What is it that truly defines your company? There are many terms that are discussed within companies including mission statement, slogan, core values, culture and vision. What does it all mean and why are these things important? It’s about unifying a company and its employees and customers around key concepts that help define it and make it unique in the marketplace. And just because these terms are discussed, doesn’t mean they are taken to heart by your employees or understood by your customers.

A mission statement is a company’s “why.” Why they exist and their reason for being, as well as who their customers are and which products and services they provide. A slogan is a catchy marketing phrase that summarizes the value a company’s brand offers customers, like Apple’s “Think Different.” Core values are the beliefs, philosophies, and principles that drive your business. Core values are basically the company’s DNA. In any business, these usually come from the founder or owner. They shape the company’s culture, which are the shared values, attributes, vision, and characteristics of an organization.

We have already discussed the vision component, what the company aspires to be, in our article on Failure to Plan Means Planning to Fail. In this article, we use a quote from Roy Disney so let’s take a look at what the Walt Disney Company core values are: innovation, quality, community, storytelling, optimism and decency. Every aspect and sector of Disney’s business is driven from these core values and if a business opportunity aligns with their values, they will pursue and exploit it. If it doesn’t, they will pass on it. Disney is so obsessed with innovation that they have an entire department dedicated to it, which they call Imagineering, which is basically the R&D part of most companies, but using a much more creative term.

The core values are vitally important because they drive nearly every decision in the organization. What kind of people do you want working in the organization? What kind of customers do you want to serve? These core values are to be shared by everyone in the entire organization, from the top executives to the employees working with customers on the front lines. They should all be working towards the same goal and have a shared purpose. Customers and vendors should know what you and your organization stands for, and regardless of what their touch point is with the company, that they will consistently have a similar quality experience.

Purpose is very important, not only for the employees but also for the consumer. In fact, according to Forbes magazine, “63% of consumers say they want to buy products and services from companies that have a purpose that resonates with their values and belief systems. They will even go out of their way to avoid companies that don’t mesh with what they believe – which goes to show that a company’s values have both internal and external implications.” Simon Sinek covered this topic in a TED talk viewed by over 54 million people. He said that “people don’t buy what you do. People buy why you do it.”

If you are clear on your core values and you hire the right people that fit these, then it will be a happy, productive place to work. Salary and benefits are very important, but job satisfaction is just as important for people to commit to working with an employer over a long period of time. Cooleaf reports that “employees want (and need) to see how their work is contributing to something larger than themselves. In the absence of in-person interactions, employees can lose their sense of belonging. Strong core values give employees a shared sense of commitment, allowing them to rally behind a united cause.”

Developing and clarifying the company’s core values are just one part of the picture. A company needs to constantly reinforce them. Cooleaf discusses behavior to reinforce in your company to keep your core values strong. These involve:

1. Recognizing employees for demonstrating core values
2. Frequently communicating your core values to current employees
3. Bringing core values into employee hiring, onboarding, and ongoing development

Determine the correct number of core values to set for your company⏤usually between five and seven⏤and then make sure everyone in the company knows them well. Include them in your hiring process and training. Reward employees for exemplifying the core values and make sure you are consistent in communicating them internally and externally in everything you do.