How to Define Your Core Values (The Framework Top Brands Use)

Core brand values are the fundamental beliefs and principles that guide every decision your company makes—from how you treat employees to what products you create, how you market, and which customers you serve. They're not aspirational statements; they're non-negotiable truths about who you are.

Most companies have values written on a wall somewhere. Few actually live them. The difference between those two groups? One builds legendary brands. The other fades into obscurity.

Why Core Values Matter (More Than You Think)

The Business Impact of Strong Values

Companies with clearly defined and lived values:

• Higher employee retention - People stay where values align
• Values-driven companies outperform competitors
• More likely to be high performing in their markets
• Many consumers willing to pay more for values-aligned brands
• Younger generations research company values before buying

Real Examples:

Patagonia (Values: Environmentalism, Quality, Integrity)

• Turned down $1B+ in revenue by limiting growth to protect environment
• "Don't Buy This Jacket" campaign prioritized values over sales
• Result: Cult following, $3B+ valuation, customer lifetime loyalty

Netflix (Values: Freedom, Responsibility, Innovation)

• Unlimited vacation policy (trust employees)
• "Adequate performance gets generous severance" (high standards)
• Result: Industry-leading content, top talent attraction

Zappos (Values: Service, Fun, Growth)

• Offers new hires $2,000 to quit after training (values fit test)
• 365-day return policy (service over profit)
• Result: 75% of sales from repeat customers

Core values form the foundation of your brand strategy and drive brand differentiation.

Values vs. Mission vs. Vision

Key Difference: Mission and vision are aspirational. Values are CURRENT—they describe who you already are.

The 5-Step Framework to Define Core Values

Step 1: Discover Your Natural Values (Week 1)

Most companies try to invent values from scratch. Wrong approach. Your true values already exist in your DNA. You just need to uncover them.

Exercise A: Peak Moment Analysis

List 10 moments when your company was at its best:

• Product launches that went perfectly
• Customer wins that felt amazing
• Decisions you're most proud of
• Crises you handled well

For each moment, ask:

1. What made this special?
2. What principles guided our actions?
3. What did we prioritize?
4. What would we NEVER have compromised?

Example:

Moment: Customer called with urgent issue on Friday 5pm. Team stayed until midnight to fix it.

Values revealed:

• Customer success over convenience
• Ownership (we own the problem)
• Going above and beyond

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Exercise B: Low Moment Analysis

List 5 moments when your company felt "off":

• Decisions that felt wrong
• Times you compromised for wrong reasons
• Hires that didn't work out
• Projects that failed

For each, ask:

1. What value did we violate?
2. What would we do differently?
3. What line would we never cross again?

Example:

Moment: Took client who clashed with our process. Regretted it immediately.

Values revealed:

• We value cultural fit over revenue
• Integrity matters more than growth
• Not everyone is our customer

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Exercise C: Founder/Leader Interview

Interview founders and early team members:

1. Why did you start this company?
2. What frustrates you most about your industry?
3. What would you NEVER do, even for profit?
4. What makes you most proud?
5. If money wasn't a factor, what would you change?

Capture exact phrases - often your values are already in how you naturally talk about the business.

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Step 2: Identify Value Themes (Week 1-2)

Take all the data from Step 1 and look for patterns.

Clustering Process:

1. Write every value word on a sticky note
2. Group similar concepts together
3. Name each cluster
4. Narrow to 5-7 core themes

Common Value Themes:

Your Turn:

From your research, what 5-7 themes emerge repeatedly?

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Step 3: Craft Your Values Statements (Week 2)

Now turn themes into clear, actionable value statements.

Bad Value Statements:

• Too vague: "Integrity"
• Too generic: "Respect"
• Too aspirational: "World-class service" (if you're not there yet)

Good Value Statements:

• Specific: "We prioritize long-term relationships over short-term profit"
• Behavioral: "We speak up when something's wrong, even if it's uncomfortable"
• Authentic: "We're scrappy—we find a way with what we have"

The Value Statement Formula:

[Value Name]: [What it means] + [How we live it]

Examples:

Stripe:

Value: Users First
Meaning: We build products for developers, not executives
How we live it: Every feature decision starts with "Does this help developers ship faster?"

Basecamp:

Value: Calm Company
Meaning: We reject the startup hustle culture
How we live it: No after-hours emails, realistic deadlines, sustainable pace

Your Template:

Value 1: _____________
We believe: _____________
Which means: _____________
In practice: _____________

Value 2: _____________
[Repeat]

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Step 4: Test Your Values (Week 3)

Before finalizing, run your values through these tests:

Test #1: The Trade-Off Test

Would you stick to this value even if it cost you money/customers/growth?

Example:

• Patagonia: "We repair products instead of pushing new sales"
• Cost: Lost revenue
• Test Result: PASS (they actually do this)

If you wouldn't make the sacrifice, it's not a real value.

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Test #2: The Hiring Test

Would you reject a highly qualified candidate who doesn't embody this value?

Example:

• Netflix: "Adequate performance gets generous severance"
• Question: Would you keep a mediocre performer who's nice?
• Answer: No
• Test Result: PASS (it's a real value)

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Test #3: The Uniqueness Test

Could your competitor claim this same value?

Bad (too generic):

• "We value customer satisfaction"
• Every company claims this

Good (unique angle):

• "We value honest feedback over making customers happy in the moment"
• Specific, differentiated

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Test #4: The Team Resonance Test

Survey your team:

1. Do these values feel TRUE to who we already are? (Not who we wish we were)
2. Have you seen examples of us living these values?
3. Would you use these words to describe us to a friend?

If less than 70% say yes, revise.

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Test #5: The Decision-Making Test

Use your values to make a real pending decision.

Example:

Decision: Accept this client offer (high revenue, poor culture fit)?

Value 1: Integrity over profit

• Action: Decline

Value 2: Long-term relationships

• Action: Decline

Value 3: Fun and enjoyment at work

• Action: Decline (they'll make work miserable)

Result: If your values clearly guide the decision, they're strong. If they're vague and unhelpful, refine.

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Values Testing Quiz:

Question: You defined "Innovation" as a core value, but when an employee suggests a risky new idea, leadership always shuts it down. What's the problem?

A) Your employees aren't good at innovation B) "Innovation" isn't actually a real value for your company ✓ C) You need better communication about innovation D) Innovation is too risky for your industry

Why B is correct: Values aren't what you SAY, they're what you DO. If you claim "innovation" but punish risk-taking and new ideas, it's aspirational, not actual. Real values are demonstrated through actions, especially when those actions are difficult or costly. This is why the Trade-Off Test matters.

The 5 Tests Summary:

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Step 5: Bring Values to Life (Ongoing)

Defined values mean nothing if you don't LIVE them.

Integration Checklist:

In Hiring:

• Add values-based interview questions
• Test for cultural fit explicitly
• Share values during interviews
• Reject bad culture fits, even if skilled

In Onboarding:

• Teach values on day one
• Share stories of values in action
• Explain how values guide decisions
• Give new hires values cards/posters

In Meetings:

• Reference values when making decisions
• Ask "Does this align with our values?"
• Call out when values are violated
• Celebrate when values are exemplified

In Performance Reviews:

• Evaluate on values alignment, not just output
• Promote people who embody values
• Let go of people who don't, even if high performers
• Tie bonuses to values demonstration

On Social Media:

• Share behind-the-scenes values moments
• Tell customer stories that reflect values
• Take public stands aligned with values
• Show, don't just tell

This connects to your brand storytelling strategy.

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Real Brand Values Examples to Inspire You

Example 1: Patagonia's Values

1. Build the best product

• Meaning: Quality and durability over planned obsolescence
• In action: Lifetime repair program, "Worn Wear" initiative

2. Cause no unnecessary harm

• Meaning: Environmental responsibility in everything
• In action: 1% for the Planet, organic cotton only, supply chain transparency

3. Use business to protect nature

• Meaning: Profit is a means to environmental impact
• In action: $10M tax cut donated to environmental groups

4. Not bound by convention

• Meaning: Challenge industry norms
• In action: "Don't Buy This Jacket" anti-consumerism campaign

Social Media Application:

• Instagram: Customer adventure stories in worn gear
• Blog: Environmental activism and education
• Twitter: Taking stands on environmental policies

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Example 2: Buffer's Values

1. Default to Transparency

• Meaning: Share everything unless there's a good reason not to
• In action: Public salaries, revenue dashboard, equity formula

2. Cultivate Candor

• Meaning: Honest feedback, even when uncomfortable
• In action: Regular feedback exchanges, transparent performance reviews

3. Improve Relentlessly

• Meaning: Always learning and growing
• In action: Learning stipends, public failure retrospectives

Social Media Application:

• Twitter: Transparent revenue updates
• Blog: Open sharing of metrics, successes, and failures
• LinkedIn: Career growth stories

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Example 3: Zappos' Values

1. Deliver WOW Through Service

• Meaning: Go above and beyond for customers
• In action: 365-day returns, surprise upgrades, 10-hour customer calls

2. Embrace and Drive Change

• Meaning: Be comfortable with uncertainty
• In action: Holacracy experiment, continuous org evolution

3. Create Fun and A Little Weirdness

• Meaning: Don't take yourself too seriously
• In action: Office parades, costume contests, quirky culture

Social Media Application:

• Twitter: Fun customer service interactions
• Instagram: Behind-the-scenes office weirdness
• Facebook: Customer surprise stories

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Values-Based Social Media Content Ideas

Content Type #1: Values Origin Stories

Template:

Why we believe [VALUE]:

Years ago, [founder/team member] experienced [moment].
They realized [insight].
Since then, we've [how you live it].

This is why [value] matters to us.

Example (hypothetical):

Why we believe "Always Be Learning":

In 2019, our CEO admitted in a team meeting:
"I don't know how to solve this problem."

Instead of pretending, she said:
"Who can teach me?"

Three junior team members stepped up.
They solved it together.

Since then, we've made "I don't know, teach me" a badge of honor.

That's why Always Be Learning matters.

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Content Type #2: Values Spotlight Series

Instagram Series: "Values in Action Mondays"

• Monday: Feature employee living a value
• Wednesday: Customer story reflecting your values
• Friday: Decision you made based on values

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Content Type #3: Values-Based Decision Transparency

Template:

Hard Decision Time:

We had to choose between [Option A] and [Option B].

Option A: [Benefits]
Option B: [Benefits]

Our value of [VALUE] guided us to [choice].

Here's why: [Explanation]

Was it the easy choice? [No, but here's why it was right]

Example:

Hard Decision Time:

We had to choose between:
- Growth: Accept $2M contract with values misalignment
- Integrity: Decline and stay true to ourselves

We chose integrity.

Because our value "Long-term over short-term" means:
We'd rather grow slowly with the right partners
Than quickly with the wrong ones.

Was it easy? No. We had to let go of 2 planned hires.
Was it right? Absolutely.

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Content Type #4: Values Hiring Posts

Template:

We're hiring [role].

Skills matter.
But values matter more.

If you believe [value 1], [value 2], and [value 3]...
We want to talk.

[Link to apply]

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Content Type #5: Values-Driven Commentary

Take a stand on industry issues through your values lens:

Template:

Hot Take:

Everyone in [industry] does [common practice].

We don't.

Our value of [VALUE] means we [your different approach].

It's [harder/more expensive/less popular].
But it's right.

Example:

Hot Take:

Most social media agencies promise "viral posts."

We don't.

Our value of "Honest Results Over Empty Promises" means:
We focus on sustainable growth, not viral gimmicks.

Does it sell as well? Nope.
Is it what our clients actually need? Yep.

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Common Core Values Mistakes to Avoid

Mistake #1: Copying Other Companies' Values

❌ Wrong: "We want to be like Google, so let's use their values"

✅ Right: "What values are ALREADY true for us?"

Fix: Your values must be authentic to YOUR culture, not borrowed from companies you admire.

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Mistake #2: Too Many Values

❌ Wrong: 15 core values

✅ Right: 3-7 core values

Fix: If everything is a priority, nothing is. Focus on what TRULY matters most.

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Mistake #3: Vague, Unmemorable Statements

❌ Wrong: "Excellence in all we do"

✅ Right: "We ship imperfect products fast, then improve them based on feedback"

Fix: Specific, behavioral statements that guide real decisions.

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Mistake #4: Values You Don't Actually Live

❌ Wrong: "Innovation" (but you punish failure)

✅ Right: Only claim values you actually demonstrate daily

Fix: Test with the trade-off test. Would you sacrifice for this value?

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Mistake #5: Making Values Aspirational

❌ Wrong: Values = who we want to become

✅ Right: Values = who we already are at our best

Fix: Vision is aspirational. Values are current reality.

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Your Values Definition Action Plan

Week 1: Discovery

• Complete Peak Moment Analysis (10 stories)
• Complete Low Moment Analysis (5 stories)
• Interview founders/leaders (3+ people)
• Survey team about company strengths (optional)

Week 2: Drafting

• Identify 5-7 value themes from data
• Write first draft of value statements
• Include meaning + behavior for each
• Run through 5 tests (trade-off, hiring, uniqueness, resonance, decision-making)

Week 3: Refinement

• Share draft with leadership team
• Gather feedback from broader team
• Revise based on input
• Finalize 3-7 core values

Week 4: Activation

• Create values document/poster
• Plan announcement to team
• Update website and social media bios
• Start values-based content series
• Integrate into hiring process

Ongoing: Living Your Values

• Monthly: Share values story on social media
• Quarterly: Review decisions through values lens
• Annually: Evaluate team members on values alignment
• Continuously: Reference values in meetings and decisions

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Final Thoughts: Values Are Your North Star

Your values aren't marketing copy. They're your operating system.

When a decision feels hard, values make it easy. When you're growing fast, values keep you grounded. When competitors zig, values tell you to zag.

The brands you admire—Patagonia, Apple, Netflix, Zappos—aren't successful because they have values written down. They're successful because they LIVE them, even when it's expensive, uncomfortable, or unpopular.

Your action step today: Block 2 hours this week. Do the Peak Moment Analysis. List 10 times your company was at its absolute best.

Your values are already there, hiding in those stories. You just need to find them.

Once you do? Everything else gets easier.

Define your values. Live them relentlessly. Watch your brand transform.