Ignite Passion and Inspire Growth: Crafting Company Values That Shape Your Culture

Discover the power of company values that not only shape your culture but also ignite passion and inspire your employees to reach new heights

How do organisations determine what values to espouse? How do they make them visible? And how do they ensure they are truly enacted throughout the different levels and sections of the organisation? These are critical and pressing questions, especially considering research reveals a significant gap between espoused values at the top of organisations and the day-to-day delivery on the front-line. Even more complex is defining the relationship between organisational values and good governance.

At the core of effective leadership lies the stewardship of an organisation's purpose, embodying its values with integrity and passion. This fusion of purpose and values forms the cornerstone of good governance

In the realms of corporate governance, the debate often circles around practical issues such as corporate fraud, the abuse of managerial power and social irresponsibility. However, this reactive approach merely skims the surface, addressing the superficial symptoms rather than delving into the deeper problems.  It begs the question: what values are absent that allows such practices to happen?

It has been suggested that corporate governance codes focused solely on compliance are insufficient to address these shortcomings and complexities of modern business. Such codes often are reactive in nature being responsive to particular issues and therefore their effectiveness and relevance can quickly expire over time.

Values serve as the silent architects of decision-making for leaders and managers, they are deeply engrained in people’s being. Yet they are often accepted without scrutiny, leading to prevalent myopic, uncritical assumption.  However, such values shape the very essence of organisational life embedding accepted governance practice for better or worse. This calls for a more holistic approach that recognises moral values entrenched within company cultures and its governance systems. Good governance is not about adherence to codes but is intertwined with an organisation’s identity and is an accepted “way of life”.

To truly embody good governance, it must be ingrained in daily practice and behaviours of every individual within the organisation.  This is why governance is inherently linked to company values. While codes provide external validation, the true measure of success lies in how governance aligns with the organisation’s core and shared values and lived practices.

No matter the challenges your organisation encounters, the board must remain steadfast in their identity, providing strategic direction and oversight to ensure that they and the organisation adhere to its purpose and core values

Strong values and culture have been identified as critical tools in building organisational resilience, a factor that has high significance in a modern environment where complex and accelerating change appears ubiquitous, raising calls for leaders to be more agile, visionary, responsible and responsive. Further, during the Covid Pandemic, governance systems may have been compromised and the emergence of hybrid working is challenging patterns of social capital and well-being.

Disturbed and unsettled labour markets provide new uncertainties for staff turnover and movement and in recruiting high calibre staff, especially millennials. Therefore, governance processes and resources, including moral resources, need to enable leaders and managers to act confidently but with due regard to the risks involved; this includes taking account of their obligations to their broader stakeholder communities.

A strategic board possesses the foresight to visualize the future while retaining its integrity, protecting its values, and honing its purpose

There is not a one size fits all approach, as organisations must tailor their strategies to their unique needs and context. It is crucial to consider the different levels within the organisation and how values are perceived differently between organisational strata. Research illuminates the dynamic nature of organisational values, which can take many different forms including beyond what is officially stated. These include values shared within and between groups, those attributed to the organisation whether formally affirmed or not, and those favoured by individuals at work. However, this interplay can provide a dynamic tension and provide opportunities for change and growth over time.

Directors: Leading the Charge as Torchbearers of Good Values

Directors need to step up as the torchbearers and champions of good values, proactively shaping and monitoring the organisation’s cultural landscape. In this journey they encounter both challenges and opportunities, but their role is pivotal in guiding the organisation to greater hights.

The tone set by organisational leaders is paramount, as is the gap of how employees perceive what the organisation’s values mean to them.  Such insights are vital for bridging the gap between stated and practiced values. It’s through this understanding that leaders can truly inspire alignment and foster a culture where values are not just spoken but lived in practice.

Navigating this landscape can be challenging, especially during times of significant disruption.  Yet, ongoing attention to the impact of values and norms at all levels is critical. This demands a steadfast commitment to continuous learning, reflective critique and mastering the art of mindful attention to events, actions and stories to adjust the organisation’s cultural health. It is through this dedication that organisations can adapt and emerge stronger from the challenges they face.

In our own research, organisations that demonstrated an approach where companies’ values were implicit and taken for granted presented a weaker prominence of values both in espousal and enactment. In the financial sector, unsurprisingly due to heavy regulation, values were often linked to risk assessment and management unlike other sectors. Several organisations reported that the interview highlighted areas for improvement in their approach to values, inspiring them to revisit these areas. This underscores the importance of clarity and higher visibility of values to ensure that they are consistently espoused and enacted.

Creating the right values should not be a solitary pursuit

It's a collaborative journey that unites the board, management, staff and stakeholders in a shared commitment to long-term success and sustainable growth. Together, they forge a path towards a brighter future, where every voice is heard, and every action is guided by a common purpose.

Research undertaken in association and direct support with the Worshipful Company of Chartered Secretaries and Administrators. If you would be interested in finding out about, or taking part in this research, please contact Dr Marija Krlic or Dr Nick Beech.