What Are Company Core Values? And Why They Are Important

In today’s business world, we’re constantly hearing about core values, culture, and mission statements and we’ve spliced them into standard business language. So what are company core values exactly? And why are they so important to your company?

Simply put, core values are the fundamental principles, beliefs, or philosophy of a person or organization. They’re what support your vision, give shape to your company’s culture, and reflect the whole world, what your company stands for.

Consciously or unconsciously, people use personal core values on a daily basis to select the companies they work for and do business with. This makes your company’s core values an extremely powerful tool and a necessity no matter the size of your business.

Why are Core Values So Important in Your Organization?

Trust is a Core Value

The importance of your company’s core values is immeasurable. Day in and day out, your company’s core values are the principles that dictate your employee’s behavior and guide your company’s decisions and actions.

• They are your employee’s clear guide for the behavior your company expects from them. When employees really understand and accept your company’s core values, they make decisions that are in alignment with your company – even when you’re not around.
• Enabling your company to stay on track with its founding purpose and goals. When the frenzied running and growing of business results in a loss of direction, strong core values make decision-making swift and focused.
• Notice how your core values are quickly becoming part of the retention and recruiting process. Job seekers are beginning to check into the core values of a company before applying or taking a job. Today’s employees want to feel aligned with the company they work for.
• These core values are the essence of your company’s identity. They tell your target market what your company’s about and give you a competitive boost by making you stand out amongst your competitors.

The Compass

Core values are the foundation from which you build your company and the compass with which you guide it. They’re critical to the long-term growth and success of your business.

Defining Your Company’s Core Values

The first step in defining your company’s core values requires that you have a clear understanding of your own… Yes, everyone says they have core values, but when asked what they are, most people usually have to stop and really think about it.

Can you name your top five personal core values?

Do you have them articulated clearly in writing?

The First Step in Creating Your Company’s Core Values

It’s almost impossible to accurately create core values for your company if your own personal core values are unclear.

What values are essential to your life? What values represent your primary way of being?

• Honesty – Are you direct and honest? If you find that truth is a necessity in your life, then honesty is one of your core values.
• Risk-taking – risk-takers and adventurers are always looking to push themselves and their company to the outer edges of what’s possible. Are you a risk-taker?
• Collaboration – You work with others, share ideas and methods as a way of creating success for yourself and others.
• Excellence – Do you find yourself constantly striving to improve yourself, your relationships, your company? Excellence is one of your core values.
• Perseverance -You don’t give up when the going gets tough – you just dig in deeper.
• Accountability – You face your responsibilities and own up to your mistakes.
• Diversity – You don’t just acknowledge cultures and traditions that differ from your own – you strive for diversity in your life and organization.
• Resilience – If you bend but never break and always recover quickly, resilience might be one of your personal values.

Testing Your Core Values

Explore your core values and then test them.

Do these values make you feel good about yourself?

Are they personal to you or do they feel like they belong to someone else, like an authority figure or society, and not you?

Would you be comfortable and proud to tell your values to people you respect and admire?