BUSINESS ENTERPRISE SIMULATION Prof. Juancho M.

Babista

Module 04
CORE VALUES

Ensuring that everyone in the organization understands those

ambitions requires great internal communication. The trouble is too many
companies assume the workforce knows what is most important. After
all, it is merely a plaque installed in the lobby next to the elevators or
main entrance. But because there is a statement on a wall, website, or
handbook does not mean employees get the message. What is needed is a
clear, steady cadence of information that reinforces those principles.
At the end of this module, you are expected to:
1. gain understanding of the role core values play in accomplish-
ing the vision and mission of a company;
2. value the importance of communicating the company core
values; and
3. formulate core values for the intended business enterprise
simulation.
Company core values serves as the guide
that keeps the company workforce aligned with
the vision and mission. Placing them in the stra-
tegic locations in the company may serve as a re-
minder but communicating your company values
is far more important. Even the best, most well-
planned mission statements are useless if they are
hidden away and rarely discussed.
Company core values need to be on the big stage, in a bright spotlight, for every-
one to see. That is what excellent internal communication does. It continually brings at-
tention to the company values with a steady cadence of reminders about what makes the
organization unique. It is also highlighting examples of how the company is living those
values.
Creating a business is a bit like creating a community. If you want the community
to act as a group, you need a shared code, vision, identity, or ethos, an organizational cul-
ture that drives whom you choose to invite in and how the community functions as a
whole. If you don’t own, define, and care about the values of your community, they will
evolve on their own, potentially in ways that hurt your business.
Many organizations have designed a Corporate Code of Conduct. One of the
first elements included is usually a statement about the values of the organization.

Core Values
Company core values are the clearly stated principles about the organization’s vi-
sion, mission, and principles. That way, everyone is aligned around a guiding philosophy
to serve employees, customers, and the broader community. These values can al-

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BUSINESS ENTERPRISE SIMULATION Prof. Juancho M. Babista

so double as the definition of company culture. In many ways, values and culture are
synonymous. They are both about the higher aspirations of a company. The result is the
DNA fundamental to a company’s identity.
Core values are what drives us, what motivates us. It can be helpful to think
of them as our North Star. Our guiding light to excellence. They help us navigate
through difficult times and important decisions. Core values represent what is most
important to us. They are principles that we adhere to in life. They are our personal
code of conduct. Values are not chosen. They are intrinsic to who we are and are as
unique as our fingerprints.
Collins and Porras succinctly define corporate core values as “Being inherent
and sacrosanct; they can never be compromised, either for convenience or short -
term economic gain. Corporate core values may reflect the values of the company’s
founders.”
Thus, company values, also called corporate values or core values, are the set of
guiding principles and fundamental beliefs that help a group of people function together
as a team and work toward a common business goal. These values are often related to
business relationships, customer relationships, and company growth.

Importance of Core Values

Having a set of core company values has
several benefits. It makes it easier for a compa-
ny to:
1. make decisions;
2. communicate principles to clients, part-
ners, and stakeholders;
3. foster teamwork and help employees col-
laborate; and
4. hire employees with the right attitude
and as many shared values as possible.

Elements of Effective Core Values

1. Lead with your vision statement.

A vision statement describes an ideal vision of the impact a company will
have on the world. Your core values are the principles that support this vision. Before
you can articulate effective core values, you need to think about what impact your
company can have on people, and write a sentence that sums up that ideal scenario.
2. Keep your values unique.
We have heard values like ‘think big’ or ‘be curious’ from a handful of giants
like Netflix and Amazon. It is not unusual that smaller companies are influenced by
them and end up having pretty much the same values. It is not a bad thing but an ef-
fective company value should be unique to your company and experience. It is easier
to hide behind sweeping formulas that sound great but do not really apply to you. So
if you are a 100% profit-driven organization, embrace that. Use your values to make
sure you hire people that think the same, unique way.
3. Make values simple to understand and remember.
There is no point crafting the perfect set of values if nobody in your company
can recall them. A short, bullet-point list of simple, single-sentence values will be
easier to remember in everyday working life and help guide your teams’ decisions.
For example, “Be bold and move fast” is just five words long but it already contains
the values a company may hold dear.

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BUSINESS ENTERPRISE SIMULATION Prof. Juancho M. Babista

4. Evolve your values over time.

When your company grows, the
values you wrote early on might not be
completely relevant to where you have ar-
rived. As new opportunities and challenges
arise, you may need to update your values.
Dynamics change as the number of em-
ployees grows, and different things become
more or less important. Re-examine com-
pany values as your team grows and get
feedback from existing employees to help
guide the process.

Common Core Values

Company values might be described simply as the Golden Rule. Treat others the
way you want to be treated. Or, to paraphrase filmmaker Spike Lee: Do the right thing.
Here is a more expansive list of values that companies consider important.
1. Integrity
Acting with strong ethics is a priority for everyone representing the organiza-
tion as well as the company’s behavior as a whole.
2. Honesty
Not just the best policy, it is a core business practice to act in a transparent,
trustworthy manner that earns the respect of colleagues, customers, and the public.
3. Fairness
Treating everyone with the common decency we all deserve and expect.
4. Accountability
Accepting responsibility for your actions and inactions is the ultimate way to
build trust internally and externally.
5. Promise to Customers
Creating a great customer experience begins with staying true to the words we
speak and the bonds we make.
6. Diversity and Inclusion
Organizations succeed by bringing different lived experiences and a range of
backgrounds into a shared environment where everyone has equal opportunity.
7. Learning
No one has all the answers. A culture of humility and continuous learning is a
bedrock principle of successful companies.
8. Teamwork
When people work together, they can create something greater than them-
selves as individuals.
9. Passion
Having a joy not just for the work itself but also the people around us, so that
everyone can be bold, innovative, and creative.
10. Quality
Companies are judged by the craftsmanship of their products and services, so
the highest standards must be maintained.

Best Company Core Values by Category

Here are some examples of company values to give you inspiration for writing
your own:

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BUSINESS ENTERPRISE SIMULATION Prof. Juancho M. Babista

1. Integrity
o Commitment o Respect
o Honesty o Trust
o Open-mindedness o Personal responsibility
2. Goals-oriented
o Accountability o Empower
o Challenge o Growth
o Cost-conscious o Hard work
o Determination o Ownership
o Drive
3. Building a better world
o Accessibility o Fair
o Boldness o Sustainability
o Creativity o Vision
o Education o Compassion
o Ethical o Empathy
o Environment o Social responsibility
o Impact o Social justice
o Innovation
4. People at the core
o Teamwork o Diversity
o Inclusivity o Equity
o Mutual respect o Inclusion
o Community o Leadership
o Communication o Passion
o Courage o Selflessness
o Curiosity o Human (and animal) rights
o Belonging o

Defining Your Core Values

It is never too late to define a company’s core values. The process may differ
slightly depending on whether you are an early-stage start-up or an international
company.
1. Assign who is in charge.
Define who is leading this process in your company. Determine if it is one
individual or a group of individuals. Agree on how accountability will be kept,
making sure that the focus is steadily kept on core values and not aspirational
values. It seems trivial, but it is hard to detach from what we want to achieve
when we're constantly in it as part of our day-to-day life.
2. Get everyone on board.
Get commitment from the executive
leadership team, C-suite, or co-founders.
Determine why it is important for them to
have core values and what difference it will
create. Speak individually with the execu-
tive leadership team, C-suite, or co-
founders. Find out how they work together
and what is important for them.
3. Get inspired.
Find companies that inspire you
from within your industry and beyond. Pe-
ruse their core values. Make sure to take the

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BUSINESS ENTERPRISE SIMULATION Prof. Juancho M. Babista

time to read their detailed description of each of their core values. Write down
what resonates the most and why it resonates.
4. Take input.
Once you think you have a draft of core values, survey the people in your
organization and ask for feedback.
5. Make it clear.
Once you have a set of values, take time to concisely and intentionally ar-
ticulate what they mean for the organization. Be prepared that this step can take
time and several iterations.
6. Get internal feedback.
Present the core values internally and organize a Q&A. It is important to
surface any concerns.
7. Create a new corporate culture.
The work does not end when you articulate the values. You need to embed
them in the company to make sure they succeed. Each process in the organiza-
tion must be aligned with the core values. Find ways how you can make sure eve-
ryone in the company will remember the values and live by them. Be creative.
Some companies organize challenges and prizes to get the momentum going.

Standard Workforce Communication Tools

Here are some of the traditional ways that
organizations share their values with the work-
force.
1. Email
2. Intranet
3. Company website
4. All hands meetings/town halls
5. Digital signage
6. Printed posters/signs
7. Mailers/newsletters
8. Collaboration systems
The more places where employees can see
or hear the company values, the better. A con-
sistent cadence of communication will reinforce
their importance to everyone. Also, each of us tends to get work-related information in
different ways. For office workers, maybe email or intranet is the best way. For factory
workers, perhaps the old break-room bulletin board works best. It is essential to use all
the arrows in your quiver to get those company values in front of the entire work-
force. But there are limitations to these standard tools. That’s why companies are turning
to a new way of reaching their people with the information they need and want.

Modern Internal Communication Tool

Employees expect their places of work to communicate with them the same
way. We may indeed check our email or the bulletin boards. But all of us are also staring
at our mobile devices. That is why digital Employee Communication and Engagement
platforms have become the modern way for organizations to connect with their peo-
ple. They break down information silos by:
1. Reaching every employee in real-time, wherever they are, on the devices they prefer.
whether through a desktop app or mobile app, with the information they need and
want
2. Enabling internal communicators to measure the reach of their content accurately, so
they can understand who received the information, and then optimize their efforts.

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BUSINESS ENTERPRISE SIMULATION Prof. Juancho M. Babista

3. Giving leaders the confidence that the entire organization is hearing their messages,
so everyone is aligned around company values.
4. Enabling employees to provide instant feedback through surveys and comments, so
companies have a finger on the pulse of what the workforce is thinking
Communication is the bedrock foundation of ensuring company values are un-
derstood. Everyone knows what is expected of them. Everyone knows what they should
expect from their company. Everyone becomes aligned around the basic principles of
why the company exists.

Examples of Company Core Values

Netflix has a core philosophy of ‘people over pro-

cess.’ They define their corporate values as:
o Judgment o Selflessness
o Communication o Innovation
o Curiosity o Inclusion
o Courage o Integrity
o Passion o Impact

There are a couple of things that Netflix shows meaningful core values. First,
they dive deep into what each value means to them. This is crucial. For example,
they define the value of communication as:
1. You're concise and articulate in speech and writing.
2. You listen well and seek to understand before reacting.
3. You maintain calm poise in stressful situations to draw out the clearest think-
ing.
4. You adapt your communication style to work well with people from around
the world who may not share your native language.
5. You provide candid, helpful, and timely feedback to colleagues.
Second, their Corporate Culture page does not stop at values. They talk about
their vision of a dream team. They also outline key cultural cornerstones for their
ecosystem, such as informed captains, the importance of disagreeing openly, free-
dom, and responsibility.
Apple values easy access to what they stand for as a com-
pany and lists their company values on the footer of every page of
their website. These are:

o Accessibility o Inclusion and diversity

o Education o Privacy
o Environment o Supplier responsibility

They define what each core value means to them and how their current cor-
porate actions express these values. They also draw a line between their corporate
and aspirational values. For example, for their core value environment, they say:
“We’re carbon neutral.” (What the core value ‘environment’ means) And by 2030,
every product you love will be, too. How it’s designed. How it’s made. How it’s
shipped. How it’s used. How it’s recycled. Apple has a plan. (How they link their
core value to an aspirational value)
Google came up with “Ten things we know to be
true” to address their corporate values statement. They
did not choose words to define them but an actual sen-
tence instead. This really speaks to the point that there

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BUSINESS ENTERPRISE SIMULATION Prof. Juancho M. Babista

are not set rules to create corporate values. What is important is that they truly
mean something to the group of people that stand by them. Their strong company
values are:
1. Focus on the user, and all else will follow.
2. It’s best to do one thing really, really well.
3. Fast is better than slow.
4. Democracy on the web works.
5. You don’t need to be at your desk to need an answer.
6. You can make money without doing evil.
7. There’s always more information out there.
8. The need for information crosses all borders.
9. You can be serious without a suit.
10. Great just isn’t good enough.

Google openly states that they revisit their corporate core values from time to
time to check if they still hold true. It’s such an important point. Not only does there
need to be a conscious process to define common core values (Either personal or
corporate).
Amazon defines a list of 14 leadership princi-
ples that influence decision making:
1. Customer Obsession
2. Ownership
3. Invent and Simplify
4. Are Right, A Lot
5. Learn and Be Curious
6. Hire and Develop the Best
7. Insist on the Highest Standards
8. Think Big
9. Bias for Action
10. Frugality
11. Earn Trust
12. Dive Deep
13. Have Backbone; Disagree and Commit
14. Deliver Results

VW developed their company values with the in-

volvement of staff across the world:
1. Genuine
2. Courageous
3. Customer-oriented
4. Efficient
5. Mindful
6. Together

The Walt Disney Company does not use a single list

of company values but instead combines their mission and
value statements:
“The mission of The Walt Disney Company is to be
one of the world’s leading producers and providers of en-
tertainment and information. Using our portfolio of brands
to differentiate our content, services and consumer prod-
ucts, we seek to develop the most creative, innovative and
profitable entertainment experiences and related products
in the world.”

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BUSINESS ENTERPRISE SIMULATION Prof. Juancho M. Babista

Microsoft has a list of 6 core company val-

ues:
1. Innovation
2. Diversity and inclusion
3. Corporate social responsibility
4. Philanthropies
5. Environment
6. Trustworthy Computing

Finally, whatever your company's core values are, remember that you will
need to review them periodically. This is to confirm an alignment between stated
core values and actions and behaviors.

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