Corporate values have lost their sheen. What comes next?
As society has evolved, so too have the expectations of employees and customers, and corporate values have struggled to keep up.
Corporate values were once seen as the cornerstone of a company’s identity. They shaped decisions, helped build culture, and inspired teams to rally around a common cause. But if you take a moment to search for “corporate values” on ChatGPT or Google, you’ll find responses that could belong to just about any company. They’re vague, interchangeable, and, frankly, uninspiring.
This reflects a larger issue: corporate values no longer resonate the way they once did. In the heyday of corporate values (1960s) academic Alvin Toffler observed values are ‘inextricably woven into our language, thought, and behaviour patterns’. They play a crucial role in shaping human motivation. But today, this intricate connection between employees and corporate values has frayed.
Why? The answer lies in the changing fabric of society. As it has evolved, so too have the expectations of employees and customers. Corporate values have struggled to keep up.
Society has moved on — and values haven’t caught up
The bigger story here is that the social and cultural landscape has shifted leaving corporate values with very little room to make a meaningful impact. Here’s why:
Personal values are more public and dynamic than ever
In today’s digital landscape, personal values are more public and dynamic than ever. Thanks to social media, individuals now have a powerful stage to not only express their beliefs but engage in meaningful dialogue around issues like environmentalism and social justice. This shift allows for a more nuanced understanding of values, as users share personal stories, experiences, and actions that bring these principles to life.
Unlike traditional corporate values that are often merely stated in mission statements or company policies, social media showcases real-world applications of values in action. In this environment, it is not enough to simply declare values; organisations must embody them in tangible ways that resonate.
Societal values have become the norm
Societal values – things like inclusivity, sustainability, and fairness — have moved from the fringes to the mainstream. These are causes that people care about deeply, and as a result, are expected necessities across all businesses, not unique attributes. It’s time to replace diluted values with tangible action items and give your employees something more memorable.
The pandemic changed the game
COVID didn’t just challenge corporate values; it allowed employees to imagine a better work experience. The shift to remote work provided unprecedented flexibility, redefining what employees value — choice, balance, and trust — and they expect leadership to adapt.
Having worked on dozens of employee brands since COVID, it’s clear that organisations are searching for better ways to engage with current and future talent. Replacing values is a good starting point for implementing new, two-way communication with employees.
The media cycle
The relentless media cycle means every business move is put under the microscope. Corporate values are constantly being shared and publicly tested. When there’s a mismatch between what a company says and what it does, people notice. It’s become harder than ever to maintain trust when your values are scrutinised so intensely. The hope is by switching a value set for something more specific and tangible, executives will make better decisions.
What’s the alternative? A more thoughtful approach for a complex time
Given these shifts, the answer isn’t to throw corporate values out the window. But it is time for a more thoughtful, modern approach — one that acknowledges the complexities of today’s world and gives employees a real reason to care.
So, where to start?
There’s still value in societal values at the board level for a (likely) older demographic of non-executives, keeping societal values remains key.
Outside of the board, make a clear statement across all business strategies acknowledging a commitment to societal values. To go a step further, this can be dynamic and shown through a commitment to a values-driven collective such as B Corp or The United Nations Global Compact.
Replace values with a Code of Culture (aka set of shared behaviours)
Values like “excellence” or “integrity” are hard to define and measure. Behaviours, however, are actionable. Replace vague values with clear behaviours that show employees what to expect. For instance, instead of ‘sustainability’, say, “We make decisions with the planet in mind”.
Corporate values should be more than a top-down list of ideals. Instead, they should evolve into a set of promises — promises the business makes to its people, and promises employees make in return. This creates a two-way relationship, where both sides feel responsible for upholding the company’s principles. They need to be reflected in actions, behaviours, and mutual agreements between the company and its people. For instance, a business might promise to offer growth opportunities, while employees promise to contribute their best work in return.
Brand it to ensure memorability
Executives like values because they are snappy. Employees don’t remember them because they are generic. Whatever unique new set of behaviours you create, brand it to your business — make it fun, impactful and memorable.
Co-create to build engagement
And for leadership don’t forget your employees are your best ambassadors. Involve them in shaping the behaviours that guide the company. When they feel ownership, they’ll be more committed to upholding those principles in their everyday work. Check-in on the effectiveness after 6 months.
By focusing on clear behaviours and promises, companies can create an environment where employees don’t just hear about values — they live them. And in doing so, they set a benchmark for others to follow.
Never miss a story: sign up to SmartCompany’s free daily newsletter and find our best stories on LinkedIn.
