The short answer is yes, businesses have beliefs, but not in the same way an individual human does.
Businesses operate based on a set of core beliefs, values, and assumptions that are shared among their members. These collective beliefs are a fundamental part of the organization’s corporate culture.
Here’s a breakdown of what that means:
1. Corporate Culture and Shared Beliefs
- Organizational Culture is defined as the shared values, beliefs, expectations, and behaviors that characterize the members of an organization and influence how work gets done.
- Core Beliefs are the deep-seated, often unwritten, assumptions that guide how the company views itself, its customers, its products, and the world. These beliefs shape decision-making and day-to-day actions.
Examples of Business Beliefs:
- Belief about Customers: “We believe the customer is always right” or “We believe in a long-term partnership with our clients.”
- Belief about Product/Service: “We believe our technology is the most disruptive force in the industry” or “We believe in quality craftsmanship above all else.”
- Belief about Employees: “We believe our employees are our greatest asset” or “We believe employees are here simply to do a job.”
- Market Beliefs: “We believe demand for high-end electric vehicles will continue to grow exponentially” or “Contrary to our competitors, we believe in an open-source model.”
2. The Relationship to Individual Beliefs
The beliefs of a business are heavily influenced by the individual beliefs and values of its founders and leaders.
- Leaders’ Impact: A leader’s personal beliefs about how business should be run, how employees should be treated, and what the company’s purpose is, will largely shape the initial organizational beliefs.
- Alignment: For a business to be successful and for employees to be engaged, there needs to be a strong alignment between the personal values of the employees and the corporate values and beliefs of the organization. Misalignment can lead to dissatisfaction and high turnover.
3. The Power of Beliefs
These collective beliefs are critical because they:
- Determine Strategy: Beliefs about the market or the product can lead to unique, sometimes contrarian, strategies that drive an entire business model.
- Guide Action: They serve as common assumptions that simplify decision-making for all employees. Everyone knows the “right” way to act or decide because it’s guided by the shared belief system.
- Foster Unity: Shared beliefs unite employees and create a sense of identity and common purpose.