What are company values and why you need them?
The term company values is a common one and we frequently come across it in our everyday business interactions, even though few of us are really clear on what they mean and their importance in the business scenario. They are an integral part of the regular business jargon and form the basis or principles on which a company operates, or should operate. In the present day business scenario when competition is so fierce and there are constant global challenges bombarding every brand, company values are of even more importance than they have ever been before.
What are company values?
Every company starts with a vision and definite goal. The company values are the basic thoughts and ideas that incorporate these goals and visions so that they can be imbibed into the every actions and functions of the organization, in every thought process and methodology and in every communication statement. They rightly reflect the company culture and support the leader’s vision for the company’s future.
Unless the company values are in place, the decision-making process will be unclear and confusing. They form the basis of quality standards, behind company ethics, and leadership philosophy that rightly determines the success and failure of a business. In short, they are the basic foundation for creating the right profile and identity that will make a company stand apart and become a brand to be reckoned with.
One important thing to understand here is that core values do not remain constant but are ever evolving. Or ideally they need to be to remain relevant and important. That is why core values are as much a part of the leader’s vision as they are an assimilation of the thoughts and principles of the key group members who understand the brand best.
Some key company values that are intrinsic parts of every successful organization.
- Responsibility and accountability
- Commitment and integrity
- Pursue of creative ideas and innovation
- Corporate diversity
- Social responsibility
- Healthy work-life balance
- Empowerment of employees
Why you need them?
The importance of company values cannot be stressed enough. They form the basis of every communique and every decision that ultimately affects the future of the company, not just its survival but also for more profitable results. They tell the world and clients about how the company functions, what kind of quality assurance one can expect from them, and what kind of services one can expect from them at all times.
Today, company values are considered a key recruitment and resource retention tools. Employees, both potential and present are more aware of their talents and best matches for their ideas and personalities. Everyone wants great work atmosphere but more than that there is a constant underlying need to work for a brand one can enjoy and identify with easily. If the values and individual ethics clash, mutual interdependence vanishes and very soon there is paring of ways which can seriously undermine and weaken the corporate structure of the brand.
On the other hand, strong company values mean that there is a definite path to follow and definite principles to adhere to. This gives a brand a stability as well as the strength to takes risks, succeed and make a difference, and enjoy long term competitive advantage.
Gary Takacs is the founder of The CEO University is a US-based, CEO and Executive Peer Group Organization that creates opportunities for accelerated business growth and personal development through CEO Peer Group Meetings and Executive Coaching that are CEO-led, focused on unique business and personal challenges, and purposeful learning events.