Why Companies are Doing Themselves a Disservice with Performative Values

Are your company's values aligned with those of your customers and employees?

Values are more than just words on a website or what people tell others to make themselves look and feel good. They guide behavior, shape culture, and attract like-minded talent and customers. When companies do not operate in line with their values, they risk harm to their profitability, company culture, and employee retention.

Companies that publicly promote values they do not practice internally are creating significant risks for their brand, culture, and long-term success. This disconnect between aspirational and lived values, often seen as virtue signaling, ultimately harms organizations more than it helps.

Impact on employees and organizational culture

How a company deals with its own values and deals with the values of others affects corporate culture

When a company’s stated values don’t align with its daily operations, employees notice, no matter what a company posts on its website or in recruiting materials. Rather than channeling efforts toward productivity and efficiency, employees spend their time trying to figure out what the values of the company and management really are or spending time in conflict because of conflicting values. As a result, because of a lack of clarity or a mismatch in values, employees are not taking risks to innovate and make the company a better place to work.

When employees join companies because they think that the company’s stated values align with their own, they come to a rude awakening when they discover the mismatch and that the company’s advertised values were only performative or aspirational ones. This issue is particularly critical when it comes to attracting and retaining talent. Younger generations, such as Gen Z, care a lot about a values-aligned workplace and are willing to quit or refuse to apply for companies whose values do not align with their own.

When companies do not know how to treat others with different values with respect by stepping on the values of employees, turnover should not be a surprising result, and attrition can be expected. Birds of a feather flock together. The gap between words and actions forces employees into a difficult position, undermining morale and engagement as they witness a culture that doesn't "walk the talk."

Short-term gains can mean long-term losses when companies live out of alignment with their stated values.

Angering clients or customers by perceived deception

The negative impact of performative values extends far beyond internal teams. In today's hyper-connected world, consumers are more discerning than ever and are quick to point out hypocrisy. When a company's actions contradict its advertised principles, loyal customers can perceive this as deception, betrayal, and hypocrisy. Customer loyalty is increasingly tied to corporate values, and consumers are not afraid to cancel brands whose values offend their own. Especially with millennials and Gen-Z consumers who make purchases based on values. Organizations that prioritize optics over authentic action are trading long-term trust and sustainability for potential short-term gains, ultimately choosing long-term losses. It is not easy to regain the trust and undo the damage to a brand’s reputation once consumers feel betrayed.

From aspirational to practiced values

The first step toward alignment is for a company to honestly assess its practiced values, not just the aspirational ones written on a wall. To build an authentic brand, leadership must shift from simply stating values to embodying them through consistent behavior and decision-making. This requires a deep and honest look at what the organization actually rewards, prioritizes, and encourages. It also requires people to own their lived values rather than judging them. Coaching can help people and companies to figure out what those values are and how to own their lived values.

How to figure out one's real practiced values (not just aspirational values)

Specialized tools can help organizations move beyond surface-level values statements. Most tools to evaluate values ask what you want your values to be. Big Little Insights values assessment can help individuals, teams, and organizations discover their lived or practiced values, not just the values they want to have. Big Little Insights asks what they actually are. It’s a subtle but powerful shift—one that leads to more honest conversations, stronger cultures, less painful conflict, and better business outcomes.