What are business values?
A business’s core values (also known as ‘company values’ or ‘business ethos’) are the set of principles and beliefs that drive the business and dictate how it behaves. In essence, business values define and summarise what a business stands for and what drives it to perform. Business values can impact relationships within the business as well as relationships with customers, investors, and other stakeholders.
These values should be practised and reflected in every level of operation within the business. They will determine how the public perceives your business and help differentiate it from its competitors. A business’s values ensure that everyone works towards the same goals and behaves consistently and ethically.
What are examples of common core business values?
Core values should be unique to your business and, as a result, few businesses will have identical corporate values. That being said, certain business values are more widespread than others. These are often employee and customer-centric and may include:
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accountability
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ownership
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being a team player
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collaboration and partnership
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employee development
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integrity
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promoting fair trade
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communication
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sustainability
What is corporate culture?
Corporate culture (also known as ‘company culture’ or simply ‘culture’) refers to how an organisation’s business is conducted. It describes the formal and informal systems, behaviours and shared values that make up a work environment and determines how employees interact and handle business operations.
Corporate culture influences how employees work together, how they treat customers and how decisions are made. It can typically be seen in the business’s dress code, office setup, working hours, staff events and groups, and overall atmosphere. A positive corporate culture can lead to higher employee satisfaction and better business performance.
In other words, a business’s culture is its business values in practice.
Why are core values important?
Core values are important because they affect how the business impacts its employees and customers, and affects how they behave in relation to your business.
Effects on your employees
Having a clear set of values can help employees to make decisions that achieve your business’s mission. It provides them with guidance on appropriate courses of action.
Values can also boost employee morale. Employees are usually more motivated to work for businesses that share their values.
They can also help attract the best talent for your business as they provide prospective employees with an idea of what it’s like to work in your business. A business’s core values affect its culture and work environment. Making these values clear at the recruitment stage can help you hire the right people by attracting those who share the same values. This helps your hires fit into your workplace culture, increasing their productivity and the likelihood that they’ll stay with your business for longer.
Your business’s public image
Through your business values, potential customers and investors can gain a comprehensive understanding of your business's mission and character. A strong set of business values makes your business more appealing to potential customers and investors who share the same beliefs, which fosters brand loyalty and can help secure investment and partnerships.
When should I define my business’s core values?
All businesses should, ideally, have defined core values. Generally speaking, there are certain triggers for determining, redefining or revisiting a business’s values. These are:
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when the business is started - it is a good idea to set out a business’s core values as part of a Business plan. Not only will this help attract like-minded investors, but it will also help you get off the ground as soon as possible, as customers and potential employees will know what your business stands for
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when a business doesn’t have core values - if you started your business and it’s been operational for a while, it is a good idea to start defining and articulating your core values if you haven’t yet done so, as this may help your business grow
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when a business grows rapidly - as your business expands, and you take on more employees, you may need or wish to revisit and reconsider what drives your business
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when a business experiences high employee turnover - high employee turnover is usually a sign that something isn’t working. If you’re experiencing high rates of employee turnover, it may be a good idea to revisit and redefine or change your business’ values to help attract and retain employees
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when a business is rebranding or otherwise pivoting - if your business is changing direction or rebranding, revisiting your core values can help ensure the new direction aligns with your fundamental beliefs
As a general rule, you should always consider revisiting, redefining and/or changing your business’s core values whenever big changes occur. This is a good ‘reset’ point for you to consider how you want your business to be perceived going forward.
How do I determine my business’s key values?
1. Consult your employees
Form a small team with other founders, executives (eg CEOs), and key employees (eg HR managers) to collectively identify traits that describe the business, or that you’d like the business to adopt. Make a list of all the suggestions.
2. Define your key core values by discussing them with your team
Continue discussions with your group to see which values resonate with them the most. Particular consideration should be given to qualities that have been raised more than once.
In picking out which beliefs and principles to uphold, you should be mindful of:
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the relevance of the traits to your business and its mission - they should not be generic ideals
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the costs associated with upholding these values - they should be upheld at all times, not only when it’s economical to do so
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when actions must be taken to realise these values for them to be effective - your values should actually be adopted, so make sure they are reasonable and feasible
What happens after I have identified the core values?
After you’ve established your core values, you must share them with your employees and the public.
Before announcing these values to your employees, you should think about the best ways to market and communicate them. You can:
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use acronyms to make the values more memorable
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demonstrate how these values can be implemented practically in employees’ daily activities
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create posters to remind your employees of the values
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make merchandise and swag with the values printed on it
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introduce a reward system for employees who embody the values in their daily operations
To be effective, your core values must also be integrated into any employee-related processes such as recruitment, wellbeing initiatives and dismissals. Consider incorporating your business’s values into an Employee handbook by, for example, including a page outlining the core values and their meaning.
Be sure to share your values with the public. You can do this by publishing them on your business’s website as a mission statement and by publicising them on social media.
