Effective Corporate Values: 5 Steps to Design Them

Smart Leaders Create Effective Corporate Values
Effective corporate values do more than decorate office walls — they shape how people behave when no one is watching and determine whether your strategy gains traction or stalls. Leaders who take values seriously treat them as operational guidance, not aspiration. They define the standards that drive performance, clarify what “good” looks like, and anchor decisions in moments of pressure.

Research consistently shows the consequences of getting this right.

• A study published in Organization Science found that companies with strongly embedded values outperform peers because employees use shared norms to navigate ambiguity and coordinate more effectively.
• Another study in the Journal of Applied Psychology demonstrated that when corporate values are aligned with strategy, employees show higher levels of discretionary effort and problem-solving — two hallmarks of a high performance culture.

These findings reinforce what we see in the field: values only matter when they shape behavior at scale.

Effective Corporate Values Done Right
When organizations get corporate values right, they become a practical compass for how people think, act, and make decisions when the path forward isn’t obvious. When they get them wrong, those same values turn into empty slogans — fuel for eye-rolling, sarcasm, and disengagement. The distinction comes down to choosing values that are clear, behaviorally grounded, and tightly connected to the strategy.

Well-chosen values sit at the center of strategic planning because they shape the way leaders navigate difficult trade-offs, clarify what the organization stands for, and define the performance behaviors required to deliver results. They help teams understand the “why” behind decisions, provide a shared language for cascading expectations, guide talent selection, and ensure cultural alignment with strategic priorities.

From an employee perspective, you know you have a values-driven organization when people can recite the values without hesitation and — more importantly — articulate the specific behaviors that bring those values to life. They see leaders and top performers modeling those behaviors consistently, not selectively. Employees trust values when they witness them in action, especially in moments that require courage or restraint.

From a company perspective, a values-driven culture is unmistakable. The values align directly with the business strategy and show up in the way the organization operates day to day. They are visible in customer interactions, decision-making processes, hiring practices, performance conversations, and how the company represents itself to partners and stakeholders. In other words, values aren’t just written down — they’re lived, reinforced, and used to guide the business internally and externally.

Attributes of Effective Corporate Values
As you seek to define your values, know that, to be effective cultural guideposts, corporate core values must be:

• Few (3 to 5 are best)
• Simply stated
• Easily understood
• Reflect the desired traits of desired current and future employees
• Defined by specific competencies and behavioral anchors

Steps to Create Effective Corporate Values
Here’s how to begin defining and living core values in a way that aligns with your strategy, strengthens your culture, and attracts the talent you need to win.

1. Review Your Current Values
   Along with assessing your current workplace culture, the first step in creating corporate values that truly matter is to evaluate your existing values with key stakeholders. This involves understanding how each value is currently expressed in day-to-day behaviors, identifying gaps between aspiration and practice, and agreeing on how employees will be engaged in shaping the values going forward.

   This thorough assessment of your current state establishes the foundation for meaningful cultural alignment and lasting organizational change.

2. Agree Upon What Matters Most
   Bring together your top performers and examine what sets them apart. Reflect on the behaviors, attitudes, and team norms that have fueled their success and the success of the organization. What do you admire most about each other? Which shared practices are non-negotiable for achieving results?

   Next, define the qualities and behaviors you want to see in every employee you hire. Document these insights clearly — they become the blueprint for the values that will shape your culture and drive performance.

3.  Evaluate Your Values as a Team
   Do your corporate values truly resonate with everyone? Do they reflect your organization’s strengths and what makes your culture distinctive? Work collaboratively to refine the list down to no more than five values, ensuring each is clear, concise, and easy to understand.

   Next, distinguish between values that are already lived daily — your core values — and those that are aspirational, representing the behaviors and mindset needed to achieve your future goals. This clarity ensures your values guide both present actions and strategic growth.

4. Test The Longevity and Relevance of Your Corporate Values
   Clarify why each value is important and define how it will be demonstrated in everyday actions across the organization. Agree on the specific consequences for failing to uphold these values, ensuring accountability at every level. Finally, assess whether each value will remain relevant and meaningful over the long term — ideally for three to five years — to ensure they provide enduring guidance as your business evolves.
5. Put Your Corporate Values to the Test
   Designate members of the executive team as “keepers of the values” to ensure they are actively modeled and reinforced. Preserve values that are already being lived, and critically evaluate those that remain aspirational.

   For aspirational values that align with your strategy and desired culture, create concrete plans to reward behaviors that embody these values while addressing actions, attitudes, and habits that contradict them. This approach ensures values are not just aspirational statements but actionable guides that shape day-to-day decisions and long-term cultural evolution.

Examples of Corporate Values that Work

Zappos
At Zappos, the top corporate value is “Deliver WOW Through Service.” Every employee is expected to embrace this principle, ensuring that each customer interaction exceeds expectations. The company hires only those who genuinely enjoy providing exceptional service and consistently go the extra mile to create memorable experiences.

This value is fully integrated into Zappos’ brand promise, business strategy, and talent strategy, reinforcing a culture where service excellence drives both customer loyalty and organizational success.

Southwest Airlines
Southwest Airlines embodies its culture through “Living the Southwest Way,” a set of values that includes Warrior Spirit, Servant’s Heart, Fun-LUVing Attitude, and Work the Southwest Way. These values shape every interaction, decision, and customer experience. Anyone who has flown Southwest can immediately sense the difference — the airline’s culture is visible in the energy, service, and approach to teamwork that sets it apart from the competition.

The Bottom Line
Corporate values only matter when they influence behavior, shape decisions, and reinforce the strategy. Smart leaders treat values as non-negotiable standards that drive clarity, accountability, and performance — and in doing so, they build cultures capable of delivering sustained results.

To learn more about creating effective corporate values and aligning your culture, download The 3 Levels of Aligning Your Corporate Culture