company culture?

Company culture is the shared set of values, beliefs, norms, and behaviors that shape how people in an organization work, make decisions, and treat each other.

Culture is often described as "the way we do things around here." It shows up in what gets celebrated, what gets tolerated, how decisions are made, how conflicts are handled, and how people talk to each other when nobody from leadership is watching.

For example, two companies might both list "collaboration" as a value. In one, people regularly thank colleagues from other teams and share credit in public channels. In the other, credit goes only to managers, and teams rarely talk to each other. The written value is the same; the culture is completely different.

Company culture is not what a company says it values. It is what people experience every day.

Why is company culture important?

Guides decisions

When values are clear and shared, people can make decisions without waiting for instructions.

Attracts and retains people

Candidates look for cultures they fit, and employees stay where they feel they belong.

Shapes collaboration

Culture determines whether people share information, help each other, and give credit.

Supports engagement

People are more engaged when their daily experience matches what the company says it stands for.

Creates consistency

Culture helps teams in different locations and functions act in aligned ways.

Elements of company culture

Element	What it includes	Example
Values	Principles the company stands for	"Customer first," "Ownership"
Norms	Unwritten rules of behavior	Cameras on in meetings, quick replies in chat
Rituals	Repeated practices and traditions	Weekly demos, Friday shout-outs
Recognition	What gets noticed and celebrated	Public thanks for helping another team
Leadership behavior	How leaders act	Leaders admitting mistakes openly
Communication	How information flows	Transparent all-hands meetings
Decision-making	Who decides and how	Teams own their roadmaps
Symbols and language	Shared vocabulary and artifacts	Internal nicknames, branded recognition points

Common types of company culture

A widely used framework, the Competing Values Framework by Kim Cameron and Robert Quinn, describes four culture types:

Culture type	Focus	Typical traits
Clan	Collaboration and people	Supportive, team-oriented, mentoring
Adhocracy	Innovation and change	Experimental, entrepreneurial, risk-taking
Market	Results and competition	Goal-driven, customer-focused, achievement-oriented
Hierarchy	Stability and control	Structured, process-driven, predictable

Most organizations combine traits from several types. No type is universally best; what matters is whether the culture supports the company's goals and people.

See culture in action

Culture lives in everyday moments

One of the clearest signals of culture is what people celebrate in public channels.

With Karma, recognition linked to company values happens directly in chat, making culture visible every day.

Try "Send thanks to a teammate" to see how recognition connected to values reflects company culture.

Company culture vs. workplace culture

Company culture	Workplace culture
The organization's overall identity and values	The day-to-day environment people experience
Defined and shaped by leadership and strategy	Shaped by teams, managers, and daily interactions
Example: "We value transparency"	Example: whether people actually feel informed

The two are closely connected. Learn more about workplace culture.

How to build a strong company culture

1. Define your values clearly

Choose a small number of values and describe what they look like in practice. Learn more about company core values.

2. Lead by example

Employees follow what leaders do, not what they say.

3. Recognize the behaviors you want

What gets recognized gets repeated. Connect recognition to values.

4. Hire and onboard for culture

Explain values during hiring and onboarding, and connect new hires with colleagues early.

5. Create rituals

Regular traditions, like weekly shout-outs or demo days, make culture tangible.

6. Listen continuously

Use anonymous feedback to learn how employees experience the culture.

7. Measure and adjust

Track values adoption, engagement, and participation over time.

Common mistakes

Values that exist only on the wall

Values without matching behavior create cynicism.

What helps: Recognize and reward values in daily work.

Confusing perks with culture

Free snacks are not culture.

What helps: Focus on behavior, communication, and recognition.

Ignoring subcultures

Different teams may experience very different cultures.

What helps: Compare data across departments.

Never revisiting culture

Culture evolves as companies grow.

What helps: Review values and practices regularly.

How to measure company culture

Indicator	What it shows
Values adoption	Which values are recognized most often
Engagement and eNPS	How employees feel about the company
Recognition participation	Whether appreciation is part of daily work
Connectivity	Whether people connect across teams
Retention	Whether people choose to stay

How Karma supports company culture

Karma makes company culture visible and measurable through everyday recognition in Slack, Microsoft Teams, Telegram, and the web.

Recognition tied to values

Every recognition can be linked to a company value, so employees see what the culture looks like in practice.

Values adoption analytics

Karma Insights shows which values are recognized most, which are rarely recognized, and how values differ across departments.

Rituals made easy

Automatic workiversary and birthday celebrations, achievements like "Value champion of the month," and group rewards help build lasting traditions.

Branded culture

Teams can rename recognition points and customize their logo and colors so recognition feels like part of their identity.

Listening to employees

Anonymous pulse surveys in Slack show how employees experience the culture, and eNPS trends show changes over time.