Why are corporate values important?
Values are antecedents to behaviour. Therefore, it is important for businesses to understand and articulate their corporate values. Such shared core values influence the organizations decision making (i.e. strategy formulation and implementation), as well as its response to quickly changing business conditions and immediate crises. How do values contribute to organizational effectiveness? As an example, consider the value of service where an organization declares that Our ideal is service…service to the Company and service to the world who, by reason of such service, will ultimately become our Customer. This value of service would pertain to the collective efforts to meet the needs of both internal (i.e. colleagues) and external customers. Living this value with a goal of exceeding customer expectations would contribute to the efficiency and productivity of the organization, which would in turn result in more satisfied customers and enhanced profits.
