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Values vs. Principles: The Small Distinction That Makes a Big Difference
posted in Business Coaching
Adam Kreek
Values and principles are often used interchangeably, but they are not the same—and understanding their difference can profoundly impact how individuals and organizations function. While the utility of both is clear and valuable, it’s the small distinctions that elevate clarity, alignment, and action.
The Difference Between Values and Principles
- Values are the traits and states we hold as most important. They define who we are, acting as our internal compass. Think of values as the “how we show up” that stands behind our actions and decisions—enduring qualities like integrity, compassion, or excellence.
- Principles, on the other hand, are actionable rules or behaviours that operationalize those values. They clarify the “how”—the concrete steps we take to bring values to life.
For example:
- Value: Compassion → Principle: “Listen without judgment and offer help to those in need.”
- Value: Integrity → Principle: “Address conflicts directly with honesty and respect.”
Values provide the foundation. Principles are the playbook that ensures values don’t just stay in our heads—they show up in what we do.
When Companies Get It Wrong (But Still Get It Right)
Many well-known organizations label principles as “values.” While their intentions are good, this misstep can dilute clarity. Here are three examples:
- Amazon
Amazon’s Leadership Principles include items like “Customer Obsession” and “Invent and Simplify.” These are actionable guidelines—not inherent traits or states. While they are effective, they are principles operationalizing values like innovation or service, not values themselves. - Netflix
Netflix’s “values” include “Courage” and “Curiosity,” which align with true values. However, their articulation includes principles like “Say what you think, even if it’s controversial” and “Make time to help colleagues.” These are excellent principles and help highlight the difference between traits and actions. - Google
Google’s oft-quoted mantra, “Don’t Be Evil,” is a principle tied to values like ethics and fairness. Mantras are short, easy to remember, and often action-oriented and rule-based. The "Don't Be Evil" action-oriented framing shows it’s more of a behavioural guideline than a core trait.
These examples are more about understanding than bombastic criticism—they highlight how principles and values are intertwined but distinct. While the utility remains, sharper language leads to sharper action.
Entrepreneurs Organization (EO)
EO’s Core Values statement blends principles, character traits, values, and sentiments, which muddles clarity. For example, “Trust and Respect” is presented as a single value, but their explanation points more accurately to a core value like mutual regard or simply respect. “Thirst for Learning” is framed as a state of being, yet it still violates the values rulebook; a better fit would be curiosity or growth hunger. Their third value, “Think Big. Be Bold.”, functions more as a mantra or pair of guiding principles — the underlying value would be boldness or visionary courage. Finally, “Together We Grow” is a declarative statement that, when distilled into ViDA-aligned language, would translate to values like care or shared humanity.
The utility of these statements to guide and direct culture remains, but they are not values.
When Companies Get It Right (And Actually Mean It)
Some organizations do use values properly — which helps people live them and use values for better decsions. These three past ViDA clients have built their cultures around clearly defined values that function as states and traits, not just slogans or guidelines. No organization is perfect, but they get closer when they define strong, authentic values backed by strong efforts to reinforce this culture.
Pfizer
Pfizer defines values like “Courage,” “Excellence,” “Equity,” and “Joy.” These aren’t action steps — they’re character traits that drive decision-making from the inside out. They are simple, clear, and immediately recognizable as lived experiences. No jargon, just human truth.
Allstate
Allstate’s “Shared Purpose” is anchored in values like integrity, inclusive diversity, and accountability. These aren’t performance targets. They’re about being trustworthy, human-centred, and consistently principled. Their framing honours internal motivation, not external pressure.
Canadian Armed Forces
The CAF lays it out with textbook clarity: values like Duty, Loyalty, and Integrity sit at the core. Their published matrix draws a straight line from values to principles to behaviours. This alignment is a masterclass in operationalizing values without diluting them. It’s ViDA 101.
These aren’t just posters on the wall. They are built into hiring, training, and daily decision-making. When values are articulated as who we are, not what we do, performance and fulfillment don’t compete — they reinforce each other.
ViDA Clients Who Clarify the Distinction
Business Example: A Financial Services Firm
A financial advisory firm adopted “Reliable Excellence” as a core value. Initially, they struggled to align behaviours with the abstract concept. By defining principles, such as “Double-check every financial plan before submission” and “Proactively communicate with clients about market changes,” they ensured that excellence became a measurable, daily practice.
Individual Example: An Executive’s Career Shift
An executive client valued “Steady Growth” but felt stuck in her career. She identified principles like “Seek quarterly mentorship” and “Complete one professional development course annually.” By grounding the value in actionable steps, she reconnected with her purpose and advanced her career.
How to Use Values and Principles Effectively
- Start with Values:
- What traits or states define your identity, drive better decisions and move closer to your purpose?
- Examples: Integrity, innovation, empathy.
- Define Principles for Each Value:
- How will you operationalize this value? What actions or behaviors align with it?
- Examples:
- Value: Respect → Principle: “Invite input from all stakeholders in decision-making.”
- Value: Collaboration → Principle: “Break large challenges into team-based solutions.”
- Communicate Clearly:
- Distinguish between values (what you stand for) and principles (how you act).
- Example: Instead of listing “hard work” as a value, frame it as “Deliver projects on time and meet commitments.”
- Test the Alignment:
- Are your principles easy to understand and actionable?
- Do they reflect your values in practice?
Why the Distinction Matters
Clear values and principles create a complementary framework:
- Values: Provide stability, identity, and the internal gut check when acting or deciding.
- Principles: Offer direct application and practical guidance and give more specific, action-oriented direction.
When you confuse the two, you risk leaving values as abstract ideals or principles as disconnected actions. Together, they enable consistent, value-driven behaviour across individuals and organizations.
It’s the small distinctions that make the biggest difference. Are your values and principles working together to drive clarity and action?
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Adam Kreek founded ViDA to positively impact organizational cultures and leaders who make things happen.
Kreek is an Executive Business Coach who lives in Victoria, BC, near Vancouver, British Columbia, Canada, and Seattle, Washington, USA, in the Pacific Northwest. He works with clients globally, often travelling to California in the San Francisco Bay Area, Atlanta, Georgia, Toronto, Ontario, Davidson, Saskatchewan and Montreal, Quebec. He is an Olympic Gold Medalist, a storied adventurer and a father.
He authored the bestselling business book, The Responsibility Ethic: 12 Strategies Exceptional People Use to Do the Work and Make Success Happen.
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