The Importance of Core Values in Business

Written By: Lauren Pflug, Senior Content Strategist, Blueprint Evolution

If you’ve been keeping up, you’re likely aware that the workforce and business landscape are undergoing significant transformations. Today’s employees are actively advocating for improved treatment, often reducing their engagement until they perceive a greater sense of value.

Many organizations are still operating with the same values they have for decades. This is problematic because these values and practices are outdated and they were created through a business-centric lens– the value was solely in the dollar. Now, the value must be in the human.

These practices were instituted during a time when acquiring assets often meant pursuing them at any cost, sometimes compromising safety and engaging in questionable business ethics. In essence, these so-called “best practices” were rooted in past paradigms, benefiting only a few, and have lost their claim to being “best” because they no longer prioritize the well-being of your employees and may even undermine their dignity.

When your employees aren’t aligned with your organization, it’s unrealistic to anticipate exceptional performance from them.

Defining and implementing corporate values isn’t merely in the best interest of the business and its employees; it’s equally vital for consumers and stakeholders, as noted by MIT Sloan.

There are many aspects of the business world that are changing. Every human impacted by your organization is undoubtedly interested in your values and whether or not these values are simply words, or active practices.

What distinguishes business values that exist only as words in a handbook – from those embodied by every team member, creating a sense of unity and shared purpose.

Organizational culture. Having a strong organizational culture will ensure that these values are benefitting every level of the business.

Forbes defines organizational culture as “the collective result of how people on the team think and behave, their shared values, and how they react to internal and external stimuli.” When values are carefully and purposefully crafted, and put into practice, leaders are able to rely on them to increase performance, especially in times of transition (Forbes). Your team members should feel confident to fall back on and refer to company values when faced with any challenge.

Your core values should be:

The foundation of WHY the organization exists
How the organization regularly operates
How goals are met to produce the organization’s desired outcome

Core values should be company-specific and feel authentic to the entire team. People want to work for organizations that ingrain their values into day-to-day operation. They want to work for brands with a real purpose. Living your core values will provide your entire team with a shared objective. Organizations with a true purpose will outperform their competitors.

According to Forbes, “brands with a high sense of purpose increased in value by 175% over a 12-year period”.

When employees are aware that their work holds significance, and they are affiliated with a brand that prioritizes meaningful values, their engagement and job satisfaction significantly increase. Happy employees are more inclined to collaborate seamlessly as a cohesive team, particularly in environments that foster open feedback from all team members.

This dynamic characterizes an inclusive organizational culture.

When everyone knows they have something to offer, they are going to lead with their talent and eagerly devote their efforts.

Using organizational culture to help your brand walk the walk is all about communication. Leaders should be setting the tone. If employees don’t see their leaders representing what the company stands for, why would they go out of their way to do so? This impacts the consumer as well. Leading by example and through action is how to build trust and loyalty with employees and consumers.

Values-based leaders build better teams and see greater outcomes.

Forbes lists five key traits of a values-based leader:

Self-Reflection. A values-based leader will be unafraid to self-examine. They are willing to take an honest look at themselves and recognize their shortcomings. They welcome feedback; both good and bad. In fact, they want the negative feedback so that they know where growth is needed.

Balance. Although having a “leader” title, they know when it’s time to lead and when it’s time to follow. They know the benefits of a diverse team and can integrate, uplight, and celebrate different viewpoints and experiences.

Humility. True leadership entails the practice of humility. While a ‘boss’ often perceives themselves as sitting atop a hierarchy, a genuine ‘leader’ acknowledges their equality with coworkers. They readily admit their mistakes and understand the importance of seeking advice when confronted with challenges beyond their expertise.

Authenticity. A values-based leader is authentic and relatable. They take accountability. You can rely on always getting the same version of this person– regardless of who may be in the room.

Continuous Improvement. A true leader knows that the journey of self-improvement is never really over. They strive to be better and are committed to learning and growing; not just for themselves, but for the team they lead.

Leaders who regularly demonstrate core values will have a greater impact on all employees. Employees who see their leaders actively living the company values will be more inclined to do so themselves. Verbal reminders of company values are good, but actually living them is even better. If all members of your team are on board, day-to-day operations will run synchronously. There will be less guessing games, higher performance, and better production.

Your company values are only as important as the influence they have on employees’ daily behaviors and decision-making (MIT Sloan). In order to get employees on board with the core values, recognition and reward should be provided. Recognition makes up a large portion of making employees feel valued.

Recognizing a team member’s commitment to company values is just as important as recognizing goals, talent, and expertise (Forbes). Recognition plays a notable role in employee retention.

Additionally, kindness and recognition is almost as important to employees as their paycheck (Pew Research Center & Blueprint Evolution).

We want you to see how this all comes full circle.

The outdated approach of prioritizing financial gains at the expense of your workforce is losing its effectiveness. Your core values should take precedence and serve as the guiding principles for every individual within your organization.

Employees are no longer content with a profit-centric narrative; they are eager to align themselves with values-based organizations that provide them with a sense of purpose.

They want a purpose.

When robust core values form the bedrock of an organization, and inclusive practices are the standard, employees naturally feel appreciated for their unique contributions.

When your workforce is regarded as your most valuable asset, financial success will inevitably follow.

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