What are a company’s core values?
The core values of a business are the internal beliefs, code of ethics and morals that guide your objectives and practices. Clearly defined business values help you make important decisions that determine the organization’s success.
Business values are closely related to your workplace culture. For example, company values help determine how employees communicate, how your business treats customers and who you hire. It’s important that your core values align with the way your organization’s actions.
Examples of organizational values include:
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Accountability
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Boldness
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Collaboration
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Continuous improvement
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Curiosity
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Customer commitment
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Diversity
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Honesty
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Humility
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Inclusion
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Innovation
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Integrity
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Making a difference
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Passion
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Persistence
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Self-improvement
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Sustainability
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Teamwork
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Transparency
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Trust
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Vulnerability
How to define your company’s core values
Use these tips to define your company values if you’re unsure where to start.
1. Consider why you started your business
Begin by considering the driving factors and motivators that led you into business. Your vision and mission statements likely describe this motivation. Perhaps you wanted to assist other business owners or fill a consumer need with a product or service. Maybe you went into business to revolutionize the way your industry traditionally operates. These motivators can serve as the foundation of your company’s core values.
If your goal is to be honest with customers, integrity could be one of your company’s core values. If you started your business to offer sustainable and environmentally friendly alternatives in your industry, dedication to eco-friendly practices might appear on your organization’s core values.
2. List your personal values
Many business owners’ personal values influence their company’s guiding principles. If they align with your personal values, it may be easier to incorporate them into your business decisions.
Reflect on your personal values and consider how they relate to your industry and business goals. For example, you might ask yourself:
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What values are important to me in my daily interactions?
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What values do I want to be known for in my industry?
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What values do I relate to in the companies I admire?
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How do I make important decisions in my personal life?
Use the answers to incorporate your personal values into your business value statements.
3. Determine what values your customers expect
The values of your target audience may also impact your decision. While you shouldn’t change your core beliefs to keep your customers happy, it helps to focus on areas that are also important to them.
What makes your business stand out from the rest? Determine your unique selling proposition (USP) to develop distinctive values.
4. Ask employees about their personal values
You might find inspiration in your employees’ personal values by conducting a survey or holding focus groups. It’s generally easier for employees to live by your company’s core values when they identify with them.
You might also consider what values you look for when hiring employees, such as integrity, honesty, compassion or passion.
5. Imagine the values of your ideal team
Because many companies rely on teams to meet company goals, also consider your ideal team. Maybe you already have employees with a strong, positive team culture. Think about what actions you prefer your team members to take and which values are important in a larger team setting. Team values may include organization, communication, leadership or collaboration.
6. Make your values actionable
The true test of your proposed company’s core values is whether or not they’re actionable. Your organization’s core values should reflect what your company does on a day-to-day basis. After you’ve created a list of values that align with your company goals, consider how to implement them.
Examples of company core values
Seeing business values examples can help you devise your own. Here are examples for inspiration:
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Support local charities to give back.
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Communicate transparently at all times.
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Take ownership of decisions.
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Continue learning and growing.
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Make bold moves daily.
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Maintain curiosity and hunger for knowledge.
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Strive to create a culture where all team members and customers feel valued through diversity and inclusion.
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Reduce your environmental impact with sustainable business practices.
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Nurture innovation and creative ideas.
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Embrace new ideas and solutions to improve.
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Focus on impact.
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We satisfy and delight our customers.
Why are company core values important?
Defining the core values of a business may offer potential benefits, including:
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Framework for decision-making: Business values help you make important business decisions about hiring, training, short- and long-term strategy and leadership techniques. With this guidance, you can make consistent decisions that align with your values and help you reach your goals.
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Expectations for employee behavior: Making the values within a company clear and visible sets a standard and guides employee actions. Values can also help decision-making employees choose options that benefit the organization as a whole.
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Support for hiring decisions: Having defined company core values guides hiring managers in choosing employees that align with the organization’s goals and mission. This helps create a cohesive workplace where everyone shares similar values.
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Employee satisfaction: Employees are more likely to be satisfied with their roles when they agree with the company’s values. Aligned values may also help improve employee motivation.
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Customer alignment: Current and potential customers evaluate many details about a company, including its values and how well it demonstrates them.
How to use your business values
Once you establish the values within your company, include them in everyday activities and overall actions. Here are actionable ways you might make your values a central part of your company:
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Make them easily accessible: List your values on your website in a prominent spot. Print and hang posters in the office that highlight the values.
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Use them in everyday conversations: When values are communicated regularly, they become part of the company culture and influence how employees work and interact. Use your core values to discuss projects, incorporate them into your campaigns and discuss them during meetings.
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Incorporate them in your metrics: If prioritizing customers is a value, measure customer satisfaction regularly. For values related to sustainability, track your environmental impact. These metrics encourage you to take action based on your values.
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Recognize value-aligned employees: Employee recognition programs may highlight team members who embody company values. When you give feedback to employees, point out examples of how they embody company values.
Frequently asked questions about business values
How many core values should a company have?
It’s a good idea to choose five to 10 core values of a business. They should be easy to remember, clear, meaningful and actionable. It’s important to choose core values you can truly live by. You may select fewer than 10 to ensure that’s possible.
What format should I use for my company’s core values?
Company core values are often phrases, single sentences or words organized into a bulleted list. Some businesses expand upon their core values by describing them in more detail on their website. Keeping your values short and simple may make them easier to remember.
How often should company values be updated?
Consider reexamining your company values every few years and when big changes happen at your company. As you grow your business, you may find your company’s core values no longer reflect your goals, mission or vision. Reevaluating the core values every few years helps ensure they align with your company culture, motivate employees to do their best work and foster strong customer relationships.