CORE VALUES

“When your values are clear to you, making decisions becomes easier.”

– Roy E. Disney

Core Values are the fundamental beliefs and guiding principles that an organization holds as foundational. These values are deeply ingrained principles that influence team members’ beliefs, behaviors, and culture. They set the standard for how an organization conducts itself, interacts with customers and partners, and how employees engage with one another.

An organization’s Core Values drive decision-making, shape strategies, and guide the overall direction of the company. They can serve as a moral compass, influence hiring and promotion decisions, and ensure that the company remains true to its mission and identity, even as it grows and evolves.

WHAT ARE CORE VALUES?

Let’s look at how two very different high-performing organizations articulate their Core Values:

Marines’ Core Values.

Honor
Courage
Commitment

These three simple but powerful values are the foundation of the United States Marine Corps’ ethos. They guide Marines in every aspect of their service, from their conduct in training to their actions on the battlefield.

Zappos, an online shoe and clothing retailer, has become famous for its unique and customer-centric culture. As they grew as a company, they realized the importance of defining the core values that drive their culture, brand, and business strategies.

These are the ten core values that Zappos lives by:

Deliver WOW Through Service
Embrace and Drive Change
Create Fun and A Little Weirdness
Be Adventurous, Creative, and Open-Minded
Pursue Growth and Learning
Build Open and Honest Relationships With Communication
Build a Positive Team and Family Spirit
Do More With Less
Be Passionate and Determined
Be Humble

Zappos embeds these values deeply into every aspect of their organization, influencing hiring, onboarding, employee recognition, and customer interactions.

EXAMPLE OF CORE CORPORATE VALUES

Below are the core values I helped create at OpenMethods. The values are simple and authentic ideas. Notice how the mission is at the top with the context of what values are used for “our values ground us in our decisions, behavior, and relationships with each other, our customers and partners.” The six values support the realization of the mission and are all used in making better decisions, inspiring people to do the right thing, and building trust in relationships. Once the values are solidified, the challenge is making them a reality through reinforcing them throughout the employee journey, meetings, interactions, mentorship, internal and external marketing, and more.

Corporate Values Example

List of Potential Core Values to Fuel a Values-Driven Culture

Below is a list of potential core values for an organization. Values fall into a few different categories including personal, interaction/relationships, business-oriented, customer, and external. Of course, the list is just a start to get you thinking, as there are hundreds of more potential values and the trick is to make them pithy, inspiring, mission-oriented, and culturally aligned.

WHY ARE CORE VALUES IMPORTANT?

Core Values serve as the foundation for an organization’s culture. A great culture, if nurtured correctly, creates an incredible environment where team members can flourish. Conversely, a weak or negative culture can lead to demotivated team members and general discontent, ultimately affecting organizational success.

Here’s why Core Values are crucial:

Guiding Decision-Making: Core Values provide a framework for making better, more consistent decisions. They remind team members of the organization’s standards and how it wants to operate, even in challenging circumstances.
Shaping Organizational Culture: Values have a direct impact on culture. A well-defined set of Core Values helps foster a positive, respectful, and productive environment. They shape how employees interact with one another and conduct themselves in day-to-day tasks.
Attracting and Retaining Talent: Organizations with strong, clear Core Values attract talent that shares those values. This leads to higher employee engagement, satisfaction, and retention, as people are generally happier working in environments that align with their personal values.
Building Trust and Loyalty: When organizations consistently live by their values, they build trust among employees, customers, and partners. This trust fosters loyalty, as stakeholders know the company stands for something meaningful and consistent.
Creating a Strong Brand Identity: Core Values help define an organization’s brand identity. Customers often choose to buy from companies that reflect their own values, and a strong value set can differentiate an organization in a competitive market.

Note: If an organization’s leadership team does not genuinely believe in or behave according to the Core Values, this dissonance can quickly create cynicism, apathy, and low morale across the organization.

HOW DO YOU CREATE AND LIVE BY CORE VALUES?

A strong set of Core Values helps shape an organization’s culture and should be reflected in hiring, onboarding, conduct, team-building initiatives, evaluations, and decision-making. Here are best practices for creating and living Core Values:

1. Be Authentic

It’s crucial to ensure that your Core Values are genuine reflections of your organization’s identity. Avoid corporate jargon or generic terms like “Integrity” and “Respect” unless they truly hold unique meaning in your context. Instead, use language that resonates with your team members and can be embraced by everyone in the organization.

2. Identify What You Need to be World-Class At

Consider what your organization needs to excel in to achieve its mission. For instance, the Marines require world-class honor, courage, and commitment. Zappos focuses on delivering world-class service. Ask yourself: what does your organization need to be world-class at? Weave these priorities into your Core Values to highlight what sets your organization apart.

3. Tap into the Voice of the Employee

When creating Core Values for a group of people, it’s essential to include them in the process. This can be done through surveys, brainstorming sessions, or voting on the top Core Values. Involving employees ensures that the values resonate throughout the organization and increases buy-in.

4. Focus on 3-6 Core Values

While some organizations, like Zappos, can manage a list of ten values, starting with 3 to 6 values ensures higher recall and deeper understanding among employees. The key is memorability. Values like “Honor, Courage, and Commitment” are easy to remember, which helps them remain top-of-mind in daily operations.

5. Embed Values into Organizational Strategies and Processes

Embedding Core Values into all aspects of the organization ensures they are truly lived. Consider how these values will be reinforced in:

Hiring & Onboarding: Evaluate potential hires based on how well they align with the organization’s Core Values. During onboarding, emphasize the importance of these values to new employees.
Performance Evaluations & Promotions: Reward and recognize employees who exemplify the values. Make these values a component of performance reviews.
Daily Operations & Decision-Making: Encourage employees to use Core Values as a guide when faced with decisions or challenges.
Leadership & Mentorship Programs: Ensure leaders model the values and mentor others to do the same. Values are best learned through observation and emulation of leadership behavior.
Internal & External Communications: Infuse your values into your messaging to team members, customers, partners, and the broader community.

Below is a great example of deeply embedding the core values into the employee journey:

6. Leadership Alignment and Role Modeling

Leaders must not only endorse Core Values but actively embody them. The fastest way to undermine values is if leadership does not practice what they preach. For these values to be taken seriously, leaders need to consistently demonstrate them in their actions and decision-making.

7. Regularly Review and Update Values

As organizations evolve, their values may need to be revisited. This doesn’t mean rewriting them every year, but staying open to subtle updates or clarifications can ensure they remain relevant and powerful. Engaging employees in periodic reviews of the values helps keep them alive and meaningful.

8 Other Great Examples of Core Values

Netflix

Netflix is renowned for its unique culture that prioritizes freedom and responsibility. While Netflix’s culture deck outlines several attributes, their overarching core values emphasize personal responsibility, creativity, and excellence. The core values at Netflix are captured by the concept of a “people over process” culture, focusing on:

Judgment: Making wise decisions despite ambiguity and thinking strategically.
Communication: Listening well, being succinct, and speaking candidly.
Impact: Accomplishing incredible amounts of important work and focusing on results.
Curiosity: Learning rapidly and eagerly, seeking to understand new perspectives.
Innovation: Seeking out practical solutions to hard problems and re-conceptualizing issues.
Courage: Taking smart risks, making tough decisions without agonizing, and speaking your mind.
Passion: Being determined to excel and caring intensely about Netflix’s success.
Honesty: Being candid and avoiding office politics or hidden agendas.
Selflessness: Seeking what is best for the company rather than oneself.

Implementation: Netflix integrates these values into every aspect of its operations by promoting transparency, autonomy, and accountability. Employees are trusted to make independent decisions and are encouraged to be direct and honest in all interactions. This approach is reflected in Netflix’s open feedback sessions, “Freedom & Responsibility” approach to vacation and spending policies, and a robust performance management system aligned with these values.

Amazon

Amazon has a detailed set of 16 Leadership Principles that guide how employees innovate, solve problems, and interact daily. These principles form Amazon’s core values, such as:

Customer Obsession: Starting with the customer and working backward.
Ownership: Thinking long-term, acting on behalf of the entire company.
Invent and Simplify: Expecting and requiring innovation and invention, and finding ways to simplify.
Bias for Action: Valuing speed in decision-making and action.
Earn Trust: Listening attentively, speaking candidly, and treating others respectfully.

(Though Amazon has more than six total leadership principles, each principle is concise and integral to Amazon’s culture.)

Implementation: Amazon uses these leadership principles daily — from brainstorming new product ideas to deciding on hiring and promotions. They are central to Amazon’s performance management processes and are referenced in interviews, ensuring that all employees share a foundational understanding of these values.

Nike

Nike‘s core values are driven by a passion for sports and innovation. These values reflect Nike’s commitment to inspiring athletes and pushing the boundaries of what’s possible. The core values include:

Inspiration: Bringing inspiration and innovation to every athlete.
Innovation: Continuously pushing boundaries and evolving products.
Diversity and Inclusion: Leveraging diverse perspectives to drive creativity.
Integrity: Being honest, ethical, and doing the right thing.
Sustainability: Embracing sustainable practices to protect the future of the sport and the planet.

Implementation: Nike integrates these values through product innovation focused on athletes’ needs, marketing campaigns (like “Just Do It”) that inspire people to push their limits, and internal initiatives that ensure a respectful and dynamic workplace. Nike also invests in community programs and sustainable manufacturing processes, demonstrating integrity and sustainability in action.

Patagonia

Patagonia is famous for its commitment to environmental and social responsibility. Their core values are succinctly summarized, reflecting their dedication to building great products and championing the planet:

Build the Best Product
Cause No Unnecessary Harm
Use Business to Protect Nature
Not Bound by Convention

Implementation: Patagonia incorporates these values into every aspect of its operations — from the design and manufacturing of its products to its supply chain practices and community engagement. They prioritize sustainability (such as using recycled materials and encouraging customers to repair worn clothing) and actively engage in environmental campaigns and activism, true to their commitment to protect nature.

HubSpot

HubSpot, a leading CRM platform, bases its culture on the acronym HEART. Each letter stands for a core value that guides employee behavior and decision-making:

Humility: Valuing others’ contributions, staying grounded and open to feedback.
Empathy: Striving to understand and share the feelings of customers and colleagues.
Adaptability: Staying flexible and open-minded, ready to pivot as situations change.
Remarkability: Going the extra mile to create products and experiences that stand out.
Transparency: Being open, communicative, and honest, sharing information freely.

Implementation: HubSpot’s values shape its policies and initiatives, from hiring to performance management. The company openly shares information through its internal wiki, encourages employees to provide feedback and suggestions, and evaluates employee performance on how well they embody these values. HubSpot also publishes an annual Culture Code, which publicly commits to these values and holds the company accountable.

Airbnb

Airbnb revolves around the idea of creating a sense of belonging anywhere. Their Core Values, often summarized as their four key pillars, are:

Champion the Mission: Demonstrating commitment to Airbnb’s mission of creating a world where anyone can belong anywhere.
Be a Host: Embodying hospitality by welcoming guests and colleagues, encouraging open communication and collaboration.
Embrace the Adventure: Being curious, seeking new experiences, and daring to fail.
Be a Cereal Entrepreneur: Being resourceful and innovative, referencing the founders’ original entrepreneurship when they sold cereal to fund the company.

Implementation: Airbnb integrates these values throughout its operations. Employees (and hosts) are encouraged to be hospitable, innovative, and mission-driven in all their interactions. Through initiatives like the Open Homes program (hosting people in need) and consistent internal messaging, Airbnb encourages everyone involved to live these values daily.

Slack

Slack focuses on fostering a positive, supportive, and innovative work environment. Their core values are:

Empathy: Understanding and sharing the feelings of others.
Courtesy: Treating others with respect and kindness.
Thriving: Encouraging growth, learning, and well-being.
Craftsmanship: Taking pride in one’s work, striving for excellence and innovation.
Solidarity: Fostering a sense of unity and support among colleagues.

Implementation: Slack integrates these values into its day-to-day work culture by promoting open communication and collaboration. Employees are encouraged to develop empathy for both colleagues and customers, driving Slack’s efforts to continuously improve their product. Regular performance reviews and discussions emphasize how employees demonstrate these values in their work.

Starbucks

Starbucks has a concise set of values that guide their operations globally. They define the company’s culture, customer experience, and social responsibility efforts:

Creating a Culture of Warmth and Belonging: Where everyone is welcome.
Acting with Courage: Challenging the status quo and finding new ways to grow.
Being Present: Connecting with transparency, dignity, and respect.
Delivering Our Very Best in All We Do: Holding ourselves accountable for results.
We Are Performance Driven: Through the lens of humanity.

Implementation: Starbucks exemplifies these values in the way they treat customers and employees (“partners”). The company fosters an inclusive environment, invests in employee development and benefits, and engages in ethical sourcing and community initiatives. From training employees to create a welcoming atmosphere to participating in local community programs, Starbucks’ values are evident in every cup they serve.

How to Sustain and Reinforce Core Values

Embedding Them Everywhere: Integrate values into hiring, onboarding, operations, and decision-making processes.
Constant Communication: Regularly communicate your values to employees and stakeholders. This can be done through storytelling, recognition programs, and by highlighting examples of employees living the values in company newsletters or town halls.
Training and Development: Incorporate Core Values into training programs and workshops. Help employees understand what each value means and how they can apply these values in their day-to-day work.
Recognition and Rewards: Recognize and reward employees who exemplify the values. This can be done through “Values Awards”, shout-outs in team meetings, or company-wide recognition programs.
Employee Feedback and Engagement: Encourage employees to share feedback on how well the organization is living its values. Surveys, focus groups, and regular discussions can help measure alignment and identify areas for improvement.
Lead by Example: As mentioned earlier, leadership plays a crucial role. Leaders should model the values every day. This includes being transparent about how decisions align with the organization’s values and demonstrating them in their interactions.

DOWNLOAD YOUR FREE CORE CORPORATE VALUES POWERPOINT TEMPLATE

To get you and your team started on brainstorming, developing, and deciding on your core corporate values you can download the free values PowerPoint template. As you brainstorm values, make sure you use some sort of scoring to rank potential values. I find evaluating ideas through the lens of 1. Supports Mission, 2. Aligns Culturally, and 3. Memorable & Inspiring are helpful in prioritizing potential values and elevating the brainstorming.

The free download includes the following two slides.

Core Values Examples

Core Corporate Values Template

MCKINSEY PROBLEM SOLVING COURSE - LEARN MORE & ENROLL

Learn more about the best self-paced course on McKinsey Problem Solving

DOWNLOAD STRATEGY PRESENTATION TEMPLATES

THE $150 VALUE PACK - 600 SLIDES
168-PAGE COMPENDIUM OF STRATEGY FRAMEWORKS & TEMPLATES
186-PAGE HR & ORG STRATEGY PRESENTATION
100-PAGE SALES PLAN PRESENTATION
121-PAGE STRATEGIC PLAN & COMPANY OVERVIEW PRESENTATION
114-PAGE MARKET & COMPETITIVE ANALYSIS PRESENTATION
18-PAGE BUSINESS MODEL TEMPLATE

JOE NEWSUM COACHING

Learn more about Joe Newsum, the author of all this free content and a McKinsey Alum. I provide a suite of coaching and training services to realize the potential in you, your team, and your business. Learn more about me and my coaching philosophy.