Core values guide a company's business decisions, aid in hiring and retaining employees, and establish accountability for each member of the company. A defined set of core values creates a shared culture that drives daily business operations.
Core values are the company's identity and govern the way the company conducts itself. Decision making is simplified when the company's core values are in place. Alignment of the values of a new venture, customer or business partner with those of the company helps guide decision making and attract the right customers. A company's core values let customers know what to expect from the company.
Core values are becoming a major factor in recruiting, hiring and retaining employees. Often candidates research a company's core values as part of their job search and seek companies with values similar to their own. Hiring managers assess how well a candidate's values fit with the company's culture.
Companies with clear core values offer standards for measuring individual and corporate success. Employees know what to expect from a company with clear core values and hold their peers and the company to its stated philosophy. Through clearly defining its core values, organizations reduce conflict between employees and the company's direction.