What is a corporate value?
Corporate values are those values that a company represents internally and externally. These guiding values serve on the one hand as a basis for decision-making, orientation for action and standards of behavior for employees, and on the other hand for corporate management.
Generally speaking, values are characteristics that are important to us and according to which we act. Values are a central element of corporate culture and create orientation for the entire company.
Why are corporate values so important?
As already mentioned, values create orientation throughout the company and thus have a positive influence on the company’s success. However, corporate values that have been chosen with care not only serve the company, but also each individual employee. If each person in the company acts according to the defined corporate values, they also fulfill their purpose.
- Corporate values create a basis for decision-making, orientation for action, and standards of behavior.
- Corporate values create loyalty and bind employees to the company.
- Strengthening identification with the company.
- They have a positive effect on trust and motivation.
- The credibility and image of the company are strengthened.
Influence of corporate values
Corporate values have a major influence in the following areas:
- Employee leadership
- Employee selection
- Business partner selection
- Setting priorities
- Development of new lines of business…
Examples of frequently communicated corporate values
- Environmental awareness
- Customer friendliness
Implementation of corporate values
Implementing corporate values in a company requires intensive work and is a multi-step process.
Defining corporate values
The first step is to develop and clearly define the company’s values. It would also be possible to enlist the help of employees for this. On the basis of the values presented, they should consider which are most important to them and which seem essential for the company.
Communicating the corporate values
In the 2nd phase, it is important to communicate the corporate values. This process should take place both internally and externally. Training courses, meetings with employees, etc. are ideal means of communicating the defined corporate values. Only when everyone (managers, employees, suppliers, etc.) is involved, they represent the corporate values on their own initiative. The result of this intrinsic motivation: reduction of the fluctuation rate, strengthening of loyalty and employee retention.
Establishing the corporate values
The clearly defined and communicated corporate values must subsequently be continuously communicated and also exemplified. Starting at the management level and extending to the lower levels of the hierarchy, the values should be exemplified over and over again until they are finally deeply anchored in the corporate culture.