Can a strong corporate culture contribute to a safer workplace?

In his doctoral dissertation, Timmy Thor examines how corporate culture affects financial and operational policies, which also has implications for various economic stakeholders.

A recent large-scale survey of U.S. executives found that corporate leaders view corporate culture as an intangible asset that affects how companies manage risks, allocate resources, and approach decision-making.

“In my own research, I found that firms with strong corporate values experience fewer safety violations and work-related injuries since they allocate more resources to workplace safety. This shows that corporate culture is not just an internal philosophy—it shapes behavior that can align financial performance with broader objectives like employee well-being,” Thor explains.

In his thesis, Thor also states that variations in corporate culture influence knowledge-intensive activities such as tax planning and interfirm financing.

"These differences are reflected in reported tax burdens and how firms structure their trade credit terms, which suggest that corporate culture operates as an informal governance mechanism that complements formal control structures in financial decision-making, "Thor comments.

Thor’s research highlights that business outcomes are shaped not just by traditional economic factors but also by the cultural dynamics within corporations. These dynamics seem to extend beyond formal governance mechanisms and play a significant role in aligning the objectives of shareholders and other corporate stakeholders.

By recognizing the links between cultural dynamics and key areas like workplace safety, tax planning, and customer relationships, companies can gain a clearer perspective on how corporate culture can contribute to long-term value creation.

Timmy Thor defended his doctoral thesis on 13 February 2025.
You can read the whole thesis here:
Essays on the role of corporate culture in accounting and finance

Timmy Thor
Phone: +358 50 467 0620
Email: timmy.thor@hanken.fi