When core values are clearly defined, this makes decision making much easier. Decisions can be made quickly and with less deliberation. Consider the example of Johnson & Johnson above. They value the well-being of their customers above all else, so the way they handled the reports of cyanide poisoning was simple – they had to pull the product, no matter what the cost. This core value allowed the company to act swiftly and effectively.

Clear values attract the right kind of employees, customers, and business partners. Your values energize and motivate you and the people you work with, rallying people around them and building a sense of pride in your business. They create a corporate culture that each member of the organization embodies. When employees understand and believe in their company's core values, they can consistently act in accordance with them.

When decisions are made that go against a business's core values, great harm can come to that business's image. If you know your core values, you can measure possible actions against them and rule out those that are contradictory. Consider the case of Royal Caribbean Cruises, which was caught illegally dumping its trash in the ocean in 1998. Many people probably wondered where the company went astray. With carefully defined core values in place, the company wouldn't have acted in this way.

Core values are important in branding and communicating with the public. When they're well defined, representatives of a company can communicate with the public with confidence because there is no wavering. Consider the example of Volvo above. When representatives of Volvo talk to the public or its marketing department launches a campaign, they have a common understanding of what the company stands for. Therefore, they can be consistent in the messages they deliver.