Values-Based Leadership: Traits and Benefits

Values-based leadership is the idea that leaders should draw upon their own and others’ values—including those established for your organization— for direction and motivation. At its core, values-based leadership philosophy asserts that people are mostly motivated by values and live according to these beliefs.

Values-Based Leadership

What does values-based leadership do?

An organization’s performance improves when it adopts a values-based leadership style by:

Setting direction

By developing a values statement that serves as a guide for employees at all levels, values-based leadership establishes the direction of the business. This kind of leadership gives stakeholders, employees, managers, and the company as a whole both meaning and purpose. It enables them to consider the company’s values when making decisions.

Creating proactive company culture

Companies develop proactive cultures that raise the overall value perceived by stakeholders and consumers by adopting the proper values. To accomplish its objectives, the business makes use of the influence it has gained from consumers and supportive stakeholders.

Improving individuals

By putting money into the training and advancement of all stakeholders, values-based leadership also benefits individuals. Employees are also empowered by the development of leaders and the encouragement of other leaders to follow their example. Values-based leadership makes a commitment to enhancing the effectiveness of employers, managers, and executives while enhancing job satisfaction.

Expanding opportunities

Through a community’s shared values, this kind of leadership encourages innovation and collaboration. Similar to how it increases business opportunities, it does so by luring in new customers and partners who share its ideals.

What is values-based leadership?

A leadership approach known as “values-based leadership” is one that is based on the team’s and the leader’s shared values. Its foundation is the idea that people find motivation for themselves by living out their values every day. Employees who work for organizations that share the same values are more likely to collaborate, which can increase productivity.

Key traits of a values-based leader

Values-based leaders have several traits in common throughout every industry:


Values-based leaders pause every day to consider their most recent choices and motives. By doing this, they have the chance to reassess their values, identify their purpose, and learn what matters to them most as leaders. Strong leaders are willing to evaluate their own performance in these areas and are honest enough to tell the truth.


Although most leaders have some level of self-confidence, values-based leaders are aware that other leaders are superior to them. They also recognize that they are constantly learning and developing as leaders. Leaders who are guided by their values are aware of both their strengths and weaknesses, and they surround themselves with people who can bolster their abilities.


Good leaders are aware of their origins and who they are today. Leadership humility is the conviction that they are no different from the people they supervise. These executives consider each employee to be just as valuable to the business as they are. Humble leaders go above and beyond to support their teams and make sure they are well-cared for at work.

Positive influence

Values-based leaders support their teams by providing for them and making sure they receive the best benefits in every circumstance by living out the company’s core values in their work. They also serve as fantastic role models for what a good leader is to everyone inside the organization. When given a leadership task, other workers frequently feel inspired to follow their values-based leader, which raises the standard of work across the organization.

Benefits of values-based leadership

Some of the numerous advantages that values-based leadership brings to an organization are listed below:

Improved communication

Values-based leadership enhances communication by coordinating the organization’s values with those of its personnel. Employees and managers can freely communicate with one another thanks to this alignment, even about delicate topics. Everyone is more open about their thoughts and opinions. Additionally, it enhances external communication by bridging the gap between businesses and consumers. Values-based leaders frequently express their beliefs in the open, gaining the support of customers who share those views.

Stronger relationships

Employees feel more understood and at ease because the organization caters to their needs. This ease strengthens the bond between employees and employers by fostering trust. Customers develop a sense of trust in the brand as they observe this trend of values and beliefs. The relationship between customers and the company grows as do employee relationships.

Increased productivity

Their trust grows as teams and managers discover what they have in common. Employee satisfaction with their role is frequently increased by this sense of shared experience, which boosts productivity. As managers are taught a new set of values by executives, productivity rises from the top. As a result, managers become better leaders and more willing to share their values with their teams. The managers of specific employees share the same values, which makes them feel more at ease and motivates them to work harder for the company they love.

Helps in achieving goals

Values-based leadership creates commonality among all employees, management or otherwise. Employees collaborate more effectively and accomplish goals more quickly when their values are in line. As long as it adheres to their guiding principles, employers and managers work diligently to accomplish the goals they have set for themselves and the company. They feel a connection to the business and want it to succeed.

Improved decision-making

Managers who are committed to upholding the organization’s values frequently make better decisions. They make decisions that are in the best interests of the company, their team, their employers, and themselves. They take the time to consider the advantages of each option, reflecting on their own experiences and further examining how it will impact each level of the organization.


What are the four principles of value based leadership explain?

These principles are self-reflection, balance, true self-confidence, and genuine humility. Each principle builds on and contributes to the others, making the principles interconnected. Together, they form a solid foundation for values-based leadership.

What are the characteristics of values-based leaders?

Values-based leaders take charge by harmonizing their principles with those of their organizations. A values-based leader must possess four essential traits: self-reflection, balance, self-confidence, and humility.

What are examples of values in leadership?

Here is a list of core leadership values:
  • Influence.
  • Vision.
  • Honesty.
  • Passion.
  • Integrity.
  • Dedication.
  • Empathy.
  • Personal development.

Who defined value based leadership approach?

Building a Values-Driven Organization author Richard Barrett describes values-based leadership as ” a method of making genuine decisions that increase the commitment and trust of customers and employees “.

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