Determining Your Company's Core Values

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Summary. Company core values are principles that will guide a company on its mission, vision, and short and long-term goals. These values should be something that will resonate with employees and customers. Examples of values include communication, respect, and diversity.

A company’s identity and what they are known for stem from their core values. These values help a company and their employees to be successful.

Core values will not only help in their success but help influence employee behavior and create the company culture. In this article, we will go over what company core values are, why they are important and provide some examples of values that companies should have.

Key takeaways:

Core values are the principles that will guide a company on its mission and goals.
The company’s identity will be based on these core values, and it will be how customers and clients view the business.
To define core values, you should start by determining what you want the company to achieve and include your own personal values as well as employee values.
Examples of core values for a company are integrity, communication, and customer service.

What are Company’s Core Values?

Company core values are the principles that guide a company on its mission, vision, and goals. These values will help employees make decisions regarding the company and its future. Core values can help determine the company culture, how employees interact, and even how you hire new staff.

Company core values should be something that will resonate with employees and customers. Values are important because they will help determine who will want to work for your company. An employee will want to work with an organization whose values align with their own.

Why Core Values are Important

Influence behavior. Since values should be a standard for all of your employees, they will influence how they work. Your values should make employees want to hold themselves to a higher standard and produce the best work possible.
Improve retention. Employees will want to work for a company with values that resonate with their own personal values. Having your core values clearly stated will attract those workers to your company. This will result in higher retention rates and have your employees work there longer.
Creates a company’s identity. A company’s identity is important for the success of the business. This will be how employees, customers, and clients talk about and interact with an organization. When it’s clear what a company stands for, it will increase its competitiveness with other organizations.
Helps in decision-making. Following a set of values will make the decision process easier. It will determine the types of products that are sold or the procedures that employees will have to follow.
Creates company culture. Having a strong company culture will help determine the type of employees that you hire and how they are as employees. Core values have a big influence on the company culture. Setting the tone of a company with values will help it perform efficiently, even when employees change.

How to Define Company Values?

Think of the purpose of your company. You should first consider what the purpose of your company is and why you created it. Your motivation for starting the company will help be the building blocks for creating your core values.
List personal values. Create a list of your personal values. You will want your business’s values to align with your own values. Employees and customers will be able to tell if values are genuine if the business owner lives by the values.
Ask employees about their personal values. Another way to help define your values is to ask your employees what their personal values are. This will help you make sure that your company values will resonate with your employees. This can also help you determine the type of employee that you want to hire in the future.
Think of the values of your ideal team. Think of what you would want from an ideal team. Ask yourself what actions you want them to take. How do you want them to communicate and interact? Knowing what you would want your team to be like will help you determine what values to create.
Consider what values your customers want. Determining what your customers would want will be important when creating and defining company values.

Customers and clients will want to go to your organization because of the values that you have. These values will be how you will stand out from other companies and help attract your customers.
Standardize values. Be sure that all of your employees are working by the same set of values. They shouldn’t be making their own up. When an organization works by the same set of values, the company will look organized and be a team for customers and clients.
Get feedback. Feedback is important in any aspect of running a business. You should be asking your employees, and even customers, if there need to be any changes. This will help you keep up-to-date with what they want.
Be open to change. If your values are not working for your company, consider making some changes. Even if your values were working in the past, employees, customers, and managers would change over time, meaning your values may have to change along with them.

Keeping any outdated values may cause you to lose great employees and valued customers.

Examples of Core Values for a Company

Having company core values will help keep your employees in check and be successful. Here are some examples of company core values:

Quality. Having high standards for the quality of products that you produce can help benefit your company in many ways. No one wants a broken or defective product, so producing a high-quality product will help you attract new customers.
Respect. Respect helps build trust in the workplace. When you don’t respect someone’s opinions or ideas, it will be hard to be productive and successful. Establishing trust as a core value will help everyone feel welcomed and think they are an important part of the team.
Communication. Communication is very important for a successful workplace. People need to communicate effectively to be able to be a part of a team. Being able to communicate with your customers and clients is also important. They will not want to do business with a company that does not communicate well.
Diversity. Creating a diverse team will help new ideas come to light. Being inclusive and welcoming all people and ideas to your team will show your customers what type of company you are. It shows that no matter what background someone has, they will be welcomed.
Customer service. Having excellent customer service is important to keep your existing customers around while still attracting new ones. When you value your customers, you are more likely to have a high customer retention rate.
Integrity. Your company should be focused on doing the right thing, even if you don’t have anyone watching you. Integrity will show up in other core values as well. It can be a building block in creating an honest and respectful company. Employees, as well as customers, will want to be associated with a company that values integrity.
Connection. Being connected is essential to building trust and respect among workers. When people don’t connect, they can have a hard time working toward the same goal. Allowing your employees, as well as managers, to connect on a more personal level will create a positive working environment.

The Difference Between Company Values and Company Culture

Company core values help support the company’s vision, mission, and help shape the culture. They help create the company’s identity. They will be the building blocks of a successful company.

Company culture is different from the core values because it’s the social order of the company. Culture will define what is encouraged or discouraged, accepted or rejected within a group of employees. These cultural norms will be shaped because of the company’s core values. Without the values, a culture will not be created to help individuals operate day-to-day.

Company Core Values FAQ

Should core values change?

Yes, core values should change over time as your company grows and expands. Over time you may find that the values you created when your company first started may no longer reflect what your company is like now. Consider reviewing your values every few years to see how they reflect your company currently.
How many core values should a company have?

A company should have between three and ten core values. When you have more than ten values, it can become confusing for staff to follow. Be sure that your values are easy to understand.
What are good business values?

Communication, respect, and integrity are good business core values to have. The values that you create for your business should be the principles that guide your company and employees in their decision-making. These values will influence their behavior and create the company’s identity.
How do you come up with company values?

To come up with company values, you should first consider your own personal values and what you want your company to achieve. Knowing what you want your company to achieve, such as creating quality products that your customers can trust, will help establish your core values.

Adding your own personal values will help you truly believe in the company. You should also ask employees about their own personal values. When the values align with employees’ personal values, it allows for them to be involved and connected with the company.

References

Startup Formation

Author

Taylor Berman

Taylor is a freelance writer from Pennsylvania. Taylor got into writing because she enjoys writing articles that help people and loves creating stories that inspire. She earned a bachelor's degree in journalism and public relations with an interest in communications media from Indiana University of Pennsylvania.

Determining Your Company’s Core Values