Values Statement

What is a values statement?

A values statement is a written declaration that outlines the core principles and beliefs guiding a company’s behavior, decision-making, and culture. 

Unlike abstract philosophies, values statements are actionable:they help define how the organization expects its employees to interact with each other, customers, and society at large. 

Traditionally, companies relied on informal beliefs passed down through leadership, but today, clearly defined values are integral to corporate identity and employer branding. HBR’s values and organizational culture research

What is a value statement example?

A good values statement is short, clear, and aligned with the company’s day-to-day actions. Here’s an example from a fictional tech company:

“We believe in honesty, innovation, and putting customers first. We encourage collaboration, respect diverse ideas, and act with integrity:always.”

Real-world examples:

• Google: “Focus on the user and all else will follow.”
• Patagonia: “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”

These statements reflect deeper commitments and shape organizational culture.

How to write a value statement

Crafting a values statement is not about choosing popular buzzwords. It requires a blend of introspection, employee input, and clarity.

Steps to write an effective values statement:

1. Identify core beliefs: What does your organization stand for? Think about ethical priorities, employee behavior, customer treatment, and leadership values.
   
2. Involve team members: Seek input from various departments to ensure authenticity and inclusivity.
   
3. Keep it specific and action-oriented: Avoid vague terms like “excellence” unless you explain what it means in practice.
   
4. Test for alignment: Make sure the values match existing practices and your future goals.
   
5. Limit to 5-7 values: Too many values dilute focus. Prioritize what truly defines your organization.

Value statement vs. mission statement vs. vision statement

These three statements are often confused, but they serve different purposes:

Quick Example:

• Mission: To make quality healthcare accessible to all.
• Vision: A world where no one dies due to lack of medical access.
• Values: Compassion, transparency, equity, and innovation.

What is included in a value statement?

A well-rounded value statement typically includes: SHRM’s values statement guidance

• Core values: The 4:7 key values the company operates by.
• Behavioral expectations: How these values translate into action.
• Cultural tone: Reflects how employees interact and work together.
• Ethical compass: Guidance on decision-making and integrity.
• Commitment to stakeholders: How the company treats employees, clients, society, and the environment.

What is the purpose of a values statement?

• Serve as a foundation for the company’s culture
• Create a sense of purpose and direction for employees
• Guide behavior and decision-making of employees and management
• Attract and retain top talent
• Basis for development of policies and procedures
• Benchmark for evaluating performance and making decisions about promotions and recognition.

How do you implement a values statement in HR in points?

• Communicate the statement to all employees
• Incorporate the statement into employee training and development programs
• Reflect the statement in the company’s policies, procedures, and decision-making
• Use the statement as a basis for evaluating performance and making decisions about promotions and recognition
• Encourage employee to live and support the statement
• Regularly review and update the statement as needed to ensure it remains relevant and aligned with the company’s culture and goals.

Authentic organizational values attract purpose-driven talent, guide culture-consistent decisions, and anchor the employer brand that retains top performers. Organizations using pre-employment assessments ensure every hire is grounded in verified skills. A data-driven hiring plan reduces mis-hire risk, while strong talent acquisition practices focused on skills-based hiring help organizations attract and retain top talent.

Frequently asked questions