Written by Anna-Lena Biswas

Have you ever wondered why successful companies carefully select core values that describe how they envision their company culture? They often invest a fair amount of money to communicate core values with their most important stakeholders such as their customers and employees, but what for? How can a few words make a difference in the success of a company?

We would like to give you some insights into the biggest benefit of value-driven companies. We will also provide some useful tips on how to bring your core values alive instead of letting them die slowly in your employee manual.

First of all, what are company values and how are they connected to company culture?

Individuals as well as businesses operate largely under the guidance of values. You likely make decisions and pursue actions based on your values. Successful businesses establish and follow their core values, too. Business values can heavily influence your brand identity, or how employees or outsiders view your company.

Your company’s core values are just words. What they are standing for is culture – a culture that lives those words.

Company culture can be difficult to put into words, but it is often a resemblance of your business environment. The employees you hire, the official rules you set, the way you do business, and the values that guide you make up your company culture. If core values aren’t defined and communicated in your company, you won’t have a widespread corporate culture, which means that each employee will do their own thing.

What are the benefits of a value-driven company?

Focusing on values instead of profit margins has a variety of potential benefits, including increased performance levels, improved service, reduced employee variability, and long-term sustainability. Establishing a values-driven culture is also a powerful point of action in developing a positive social impact on the community as well as leaving a legacy for future generations.

When a company employs the right culture, they attract and retain the right kind of people. A values-based company that provides significant attention to its employees will typically outperform its competition. The authenticity of the values helps attract and retains top talent. It also is a key factor in increasing employee engagement scores.

Just talking about values isn’t enough, it requires extra effort and consistency to go beyond the word:

1. Less is More

Company values influence the way you make business decisions and how you want your employees to behave. They should not just sound good, they should also transport the right message.

The fewer, the better because they’re more likely to be remembered and institutionalized within decision-making behaviours throughout the company. You should narrow it down to 3-6 values.

2. Live it every day

To ensure that your corporate culture is in sync with your values, the most important step is living the values and connecting them with everything you do and say. As stated, your core values will guide your decisions. And, they will also define the rules you set, how you lead your employees, and how you deal with customers.

3. Lead by example

Leaders across the whole company need to be role models in acting in line with the core values. You need to lead by example and create a culture where every team member is inspired to live those values day-to-day. Values should be integrated into everything a leader does and be communicated straightforwardly and concisely. For example, when giving updates, consider discussing how values affect company decisions.

4. Remind employees

To ingrain core values in your business, you need to remind employees regularly. You can for example showcase employees who are successful in following your business’s values by handing out awards or presenting them on your intranet page. Include core values in employee manuals, training materials, job advertisements and onboarding courses.

5. Incorporate values into a brand identity

Share your values with everyone. You can make posters or flyers to share them with employees and customers. Post them on your website, on your social media pages, and in any other digital way. Incorporating company values intro the brand identity will make your company unique that differentiates it from competitors as well.

6. Connect your values to a cause

Once you have a solid, values-based internal culture, you should share that with your community. Choose a cause that authentically connects and resonates with the culture you’ve built. For example, establish an employee-run committee that facilitates community involvement opportunities, making recommendations to the company for fundraising and fund-matching programs and employer-supported volunteer events. Identifying and supporting a cause that matches your company’s values is just one of many different ways to live out your culture.

Values can be more than words. Being authentic, living your values and creating buy-in among your employees and customers is what makes the biggest difference and will benefit your business and your team in the long run.