Why Every Company Needs Core Values

Every company has core values, whether they’re written down or not.

It’s easy to think of core values as a “nice to have.” Something you’ll define after you ship the product, close the seed round, or grow beyond ten people. But the truth is, your culture is already forming. And if you don’t take the time to define your values intentionally, they’ll grow wild on their own.

Over the next several weeks I am going to share several posts about core values with examples and practical ways to use them every day.

See my original post on culture for more insights.

What are Core Values?

The definition of core values is a defined system of beliefs that helps people tell the difference between right from wrong. In a company setting they’re the root beliefs and shared behaviors that guide how your team works together and makes decisions.

Good core values are:

  • Actionable – they influence daily decisions

  • Specific – they’re clear enough that anyone on the team knows how to apply them

  • Meaningful – they reflect who you are and who you’re trying to become

Why Companies Need Core Values

Here are six reasons why defining and using core values will help your company grow more effectively, and create a culture that you will be proud of.

1. Guide Decision-Making

Startups move fast. You can’t write a policy for every situation. Core values give your team the clarity to make the right call even without you in the room.

If you value “decide fast and iterate,” that becomes a principle your team can use in moments of uncertainty. Good values turn gray areas into clear decisions.

2. Shape Company Identity

Your values are a major part of your brand and voice, whether you realize it or not. Defining them helps you attract people who believe what you believe, from employees to customers to partners.

We live in a time when people care about what the companies they work for (and buy from) stand for. Core values make that clear.

3. Help You Manage Performance

A shared set of values gives you a consistent way to coach, develop, and hold people accountable.

Use values to:

  • Set expectations from day one

  • Provide feedback rooted in what the company stands for

  • Identify when someone is misaligned, even if they’re otherwise performing well

  • Incentivize and reward the right things

4. Preserve Culture as You Scale

As you grow, it becomes critical to maintain the team culture. Every new employee will bring their own biases and history with them. Having an established set of core values that the team believes in and lives every day creates guardrails during growth.

Core values help you:

  • Onboard new hires faster

  • Avoid culture drift

  • Maintain consistency across distributed teams

5. They Build Trust Across the Team

When values are clearly defined and consistently applied, they create predictability and trust.

Your team knows:

  • How decisions are made

  • What behavior gets rewarded

  • How conflict is handled

6. Keep Leaders Accountable

As a leader, you set the tone. Your values hold you to it. Leaders need to lead by example and exemplify the core values of the team as often as possible.

When you're stressed, tired, or tempted to cut corners, values act as a personal compass. They also give your team permission to hold you accountable if you start to stray.

Leaders who live their values build real credibility and lasting cultures.

Final Thoughts

You don’t get to choose whether or not your company has values. You do get to choose what those core values are. If you create unique, authentic values that resonate with the team they will become invaluable to sculpting the culture that you want to create. Embrace the idea that culture matters, is worth investing in, and worth talking about. 

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