Eddy’s HR Mavericks Encyclopedia
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Company Core Values
Do companies really adhere to their stated core values? What’s the purpose of creating core values if no one takes them seriously? Skepticism about company core values is reflected in questions like these, but research shows that the most successful companies embrace the concept of creating and aligning behaviors to their core values.
What Are Company Core Values?
Company core values are the guiding principles and beliefs that allow employees to work together toward a common goal. Sometimes called “the way things get done,” core values help guide decision-making and create a purpose-driven culture. Employees know what is expected of them, customers love interacting with confident employees, and companies benefit by the increased revenues and lower employee turnover.
Why Having Core Values Is So Important
Core values support the company’s mission and vision. They inspire team members to emulate the most important behaviors the company deems essential when doing business. Some of the reasons core values are important include:
- Guiding company decisions. Employees at all levels in a company make hundreds of decisions each day. When everyone understands that “respect” is a core value, for example, their behaviors will need to reflect respectful interactions. This empowers employees to do what they need to do.
- Hiring employees whose beliefs and behaviors are aligned with the company. Smart companies will use their core values to screen candidates for fit. Employees who embrace company values will be happier and perform better than those who don’t mesh with the company values.
- Inspiring and motivating performance. Employees will be inspired to do more than the minimum standard when they understand the impact they can have on the company’s success.
- Creating a company brand and reputation. Core values tell the world how a company operates. Customers love to do business with companies that are consistent and share their personal values.
Qualities of Effective Core Values
When choosing core values, it's essential to understand the difference between a company that inspires customers to return (and candidates to apply) and one that drives them away. Experience shows that companies whose core values reflect the following four ideas tend to resonate more with both employees and customers, driving them to astounding success.
- Relate back to the mission statement. This unites the company and provides clear direction and focus for employees. Apple Inc., for example, states that its goal is to bring the best user experiences to its customers through hardware, software, and service. Every one of their core values points to this larger goal.
- Inspire and challenge employees to become better. Core values should focus on areas for growth and encourage employees to strive for something better than what they currently are.
- Unique. What works for one company might not work for another, so it's essential to base values on the uniqueness of your company and what you have to offer.
- Actively implemented in the workforce. Goals that are not written down, talked about, and worked for are just thoughts. These core values need to be in the front of employees' minds every day in order to be beneficial.
Examples of Core Values
Some companies have clever and inspiring core values. Here are some examples of values or value statements.
Passion
Passion is a commonly used core value. Adidas states that “passion is at the heart of our company.” Coca Cola also lists passion as “committed in heart and mind.” Procter & Gamble has “passion for winning,” while Kellogg’s simply states “passion.”
Diversity
Diversity is another common core value. Teach for America simply lists “diversity,” while Twitter states, “seek diverse perspectives.” Build-a-Bear highlights “di-bear-sity.”
Respect
Respect. American Express states, “respect for people.” Southwest Airlines says, “treat others with respect.” Barnes & Noble states, “respect.”
Other Examples
Engaging examples of core values include, “we think customer” from Virgin Airlines; “create fun and a little weirdness” from Zappos; and Ben & Jerry’s Ice Cream, “we strive to minimize our negative impact on the environment.”
How to Create Your Own Core Values
There is no right way to create company core values, but the following suggestions may be helpful.
Step 1: Take Your Business Goals, Employees and Customers Into Account
Consider your business goals. Is innovation important to you? Do you want your employees to feel empowered to innovate? This is an example of how to identify the behaviors you want to emphasize. Consider your employees. Ask them what values they observe in the workplace and what values represent the type of organization they want to work for. Consider your customers. What values would your ideal customers expect from companies they do business with? What feedback have your customers given you about your organization?
Step 2: Summarize Into Values
With this initial list, consider ways to condense them into five to ten values. Some companies allow all employees to vote while others invite a few team members to participate in a values creation project. Avoid copying the values of other companies; determine what is truly unique about yours to select the best values that represent your company.
Step 3: Decide How to Present the Values
Decide how to present the values. Will you select one-word values, such as “integrity” and “leadership?” Would you prefer to use phrases, such as “hire the best?” Some companies, like Google, use value sentences: “Fast is better than slow.”
Step 4: Review and Revise
Engage the help of a creative writer or marketer to wordsmith the final list. Be sure to make the values simple and easy to remember, as these need to be prominently displayed and memorable.
How to Embed Your Core Values Into the DNA of Your Company
Values are just words unless they are actionable. Here are some ways core values can be demonstrated.
Action 1: Use Them in Your Marketing
Announce and publish the company values on your webpage and in your marketing and your recruiting materials. Display them on a wall in the office where everyone who enters will see them. Talk about them in company meetings. Create momentum and build excitement to help employees memorize and apply them. Celebrate employees whose behaviors demonstrate the company values.
Action 2: Align Your Processes
Align processes in the organization with the values. If “wow the customer” is a stated value, for example, look at processes currently in place that support this value and processes that need to be revised to support it better. Enlist input from employees throughout the organization to ensure this alignment.
Action 3: Integrate Your Values Into Your Culture
Embed the core values into the culture. From recruiting candidates to onboarding new employees and beyond, core values need to be central to the culture of the company.
Only 23% of employees say they can apply their organization’s values to their work every day, and only 27% believe in their organization’s values
Company Culture StatisticsTopics
Carol Eliason Nibley
Carol Eliason Nibley, SPHR, GPHR and Principal Consultant at PeopleServe, has more than 25 years of experience in human resources, most recently serving as Vice President of Human Resources for a technology company in Utah County. Carol has taught HR certificate courses at Mountainland Technical College and in other settings for more than 12 years.
Madison Arave (Scholarship Finalist)
View author pageFrequently asked questions
Other Related Terms
Eddy’s HR Mavericks Encyclopedia
Company Core Values
Do companies really adhere to their stated core values? What’s the purpose of creating core values if no one takes them seriously? Skepticism about company core values is reflected in questions like these, but research shows that the most successful companies embrace the concept of creating and aligning behaviors to their core values.
What Are Company Core Values?
Company core values are the guiding principles and beliefs that allow employees to work together toward a common goal. Sometimes called “the way things get done,” core values help guide decision-making and create a purpose-driven culture. Employees know what is expected of them, customers love interacting with confident employees, and companies benefit by the increased revenues and lower employee turnover.
Why Having Core Values Is So Important
Core values support the company’s mission and vision. They inspire team members to emulate the most important behaviors the company deems essential when doing business. Some of the reasons core values are important include:
- Guiding company decisions. Employees at all levels in a company make hundreds of decisions each day. When everyone understands that “respect” is a core value, for example, their behaviors will need to reflect respectful interactions. This empowers employees to do what they need to do.
- Hiring employees whose beliefs and behaviors are aligned with the company. Smart companies will use their core values to screen candidates for fit. Employees who embrace company values will be happier and perform better than those who don’t mesh with the company values.
- Inspiring and motivating performance. Employees will be inspired to do more than the minimum standard when they understand the impact they can have on the company’s success.
- Creating a company brand and reputation. Core values tell the world how a company operates. Customers love to do business with companies that are consistent and share their personal values.
Qualities of Effective Core Values
When choosing core values, it's essential to understand the difference between a company that inspires customers to return (and candidates to apply) and one that drives them away. Experience shows that companies whose core values reflect the following four ideas tend to resonate more with both employees and customers, driving them to astounding success.
- Relate back to the mission statement. This unites the company and provides clear direction and focus for employees. Apple Inc., for example, states that its goal is to bring the best user experiences to its customers through hardware, software, and service. Every one of their core values points to this larger goal.
- Inspire and challenge employees to become better. Core values should focus on areas for growth and encourage employees to strive for something better than what they currently are.
- Unique. What works for one company might not work for another, so it's essential to base values on the uniqueness of your company and what you have to offer.
- Actively implemented in the workforce. Goals that are not written down, talked about, and worked for are just thoughts. These core values need to be in the front of employees' minds every day in order to be beneficial.
Examples of Core Values
Some companies have clever and inspiring core values. Here are some examples of values or value statements.
Passion
Passion is a commonly used core value. Adidas states that “passion is at the heart of our company.” Coca Cola also lists passion as “committed in heart and mind.” Procter & Gamble has “passion for winning,” while Kellogg’s simply states “passion.”
Diversity
Diversity is another common core value. Teach for America simply lists “diversity,” while Twitter states, “seek diverse perspectives.” Build-a-Bear highlights “di-bear-sity.”
Respect
Respect. American Express states, “respect for people.” Southwest Airlines says, “treat others with respect.” Barnes & Noble states, “respect.”
Other Examples
Engaging examples of core values include, “we think customer” from Virgin Airlines; “create fun and a little weirdness” from Zappos; and Ben & Jerry’s Ice Cream, “we strive to minimize our negative impact on the environment.”
How to Create Your Own Core Values
There is no right way to create company core values, but the following suggestions may be helpful.
Step 1: Take Your Business Goals, Employees and Customers Into Account
Consider your business goals. Is innovation important to you? Do you want your employees to feel empowered to innovate? This is an example of how to identify the behaviors you want to emphasize. Consider your employees. Ask them what values they observe in the workplace and what values represent the type of organization they want to work for. Consider your customers. What values would your ideal customers expect from companies they do business with? What feedback have your customers given you about your organization?
Step 2: Summarize Into Values
With this initial list, consider ways to condense them into five to ten values. Some companies allow all employees to vote while others invite a few team members to participate in a values creation project. Avoid copying the values of other companies; determine what is truly unique about yours to select the best values that represent your company.
Step 3: Decide How to Present the Values
Decide how to present the values. Will you select one-word values, such as “integrity” and “leadership?” Would you prefer to use phrases, such as “hire the best?” Some companies, like Google, use value sentences: “Fast is better than slow.”
Step 4: Review and Revise
Engage the help of a creative writer or marketer to wordsmith the final list. Be sure to make the values simple and easy to remember, as these need to be prominently displayed and memorable.
How to Embed Your Core Values Into the DNA of Your Company
Values are just words unless they are actionable. Here are some ways core values can be demonstrated.
Action 1: Use Them in Your Marketing
Announce and publish the company values on your webpage and in your marketing and your recruiting materials. Display them on a wall in the office where everyone who enters will see them. Talk about them in company meetings. Create momentum and build excitement to help employees memorize and apply them. Celebrate employees whose behaviors demonstrate the company values.
Action 2: Align Your Processes
Align processes in the organization with the values. If “wow the customer” is a stated value, for example, look at processes currently in place that support this value and processes that need to be revised to support it better. Enlist input from employees throughout the organization to ensure this alignment.
Action 3: Integrate Your Values Into Your Culture
Embed the core values into the culture. From recruiting candidates to onboarding new employees and beyond, core values need to be central to the culture of the company.
Only 23% of employees say they can apply their organization’s values to their work every day, and only 27% believe in their organization’s values
Company Culture StatisticsTopics
Carol Eliason Nibley
Carol Eliason Nibley, SPHR, GPHR and Principal Consultant at PeopleServe, has more than 25 years of experience in human resources, most recently serving as Vice President of Human Resources for a technology company in Utah County. Carol has taught HR certificate courses at Mountainland Technical College and in other settings for more than 12 years.
Madison Arave (Scholarship Finalist)
Frequently asked questions
Other Related Terms
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