Beyond Platitudes: The True Measure of Company Values
Most companies, regardless of their size or industry, have a set of values they uphold. These values are the bedrock upon which a company's culture is built. They serve as guiding principles, setting the tone for how business is conducted, decisions are made, and how employees interact with each other and with stakeholders.
Company values, ideally, are a reflection of the ethos and soul of a business. They speak to what an organization believes in and aspires to be. They are the embodiment of the vision and spirit of a company.
Or, at least, that's the theory. As we have seen over the past couple of years, companies are quick to abandon their alleged values when it suits their interests.
The Significance of Company Values
At their best, company values can instill a sense of purpose and pride among employees. Values such as integrity, teamwork, and commitment inspire loyalty and drive performance. For example, a value centered on 'integrity' promotes ethical conduct and accountability, while 'teamwork' fosters collaboration and a sense of belonging. When employees feel that they are a part of something bigger, working towards a shared mission, they are more engaged, motivated, and productive.
Furthermore, in today's increasingly socially conscious marketplace, consumers are looking for companies that align with their own values. A company that transparently displays and lives by a commendable set of values is more likely to attract and retain high-caliber talent and a loyal customer base.
Challenging Times Reveal ‘Values’ as Mere Platitudes
However, as significant as they might seem, company values are frequently tested by the harsh realities of the business world. Economic downturns, market shifts, and unforeseen challenges can often make these values seem like mere platitudes—words that sound good on paper but are readily discarded when circumstances become tough.
I worked for a company that had values like Daring, You Be You (embracing diversity and personal uniqueness), Never Give Up (encouraging a culture of tenacity and perseverance in the face of challenges), Ever Evolving (recognizing that the company and the people in it need to continuously adapt and change), and Win As One (emphasizing that we are all on the same team and that our power lies in working cooperatively and collaboratively to achieve our goals).
We talked a lot about those values. We believed in the values and we believed that the company and its leaders were committed to them. However, when the economy got a little weaker and the company had second thoughts about its push to IPO, it betrayed its own values, demonstrating that they were more symbolic than actual guiding principles. Very quickly, executive leadership stopped being daring, gave up, stopped evolving, and laid off a significant number of people--apparently a bid to "win as one" --but just with the fewer remaining employees.
The Reality of Tough Choices
It's undeniable that company leaders face immense pressure, especially in uncertain times. Making decisions that affect the livelihoods of employees is never easy. And sometimes, tough, even unpopular, decisions must be made to ensure the company's survival.
These decisions might involve streamlining operations, pivoting business models, or, sadly, reducing staff. While these choices are often framed as 'business necessities', they can profoundly disrupt the lives of many.
This begs the question: Were these values ever genuine? If they were, how can they be so readily abandoned?
Values or Platitudes?
The way companies casually toss company values out the window and cavalierly disrupt the lives of employees because they don't want to make themselves or their investors uncomfortable demonstrates that the company “values” were never really valued in the first place.
The uncomfortable truth is that many companies might not treat their values as sacrosanct beliefs but rather as marketing tools or recruitment strategies. While these values shine brightly in good times, they can fade quickly when tested, revealing that they were never deeply ingrained in the company's DNA.
To determine if company values are genuine, one must look at how consistently they are applied, especially in tough times. Authentic values serve as non-negotiable guiding principles that shape actions, irrespective of external pressures.
Values Don’t Change with Market Conditions
While the importance of company values is undisputed, their authenticity is often in question.
It's essential for companies to introspect and ensure that their values are more than just catchy slogans. After all, values, when genuinely upheld, can be the North Star that guides a company through both smooth and turbulent waters.
Employees who have been burned by companies that betrayed their stated values, though, might be understandably cynical about the “values” of the next company they work with. If they're merely platitudes, they risk causing disillusionment and mistrust among employees and stakeholders alike.