Culture is not just an HR issue.
Culture shapes the brand.
Brand drives value.
And when culture goes wrong, value falls fast.
The recent $11.5 million verdict against SHRM proved this.
SHRM exists to teach employers how to prevent culture failures.
Yet its own workplace culture damaged its brand and created major financial risk — a clear culture brand risk that leaders can’t afford to ignore.
So leaders everywhere should pay attention.
This was not just bad press.
This was a hit on the organization’s brand value.
How Culture Brand Risk Shows Up Inside First
Employees feel culture before customers do.
When people inside the business lose trust, the market sees it next.
Culture failures can:
- Hurt reputation
- Increase turnover
- Slow performance
- Invite complaints
- Trigger lawsuits
These outcomes change how people talk about the company.
That change becomes brand perception.
Brand perception affects confidence.
Confidence affects value.
Brand Value Is an Enterprise Asset
Buyers and investors want stability and resilience.
They want a culture that supports future performance.
They avoid businesses where risk spreads fast.
Workplace culture sends signals like:
- “This business scales with people.”
or - “This brand will break under pressure.”
That signal moves valuation up or down.
Sometimes without a single number changing on a spreadsheet.
HR Can Warn Leaders Before Value Falls
SHRM’s case shows what happens when:
- Complaints go unanswered
- Bias appears in decisions
- Investigations lack integrity
- Leaders ignore internal warning signs
HR exists to flag risk early.
When leaders partner with HR, culture strengthens.
Conversely, when leaders sideline HR, culture breaks.
That break becomes brand damage.
What Buyers and Investors Look For
Increasingly, buyers score culture in due diligence.
They ask questions like:
- Do employees trust leadership?
- Are standards applied fairly?
- Do complaints get handled fast?
- Is turnover isolated or widespread?
If the answers raise doubt, the buyer subtracts value.
Sometimes millions.
That is brand risk in its clearest form.
It showed up in SHRM’s own verdict.
Leaders Control Brand Risk at the Source
Marketing cannot fix internal problems.
Brand guidelines mean nothing without trust.
And a logo cannot hide culture gaps for long.
Culture is built daily.
Every decision either strengthens credibility or weakens it.
Moreover, leadership decides which direction it goes.
The Bottom Line
Employees decide whether the brand succeeds.
Leaders decide whether employees stay engaged.
HR decides whether leaders get the truth early.
SHRM is now a public example.
The cost was high.
The lesson is clear.
Culture shapes brand.
Brand shapes value.
Protect both.
If you want to protect brand value before culture risk becomes a deal-breaker, let’s talk.
I help employers strengthen the internal experience so enterprise value grows — not erodes — as the business scales or prepares for an exit.
Be the first to know about changes in wage law, M&A risk, and HR regulations, subscribe to our newsletter.
Contents of this post are for educational/informational purposes only, are not legal advice, and do not create an attorney-client relationship. Consult with competent employment counsel in the state(s) in which you employ people with your specific questions.
Before choosing an attorney, you should give this matter careful thought. The selection of an attorney is an important decision. If you find this communication to be inaccurate or misleading, you may report it to the Committee on Attorney Advertising Hughes Justice Complex, CN 037, Trenton, NJ
