Corporate culture: The secret sauce for growth success

Cultural norms can make the difference between success and failure

Investors do not often pay much attention to corporate culture when evaluating business and return potential. But cultural norms can make the difference between success and failure, especially for growth companies, which thrive on innovation and must be flexible to adapt to changing business trends.

Company reports do not say much about culture. Unlike the profit and loss statement, balance sheet and business updates that dominate a quarterly report, a company's internal behavioural features do not usually move stocks. Yet we believe culture is actually the secret sauce for sustainable growth, because in a knowledge-based economy, cultivating human capital is essential for building a business with staying power. And for investors focused on environmental, social and governance issues, this awareness is key to engaging with management and stakeholders more effectively and integrating re...