Corporate Philosophy – a Guiding Light and Source of Energy
Corporate philosophy definition
The corporate philosophy covers fundamental thoughts related to the company. It includes a vision, the values and a mission.
The Vision in a corporate philosophy
The vision, also known as ‘The Mission Statement,’ describes the picture of the company in the future. Where would the company eventually like to be? The definition of the vision is an important task of the entrepreneur. One who has no clear vision and who does not pass it on cannot enthuse and motivate others.
The values in a corporate philosophy
The values, sometimes called ‘The Code of Ethics’, can be co-authored by employees. After all, theoretically defined values have no use if they are not lived. The discussion about joint values can be a teambuilding experience and distinctive for the employees. The values establish a framework for behaviour that is binding for everyone. Acting as an important role model, management must exemplify these principles at all times. Values influence the business culture. This can be readily recognised by customers, partners and suppliers and will have impact on the company’s image.
The mission in a corporate philosophy
Finally, the mission states how the company intends to reach the vision. How should you act in order to achieve the desired result? It directs the business practices publicly.
A clearly defined corporate philosophy gives the enterpreneur the opportunity to hold all the aces:
- The joint direction is clear to supervisors and staff. The vision is like a lighthouse, always shining and guiding the way. In this way, existing and new employees can see the meaning of their work.
- Out of the conflict between the ‘current’ status and the ‘target’ status arises the motivation for change, which proves to be a constant source of energy.
- If you are aware of the vision, you can more easily define for yourself concrete intermediate goals.
- The business culture will also be demonstrated publicly and this has an impact on the company’s image in the market.
A corporate philosophy creates competitive advantages which can be measured in the employees’ performance resulting in the company’s success. The BEITRAINING® seminar BYB (Building Your Business©) thoroughly deals with this topic.