Company values and culture in the context of SMEs: Are they even important?

When doing online research, I always used to click first on the About Us section of a company page. Very often when I saw their Mission, Vision and Values statements, an eyeroll was inevitable. Not only did the content sounded AI generated even before there was ChatGPT, but I didn't really learn anything about them, what they really do and what kind of company they are.

I was wondering at first why people even write that stuff because it's obvious that they are only doing it for form's sake. Since I rarely got to see a well written Mission/Vision/Values content, I began to think that it's actually unnecessary. Corporate fluff.

Of course I changed my perspective in the meantime.

I want to explain why are these things important, especially for micro and small companies; what benefits do well defined values bring and what exactly is company culture.

Company values

So how are values formally defined?

values; phrase [ plural ]

• the beliefs people have, especially about what is right and wrong and what is most important in life, that control their behaviour;
• the principles that help you to decide what is right and wrong, and how to act in various situations

(Cambridge Academic Content Dictionary ? Cambridge University Press)

The second meaning is especially applicable in the business context.

Values are what everything else stems out. Not only culture, mission and vision, but branding, marketing, hiring, work processes, motivation, etc.

At the beginning it may seem unnecessary, but it's actually smart to define your values before anything else.

And they should come naturally, as they should reflect the founders' own beliefs.

• What do you value in work and in life in general?
• How do you like to work?
• How do you want to deal with your customers?
• What qualities do you want to see in your future employees?
• How do you imagine the relationship between management and employees?
• What is something that you cannot tolerate at the workplace?

Company culture

Even a general definition explains a lot about the term in a business context.

culture; noun (WAY OF LIFE)

• the way of life, especially the general customs and beliefs, of a particular group of people at a particular time;
• the attitudes, behaviour, opinions, etc. of a particular group of people within society

(Cambridge Academic Content Dictionary ? Cambridge University Press)

Way of life can be replaced with the way we do things in this company.

If we look at the definition of corporate culture, it defines in more detail this natural phenomenon that exists in companies of all sizes.

Corporate culture refers to the values, beliefs, and behaviours that determine how a company's employees and management interact, perform, and handle business transactions. Often, corporate culture is implied, not expressly defined, and develops organically over time from the cumulative traits of the people that the company hires.

(Investopedia.com)

Understanding the culture within corporations or organizations gained prominence in the 1960s, with the term corporate culture gaining widespread recognition in the 1990s.

Corporate culture evolved from shared beliefs, pervasive behaviours, company-wide value systems, management strategies, employee interactions, workplace environment, and overall attitude. Over time, it expanded to encompass elements like origin stories presented by charismatic CEOs, as well as visual symbols such as logos and trademarks.

The culture within the company, or corporate culture, will inevitably develop, whether we want it or not.

Today, corporate culture is not even solely shaped by founders, management, and employees; it is also influenced by national cultures, traditions, economic trends, international trade, company size, product offerings, and other factors.

In conclusion

If you want to be involved in developing a corporate culture, you have to start with the basics, company values.

It's always easier to develop a culture that suits you and your beliefs from the beginning, than try to change it later on, when you already have a number of employees who have already developed "their own way of doing things". It's not impossible, but it's harder to change and motivate people to go in another direction after they've been used to something completely different.

But, such changes are also necessary in a number of companies.

The lesson here is - don't take defining the values and shaping a certain corporate culture too lightly, no matter the size of your company.