Corporate values as the DNA of a healthy company

The corporate values ​​of an organisation  are not much different from those of an individual. Subject matters within the company, as well as interpersonal relationships are governed by them. When values ​​are strong and unwavering, they affect all aspects of the business: from employee benefit packages and customer services, to marketing strategies and the workplace culture. The aim of corporate values is to promote cooperation and the achievement of common goals - This is how the company's DNA is created.

Having clearly defined corporate values ​​is key for employers, employees and clients.

Corporate values ​​do not only bring benefits to employers. Employees and customers will appreciate them much more than you would expect.

For the organisation, when corporate values ​​are in line with those of the individual, not only is customer satisfaction greater, but also recruiting of committed and motivated employees is much easier.

Clients also better understand the brand's identity and thus the company itself. The organisation can retain these customers much easier because they mutually trust one another. Clearly defined and well-communicated values ​​are thus an indisputable advantage in competitive struggles.

According to latest surveys, some groups of employees are not motivated solely by profits: well-communicated values ​​can attract potential employees to the true essence of the company. According to a study conducted by Fidelity, millennials in America would be willing to accept an average annual salary reduction of $ 7,600 for a healthier work-life balance, better corporate culture, professional development, or for a more meaningful job. These are factors that would help improve their overall well-being.

In other words, if organizational values ​​are clearly defined, it can have a significant impact on employee engagement and motivation. These employees fulfill not only their personal goals at work, but also those of the company. They have a clear vision and know exactly what is expected of them.

However, such a mechanism can only work if values ​​are clearly articulated, sensible, and if everyone - especially team leaders - adheres to them.

Empty motivational slogans on bulletin boards and post-it notes are just a nice decoration of the office without any deeper meaning. Effective values ​​must be truly rooted in the functioning of the company. The bankruptcy of Enron, one of the biggest crashes in American corporate history exemplifies a situation in which the opposite was true. Although Enron promoted values such as Honesty and Integrity, Communication, Respect and Perfection, while proudly presenting them everywhere, the company went bankrupt in 2001. Why? Their business practices were in stark contrast with their values and mottos.

Honesty and integrity, underlined the functioning of a stable and reputable company that employed tens of thousands of people. After financial frauds were uncovered, one of America's most innovative organisations became a symbol of fraudulent business and lawsuits within a few months. The crash of Enron is therefore a textbook example of empty slogans that the company's management completely ignored.

Hence, organisational values cannot be followed only by employees. It is essential that everyone - even senior managers - adheres to them.

If managers do not set an example themselves, they cannot expect their subordinates to adhere to the company philosophy and the firm to prosper. In short, everyone has to aim towards the same goals.

What values do successful international companies have?

Inspiring corporate values are present in companies such as Amazon and H&M. Amazon, one of the biggest ecommerce stores, is guided by slogans such as passion for invention and long term thinking. Similarly, one of the most known clothing companies in the world, H&M, professes values ​​such as we are one team, cost consciousness, or be straightforward and open-minded. Both companies do everything to ensure that their values ​​are reflected in the day-to-day functioning of their business and that they are perceived by both employees and clients.

There is no official guide to building a successful company and to having satisfied employees and clients. Yet well-defined, respected, and shared corporate values, ​​form a solid base in any successful team.

And what are your corporate values?