Do corporate values have value? The impact of corporate values on financial performance

Abstract

Do corporate values affect financial performance? The observed corporate values of the Fortune Global 500 companies were inductively clustered under key attributes, and then, the attributes were grouped under value orientations. The variables used to measure financial performance were given by Fortune 500 report. Finally, the research developed and tested a new model that explored if and how the declared corporate value orientations impacted the financial performance of their organizations. The model showed that all values indirectly affected income and operational performance through human values. The paper reconciled and explained inconsistent findings in the literature over decades, redefined corporate values, and established their impact on financial performance when human values are implemented. The attention to human values is the key to harnessing the positive impact of visionary, ethical, work, and customer-oriented values.