When teaching or coaching emerging leaders, one topic I push hard on is values. Values refer to the fundamental beliefs and guiding principles that define what an individual, organization, or community stands for. These principles act as a moral and operational compass, influencing behavior, decision-making, and culture. They are part of the magic three: mission, vision and values. They help answer critical questions such as what do we stand for, what principles will we not compromise, even in tough times, and how do we measure success beyond financial metrics?
Defining and exercising your values is one of the most powerful tools at your disposal as a leader. Contrary to popular belief, values aren’t just abstract ideals—they’re a guiding force that shapes culture, decision-making, and the direction of your organization or community.
Workplace and community values set the tone for culture and highlight what matters most to your team. In today’s world, examples of value-driven leadership can feel scarce (except, perhaps, for fictional leaders like Ted Lasso). It’s easy to compromise—bending the truth, justifying small lies, or letting go of ideals in the name of progress. But staying true to your values requires courage. When values are compromised, it becomes exponentially harder to rebuild trust and credibility.
Take the famous case of Johnson & Johnson during the 1982 Tylenol scare. The company faced an unprecedented challenge when bottles of Tylenol were tampered with, resulting in deaths. Instead of focusing on short-term profits, Johnson & Johnson leaned into their core value: taking care of their customers above all else. This commitment led them to remove all Tylenol products from store shelves nationwide—a move that cost the company $100 million!
Why was this decision so impactful? It stemmed from a document written decades earlier by CEO Robert W. Johnson Jr. in 1935, titled Our Credo. The first responsibility listed in the credo was to customers. This value not only guided the company through a crisis but also led to groundbreaking innovations like tamper-proof packaging, a financial recovery, and enduring customer loyalty. Johnson & Johnson’s adherence to their values became a benchmark for ethical leadership.
As leaders, ethical dilemmas are inevitable. For organizations that champion values, revisiting and reaffirming these principles can serve as a vital touchstone, reminding everyone of their “true north.” A strong foundation of values helps frame discussions, guide decisions, and maintain focus during challenging times.
When an organization shares and operates from the same core values, decision-making becomes more straightforward. There’s less second-guessing because values provide clarity and consistency. Beyond decision-making, shared values foster a sense of belonging and collaboration, creating a community where like-minded individuals can thrive together.
In Built to Last, authors Jim Collins and Jerry I. Porras highlight a critical insight: organizations that endure through decades of challenges and recessions are those that defined their core values early and built a culture around them. This consistency and alignment give organizations the resilience to face adversity.
Alan Hilburg, often referred to as the “Tylenol Man,” summed it up best: “Values-based brands outperform non-values-based brands on trust, credibility, and ‘listenability.’ In other words, great companies and great brands stand on a platform of great values. In a crisis, I’d rather defend the values than the facts.”
Leadership isn’t just about the goals you achieve; it’s about the principles you uphold along the way. Values are the compass that guides your decisions, unites your team, and builds the trust needed to weather any storm. By putting values into action, you set the foundation for a legacy of integrity and success.