Business Values: Definition, Types, and Examples

Business values are the core principles and beliefs that guide a company's actions and decision-making. They define what an organization stands for and shape its culture, influencing everything from employee behavior to customer relationships. Business values serve as a moral compass, helping companies navigate complex situations while staying true to their purpose.

Types of Business Values

There are three main types of business values: principles, beliefs, and standards of behavior.

1. Principles are fundamental concepts that companies believe are essential for success, such as integrity, excellence, innovation, and respect.

2. Beliefs are views that companies hold to be true and influence their actions, such as zero tolerance for bullying or the importance of completing work on time.

3. Standards of behavior outline acceptable business practices, such as minimizing environmental impact or ensuring a safe workplace.

Examples of Common Business Values

Some of the most common business values include:

• Integrity (acting ethically and transparently)
• Honesty (being upfront and forthcoming)
• Accountability (owning decisions and their outcomes)
• Customer commitment (prioritizing customer needs)
• Respect (treating others with dignity)
• Innovation (pushing past the status quo with bold ideas)
• Teamwork (collaborating and supporting each other)
• Passion (being driven by a love for the work)
• Diversity and inclusion (valuing differences)
• Sustainability (contributing to social and environmental causes)

Why Business Values Matter

Having clearly defined business values provides numerous benefits, including:

1. Guiding decision-making and keeping actions aligned with long-term goals
2. Fostering a cohesive culture and enabling better collaboration
3. Attracting and retaining employees who share the company's beliefs
4. Building trust with customers and stakeholders by consistently upholding values
5. Encouraging innovation and creativity by providing a framework for intelligent risk-taking
6. Contributing positively to society and strengthening the company's reputation

A 2023 Pew Research Center survey found that only 51% of U.S. workers are highly satisfied with their jobs, highlighting the importance of strong company values in engaging employees. Companies with highly aligned cultures see 30% higher growth and 17% higher profit growth.

How to Define Your Company's Values

Crafting effective business values involves the following steps:

1. Reflect on your company's purpose, mission, and vision
2. Assemble a diverse team to brainstorm and draft values
3. Identify the categories most relevant to your business (e.g. customer service, innovation, sustainability)
4. Create concise, memorable, action-oriented value statements
5. Ensure values are unique to your company and reflect your culture
6. Regularly review and update values as the company evolves

Once defined, business values must be communicated clearly and consistently to employees, integrated into all aspects of operations, and upheld by leadership through their actions. Digital platforms can help reinforce values by keeping them top-of-mind for employees.

By taking the time to thoughtfully define and live their values, companies lay the foundation for long-term success, positive impact, and meaningful relationships with all stakeholders. Business values are the heart of an organization, providing the why behind everything it does.