Company culture and values: building a strong foundation

Company culture and values form the backbone of organizational success. They influence everything from how employees interact with each other to how customers perceive a brand. A strong foundation built on both creates a workplace where people thrive, businesses grow and long-term results follow. In today’s environment of hybrid work and shifting employee expectations, committing to focus on the culture and values of an organization can better retain talent, increase engagement and drive performance.

Understanding the difference between culture and values

Culture and values in the workplace are often used interchangeably, but they mean different things. Values are the guiding principles — the beliefs that shape priorities, decisions and behaviors. Culture, on the other hand, is how those values come to life through lived actions, traditions and the employee experience strategy. A company can publish its values on a website, but culture is what employees and customers feel every day.

What are company values?

Company values are the core beliefs that define how an organization operates and what it stands for. They provide a compass for decision-making, align teams around shared goals and create clarity in moments of change.

Circles, for example, has four values that guide how our teams support employees and clients:

• Empathetic: Listening actively and understanding different perspectives.
• Curious: Remaining interested and open to discovering new ideas.
• Determined: Staying well connected, adaptable, and relentlessly focused on outcomes.
• Charismatic: Approaching every interaction with confidence, charm, and warmth.

These values matter because they shape every conversation and interaction. They are more than words — they define how our workplace hospitality management services improve work-life balance for employees. Living these values ensures people feel cared for, supported and inspired to live their best lives. Here’s how we frame it: the vision drives the company; the values guide the journey.

What is company culture?

Company culture is the lived expression of values. It encompasses behaviors, traditions, communication styles and the sense of community employees experience at work. Whether it’s through workplace amenities, recognition practices or community engagement services, culture represents the shared environment employers and employees help create each day.

Why values are essential for company culture

Values serve as the foundation of culture. They guide leadership and company culture, ensuring employees know what behaviors are encouraged, supported and celebrated. Over time, values sustain culture by providing consistency even as organizations evolve.

Values as the compass for behavior

When leaders embody values, they set a clear direction for their teams. For example, a determined leader demonstrates persistence during challenges, inspiring employees to show the same resilience. Without strong values, workplace culture risks becoming inconsistent or reactive.

Aligning values with everyday practices

There is a real difference between living values and simply stating them. Many organizations fall into the trap of “value washing,” where values exist on paper but not in action. Authenticity matters. Companies that consistently align words with actions see higher trust and employee engagement, while those that don’t risk eroding morale and credibility.

How culture and values impact performance

The link between company culture and values and business performance is well-documented. According to Gallup, highly engaged teams show 23% greater profitability and 51% lower turnover. Strong cultures that reflect authentic values improve the employee experience and drive measurable results.

Engagement and employee retention

A people first culture rooted in values increases loyalty. Employees who feel aligned with their company’s values are more likely to stay, even in competitive markets. Work-life balance services and supportive practices that give employees time back can play a role in reducing stress, boosting satisfaction and ultimately strengthening retention.

Attracting and inspiring top talent

Company culture and values are central to employer branding and recruitment. Job seekers increasingly look for workplaces where organizational principles align with their own, and where the environment supports both professional growth and work-life balance. Initiatives such as workplace experience programs and community engagement opportunities demonstrate authenticity, helping organizations appeal to candidates and build long-term talent pipelines.

Driving innovation and collaboration

Shared values encourage collaboration, creating trust that fuels innovation. When teams operate within a consistent framework, they feel safe to share ideas (a key component of psychological safety), experiment and take risks. This cultural alignment enables creativity and problem-solving across organizations.

Challenges in aligning values and culture

Even with strong values, companies facing challenges ensure culture remains aligned.

When stated values don’t match reality

If leadership communicates one set of values but employees experience another, trust quickly erodes. This gap creates dissonance, leading to disengagement, lower performance and reputational risks.

Cultural misalignment across teams

In global or hybrid work environments, differences in communication, traditions and priorities can create fragmented cultures. Without intentional strategies, these gaps weaken the overall organizational identity.

Strategies to strengthen culture through values

Companies that invest in aligning culture and values of an organization see stronger results. The following practices create clear alignment and consistency.

Leadership as cultural role models

Leaders must embody the values they expect employees to follow. This includes visible behaviors, decision-making grounded in integrity, and a willingness to model desired change. Leadership and company culture are inseparable.

Patagonia continues to be the gold standard for this reason. Their leaders communicate with straightforward honesty whether they’re discussing successes or setbacks, encouraging employees to speak up or addressing problems openly. 

Communication and transparency

Transparent communication builds trust and reinforces values. Internal messaging should connect daily practices to organizational goals. Whether it’s feedback sessions, information-sharing events, storytelling or digital updates, communication makes values feel real.

Recognition and practices

Recognition reinforces cultural alignment. Highlighting examples where employees demonstrate values — through monthly special events or peer-to-peer recognition — builds consistency. Practices like community traditions or celebrating milestones also embed values into the workplace experience.

The future of company culture and values

As workforce expectations evolve, the culture and values in the workplace must adapt. Hybrid work, technology shifts and a growing demand for work-life balance are reshaping the future of organizational life. Companies that provide workplace amenities, work-life balance services and community engagement services will be better positioned to meet these expectations.

As an example, Circles shows organizations how they can create a supportive environment through workplace hospitality management services. By focusing on improving the employee experience and aligning programs with values, companies can sustain cultural strength while adapting to change. Future cultures will prioritize flexibility, inclusivity and purpose — values that not only define success but also create trust in the process.

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Frequently asked questions about company culture and values

How do company values influence organizational culture?

Values influence culture by shaping the behaviors, practices and priorities employees live every day. They provide consistency, build trust and create an environment where employees know what to expect and what is expected.

Why is it important to align values and culture?

Alignment ensures that stated beliefs match actual practices. When culture reflects values, employees feel supported and engaged, which improves retention, business performance and customer success.

What are examples of strong company values?

Strong values are clear, authentic and actionable. For example, Circles’ values — empathetic, curious, determined, and charismatic — guide how employees deliver services and connect with people. These values shape experiences and outcomes.

How can employees contribute to company culture?

Employees contribute by embodying organizational values in their daily behaviors, collaborating with integrity and supporting community initiatives. Participation in feedback, recognition and traditions helps build a strong culture over time.