I suppose it is because I live in Indiana and our political primaries are taking place next Tuesday (which has led to plenty of commercials claiming candidate X has no soul), but it is apparent to me that there are a number of organizations that have no core values at the heart of their business operations. Let me explain what I mean by this because sometimes values and current attitudes towards popular issues get confused for each other. Values are those principles that do not change regardless of time and circumstances. Attitudes blow in like the wind. For instance, think of the attitude shift towards smoking. There was a time thirty or forty years ago when smoking was considered in vogue. People lit up cigarettes anywhere they went. Now smoking is pretty much considered a dirty habit and smokers have been relegated to just outside the back door if they want to smoke. Clearly popular attitudes towards smoking have changed. Whether you agree that smoking is debonair or think it is a filthy habit, your opinions about smoking may follow the popular attitude or they may be further entrenched as values in your thinking. For instance, if you have had someone who was extremely close to you who was a smoker that developed lung cancer, your convictions about tobacco may be fixed in your inner being as a value. Despite the direction of popular opinion, your disdain for cigarette smoking will not change. That is a value.

Many companies come up with corporate proclamations, such as mission statements, that really have nothing to do with values. They are filled with popular platitudes about teamwork and exceeding the expectations of the customer. They are little more than words that some committee put together, but really don’t give any kind of guidance to the employees of the organization. A value statement should be a blueprint for how all employees are to conduct themselves regardless of the situation. In other words, in good economic times or bad, in the face of the latest corporate fad or when you find yourself in the mainstream of society, the corporate values should not waver. If an employee steps outside of the ring of values, they should be let go. Corporate values are an assurance to your customers as well. Values tell your customers what to expect from you and not to ask you to compromise when it comes to these specific areas.

What are the benefits of a company that holds onto values instead of chasing popular attitudes? There is a structure that helps all employees fall back upon despite the circumstances. Values define for each employee how they should act in any given situation. For instance, Integrity is a corporate value of airplane manufacturer Boeing Corporation. Here is what they have to say about the corporate value of Integrity on their web site:

We will always take the high road by practicing the highest ethical standards, and by honoring our commitments. We will take personal responsibility for our actions, and treat everyone fairly and with trust and respect.¹

If you have Integrity as a corporate value and your sales rep is faced with a customer who was shorted on his order, but the customer has not figured it out, the corporate value gives him guidance in what the next step should be – tell the customer – because it is the right thing to do. If the sales rep chooses not to do the right thing, the relationship between the company and the customer is at risk. If the customer finds out later that you shorted him, knew, and did not tell him, guess what? They will mistrust you from that point forward, which will more than likely open your customer up to moving their business to your competitor. I don’t know about you, but I see a whole lot of mistrust around business circles these days. Do you want an edge with your clients? Try a true values-based corporate statement that is lived out by all of your employees. It will make a difference in the way your customers view you.

Two things have to be experienced before a value statement has any impact. First, the leadership of your company has to make it clear that these are not just words with no substance. You know that anyone can say they operate with integrity. For instance, can you guess which company had the following statement in their Code of Ethics?

Integrity. We work with customers and prospects openly, honestly and sincerely. When we say we will do something, we will do it; when we say we cannot or will not do something, then we won’t do it.²

Those are words from Enron’s Code of Ethics, a book published by the company, written by upper management and approved by their board of directors. There were banners hanging in Enron’s corporate headquarters with their values listed on them. It was just corporate artwork. The company collapsed because the actions of upper management lacked integrity. Secondly, the employees need to put this into practice with the backing of management. It is not until an employee is in a situation where the easy way out is something less than integrity that you will find out if your value statement means anything at all. When a customer asks you to do something unethical or a vendor asks you to lie for them, then you will find out if integrity has any bearing on the heart of your business.

Here are a list of various companies and links to their corporate values statements:

Whole Foods Market 

Boeing 

Marriott 

IDG 

Google 

What Do Corporate Values Really Mean? by Ray Williams, February 7, 2010, Wired for Success, Psychology Today

The Disconnect between Actions and Words by Judy Olian, Smeal College of Business, Penn State University

1. Boeing.com, Ethics http://www.boeing.com/companyoffices/aboutus/ethics/integst.htm