The Importance of Company Values and How to Instill Them

Company Values

The Importance of Company Values and How to Instill Them

In today’s fast-paced and competitive business environment, having a clear set of company values is more important than ever. Company values are the guiding principles that help shape a company’s culture, vision, and decision-making processes. 

In this blog, we will explore what company values are, why they are important, and how you can instill them within your organization.

What are Company Values?

Company values are the fundamental beliefs and principles that guide the behavior and decision-making of an organization. They define the organization’s culture and help establish a clear sense of direction and purpose. Values are not just words on a wall; they are the foundation upon which a company’s identity and reputation are built. Values are often expressed in a company’s mission statement, vision statement, and code of conduct.

The Importance of Company Values

1. Helps with Decision Making:

Company values provide a framework for making difficult decisions. When a company’s values are clearly defined, employees have a clear understanding of what the organization stands for, and they can use that information to make decisions that align with the company’s goals and values. Having clear values also helps employees prioritize their actions and focus on what matters most to the company.

2. Helps Attract and Retain Employees:

Employees want to work for a company with a strong sense of purpose and a clear set of values. They want to know that they are part of something bigger than themselves and that the work they do has meaning and impact. 

When a company’s values align with an employee’s personal values, they are more likely to be engaged, motivated, and committed to their work. Companies with strong values also tend to have lower turnover rates, as employees are more likely to stay with a company that shares their values.

3. Enhances the Company's Reputation:

A company’s reputation is built on its values and actions. When a company’s values are aligned with its actions, it creates a positive image that can attract new customers, investors, and employees. 

A strong reputation can also help a company weather difficult times, as stakeholders are more likely to stand by a company that has demonstrated a commitment to its values.

4. Improves Employee Morale and Productivity:

When employees feel that their work is meaningful and aligned with the company’s values, they are more likely to be satisfied with their jobs and have higher morale. This can lead to improved productivity, higher-quality work, and better customer service. 

Employees who feel connected to their company’s values are also more likely to be loyal and committed to their work, which can lead to better employee retention and lower turnover rates.

5. Helps Establish a Cohesive Work Environment:

Company values can help establish a sense of unity and shared purpose among employees. When everyone in the organization is aligned around the same values, it creates a sense of community and belonging that can lead to better collaboration, communication, and teamwork. 

This can create a more cohesive work environment, where employees are more likely to support one another and work together towards common goals.

How to Instill Company Values

1. Start with the Leadership Team:

Instilling company values starts at the top. The leadership team must set an example by living the company’s values and demonstrating them in their behavior and decision-making. They should communicate the importance of values to their teams and encourage employees to do the same.

2. Communicate Values to Employees:

Employees need to understand what the company’s values are and how they apply to their work. This can be done through regular communication and training sessions that emphasize the importance of the company’s values. Communication should be clear, concise, and consistent across all levels of the organization.

3. Incorporate Values into the Hiring Process:

Hiring employees who share the company’s values can help to reinforce those values throughout the organization. During the hiring process, recruiters and hiring managers should ask questions that help to identify candidates who share the company’s values. Candidates who are a good fit for the company’s values are more likely to be engaged and committed to their work.

4. Reinforce Values Through Training and Development:

Regular training and development programs can help to reinforce the company’s values and ensure that employees understand how those values apply to their work. Training programs should be designed to promote the company’s values and to provide employees with the tools they need to live those values in their work.

5. Recognize and Reward Behaviors That Align with Company Values:

Recognizing and rewarding employees who demonstrate the company’s values can help to reinforce those values and create a culture of recognition and appreciation. 

This can be done through regular employee recognition programs or by incorporating values into performance evaluations.

6. Review and Adjust Values as Needed:

Company values should be regularly reviewed to ensure that they are still relevant and aligned with the company’s goals and culture. If the company’s values no longer reflect the company’s culture or goals, they should be adjusted to ensure that they remain meaningful and relevant.

Examples of Companies with Strong Values

1. Patagonia:

Patagonia is a clothing and outdoor gear company that is known for its commitment to environmental and social responsibility. The company’s values include sustainability, transparency, and respect for the environment. 

Patagonia has taken a number of steps to live these values, including reducing its carbon footprint, using sustainable materials in its products, and supporting environmental causes through its 1% for the Planet program.

2. Zappos:

Zappos is an online retailer that is known for its focus on customer service and employee happiness. The company’s values include delivering wow through service, embracing and driving change, and creating fun and a little weirdness. 

Zappos has a number of programs in place to promote these values, including a comprehensive employee training program and a focus on customer service that includes free shipping and a 365-day return policy.

3. Southwest Airlines:

Southwest Airlines is a US-based airline that is known for its commitment to customer service and employee satisfaction. The company’s values include a warrior spirit, a servant’s heart, and a fun-loving attitude. 

Southwest has a number of programs in place to promote these values, including a focus on employee empowerment, a commitment to safety, and a dedication to giving back to the community.


In conclusion, company values are an essential component of any successful organization. They provide a framework for decision-making, help attract and retain employees, enhance the company’s reputation, improve employee morale and productivity, and establish a cohesive work environment. 

To instill company values within your organization, start with the leadership team, communicate values to employees, incorporate values into the hiring process, reinforce values through training and development, recognize and reward behaviors that align with company values, and regularly review and adjust values as needed. Companies such as Patagonia, Zappos, and Southwest Airlines serve as examples of how a commitment to values can lead to long-term success and growth.

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