A recent research review has shed light on the profound impact of a robust “corporate culture” on various workplace safety aspects. Corporate culture, delineating a company’s ethos and conduct standards, shapes the interactions between management and employees, as well as external business dealings.
Conducted by Finnish researchers, the review delved into an array of literature, including studies leveraging advanced machine learning techniques to analyze language patterns in company earnings calls. Their findings underscored a compelling correlation: organizations fostering a strong corporate culture experienced fewer safety violations, incurred reduced fines, and exhibited “markedly lower” rates of injuries and illnesses. Moreover, these companies allocated greater financial resources toward safety initiatives.
Dennis Sundvik, associate professor of accounting at the Hanken School of Economics and a study author, emphasized the multifaceted benefits of a robust corporate culture. Notably, while previous research has predominantly highlighted the advantages for shareholders, Sundvik underscored the positive implications for employees and society as a whole. He reassured that a fortified corporate culture need not evoke apprehension among employees, emphasizing its capacity to enhance workplace safety and well-being.
This insightful research underscores the pivotal role of corporate culture in shaping safety outcomes within organizations, offering compelling evidence of its broader societal benefits beyond shareholder interests.