Corporate culture is increasingly seen as an important determinant of organizational effectiveness. If executives of pharmaceutical firms are to manage corporate culture, they must have a clear understanding of the concept. This article defines corporate culture and describes its basic characteristics. There is also discussion of the role culture plays in pharmaceutical companies. Corporate cultures that no longer contribute to the effectiveness of companies require change. To accomplish ,this task, executives must appreciate the kinds of situations that facilitate cultural change and use models of cultural change that are best suited to their type of organization.