Culture Washing In The World Of Work

organisational Culture Washing

While a relatively new term, organisational culture washing is likely as old as the first framed value statement in a company’s boardroom. Similar to green-washing, which conveys a misleading impression of a product or organisation being environmentally sound, culture washing is at play in organisations claiming a healthy and dynamic culture that fosters growth, values candor and employee engagement and champions integrity – or any other set of virtues – when the truth, at best, is far less rosy, and at worst, harmful and toxic.

Common examples include organisations that claim they provide an excellent employee experience, when in fact they don’t. For example, they might claim to promote creativity and experimentation yet blame or fire people who fail to yield hoped-for results when trying unproven approaches, or those workplaces where respect is championed as a core element of the culture, all the while allowing bullying and discrimination to run unchecked.

Why organisational Culture Washing is Important

There are numerous consequences to culture washing. Most common is cynicism on behalf of employees as they experience a disconnect between espoused values and what is tolerated and/or rewarded. Lowered rates of retention and higher turnover are another outcome, a result of promises made in the recruitment and on-boarding phases that belie a deceptive bait-and-switch maneuver at what was supposed to be the start of a healthy professional relationship.

Finally there is reputational risk as word gets out through platforms such as Glassdoor where reviews of organisations are posted for all to see.

Beyond these effects is the deep sense of personal betrayal employees feel when they are repeatedly told “our values matter” only to experience profound misalignment. Resonance with organisational values is often why candidates pick one organisation over another: values serve as the touchstone for all organisational policies and programs, and they underpin the culture needed to achieve strategy – a strategy employees have signed up to deliver on. In fact, an organisation’s culture is fundamentally an aggregate of employee behavior, profoundly shaped by the collective behaviors of its leaders. When leaders pay only lip service to the values, they are essentially inviting employees to flout them as well.

Why and how does organisational Culture Washing Take Place?

Given the fallout from culture washing, why would organisations put themselves at such risk?

One possible reason is creating a positive impression in the eye of the public, particularly to enhance brand value in the eyes of consumers. Also, in a tight labor market, “looking good on paper” is one way to enhance appeal towards talented job searchers. There additionally may be external regulators and accreditation bodies to appease. And as a side note, unbeknownst to most people, organisations pay to be on lists of top 100 employers. Their communications and HR departments fill in forms detailing the organisation’s culture, education reimbursements and EAP (Employee Assistance Program) among other things, and are “awarded” these accolades from industry groups with little idea of what it is actually like to work in these places.

Not surprisingly, in the era of anonymous online reviews and the prevalence of social media platforms, where opinion often parades as fact, some organisations pay their employees to reinforce a positive narrative of their organisational culture by rewarding employees who offer glowing reviews. Of note is Amazon, in 2019, offering financial recompense to some employees for tweeting positively about their experiences at work.

organisations that get their internal culture ‘right’ are most likely to invest in nurturing effective leaders and to align behavior at all levels with an explicit set of values. To feign a strong and vibrant culture, while the one that actually exists is utterly different from the one put forward is, undoubtedly, little other than deceit.

While a key driver of working is a paycheck, employees also want to be paid in a variety of other “currencies,” one of which is the meaning and purpose they gain by contributing to an organisation that walks the talk – a talk they identify with and believe in. It is no wonder the vast majority of profitable organisations focus as much on their internal culture as they do on their mission and strategy: the numbers, in terms of turnover, lost profits and replacement costs make a compelling business case for a values-aligned culture.

It’s no wonder that organisational culture washing is tempting. In the end, though, the cost doing this is high. organisations will pay not only in employee disengagement, they will also lose the most priceless thing any company can have – trust – as those same employees are likely to not believe much of anything else they are told and, for better or worse, will behave accordingly.

About the Author

LISA SCHMIDT, M.Ed. ACPC, is a seasoned speaker and organisational development consultant with an interest in organisational culture washing. She helps executives and organisations speak truth and act with courage in developing compelling and powerful strategies, along with the roadmaps to get there.

More than a coach and facilitator, Lisa is a thinking partner who leverages her experience with iconic organisations such as the Canadian Broadcasting Corporation, the Hospital for Sick Children and Atomic Energy of Canada – and internationally with the Mastercard Foundation – to shift organisations from a focus on results and success, to one of impact, legacy and significance.

A former speechwriter credited with writing “the Million Dollar speech” for a hospital fundraising campaign, and the recipient of Canadian Council literary funding, she understands how language is critical to leadership, and helps leaders hone their ability to inspire and build their legacy.

To contact or read more about her, visit www.lisaschmidt.ca.