Demystifying Company Values and Their Impact on the Organisation

What are Company Values?

Company values are a set of fundamental beliefs and principles that a company holds dear. They serve as a moral compass, helping the company and its employees understand what is considered important and how they should conduct themselves. These values provide a framework for the actions and decisions made by people in the business. They also help create a common understanding among all members of the company about how they should work together and interact with others.

It is important to note that company values are not just words on a page. They are the things that the company actually does. When a company lives its values, it creates a positive and productive work environment where employees are motivated and engaged.

Consequently, company values must be clearly defined and to communicate to everyone in the organisation. The company’s policies, practices and decision-making processes will reflect their values. To be effective, the actions of the company’s senior management and employees should consistently uphold and demonstrate the company values.

How Values Should be Written:

Values should be clear, written in the company’s ‘voice’ and, importantly, easy to remember.  It is important that there is no ambiguity in the statements that define the values. It is, therefore, not advisable to use just one word.  Equally, they should not be long paragraph since this would be difficult to remember.

A common format for values is to start with a single word, followed by a short but precise definition of what it means to the organisation.  The exact format used will depend on the organisation and the way in which it communicates both internally and externally.


Here are a few examples of some common company values:-

– Accountable: Fulfilling our designated responsibilities, managing our tasks diligently and taking ownership of any errors or oversights.

– Transparent: Being open and honest about what’s happening in the company, even when it’s not good news.

– Trustworthy: Being a company that people can rely on and believe in, keeping promises and doing what we say we will do.

– Honest: Telling the truth and being straightforward, not hiding or lying about things.

– Dependable: Ensuring unwavering and consistent performance, fostering trust among stakeholders by reliably delivering on commitments.

– Innovative: Encouraging new ideas and always looking for better ways to do things.

– Inclusive: Making sure everyone’s ideas are heard and treating everyone fairly.

– Adaptable: Being open to change and being able to adjust when things don’t go as planned.

– Compassionate: Recognising and valuing the emotions of others while demonstrating kindness and providing support.

Why are company values important?

Company values are important because they serve as the foundation for a company’s culture and guide the behaviour of its employees. When a company has a clear set of values, it can create a positive and productive work environment. This helps attract and retain top talent. It also the company make better decisions that align with its strategic goals and mission.

Having clear and well-defined values can help a company attract and retain employees who share those values, as well as build a positive reputation and customer loyalty. When a company’s actions align with its values, it can foster a sense of trust and confidence in the company. This is particularly powerful when supported by a strong business purpose.

They also help to align the actions and behaviours of employees with the company’s goals and priorities and foster a sense of unity and cohesion within the organisation.

Finally, company values can help a company establish a strong brand and reputation. This is because they communicate to customers and stakeholders what the company stands for. They also state what they can expect from its products or services. Overall, company values play a key role in the success and sustainability of a business.

Here are some of the reasons company values are important:-
Define the company’s identity:

Company values help to define the unique identity of a company and what it stands for. They provide a framework for how the company should operate and interact with its stakeholders and they help to create a sense of purpose and direction for the company. and they help to create a unique and distinct company culture.

Establish a cohesive culture:

Company values help to create a cohesive culture and establish a set of standards for how employees should behave and interact with each other. This can lead to a more positive and supportive work environment, which can improve morale and productivity.

Guide decision-making:

Company values serve as a framework for how the company should operate and make decisions. They act as a guide for decision-making, helping employees to make choices that align with the company’s goals and values. This helps to ensure that the company is acting in a way that is consistent with its beliefs and values. This can help to ensure the alignment of the company’s decision-making with its mission and purpose.

Create a sense of purpose:

Company values give employees a sense of purpose and meaning in their work. When employees understand and share the values of the company, they are more likely to be motivated and engaged in their work, which can lead to increased productivity and performance.

Establish standards of behaviour:

Company values establish standards of behaviour for employees and provide guidance on how to interact with customers, clients and other stakeholders. This can help to create a positive and professional company culture.

Attract and retain talent:

Company values can be a major factor in attracting and retaining talented people. Companies with strong and clearly articulated values are often more attractive to potential employees. This is because they provide a sense of purpose and direction. In addition, employees who share the company’s values are more likely to stay with the company for longer periods of time. This can help to reduce the turnover of people which improves overall performance.

Enhanced reputation:

Company values can help to enhance the reputation of a company and build trust with stakeholders. When a company is transparent about its values and demonstrates that it is living up to them, it can build a positive reputation and foster trust with customers, employees and other stakeholders.


Company values are an important part of a company’s identity and can have a significant impact on its success. Having clear and well-defined company values is important because it helps to establish a strong foundation for the company’s culture and creates a shared sense of purpose among employees. It can also help the company to attract and retain top talent, as was build trust and credibility with customers and other stakeholders.


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