What makes companies not only perform but endure—and even inspire? Increasingly, the answer lies in something often invisible yet profoundly powerful: corporate culture.
Corporate culture refers to the shared values, norms, beliefs, and behaviors that shape how people within an organization interact and work. It's reflected in leadership style, decision-making, communication, and how employees are treated. While strategy sets direction, culture determines how effectively that strategy is executed.
In today’s fast-evolving environment—shaped by hybrid work, shifting employee expectations, and digital disruption—getting culture right isn't just important. It's essential.
Corporate culture can evolve organically, but the strongest ones are intentionally built. That process begins with clearly defining the organization’s core values and purpose. Vision and mission must move beyond posters on walls—they should inform daily decisions. Intentionally shaping culture will drive performance, innovation, and sustainability.
Culture becomes real when people live it, see it, and feel it. Organizations can bring it to life through various means. It starts with storytelling, sharing examples of employees embodying company values. Symbols and rituals reinforce through recognition days, cultural celebrations, and team ceremonies. Office spaces or digital platforms reflect openness, creativity, or collaboration. Finally, there are culture champions, empowering internal leaders at all levels to model and sustain values.
Take Patagonia, for example. The outdoor apparel company aligns its operations with its purpose to protect the environment. This commitment defines everything from its supply chain to its employee activism programs.
It all begins with the tone at the top. Leaders must embody the values they espouse. In Southeast Asia, Tony Fernandes, CEO of AirAsia, famously tore down hierarchical barriers, fostering a culture of openness and humility. In many ways, culture isn't what leaders say—but what they do.
Companies should also rethink hiring—not only for "fit," which can lead to uniformity—but for "culture add," bringing in diverse individuals who align with core values while expanding perspectives. Google has pioneered this idea, ensuring innovation and inclusion go hand in hand.
Crucially, companies must design systems and rituals that reinforce culture. These include performance management, onboarding, recognition programs, and everyday interactions. For instance, Netflix institutionalizes its values of "freedom and responsibility" through candid feedback, clear accountability, and a high-performance ethos.
And because culture is never static, organizations must listen and adapt. Regular surveys, town halls, and informal feedback loops help keep culture aligned with evolving realities. A healthy culture is a key driver of employee satisfaction. Research by Gallup and Deloitte confirms that employees who feel connected to their organization’s culture are more engaged, loyal, and productive.
Strong cultures aren’t about sameness; they’re about shared values, not identical behaviors. Diversity of thought, background, and identity can thrive within a cohesive cultural framework. Unilever Philippines, for instance, emphasizes sustainability and integrity as non-negotiables, while promoting diverse work styles, flexible arrangements, and inclusion programs that reflect the unique needs of Filipino employees.
Several Filipino companies offer compelling examples of culture in action. Jollibee Foods Corporation has created a culture that blends Filipino values with a strong emphasis on family, teamwork, and joy. These values drive its commitment to employees and customers alike, developing local taste with a view to global expansion. Ayala Corporation has a culture rooted in stewardship and long-term thinking, passed down through generations of leadership. Its various businesses share a common cultural thread of public value and innovation.
Even in the development sector, Philippine Business for Social Progress (PBSP) models a mission-centric culture of collaboration and accountability, enabling it to lead multi-sectoral efforts in inclusive growth.
Peter Drucker once said, “Culture eats strategy for breakfast.” But in truth, culture and strategy must work together. Culture amplifies strategy—it shapes behavior, fosters resilience, and attracts the best people.
For companies in the Philippines seeking to compete globally or improve their impact locally, culture is both a differentiator and a foundation. It requires ongoing investment, leadership commitment, and a deep understanding of what people value.
Culture is not a slogan—it’s a living system. And when done right, it becomes a company’s greatest source of strength.
(Benel Dela Paz Lagua was previously EVP and Chief Development Officer at the Development Bank of the Philippines. He is an active FINEX member and an advocate of risk-based lending for SMEs. Today, he is an independent director in progressive banks and in some NGOs. The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX.)