por The corporate values of a company They 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 should affect all aspects of the business, from employee benefits packages and workplace culture, to marketing and customer service strategies.
Once established, corporate values must be firm and unwavering. They should be a command rather than just a suggestion. You have to practice those values. If a company doesn’t live up to the values it claims to uphold, it can’t 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 hurt morale and motivation. These core values are usually summarized in the company’s core values statement or mission statement.
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Importance
Corporate values are vital to overall success in building a business. Companies must define their values and take ownership of them. The establishment of 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.
Educate customers 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 ease of researching companies, job seekers find out about the identity of the companies they are applying to and consider whether or not they have the values they consider important.
What are corporate values?
Values are the overriding beliefs held by a person or organization. These superior foundations dictate conduct and can thus serve people to understand the discrepancy between good and evil.
Corporate values also help companies to check if they are on the right path and achieve their goals by creating an unchangeable pattern. There are numerous different examples of corporate values in the world, depending on the environment.
– Essential values about life
Often when you hear someone discuss 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, one often talks about core values or inner beliefs that dictate how life should be lived.
Some examples of core values that people might hold about life include the following:
– Belief in God or affiliation with a religious or spiritual institution.
– The belief in being a good administrator of resources and in exercising moderation.
– Believing that 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 work-life balance.
Parents also seek to instill in children these types of overriding positive values in an effort to give them guiding principles to lead a good life.
negative values
Of course, core values are not always positive. Some people may be driven by self-interest or greed, and these too are core values if they dictate how 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.
– Believing that people are powerless to change their destinies or personal situations.
– Believing that you do not deserve 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
Companies may also have core values. These are the guiding principles that help define how the corporation should conduct itself in business and perhaps beyond, if they have an additional mission to serve the community.
Corporate values are usually expressed in the corporation’s mission statement. Some examples of a company’s corporate values include:
Commitment to excellence and innovation
Apple Computer is perhaps best known for having a commitment to innovation as a core value. This materializes in its 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 education for students and also to match charitable donations from employees.
Commitment to help those less fortunate
The TOMS shoe company gives away a free 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 do 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 you want the company to be known are invited to a meeting.
In this meeting could be the founder, the CEO and other managers 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 list what they think the company’s values are or should be. You can start and guide the process with questions such as:
– Which corporate values will resonate with our clients?
– What principles should guide our choices?
– What things do we want the company to be known for?
– How will our values distinguish us from 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.
– I respect.
– Patriotism.
– Aptitude.
– Environmentalism.
– Education.
– Service to others.
As can be seen, there are innumerable types of core values, so you should choose the ones that are right for your organization.
Identify corporate values
Although some organizations may expressly share their corporate values, the best way to identify these values is by looking at how they conduct themselves in business.
Of course, no company will publish negative corporate values, but you can judge what really lies at the core of a company’s mission by examining how it acts when it really counts.
A corporate value is only true if it is actively influenced and if the company manages to live by 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 handbook that almost no one 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 it may make little sense for a technology company to have a commitment to fairness, a commitment to privacy would serve important purpose.
values are options
Instead of viewing values as beliefs, they should be treated as choices. After all, most companies will say that they believe customer service is important.
What differentiates a company from others will be the decisions it makes in the name of customer service. That could mean committing to a 24-hour response time for email inquiries and investing in the staff and tools to make this possible.
values cost
Values have an inherent cost. Make sure you’re ready to uphold your company’s corporate values, even when it’s easier or less costly to ignore them.
If the company claims to have a commitment to sustainability, it must use green materials, even if that decision reduces its profits. Values that cost nothing are not worth it.
Values require action
Beliefs without action are just empty words. For example, if you say the company values innovation, you can’t stifle employees with a “this is the way 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 remain constant.
Values should be chosen that can be maintained, regardless of economic conditions, external incentives, competitive advantages, or corporate trends.
Real examples of corporate values
– The Ikea case
Ikea is an international company dedicated to the manufacture and sale of furniture and products for the home. Founded in…