What are core values? 5 Core values of a business

Core values are the foundation that helps a business shape its culture, decision-making process, and organizational behavior. If you want to understand what a company’s core values are and why they are important, this article will provide you with the most accurate information.

1. What are a company’s core values?

Core values are the fundamental beliefs of a company. All activities of the organization and its individuals must be based on them.

Core values also reflect the working methods or the way a company creates its products and services in the eyes of customers and partners.

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2. Types of Core Values

Each brand has its own unique core values that reflect its identity. However, in general, we can divide current brand values into the following 6 types:

• Balance-oriented: Often associated with employees. Balance-oriented core values aim to create an ideal working environment that ensures the physical and mental well-being of employees.
• Commitment-oriented: Often associated with the company’s products or services, ensuring quality.
• Empowerment-oriented: Encourages employee creativity and promotes proactivity at work.
• Community-oriented: This type often reflects social contribution, responsibility, and ethical production.
• Responsibility-oriented: Includes actions, decisions, and policies that apply to all employees in the company.
• Innovation-oriented: Often aims for significant improvements that have a world-changing impact.

3. The role of core values for a business

As the foundation of all business activities, core values play an extremely important role in every aspect of the company.

3.1. Brand Identity

First, as mentioned above, each company has its own unique core values, which means that these values are what differentiate the business in the market.

These values also reflect the company’s business and production direction in the eyes of customers and partners, helping them feel more confident when using the brand’s products and services.

3.2. Attracting Talent

Compatibility is one of the most important factors that helps employees stay with a company long-term.

This is clearly reflected in the company’s core values, as they are the basis for forming the corporate culture. At a certain point, going to work is no longer just about earning an income, but also about the desire to contribute to a greater purpose.

That’s from an internal perspective. Externally, core values and corporate culture are the top factors candidates look for when seeking a suitable environment.

3.3. Marketing

Among all marketing content, core values are a source that should never be overlooked.

Marketing based on core values not only quickly increases brand awareness but also helps reach the most suitable target customers.

3.4. Supporting Decision-Making

In the course of business operations, there will certainly be many cases where decision-making becomes difficult, especially when facing something entirely new, or when benefits do not align with ethics and responsibility.

At such times, core values act as a guide, helping us determine the direction and ultimate purpose to make the right decision.

4. 4 rules for defining a company’s core values

4.1. Define core values based on development goals

If the purpose states an organization’s reason for existence, then core values are the guiding principles for the company’s operations. Additionally, they express the management’s aspiration to impact the market in which the business operates. 

For example: If the goal is to become the leading entertainment company in Vietnam and create a new generation of talented personnel, what would their core values be? 

Dynamic: Dynamic in working style, environment, and corporate culture

Creative: Creative in the services and products delivered to consumers

Innovative: Innovating product types and concepts because the business operates in the entertainment market

=> From these core values, the company will form its corporate culture and development strategy to achieve its goals

4.2. Build core values based on differentiation

No two businesses have the same corporate culture, code of conduct, organizational scale, etc. Each business has its own way of operating, vision, and mission based on its goals. Therefore, a company’s core values will be unique and distinct. 

When building a set of values for your business, it’s advisable to reference large corporations and market pioneers, but don’t tell your employees to “Work like Google, Netflix,…” because each company has its own unique characteristics and operating methods.

4.3. Easy to understand, easy to remember

Core values are maintained throughout an organization’s existence and development. Therefore, the first and most fundamental factor in building a set of corporate core values is that they are “easy to understand, easy to remember.” For employees to remember and adhere to what the core values represent, they must be memorable and concise. 

Let’s look at Apple’s core values to better understand this principle:

Apple lists their company’s core values in the footer of every page on their website:

• Accessibility
• Education
• Environment
• Inclusion and Diversity
• Privacy
• Supplier Responsibility

4.4. Flexible and adaptable to the company’s growth

As a company’s business model and market expand, its core values must also be updated. Managing 10 employees is certainly different from managing 100, and a more diverse corporate culture requires a more sophisticated set of core values. 

For example: Netflix’s initial culture didn’t mention anything about inclusion or ethics. However, when they updated their culture framework, they added “Inclusion” and “Integrity” to become two of Netflix’s ten core values. 

Although corporate core values are long-term, managers should re-evaluate them based on the current situation to see if they still align with the organization’s culture. Typically, the most suitable time to review the core values is every 6 to 12 months.

>> Read more: Change Management Strategy in Business: Models and Implementation Process

5. 5 steps to help define your company’s core values

As the foundational element of all company policies and operations, building a set of core values requires significant time and manpower for careful consideration and decision-making to ensure they are accurate and appropriate. Therefore, let’s explore the 5 steps to help managers define their company’s core values.

5.1. Identify responsible personnel

Identifying the individual or team responsible for building and maintaining the core values is extremely important. 

Agree on how to maintain accountability, ensuring that the core values are upheld in the company’s daily operations. The elements of an organization’s core values are linked to everything from daily activities to sales policies and the company’s development plans.

5.2. Understand the company’s internal factors

Core values are formed based on the company’s existing resources. Therefore, identifying the factors the company currently possesses is crucial.

Some of a company’s internal resources can be identified through the 5M model

• Material – The necessary raw materials to create the products/services the company provides
• Machine – The equipment and machinery the company uses to create products
• Man – Human resources
• Method – The methods of executing and operating the business to create products
• Measurement – The statistical data the company needs for reporting

If you are a new business that has never established a set of core values, you can refer to the core values of some of the world’s leading corporations:

For example: Microsoft has a list of 6 company core values:

• Innovation
• Diversity and Inclusion
• Corporate Social Responsibility
• Philanthropy
• Environment
• Trustworthy Computing

Adidas: Adidas’s core values are defined as a set of behaviors at the core of the company culture and what they want to see in their people.

Their core values are:

• Confidence
• Collaboration
• Creativity 

5.3. Analyze the Business’s Resources

Here are some questions to help managers clearly identify the important factors in building their business’s core values:

• What drives the business in the market?

• What do we want our company to be known for?

• What differentiates the business from its competitors?

• What makes employees join the organization?

Readers can refer to some of the values that organizations consider important: 

• Integrity: Integrity in behavior, work execution, etc.
• Business Goal Orientation: Clearly defining the specific goals the organization aims for will help managers and employees make decisions more easily.
• Social Contribution: Contributing to society is one of the responsibilities of every business in the market. Therefore, the organization’s business activities must contribute to the development of society.
• Human Resources Policy: This is one of the important factors that directly affects the human resources within a business.

The factors that different businesses consider important will vary. Therefore, building core values cannot be a matter of “copying” another business. 

5.4. Eliminate Unsuitable Values

As Gino Wickman said, “Your core values are somewhere in that list of things you just created. So, go narrow it down.”

To refine the list of important business values, managers should implement a “Keep, Kill, and Combine” process to select the 10-15 options that are truly important to the organization.

5.5. Review and Make the Final Decision

To create a complete set of core values for the business, managers need to proceed to the final step by reviewing the list of 10-15 options above and selecting the 5-10 most important values for your business. Typically, a business will have from 3 to 7 core values that are cohesive and represent their organization.

6. How have 7 major corporations in Vietnam built their company’s core values?

1. Case Study: Vinamilk’s Core Values

• Integrity: Honesty is always the top virtue upheld in the business
• Respect: At Vinamilk, respect is always upheld among employees, and between employees and customers,…
• Fairness: Fairness is always emphasized among all levels of employees and leadership
• Ethics: Adhering to established standards and acting ethically.
• Compliance: The corporation always reminds employees to comply with the law, regulations, and policies of the country in general and the corporation in particular.

2. Case Study: Vingroup’s Core Values

“Credibility – Dedication – Intellect – Speed – Essence – Humanity” are the core value elements that Vingroup’s brands aim for.

• Credibility: The corporation always puts Credibility first and considers it a priority core value
• Dedication: Dedicated to customers, always bringing the best products to consumers.
• Intellect: Always promoting an entrepreneurial spirit, daring to think and act, and always recruiting talent for the corporation
• Speed: Speed evaluates work efficiency. 
• Essence: Represents quintessence, as the corporation is a convergence of talents creating world-class and timeless products and services.
• Humanity: Considering people as the most valuable asset, always creating opportunities for healthy competition and development for each individual.

3. FPT’s Core Values

• Respect: Respecting employees, regardless of their position, and creating the best conditions for members to be themselves.
• Innovation: Employees are always learning; Being one of the leading corporations in new products and technology. 
• Teamwork: The spirit of teamwork is always prioritized by leaders
• Impartiality: The most important foundation for leadership to build trust among employees.
• Exemplary: Leaders must be role models in spirit, policy implementation, etc.

4. Techcombank’s Core Values

Customer-centric: Always setting the goal for customers to experience the best service when using the bank’s products/services.

• Innovation and Leadership: To become the best bank, Techcombank always innovates, absorbs negative feedback, and changes to bring complete satisfaction to customers.
• Effective Work: Always listening and working fairly and professionally to achieve the best productivity.
• Excellent Personnel: Always creating conditions and opportunities for employees to develop and become the most outstanding staff.
• Commitment to Action: For Techcombank, action is indispensable; always developing and moving forward to fulfill its mission.

5. TH true milk’s Core Values

Although it only started business in 2010, with its set of core values, it has now risen to become one of the leading milk brands in Vietnam. Let’s also explore the core values of this corporation:  

• For public health
• Completely from nature
• Fresh, delicious, and nutritious
• Environmentally friendly
• Outstanding thinking

6. Viettel Group’s Core Values

The slogan “Your way” partly expresses the company’s core values, as it implies to the community that they use practice to test the truth for the organization. The group’s core values consist of 5 parts:

• Learning and growing through challenges and mistakes
• Rapid adaptation is a competitive strength
• Creativity is the lifeblood of Viettel
• Systems thinking
• East-West combination

7. Trung Nguyên Legend

As a coffee brand with a global reach, the group’s core values include the following:

• Absolute Faith
• Selfless Service
• Resonating with Humanity
• Financial Stability

The article above has given readers a general overview of the 5 core values of a business and has helped leaders understand the steps to build a unique set of core values for their organization. If you are looking to apply business management software in your company’s operations, please contact 1Office for a dedicated consultation from our experts.

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