The culture of an organization is more than just its policies or procedures, it’s the soul of the company, defined by shared values, attitudes, beliefs and behaviors that influence how people work together. It represents the personality of the organization, shaping how employees feel about their roles and their level of engagement. Ultimately, a strong, positive culture drives commitment to the company’s goals. But where does this culture begin? It starts at the top, with the leadership team and the values they embody.

Robert Iger, CEO of the Walt Disney Company, captures this sentiment perfectly: “As a leader, you are the embodiment of that company. What that means is this: Your values, your sense of integrity and decency and honesty, the way you comport yourself in the world, are a stand-in for the values of the company.” A leader’s values act as the cornerstone for the entire organizational culture, setting the tone for how employees communicate, collaborate and innovate.

The Ripple Effect of Leadership Values

Leadership values are like a compass that guides the organization’s direction. A leader who prioritizes innovation, creativity and calculated risk-taking fosters an environment where experimentation thrives and employees feel supported in presenting new ideas. Conversely, a leader who values transparency, trust and open communication creates a culture where individuals feel empowered to voice concerns, ask questions and contribute feedback without fear of repercussions.

Anthony Jarrin, President & CEO at the Cannaregio Group, emphasizes the importance of execution in fostering a sustainable culture during a recent gathering held by the Global Investment Leaders Club (G.I.L.C.): “Execution matters more than ideas. Leaders must balance their cash contributions to build sustainable businesses while fostering innovation and retention.” This balance reflects the critical role of leadership in driving both practical outcomes and a supportive work environment.

Mustafa Hasan, Founding Partner at Valu.vc, Bahrain, highlights another crucial aspect of leadership, the ability to deliver on a vision: “It's easy to get carried away by someone's vision, but there are more people who have an inspiring vision than people who can actually deliver that vision.” A leader’s ability to execute, rather than merely inspire, determines the long-term success of an organization. Without this alignment between vision and execution, even the most promising ideas may falter.

The behavior of leaders has a ripple effect throughout the organization. Employees tend to mirror the attitudes and actions they observe in their leaders. For instance, a leader who consistently demonstrates integrity and accountability is likely to inspire those traits in their teams. On the other hand, a lack of alignment between a leader’s words and actions can lead to mistrust, disengagement, and even an uncooperative work environment.

Culture Cannot Be Mandated

One of the most critical aspects of organizational culture is that it cannot be imposed. Culture is not a top-down directive or an external program that can be handed out and implemented overnight. Instead, it’s an organic result of the shared values and behaviors of the individuals within the company. For leaders, this means that awareness of their own values and actions is essential. Their behavior, intentional or not, will shape the cultural norms and expectations of the organization.

According to the Arbinger Institute, 52% of respondents believe that leadership development has the greatest impact on improving an organization’s culture. This highlights the pivotal role that leaders play in shaping the environment and fostering a culture that aligns with organizational goals.

When leaders act with self-awareness, they can align their behaviors with the desired culture of the organization. This alignment creates authenticity and fosters trust. Employees recognize when leaders genuinely embody the values they promote, which reinforces a shared sense of purpose.

Leading by Example

To create and maintain a positive culture, leaders must lead by example. Words alone are not enough; consistent actions speak louder. Leaders must actively demonstrate the values they want to instill in their teams. For example, if collaboration is a core value, leaders should prioritize teamwork in their own projects. If adaptability is a desired trait, leaders should be willing to learn, pivot, and embrace change.

Mohamad Salem, Founder at Salem Group in the UAE, highlights the importance of authenticity in leadership during a discussion at a recent G.I.L.C. event: “Being genuine and knowledgeable about your business is crucial. It’s easy to lose trust if you act like you know everything but can’t back it up. Genuine expertise builds confidence and trust.” This underscores how authenticity and expertise contribute to a positive cultural foundation.

Accountability is another key aspect of leading by example. Leaders must hold themselves to the same standards they set for others. This means admitting mistakes, being transparent about challenges, and consistently upholding the organization’s values even in difficult situations. Such behavior not only reinforces the desired culture but also builds credibility and respect among employees.

The Commitment to Culture

Creating a strong and positive culture is not a one-time effort; it’s an ongoing commitment. Leaders must actively nurture the culture by listening to employee feedback, adapting to the evolving needs of the organization, and continually reinforcing the core values. This requires humility, patience, and a willingness to grow alongside the team.

The rewards of cultivating a positive culture are substantial. A Harvard Business School study reported that culture has a significant effect on an organization’s long-term economic performance, with performance-oriented cultures experiencing better financial results. Additionally, Gartner estimates that strengthening company culture can boost employee performance by 22% and reputation outcomes by 16%, underscoring the financial benefits of a positive organizational culture.

Research consistently shows that organizations with strong cultures enjoy higher levels of employee engagement, improved productivity, and greater overall success. In addition, a positive culture helps attract and retain top talent, as employees are more likely to stay with a company where they feel valued and supported.

Values as the Foundation of Success

Leadership values are not just abstract ideals, they are the foundation of a company’s success. By embodying and prioritizing key values, leaders create a culture that reflects those beliefs throughout the organization. This culture becomes a guiding force that shapes how employees interact with one another, approach challenges, and work toward shared goals. A thriving culture doesn’t just happen by chance. It requires leaders who are deeply committed to their values and to creating an environment where employees feel empowered, valued, and engaged. 

At the Global Investment Leaders Club, leadership isn’t just about strategy, it’s about the values that define lasting success. Our gatherings bring together visionary investors and founders who lead with integrity, share insights and build businesses that stand the test of time. Here, conversations go beyond market trends and investment strategies; they delve into the principles that drive sustainable growth and meaningful impact. Join the conversation, exchange expertise, and connect with those shaping the future of business and investment.