In today’s business world, corporate values play a crucial role. They guide decisions, shape culture, and create a sense of belonging among employees. But for these values to truly make a difference, they need to be more than just catchy phrases.
This is where behavioral science comes in. By using insights from neuroscience and psychology, companies can develop values that actually influence behavior and improve performance. It’s about moving beyond gut feelings to understand what really motivates people.
Research shows that people respond best to ideas that are simple, relevant, and emotionally engaging. This knowledge can help create values that stick in people’s minds and influence their actions. Studies also highlight how group norms shape individual behavior, demonstrating the importance of values.
Innovation is a principal example of this. Studies show that encouraging a growth mindset – the belief that we can develop our abilities – is a key driver in promoting a culture of innovation. Companies that build this idea into their values often see better results; this McKinsey report[1] support this idea, highlighting that companies with a strong innovation culture tend to significantly outperform their peers.
Similarly, teamwork can be influenced through values, especially by prioritizing psychological safety. This idea, developed by researchers, shows that teams do better when they feel safe speaking up and taking risks. Values that promote open communication can help create this environment, leading to more effective collaboration. Recent reports show that organizations that go further and emphasize the value of human-centered approaches often see higher engagement and better long-term success. Values that emphasize creating positive outcomes for people tend to be the most effective way of embedding this approach.
But adopting impactful values is just the start. The real challenge is bringing them to life in the organization. Leaders need to embody these values and create an environment where employees can live up to them. This is where values intersect with wellbeing. When employees feel aligned with their company’s purpose, they often experience less stress and more motivation. This improved wellbeing, in turn, helps them better embrace the company’s values, creating a virtuous cycle.
On the flip side, companies that don’t prioritize shared values often struggle with disconnected teams and poor communication. This can lead to a stressful work environment and, ultimately, weaker business performance.
As businesses face today’s challenges, well-crafted, science-based corporate values are essential. They’re tools that can drive innovation, improve teamwork, and create meaningful impact. It’s up to business leaders to use behavioral science in developing these values and to create environments where they can thrive. This approach can help companies make the most of their potential and their people.
[1] https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/in-the-spotlight-performance-management-that-puts-people-first
