Political and social climates are prone to volatile swings. Instead of reacting to short-term trends (e.g., DEI focus vs. rollback), leaders should define their company by core principles that will remain true in two decades. This provides stability and authenticity, making everything else just a fleeting trend.
Prioritize sustainable, long-term growth and value creation over immediate, expedient gains that could damage the business's future. This philosophy guides decisions from product development to strategic planning, ensuring the company builds a lasting competitive advantage instead of chasing fleeting wins.
Founders often mistake their preferences for principles. A true principle is a non-negotiable rule you adhere to regardless of the trade-offs (e.g., 'always do things the right way'). A preference is a desired path you're willing to abandon when circumstances change (e.g., 'prefer not to build a sales team yet'). Clarifying this distinction leads to more consistent and high-integrity decisions.
Values are not just words on a wall; they are an active management system. They should be a filter in the hiring process, a reason for public celebration when embodied, and a non-negotiable standard for performance. A company's true values are defined by the behavior it is willing to tolerate.
In just five years, the corporate environment has swung from encouraging open discussion on social issues like race to fearing it. This "whipsaw" is driven by ideological extremes on both sides, making it difficult for leaders to find a rational middle ground for authentic engagement.
Instead of chasing trends or pivoting every few weeks, founders should focus on a singular mission that stems from their unique expertise and conviction. This approach builds durable, meaningful companies rather than simply chasing valuations.
Patagonia avoids performative activism by only speaking out on issues where it has deep-seated authenticity (business and environment) and can be genuinely additive to the conversation. This strategic filter helps them navigate when to engage and when to stay silent.
To manage an overwhelming list of necessary business changes, Walmart's leadership began by clearly articulating what would remain constant: its core values. This provided a stable foundation, making the subsequent, widespread transformation feel more manageable and less threatening for employees.
True corporate values are steadfast principles that guide a company regardless of the political or social climate. Values that are easily discarded when they become controversial are not core values but rather branding exercises. This inauthenticity risks significant consumer backlash when exposed.
A company’s true values aren't in its mission statement, but in its operational systems. Good intentions are meaningless without supporting structures. What an organization truly values is revealed by its compensation systems, promotion decisions, and which behaviors are publicly celebrated and honored.
A business decision aims to gamify and optimize a specific outcome. A principle decision is based on core values, made without knowing the outcome, to be remembered favorably regardless of the result. Sticking to principles may mean losing a short-term battle but ultimately wins the war by building trust.