As we navigate the modern business landscape, a consistent trend emerges – companies all around the globe are redefining and emphasizing their core values.
This practice, which gained traction after Jim Collins and Jerry Porras highlighted its importance in their 1994 book “Built to Last,” has now become a cornerstone of corporate culture. Core values serve as the compass guiding companies’ decision-making processes, shaping their cultures, and setting strategic objectives.
Establishing clear, shared values provides several benefits, including increased employee engagement, stronger brand identity, and enhanced stakeholder trust.
When do companies establish core values?
There isn’t a one-size-fits-all answer to when a company should start considering its values and mission statements. However, most successful businesses begin to formalize their values and mission in the early stages of their development. During the startup phase, when the company culture is just taking shape, laying down a set of core values can provide an important foundation.
These values act as a blueprint for the company’s vision and guide its growth trajectory. Similarly, a clear mission statement provides a sense of direction, giving employees a larger purpose that goes beyond everyday tasks. As the company grows and evolves, these values and mission statements can be revisited and refined to align with the company’s changing objectives and market conditions.
It’s important to remember that these aren’t just ornamental phrases to be tucked away on the “About Us” page of a website or corporate brochure; they should be lived by every member of the organization and reflected in every decision, action, and interaction.
Do employees really care about workplace values?
Although core values are intended to guide company culture and decision-making, they can sometimes be met with skepticism or indifference by employees. This often happens when company values are seen as mere corporate jargon, disconnected from the daily realities of the workplace. When values seem abstract, inauthentic or are not visibly upheld by leadership, employees may dismiss them as “fluffy” or irrelevant, leading to the proverbial “eye-roll” response.
For instance, if a company promotes “integrity” as a core value, but employees observe leaders engaging in unethical behaviors, the discrepancy between stated values and actual actions can lead to cynicism. Similarly, if a company touts “innovation” but discourages risk-taking or new ideas, employees may view the stated value as empty rhetoric.
To avoid this disconnect, it’s crucial for companies to ensure their core values are not just words on a poster, but principles that are actively lived out. They should be clearly communicated, consistently demonstrated by leadership, and integrated into the company’s policies, procedures, and reward systems. This way, employees can see the tangible impact of these values and are more likely to buy into and embody them in their own roles.
Do companies ever act out of alignment with their values?
In short, yes. There are many examples of companies whose actions did not align with their stated core values. Here are three key examples: Wells Fargo, Enron, and Volkswagen.
- Wells Fargo: This bank was involved in a scandal in which employees created millions of unauthorized bank and credit card accounts to meet sales goals, contradicting their stated core values of “trust” and “customer service”.
- Enron: The energy company declared bankruptcy due to accounting fraud, which was a stark contradiction to their stated values of “communication”, “respect”, and “integrity”.
- Volkswagen: They were found guilty of intentionally programming their diesel engines to activate emission controls only during laboratory testing to meet US standards, which directly contradicted their core value of “responsibility”.
These examples demonstrate why stating core values is not enough; companies must act on them to build a trusted reputation. When actions don’t align with values, it can lead to severe consequences such as reputational damage, legal implications, and a loss of customer trust
Categories of Common Workplace Values
When analyzing the core values of companies around the world, we can categorize them into four broad themes: Integrity, Goal-Orientation, Building a Better World, and People-Centric Values.
Integrity
Companies across the world emphasize integrity. This theme refers to a company’s commitment to honesty, trust, and respect. In essence, companies that prioritize integrity seek to do what’s right, even when no one is watching.
Common values under this category include:
- Commitment: Pledging to uphold the company’s mission, vision, and goals.
- Honesty: Ensuring transparency in all dealings and interactions.
- Respect: Treating all stakeholders with dignity and fairness.
- Trust: Building and maintaining trust within the company and with customers.
- Personal responsibility: Holding oneself accountable for actions and decisions.
Goal-Orientation
Many successful companies around the world are goal-oriented, focusing on achieving targets and growing their businesses. This category of values is about pushing boundaries, overcoming challenges, and persistently driving towards success.
Common values under this category include:
- Accountability: Taking responsibility for the outcomes of one’s actions.
- Challenge: Continually seeking improvement and innovation.
- Determination: Staying the course, even when faced with obstacles.
- Growth: Focusing on continuous personal, team, and organizational development.
- Ownership: Taking pride in one’s work and assuming responsibility for results.
Building a Better World
Businesses worldwide recognize their role in shaping a better future. They commit to sustainability, innovation, and social responsibility, among other values. These values reflect a company’s dedication to making a positive impact on society and the environment.
Common values under this category include:
- Sustainability: Prioritizing long-term environmental health in business practices.
- Innovation: Embracing change and striving for continuous improvement.
- Impact: Making a meaningful difference in the community or industry.
- Social Responsibility: Acting for the benefit of society at large.
- Ethical: Operating in a manner consistent with good practices and moral principles.
People-Centric Values
People are at the heart of every business. Therefore, it’s no surprise that many companies prioritize values related to teamwork, communication, diversity, and leadership. These values underscore the importance of human connection and collaboration in achieving business success.
Common values under this category include:
- Teamwork: Collaborating effectively to achieve common goals.
- Communication: Promoting open, honest, and constructive dialogues.
- Diversity: Valuing a variety of experiences, identities, and perspectives.
- Leadership: Inspiring others through action and example.
- Inclusion: Creating an environment where everyone feels welcome and valued.
How do companies discover their values?
There are several techniques that companies use to discover and articulate their values:
- Workshops and Brainstorming: This involves gathering a group of individuals, ideally a cross-section of employees from different levels and departments, and leading them through exercises and discussions to identify what they believe the company stands for. These values workshops can involve various techniques like SWOT analysis (strengths, weaknesses, opportunities, threats), facilitated brainstorming, and more.
- Surveys and Interviews: Companies often conduct interviews or send out surveys to employees and stakeholders to gain a wide range of insights about their perception of the company’s values. This can be done either internally or with the assistance of an outside firm that specializes in organizational culture.
- Consultants or Specialists: Hiring external consultants who specialize in organizational culture and change can be beneficial. These experts bring a fresh perspective and can guide a company through the process of defining and articulating their values. Find a values training program that is research-based and proven to deliver impact.
- Review of Mission and Vision: Companies frequently look at their mission and vision statements as a starting point for defining their values. These statements often contain the core principles that the company was founded on.
- Observing Corporate Culture: The values of a company are often embedded in its culture. By observing how people work together, make decisions, and interact, companies can glean insights about their underlying values.
- Look at Company History and Founding Principles: The history of the company and its founding principles can often shed light on its values. Understanding the original intent of the company and the values that it was founded on can provide a solid foundation for articulating current values.
- Employee Feedback: Often, employees at all levels have a keen understanding of what the company values, even if those values aren’t officially articulated. Their feedback can be invaluable in the process.
- Analyzing Successful Decisions and Initiatives: Reviewing past decisions and initiatives that have been particularly successful can also shed light on a company’s values. What factors contributed to their success? What values are reflected in those decisions?
Once values are discovered, they can be articulated through several means such as:
- Incorporating them into mission and vision statements.
- Emphasizing them in internal communications and training.
- Demonstrating them through leadership behavior.
- Building them into performance metrics and reward systems.
- Showcasing them in marketing materials and other external communications.
- Creating a code of conduct that explicitly states the values and expectations.
- Using an app like the Values App to turn values into habits
Remember, discovering and articulating values is only the first step. Companies also need to make sure that they are integrated into their operations and decision-making processes to ensure a values-driven culture.
Final thoughts
While specific core values may vary from one company to another, the themes of Integrity, Goal-Orientation, Building a Better World, and People-Centric values are universally prevalent.
These values form the foundation of a company’s culture and guide its strategic decision-making process. By understanding these common themes, businesses can create a set of core values that resonate with their mission, team, and customers, thus fostering a strong, cohesive, and successful organization.
In the end, it’s not just about having core values; it’s about living them every day.
