Organizational culture refers to the values, expectations, and practices that guide employee actions. It encompasses the traits that define a company. Culture affects all aspects of business from employee benefits to performance. Companies that prioritize culture can better withstand challenges. A strong culture also helps attract talent and outperform competitors. Key qualities of positive cultures include alignment, appreciation, trust, and innovation. Cultural diversity values people from different backgrounds. Common types of cultural differences are generational, ethnic, religious, and educational. To address differences, companies should learn about employee backgrounds and acknowledge various holidays.