What are company values?

Company values are the set of behavioral norms, beliefs and principles that make up an organization’s code of ethics and conduct. These values set the foundation for a company’s culture, defining its intentions and core business model. On a day-to-day level, company values form a blueprint that employees and management will use to conduct business and address issues.

Additionally, these values work in tandem with your employee value propositions and your employer brand, helping you attract quality candidates at all levels. These values will serve as guidelines that your company will refer to as it grows and shifts, reminding your team of the standards they’ve pledged to uphold.

The importance of building company values

Company values have a significant influence over the long and short-term workings of your organization. But what makes them so important? Company-wide values are necessary for several reasons, including:

• Set yourself apart from competitors. company values are often described as your company’s “personality.” Developing a unique personality differentiates your business from the competition in the eyes of consumers, partners and employees. 
• Attract like-minded team members. Employees who identify with your company’s core values are likely to remain dedicated to its success. This can increase job satisfaction and even improve performance. 
• Build trust with customers. Modern consumers are conscious of where they do business. Establishing core values means you’ll attract those who share your morals and standards. 
• Guide decision-making. company values guide a company’s decision-making on every level. Referring to them frequently keeps it on track to meet its goals. 
• Inform strategy. Values also prove useful when developing strategies in every category from marketing to finance. Using them as a blueprint ensures a company stays true to its principles.

Types of company values

Company values come in many forms. Most businesses choose a select few to keep in mind as they work toward their goals. While values can be interpreted in many ways, they can generally be broken up into a few categories. Here are some common ones to consider when building company values:

Ethical values

Ethical values are useful if your company takes a strong stance on moral issues such as environmental preservation or equal pay. They often stem from a desire to make the world a better place, whether it’s through the lives of employees or otherwise. Ethical values may include:

• Sustainability
• Equality
• Respect
• Responsibility
• Diversity

Market values

Market values keep the customer at the forefront of a company’s operations. These are useful for satisfying consumer needs and are extremely influential in how a business markets its products and services. Some examples of market values include:

• Reliability
• Representation
• Quality 
• Accountability
• Innovation

Internal values

Unlike market values, internal values focus more on employees and daily processes. These values differ from others in that consumers may be largely unaware that they exist. But while they may not concern customers directly, solid internal values make for greater employee performance that may enhance the customer experience. Some internal values are:

• Balance
• Collaboration
• Dedication
• Play
• Flexibility

Financial values

Financial values influence your company’s money management. From profits to expenses, these values act as a blueprint for economic procedures. They may include:

• Investing in employees
• Result-oriented
• Philanthropy
• Optimization
• Organization

Creative values

Creative values reflect a desire to bring innovation and individuality to your industry. These values can be particularly useful when it comes to differentiating products and services from their competition. Some creative values include:

• Open-mindedness
• Boldness
• Individual expression
• Inclusivity
• Unconventional

Related: 21 Core Company Values to Consider for Your Business (With Examples)

How to build company values

Now that you understand the importance of building company values, it’s time to find out how to develop some of your own. While this process can vary from company to company, here are six simple steps to help you get started: 

1. Find your why

The first step in building company values is to identify the motivating factors that already power your business. Depending on your industry, this could be a desire to help other business owners or to provide cutting-edge products and services to consumers. No matter what, the factors that led to your company’s creation is a great place to start identifying its core values.

2. Identify your personal values

As a leader, finding values that are authentic to you is a necessary step. This ensures the foundation you build your company upon is in line with your personal truths and allows you to establish authenticity from the ground up. Keep in mind that while company values should be relevant to you, they should also be significant to your industry.

3. Find out what’s important to your customers

Your company’s core values should resonate with consumers. Strive to align your values with industry expectations while differentiating yourself from competitors. This increases your chances of connecting with a broader base of customers while ensuring you don’t get lost in the noise.

4. Outline employee values

company values should translate to employees as well as consumers. Draw up a set of values that you feel exemplify your ideal employee to serve as a guide for your team. Not only does this attract team members with similar values, it also gives employees a moral framework to refer to on a day-to-day basis.

5. Get employees involved

Make employees part of the value-identifying process. Conduct employee focus groups or send out surveys to encourage collaboration and develop a set of values that resonates with the whole team. 

6. Keep values actionable

Before finalizing your list of company values, ensure each one is fully actionable. Your company’s values should be ones that you can realistically implement in your day-to-day practices rather than simply theoretical ideals. Do your best to come up with values that everyone in your organization can practice and put into action in a practical and relevant manner. Then take the time to outline the steps that will put each value into action so the entire team can live up to the values you establish. 

company values in action

Many companies have turned their company values into global success. Here are some values adopted by major players in the business world:

Airbnb

• Embrace the adventure
• Turn ambitions into reality
• Be a host

Microsoft

• Respect
• Integrity
• Honesty

Walmart

• Serve the customer
• Respect the individual
• Act with integrity

FAQs about company values

Still have questions about building company values? Here are some FAQs to clear things up. 

What’s the difference between company values and a mission statement?

A mission statement is a description of a company’s goals and purpose that includes a brief description of its core products or services. company values differ in that they state what the company stands for — in other words, the principles that guide its goals and processes. 

Can company values be adjusted?

Though company values are generally fixed values that guide a company throughout its lifetime, they are somewhat flexible. Feel free to add to your list as your company grows if new values present themselves. 

How do you implement company values in day-to-day processes?

Actively refer to and reflect on your company values during team meetings and brainstorming sessions. Keep them at the forefront of the conversation when discussing company goals and strategies to ensure they are adhered to.