When Johnson & Johnson’s CEO codified the company’s principles into a credo in 1943, corporate value statements were a novelty. Today they are ubiquitous among large corporations. In our study of nearly 700 large companies, we found that more than 80% published an official set of corporate values on their website. Senior leaders, in particular, love to talk about their company culture. Over the past three decades, more than three-quarters of CEOs interviewed in a major business magazine discussed their company’s culture or core values — even when not specifically asked about it.
Corporate values statements are nearly universal, but do they matter? Critics dismiss them as cheap talk with no impact on employees’ day-to-day behavior. Recent corporate scandals support the skeptics’ view. Volkswagen, Wells Fargo, and Barclays each included ethics or integrity among their core values in the years before their wrongdoings were discovered, while Boeing hit the trifecta by listing integrity, quality, and safety among its “enduring values.”
It is tempting to dismiss corporate value statements as irrelevant, but ignoring them is a mistake. Even when companies fall short of their aspirations, official statements still cast light on the values leaders consider critical for success. They also spell out the cultural elements that leaders believe distinguish their company in the eyes of employees, customers, and other stakeholders.