Values Statement Strategy Template for Business Strategy

What is a Values Statement?

Values Statement: A Practical Guide for Strategy Projects

A values statement is a declaration of an organization’s core principles and ethical standards that guide its behavior, decision-making, and culture. It defines what the company stands for and how it conducts business, influencing employees, customers, and stakeholders.

Unlike a mission statement, which describes the company’s purpose, or a vision statement, which outlines its long-term aspirations, a values statement focuses on the organization’s core beliefs and principles that shape its culture and operations.

A well-crafted values statement should:

• Clearly define the company’s ethical principles and cultural priorities.
• Guide decision-making and employee behavior.
• Differentiate the organization from competitors.
• Create a sense of unity and identity among employees.

For example, Google’s core values include:

1. Focus on the user, and all else will follow.
2. Fast is better than slow.
3. Great just isn’t good enough.

These values drive Google’s innovation, user-centered approach, and commitment to continuous improvement.

Why a Values Statement is Important

A strong values statement helps businesses:

• Build a strong organizational culture – Defines workplace behavior and expectations.
• Improve employee engagement – Ensures alignment between individual and company values.
• Enhance decision-making – Guides leadership in ethical and strategic choices.
• Strengthen brand identity – Helps customers connect with the company’s purpose.
• Encourage accountability and integrity – Reinforces ethical business practices.

For example, Patagonia’s core values focus on sustainability, environmental responsibility, and quality, shaping everything from product design to corporate philanthropy.

Values Statement in Strategy

A values statement serves as the ethical foundation for business strategy. It ensures that the organization’s actions, policies, and goals align with its core beliefs. Without a values statement, companies risk losing cultural consistency, facing ethical dilemmas, and diminishing trust among employees and customers.

How a Values Statement Supports Strategic Decision-Making

1. Defines Ethical Standards – Ensures consistency in how the company operates.
2. Shapes Corporate Culture – Influences behavior, teamwork, and leadership.
3. Enhances Brand Reputation – Builds trust with customers, employees, and investors.
4. Improves Hiring and Retention – Attracts employees who align with company values.
5. Guides Business Growth – Ensures expansion and innovation stay true to company principles.

For example, Starbucks’ values include “Acting with courage, challenging the status quo”, reinforcing its commitment to innovation and social responsibility.

Getting Started with the Values Statement Template

To craft an effective values statement, follow these structured steps:

1. Identify the Company’s Core Beliefs

A values statement should reflect the fundamental beliefs that shape business decisions and culture. Consider:

• What principles guide leadership and decision-making?
• What ethical standards does the company uphold?
• How does the company want to impact its employees, customers, and society?

For example, Ben & Jerry’s values emphasize social justice, sustainable sourcing, and community impact.

2. Define How These Values Influence Behavior

Values should not be abstract—they should translate into actionable behaviors. Consider:

• How do these values impact customer service, hiring, and innovation?
• How should employees apply these values in daily work?
• What commitments does the company make to uphold these values?

For example, Zappos includes “Deliver WOW Through Service” in its values, shaping its customer-first culture.

3. Ensure Values are Authentic and Unique

A values statement should be genuine, not generic. Best practices include:

• Avoiding vague phrases like “We value integrity.”
• Using language that reflects company culture and industry.
• Ensuring values differentiate the company from competitors.

For example, Netflix’s values include “Judgment, Selflessness, Courage”, emphasizing its high-performance culture.

4. Keep It Clear and Concise

A values statement should be easy to remember and understand. Guidelines include:

• Listing 5–7 core values for clarity.
• Using simple, direct language.
• Avoiding corporate jargon or overly complex wording.

For example, Nike’s core values include:

• Innovation – Push the limits of what’s possible.
• Sustainability – Protect the planet for future generations.

5. Align Values with Business Strategy

Values should connect to organizational goals, customer expectations, and employee experience. Consider:

• How do these values guide product development and innovation?
• Do they shape marketing, branding, and partnerships?
• Are they reflected in social responsibility initiatives?

For example, IKEA’s values emphasize affordability and sustainability, aligning with its low-cost, eco-friendly product strategy.

6. Get Input from Employees and Stakeholders

A values statement should reflect the voices of employees, leadership, and customers. Consider:

• Conducting employee workshops to gather input.
• Reviewing customer feedback to understand expectations.
• Aligning values with leadership vision and strategic goals.

For example, Salesforce’s values include “Trust, Customer Success, Innovation, and Equality”, shaped through employee and stakeholder engagement.

7. Communicate and Implement the Values Statement

A values statement is only effective if it is integrated into daily operations. Best practices include:

• Displaying it on company websites, offices, and marketing materials.
• Embedding it into employee training and onboarding.
• Reinforcing it through leadership actions and corporate policies.

For example, Microsoft integrates its values into leadership training, hiring decisions, and community engagement programs.

Project Recommendations for Success

While crafting a values statement is essential, businesses should avoid common mistakes.

Making It Too Generic – Values should be specific to the company’s identity. Solutions:

• Avoid vague phrases like “We value excellence.”
• Ensure values are authentic, not copied from competitors.

Not Living Up to the Values – A values statement means nothing if actions don’t reflect it. Solutions:

• Hold leaders accountable for modeling company values.
• Align business decisions with stated principles.

Failing to Update as the Business Evolves – Values should evolve with company growth. Solutions:

• Reassess values every few years to ensure relevance.
• Adapt them as the company expands into new markets.

Complementary Tools & Templates for Success

To maximize the effectiveness of a values statement, consider these complementary tools:

• Mission Statement Template – Defines the company’s purpose and goals.
• Vision Statement Framework – Establishes long-term aspirations.
• Corporate Culture Playbook – Aligns workplace behavior with core values.

Conclusion

A values statement is an essential tool for defining an organization’s ethical foundation, culture, and identity. When crafted effectively, it serves as a guiding force that influences decision-making, branding, and corporate culture. By focusing on authenticity, clarity, and strategic alignment, businesses can:

• Build a strong, purpose-driven culture.
• Enhance trust with customers and employees.
• Ensure consistency in ethical business practices.

When implemented successfully, a values statement becomes more than just words—it becomes a core element of an organization’s identity, shaping its future success and impact.