The Importance of Core Values for Organizational Success and Development

What are core values and why are they important?

 The core values of an organization play a crucial role in its success and development. Core values are the DNA of the organization, the shared beliefs, and the important principles that guide our work and decisions. It is very important for us to clearly understand what the values of the organization or company we belong to are. This is because they are not just simple phrases or slogans, but essential elements that reflect the identity and goals of the organization.

 These core values have a significant impact on the success of the organization when they are accurately understood and practiced by the members of the organization. Consistent execution of values helps to maintain ethical behavior within the organization and gather strength for achieving common goals. In addition, by understanding and sharing core values, greater alignment and cohesion are formed among organizational members, enhancing collaboration and teamwork.

How to emphasize and practice core values within the organization? 

 It is necessary to emphasize and practice core values across the organization. Leaders should provide proper direction to their members by delivering core values appropriately and showing examples of executing those values. Also, it is important to strengthen the value awareness of members through education and communication that continuously emphasize core values. Leaders and organizations must support members to internalize and apply the core values of the organization in their daily work.

 Core values also play a very important role in the management dimension. If a company’s core values emphasize product quality and reliability, this will give customers more trust, enhance brand image, and improve competitiveness. On the contrary, if core values are not properly established or reflect wrong values, the company may face problems.

What are some examples of successful or failed core value management?

 For example, Toyota is known as a global car manufacturer that values safety and quality. However, in 2007, as a result of changing its value from safety first to cost reduction, the company faced a major crisis. Losing its core value of emphasizing quality and safety led to product quality issues that resulted in the largest recall ever, and lost trust and suffered business damage as a result.

 However, Toyota overcame this crisis by focusing on customer value, strengthening quality management, and developing innovative products and services. Thanks to these efforts, it recovered in just two years and rose to 33rd among respected companies. This case shows how important a company’s core values are and how they play a decisive role in the survival and growth of a company.

What are some implications for Korean companies? 

 These experiences provide important lessons for Korean companies. The more successful they are, the more careful Korean companies should be. Compared to the failure cases of Japanese companies, Korean companies’ performance may look brilliant. However, at such times, companies should ask themselves important questions.

 ‘What is the most important value for our company?’, ‘What value do customers expect from us?’ These are the questions. If a company has not yet provided clear value to its customers, or if there is no clear value that can guide employees’ work, it must first establish it clearly. This is why it is important to clearly establish the value of a company.

 Finally, understanding the importance of corporate value and customer promise is not only for profit, but also an essential element for a company to grow and develop continuously. We can clearly see this through the cases of Toyota and Sony. In the end, promising to customers through value is an important key to determining the success of a company.

Companies are sensitive to small changes as well as seeing the big picture, keeping organizational values and ethical principles, and carefully examining small signs play a decisive role in the health and success of the organization. Through this, the organization can grow steadily and respond to changes, and the success of the company can be achieved through value-centered management. Let’s not forget this.