A company’s corporate values are the operating principles or fundamental philosophies that govern a company’s internal behavior, as well as its relationships with its suppliers, customers, and shareholders. They are also known as company bonds.
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 benefit and competitiveness.
Corporate values must affect every aspect of the business, from employee benefits packages and workplace culture to marketing strategies and customer service.
Once established, corporate values must be firm and unshakable. They should be a mandate and not just a suggestion. You have to practice these values. If a company fails to live up to the values it claims to uphold, it cannot expect its hypocrisy to go unnoticed or unresponsive to consumers.
In addition, employees will notice if the company is not living up to its values, which can damage morale and motivation. These core values are usually summarized in the core values statement or company mission.
Importance
Corporate values are vital to the overall success of building a business. Companies must define and take ownership of their values. 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, any item that does not meet a satisfactory standard will be automatically removed.
They teach customers what the company is about and clarify the company’s identity.
Especially in this competitive world, having a set of specific corporate values that speak to the public is definitely a competitive advantage.
They are becoming primary recruitment and retention tools
With the ease of searching for companies, job seekers discover the identities of the companies they are applying for and ponder whether or not they have the values they consider important.
What are the corporate values?
Values are the main beliefs that a person or organization has. These higher foundations dictate behavior and therefore can serve people to 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 standard. There are countless 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’ll mention that it’s because they both have the same values. In this case, it is customary to speak of core values or inner beliefs that determine how life should be lived.
Some examples of core values 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 exercising restrictions.
– Believe 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 balance between work and life.
Parents also seek to instill these kinds of higher positive values in their children in an effort to provide them with guiding principles for leading a good life.
negative values
Obviously, the core values are not always positive. Some people can be motivated by self-interest or greed, and these are also 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 leading values are as follows:
– The belief that the world is a basically brutal place and that only the strong survive.
– Believe that people have no power to change their destinies or personal situations.
– Believe that you don’t deserve good things or relationships in life.
– The belief that other people are fundamentally untrustworthy and unloving.
– The belief that life is meaningless.
– Corporate values
Companies can also have core values. These are the guiding principles that help define how the company should behave in business and perhaps beyond if they have the added mission of serving 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 its 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
Shell oil company donates millions of dollars to the University of Texas to improve student education and also to match employee donations.
Commitment to helping the less fortunate
Shoe company TOMS delivers a pair of shoes to a person in need of 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 building a great search engine and building a great company without being bad.
As can be seen, the corporate values that organizations have are often similar to the guiding principles that individuals can choose from.
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.
For this, a group of people is invited to a meeting that understands and incorporates the characteristics for which they want the company to be known.
This meeting can include the founder, CEO and other managers of the company, but be sure 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 like:
– What corporate values will resonate with our customers?
– What principles should guide our choices?
– What things do we want the company to be known for?
– 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 can choose the following:
– Reliability.
– Consistency.
– loyalty.
– Open mind.
– efficiency.
– Commitment.
Honesty.
– Good mood.
Creativity.
Optimism.
– Innovation.
– positivity.
– Spirit of adventure.
– passion.
– motivation.
– Perseverance.
– Respect.
– Fitness.
– Environmentalism.
– Education.
– Service to others.
As can be seen, there are numerous types of core values, so you must choose the ones that are appropriate for the organization.
Identify corporate values
While some organizations may expressly share their corporate values, the best way to identify them is by looking at how they behave in business.
Of course, no company will divulge negative corporate values, but you can judge what really lies at the heart of the company’s mission by examining how it acts when it really counts.
A corporate value is only true if it has an active influence and if the company is able to deliver, at least most of the time. It is possible for a company to operate with strong corporate values without realizing it.
Values to be emulated
Remember that company values are not simply an internal affair, 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. Values should be established that employees can put into practice and also provide the tools and incentives to do so.
Values have a purpose
They shouldn’t just be a list of generic ideals. They should be company-specific and aligned with your goals.
For example, while a commitment to fairness might make little sense for a technology company, a commitment to privacy would serve an important purpose.
Values are options
Instead of seeing values as beliefs, they should be treated as options. After all, most companies say they believe customer service is important.
What sets a company apart from the rest will be the decisions it makes in the name of customer service. That might mean committing to having a 24-hour response time for email inquiries and investing in the staff and tools to make this possible.
cost values
Values have an inherent cost. You need to make sure you’re ready to uphold the company’s corporate values, even when it’s easier or cheaper to ignore them.
If the company claims to be committed 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 the company is said to value innovation, employees cannot be held back with a “this is how it’s always done” mentality. Instead, you should actively encourage and consider new ideas.
Values are timeless
While company practices and strategies may change over time, corporate values must be consistent.
Values that can be maintained must be chosen regardless of economic conditions, external incentives, competitive advantages or corporate trends.
Real examples of corporate bonds
– The Ikea case
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 over 28 countries.
It has an atypical business model in modern capitalism, based on equity, responsibility, prohibition of child exploitation and commitment to quality. Its corporate values are well defined in its official portal, which we will analyze:
United
Ikea is characterized by camaraderie and closeness among employees, regardless of hierarchy. The idea is to go in the same direction, always thinking about the group and not the individual.
Caring for 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 positively impact through respect for nature and avoiding human exploitation.
cost awareness
More with less, without loss of quality. The Swedish giant’s mentality is to be able to supply its products to the most people, without it hurting its economy.
Simplicity
It is perhaps its most visible value. All its furniture and decorative objects have a practical purpose and not an aesthetic one. Pragmatism and naturalness are at the forefront of any arrogant or vain lifestyle.
Renovation and improvement
One of Ikea’s main sources of motivation is to improve itself, looking for solutions to unresolved challenges. Progress made today must be surpassed the next day.
Different with a sense
Ikea is different and wants to continue differentiating itself from other companies. They seek out the unconventional and are not afraid to experiment.
Assume and delegate responsibilities
Trust must be the key to the company. They believe in their employees and in their efforts 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 tasks below their responsibility at a specific time, if it means rowing together for the good of the company.
– Adidas
– Sport is the basis of everything we do and executive excellence is a fundamental value of our group.
– Passion is at the heart of our company. We are continually advancing, innovating and improving.
– We are honest, open, ethical and fair. People trust us for following 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.
– Coke
– Leadership: the courage to shape a better future.
– Collaboration: Take advantage of the collective genius.
– Integrity: be real.
– Responsibility: If so, 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.
“It’s better to do something really, 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 don’t need to be at the table to request an answer.
– Great, it’s just not good enough.
– Nike
– It is in 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 basics.
– We are on the offensive – always.
– Remember the man. (The late Bill Bowerman, co-founder of Nike.)
– Procter & Gamble
– Integrity.
– Leadership.
Property.
– Passion for winning.
– Trust in.
– Adobe
– genuine.
– exceptional.
– Innovative.
– Involved.
– Starbucks coffee
– Create a culture of cordiality and belonging, where everyone is welcome.
– Acting with courage, challenging the status quo and finding new ways to grow our company and each of us.
– Being 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 we are proud of.
– Recognize that passion and personality are important.
– Communicate without fear to build trust.
– Defend and respect the user’s voice.
– Reach everyone on the planet.
– Innovate through experimentation.
– Look for different perspectives.
– Be strict. You have to do it right.
– Simplify.
– Send this.
– 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
– Customer engagement
– Quality.
– Integrity.
– Team work.
– Respect for people.
– Good citizenship.
– Willingness to win.
– Personal responsibility.
– Focus on impact.
– Move quickly.
Be brave.
– It’s open.
– Generate social value.
– Four Seasons Hotels & Resorts
– Support sustainability.
– Build communities.
– Advancement in cancer research.
– H&M
– We believe in people.
– We are a team.
– Direct and open-minded.
– Keep it simple.
– Entrepreneurship.
– Constant improvement.
– Cost awareness.
