Stay true to your core values during tough economic times

by Bill L. Purser

A downturn in the economy doesn’t mean a company should downsize the values and principles that guide its business.

Our core values surround us every day in our personal lives and in our business relationships. But how often do we stop to think about what these values are and how they impact us? And does the way we practice our values change when business is down?

The headlines today are filled with stories of layoffs, bankruptcies, corruption and general human unkindness. It’s disappointing that we have to search hard for the stories on true acts of goodness, and even more unsettling that the stories we do find rarely focus on acts of goodness in the business community. Sure, you hear about large corporations that raised money for charity, but what about the accounts receivable associate who noticed a customer overpaid an invoice and returned the overpayment?

From decades of managing through economic cycles, we at Applied Industrial Technologies have learned that companies with a strong set of core values come out ahead in the long run because they don’t change who they are and the way they do business in challenging times. Knowing what your company stands for – its conscience, so to speak – keeps all employees focused on doing the right thing, regardless of external influences or business conditions. And over time, our shareholders benefit from the focus.

It makes good business sense to recognize and celebrate the values that make up our corporations. A strong set of values can give your organization a competitive advantage over others in your business who, unfortunately, may not emphasize the importance of ethical business practices. Customers can see and feel the difference when they do business with a highly principled company.

Further, good values help keep your organization strong. Your reputation for high moral character is a powerful tool for attracting and retaining reliable employees who have more energy, more joy in their work and more optimism in addition to lower levels of stress. Everyone wants to work for a company where they can feel good about the work they are asked to do.

At Applied Industrial Technologies, we have adopted seven “core values” to guide the way we conduct our business. Developed through a team process involving individuals from across our company, our core values are communicated regularly to all employees. We encourage employees to practice them openly, discuss them regularly and compliment others when they see a value in action.

Applied’s core values are:

Honesty
We expect everyone to have a genuine commitment to the truth. Honest people do not mislead, misrepresent, overstate, selectively omit or provide only partial information as a means to deceive someone.

Integrity
Defined as “strength of character,” integrity combines high standards of being and doing. Once, a buyer at a customer’s facility offered one of our sales representatives a copy of a competitor’s proposal. To the surprise of the buyer, our employee chose not to take it as he was unwilling to risk even the appearance of a breach of integrity.

Caring/fairness
Applied practices the proper balance of justice and compassion, recognizing that each person we work with is an individual who deserves to be treated fairly and with respect. Caring and fairness also extends to supporting our local communities through sponsorships of local schools, charities and other organizations as well as stepping forward to help in times of emergency.

Openness
Dialogue and reflective thought are encouraged. All of our associates are expected to share information, ideas and thinking that lead to extraordinary communication, learning, discovery and performance.

Quality dedication
Our commitments to quality and continuous improvement are obsessions at Applied. This dedication has earned us respect and appreciation from our customers, and has been cited in recent awards we’ve received from customers.

Promise-keeping
Our word is our bond. We say what we do, and then do what we say. Promise-keeping is a critical measure of personal integrity, faith in self and an indispensable basis for success. The fact is, if we do not deliver on our promises, someone else will.

Personal mastery
We are all called upon to be the best individuals – and therefore, the best company – we can be. Our employees are constantly growing and improving. In fact, each employee is required to achieve a minimum of 40 hours per year in ongoing training.

Recognizing the values of your organization will help strengthen your business and facilitate the journey to success – especially in trying economic times. What are your core values? Have you celebrated them today?

Bill L. Purser is president and chief operating officer of Applied Industrial Technologies.

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