Is it possible to assign a dollar value to culture?
In this episode, I feature a paper by Graham and colleagues who explored the relationship between corporate culture and business value. And a key insight they uncovered was the importance of separating cultural values and cultural norms for understanding the connection between culture and performance. Cultural values are the ideals employees strive to fulfill, while cultural norms reflect whether employees “walk the talk” by actually living out those values. When both are aligned, the value of a company increases.
Full citation:
Graham, J. R., Harvey, C. R., Popadak, J., & Rajgopal, S. (2017). Corporate culture: Evidence from the field (No. w23255). National Bureau of Economic Research.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2805602
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