- Importance
- They help companies in the decision-making process
- They teach clients about what the company is about and clarify the identity of the company
- They are becoming primary recruiting and retention tools
- What are corporate values?
- - Essential values about life
- Negative values
- - Corporate core values
- Commitment to excellence and innovation
- Commitment to sustainability and respect for the environment
- Commitment to building strong communities
- Commitment to helping the less fortunate
- Commitment to doing good
- How are they defined?
- Identify corporate values
- Values to emulate
- Values have a purpose
- Values are options
- Values cost
- Values require action
- Values are timeless
- Real examples of corporate values
- - The Ikea case
- United
- Take care of people and the planet
- Cost awareness
- Simplicity
- Renovation and improvement
- Different with a sense
- Assume and delegate responsibilities
- Lead by example
- - Adidas
- - Coca Cola
- - Nike
- - Procter & Gamble
- - Adobe
- - Starbucks Coffee
- - Virgin Airlines
- - Kellogg's
- - American Express
- - Four Seasons Hotels & Resorts
- - H&M
- Themes of interest
- References
The corporate values of a company are the operating principles or fundamental philosophies that govern the internal behavior of a company, as well as its relationship with its suppliers, customers and shareholders. They are also known as company values.
For example, a company may have the corporate values of satisfying the customer, protecting the environment, or treating its employees well. On the contrary, another company could have the values of economic profit and competitiveness.
Corporate values must affect every aspect of the business, from employee benefit packages and workplace culture, to marketing strategies and customer service.
Once established, corporate values must be firm and unshakable. They should be a command rather than just a suggestion. You have to practice those values. If a company fails to live up to the values it claims to uphold, it cannot expect its hypocrisy to go unnoticed, or unanswered, by consumers.
Also, employees will notice if the company is not living up to its values, which can damage morale and motivation. These core values are generally summarized in the company's core values statement or mission statement.
Importance
Corporate values are vital to the overall success in building a business. Companies must define their values and take ownership of them. Establishing strong corporate values provides internal and external advantages for the company:
They help companies in the decision-making process
For example, if one of the company's corporate values is to protect the quality of its products, then any item that does not meet a satisfactory standard will be automatically removed.
They teach clients about what the company is about and clarify the identity of the company
Especially in this competitive world, having a specific set of corporate values that speaks to the public is definitely a competitive advantage.
They are becoming primary recruiting and retention tools
With the existing facility to investigate companies, job applicants find out about the identity of the companies to which they apply for work and weigh whether or not they have the values they consider important.
What are corporate values?
Values are the primary beliefs that a person or organization has. These higher fundamentals dictate behavior and can thus help people understand the discrepancy between good and evil.
Corporate values also help companies see if they are on the right track and achieve their goals by creating an unchanging pattern. There are many different examples of corporate values in the world, depending on the environment.
- Essential values about life
Often when you hear someone argue why they fell in love with their other half, they will mention that it is because they both have the same values. In this case, it is often spoken of the core values or internal beliefs that dictate how life should be lived.
Some examples of essential values that people might have about life include the following:
- Belief in God or affiliation with a religious or spiritual institution.
- The belief in being a good resource manager and in exercising moderation.
- Believe that the family is of fundamental importance.
- The belief that honesty is always the best policy and that trust must also be earned.
- The belief in maintaining a healthy balance between work and life.
Parents also seek to instill in children these types of overriding positive values in an effort to give them guiding principles for leading good lives.
Negative values
Of course, core values are not always positive. Some people may be driven by self-interest or greed, and these are also core values if they dictate the way people live their lives.
Negative attitudes and core values can also develop when people live in fear or insecurity and are forced in difficult circumstances to focus on survival. Some examples of negative core values are:
- The belief that the world is a basically brutal place and that only the strong survive.
- Believe that people are powerless to change their destinies or personal situations.
- Believe not deserving good things or relationships in life.
- The belief that other people are fundamentally untrustworthy and unloving.
- The belief that life has no meaning.
- Corporate core values
Businesses can also have core values. These are the guiding principles that help define how the corporation should conduct itself in business and perhaps beyond, if its additional mission is to serve the community.
Corporate values are generally expressed in the corporation's mission statement. Some examples of corporate values of a company include:
Commitment to excellence and innovation
Apple Computer is perhaps best known for having a commitment to innovation as a core value. This is embodied in their motto "Think differently."
Commitment to sustainability and respect for the environment
Companies like Patagonia and Ben & Jerry's have environmental sustainability as a core value.
Commitment to building strong communities
The Shell oil company donates millions of dollars to the University of Texas to improve student education and also to match charitable donations from employees.
Commitment to helping the less fortunate
The footwear company TOMS gives a pair of shoes to a person in need for every pair it sells, in an effort to alleviate poverty and improve the lives of others.
Commitment to doing good
For example, Google believes in making a great search engine and building a great company without being bad.
As can be seen, often the corporate values that organizations have are similar to the guiding principles that individuals can choose.
How are they defined?
Corporate values can be incorporated into the mission statement or a separate statement of these core values can be written. Either way, the process should start with a brainstorming session.
To do this, a group of people who understand and incorporate the traits for which the company is to be known is invited to a meeting.
This meeting could include the founder, CEO and other executives of the company, but you should not forget to also include some key employees, such as the best salesperson, the most respected managers or the best designer.
Each participant is asked to make a list of what they think the company's values are or should be. The process can be started and guided with questions such as:
- What corporate values will resonate with our clients?
- What principles should guide our choices?
- For what things do we want the company to be known?
- How will our values distinguish us from our competitors?
- What qualities do we value in employees?
Here are some examples of core values, from which you could choose the following:
- Reliability.
- Consistency.
- Loyalty.
- Open mind.
- Efficiency.
- Commitment.
- Honesty.
- Good humor.
- Creativity.
- Optimism.
- Innovation.
- Positivity.
- Spirit of adventure.
- Passion.
- Motivation.
- Perseverance.
- Respect.
- Patriotism.
- Aptitude.
- Environmentalism.
- Education.
- Service to others.
Source: pixabay.com
As can be seen, there are innumerable types of core values, so the ones that are appropriate for the organization should be chosen.
Identify corporate values
Although some organizations may expressly share their corporate values, the best way to identify these values is by observing how they behave in business.
Of course, no company will post negative corporate values, but what is really at the core of the company's mission can be judged by examining how it performs when it actually counts.
A corporate value is only true if it has an active influence and if the company manages to live up to it, at least most of the time. It is possible for a company to operate with strong corporate values without realizing it.
Values to emulate
Keep in mind that company values are not simply an internal matter, limited to a mandatory section in the employee manual that hardly anyone reads or remembers.
It must be ensured that employees are familiar with corporate values. You must establish values that employees can put into practice and also provide them with the tools and incentives to do so.
Values have a purpose
They shouldn't just be a list of generic ideals. They must be specific to the company and aligned with its objectives.
For example, while a commitment to justice may make little sense for a technology company, a commitment to privacy would serve an important purpose.
Values are options
Rather than viewing values as beliefs, they should be treated as options. After all, most companies will say that they believe customer service is important.
What sets one company apart from others will be the decisions you make on behalf of customer service. That could mean committing to a 24-hour response time for email inquiries and investing in staff and tools to make this possible.
Values cost
Values have an inherent cost. Make sure you're ready to defend your company's corporate values, even when it's easier or less expensive to ignore them.
If the company wants to have a commitment to sustainability, it must use green materials, even if that decision reduces its profits. Securities that cost nothing are not worth it.
Values require action
Beliefs without action are just empty words. For example, if you say that your company values innovation, you can't hold back employees with a "this is how it's always been done" mentality. Instead, you should be actively encouraging and considering new ideas.
Values are timeless
Although company practices and strategies may change over time, corporate values must be consistent.
You must choose values that can be maintained, regardless of economic conditions, external incentives, competitive advantages or corporate trends.
Real examples of corporate values
- The Ikea case
Photo by Alexander Isreb from Pexels
Ikea is an international company dedicated to the manufacture and sale of furniture and home products. Founded in 1943 in Sweden, it currently has stores in more than 28 countries.
It has an atypical business model in modern capitalism, based on equity, responsibility, prohibition of child exploitation and a commitment to quality. In its official portal, its corporate values are well defined, which we are going to analyze:
United
Ikea is characterized by camaraderie and closeness between employees regardless of hierarchy. The idea is to go in the same direction, always thinking of the collective and not of the individual.
Take care of people and the planet
The company shows its awareness of the environmental problems that the Earth suffers, as well as the social inequalities that many people suffer. They seek to have a positive impact through respect for nature and avoiding human exploitation.
Cost awareness
More with less without compromising quality. The Swedish giant's mentality is to be able to provide its products to the majority of the people, without this putting a burden on its economy.
Simplicity
It is perhaps its most visible value. All your furniture and decorative objects have a practical rather than aesthetic purpose. Pragmatism and naturalness go ahead of any arrogant or vain lifestyle.
Renovation and improvement
One of the main sources of motivation for Ikea is to overcome itself by seeking solutions to challenges not yet resolved. The progress achieved today must be surpassed the next day.
Different with a sense
Ikea is different and wants to continue to differentiate itself from other companies. They look for the unconventional and are not afraid to experiment.
Assume and delegate responsibilities
Trust must be the key in the company. They believe in their employees and their initiatives to improve Ikea. This translates into greater empowerment and, at the same time, the consequent responsibility of each one.
Lead by example
Leadership should not be a position, but an example. This means that no one should feel humiliated for performing work below their responsibility at a particular time if it means rowing together for the good of the company.
- Adidas
- Sport is the foundation of everything we do and executive excellence is a fundamental value of our Group.
- Passion is at the heart of our company. We are continuously advancing, innovating and improving.
- We are honest, open, ethical and fair. People trust us for sticking to our word.
- We know that people with different ideas, strengths, interests and cultural backgrounds make our company successful. We encourage healthy debate and differences of opinion.
- Coca Cola
- Leadership: The courage to shape a better future.
- Collaboration: Take advantage of the collective genius.
- Integrity: Be real.
- Responsibility: If that's the way it is, it's up to me.
- Passion: Committed in heart and mind.
- Diversity: as inclusive as our brands.
- Quality: What we do, we do well.
- Focus on the user and everything else will follow.
- The best thing is to do one thing really, but really well.
- You can earn money without conceiving evil.
- Fast is better than slow.
- There is always more information out there.
- Democracy on the web works.
- The need for information crosses all borders.
- You can be serious without a suit.
- You do not need to be at the desk to request an answer.
- Cool just isn't good enough.
- Nike
- It is our nature to innovate.
- Nike is a company.
- Nike is a brand.
- Simplify and go.
- The consumer decides.
- Be a sponge.
- Evolve immediately.
- Do the right thing.
- Master the fundamentals.
- We are on the offensive - always.
- Remember the man. (The late Bill Bowerman, Nike co-founder).
- Procter & Gamble
- Integrity.
- Leadership.
- Property.
- Passion for winning.
- Trust.
- Adobe
- Genuine.
- Exceptional.
- Innovative.
- Involved.
- Starbucks Coffee
- Create a culture of warmth and belonging, where everyone is welcome.
- Act with courage, challenging the status quo and finding new ways to grow our company and each one of us.
- Be present, connecting with transparency, dignity and respect.
- Give our best in everything we do, taking responsibility for the results.
- Grow our business in a way that makes us proud.
- Recognize that passion and personality matter.
- Communicate without fear to build trust.
- Defend and respect the voice of the user.
- Reach every person on the planet.
- Innovate through experimentation.
- Look for diverse perspectives.
- Be rigorous. You have to do it right.
- Simplify.
- Send it.
- Virgin Airlines
- We think like the customer.
- We lead the way.
- We do the right thing.
- We are determined to deliver.
- Together we make a difference.
- Kellogg's
- Integrity.
- Responsibility.
- Passion.
- Humility.
- Simplicity.
- A focus on success.
- American Express
- Engagement with the client
- Quality.
- Integrity.
- Teamwork.
- Respect for the people.
- Good citizenship.
- Willingness to win.
- Personal responsibility.
- Focus on impact.
- Move quickly.
- Be bold.
- Be open.
- Generate social value.
- Four Seasons Hotels & Resorts
- Support sustainability.
- Build communities.
- Advance in cancer research.
- H&M
- We believe in people.
- We are a team.
- Direct and open minded.
- Keep it simple.
- Entrepreneurship.
- Steady improvement.
- Awareness of costs.
Themes of interest
Human values.
Antivalues.
Universal values.
Sociocultural values.
Spiritual values.
Aesthetic values.
Material values.
Intellectual values.
Instrumental values.
Political values.
Hierarchy of values.
Priority values.
Personal values.
Transcendental values.
Objective values.
Vital values.
Ethical values.
Priority values.
Religious values.
Civic values.
Social values.
References
- Heryati R (2019). 190 Brilliant Examples of Company Values. 6Q Inside. Taken from: inside.6q.io.
- Business Dictionary (2019). Corporate values. Taken from: businessdictionary.com.
- Your Dictionary (2019). Examples of Core Values. Taken from: examples.yourdictionary.com.
- Ethan Chen (2018). What Are Company Values and How to Define Them? Crew. Taken from: crewapp.com.
- Reggie Van Lee, Lisa Fabish and Nancy McGaw (2005). The Value of Corporate Values. Strategy + Business. Taken from: strategy-business.com.
- Wendy Pat Fong (2013). Company Core Values: Why to Have Them and How to Define Them. 7geese. Taken from: 7geese.com.