Topic 3 Identifying the Values
Corporate values (also known as core values) are a set of guiding beliefs upon which a business is based.
To help people function together as one and shape the way employees (should) behave.
- They impact both internal and external affairs and define
- how employees treat each other
- how employees treat clients, partners, and the broader community.
- Company values define the desired behavior to accomplish the company’s ‘why.
- they affect every aspect of the business, from reward models, compensation, and policies, to strategic decisions and public affairs.
- Company values only make sense if they’re practiced. Unfortunately, most companies have a disconnect between ‘proclaimed’ values, and ‘behavioral’ values, as Nik Beeson wrote here.
Source: Unsplash
Why are Company Values Important?
For the employees
- Values drive community: If you want your employees to act like one, you need a shared code of behavior or a code of conduct (see Module 3). Your values define your company beliefs and bring people together, building a community.
- Values attract the right people: People don’t leave companies; they leave toxic workplace cultures. Your core values define what you stand for and will help attract the talent that is right for your organization.
- Employees are willing to earn less money to work in an organization that’s aligned with their personal values.
- Company values simplify decision-making: It’s easier to make choices when everyone knows what matters (or not) to the organization. Values help establish clear priorities; they make it easier to say “no” to the things that are not aligned with their core beliefs.
For the customers and associates
- Core values educate customers about who you are: When a company brings its beliefs to life, their partners and clients know what they expect (or not) when doing business with that organization.
- Corporate values create differentiation: They don’t just represent what you believe, but your unique behavior.
- Fair Business Practices: Corporations often go rogue with regards to their business practices in the lust for more revenue. This puts everyone associated with the company in jeopardy and also causes loss of trust and integrity within the organisation. The corporate values when applied by an organisation in its day to day activities forbids it from nurturing any malpractices.
- Identifying and understanding a company’s values is a challenging and important exercise. Company’s values are a central part of the principles of the company– and will convey where the company wants to go and how will get there.