Column by Richard Randall
One of the things I often ask clients to do is to examine their values and beliefs in order to begin identifying core values for their organizations. Identifying core values is an important foundational step in establishing an organization’s culture, its strategy and its brand. I also try very hard to drive home the message that core values must be non-negotiable and deeply felt, because once they are out there, violating them or walking them back can be devastating.
“Those are my principles and if you don’t like them … well, I have others,” is a quip attributed to the great 20th-century comedian Groucho Marx. The attribution may be questionable, but it is exactly the sort of rhetorical takedown of hypocrisy that made Groucho famous. And it is exactly what it looks like both internally and externally when an organization appears to walk back values that aren’t really core.
Consider the recent challenges faced by Target.
In 2016 Target began formally integrating Diversity, Equity and Inclusion (DEI) into its corporate strategy by launching its first comprehensive DEI plan, aimed at increasing representation of women and people of color across its organization. After George Floyd was killed while in police custody in 2020, Target’s DEI efforts intensified. The company launched the Racial Equity Action and Change (REACH) committee to accelerate its DEI strategy and pledged $2 billion to support Black-owned businesses by 2025.
In January 2025, with DEI under attack by critics on the political right and within the Trump administration, Target announced it was ending many of its DEI initiatives. The company ended the REACH program and announced it would no longer take part in third-party diversity surveys. It also changed the name of its Supplier Diversity Team to the Supplier Engagement Team. What had been a very high-profile commitment to DEI values suddenly looked like a very high-profile walk back from those values.
The public response has been harsh, including a national boycott of Target led by Black church leaders. In the first quarter of 2025 Target reported a 3.8% drop in comparable sales attributable in part to the boycott and public criticism. It has also seen a significant decline in foot traffic and a 30% year-to-date reduction in the market value of its stock. The appearance of hypocrisy has caused a great deal of collateral damage.
Jim Collins, author of “Good to Great,” describes core values as “the essential and enduring tenets of an organization. A small set of timeless guiding principles, core values require no external justification; they have intrinsic value and importance to those inside the organization.” According to Collins, core values don’t change with the times. If they do, they were never core values at all. You know a core value is truly a core value when you would hold it even if it became a competitive disadvantage — even if people leave, even if you’re penalized for it.
This is Collins’ litmus test for a real core value. If you’re not willing to suffer for it, it’s not a core value — it’s just a slogan.
Core values are essential to building a great and enduring organization. They aren’t window dressing; they are foundational. Take a lesson from Target and Jim Collins. Choose your values with care.
Richard Randall is founder and president of management-consulting firm New Level Advisors in Springettsbury Township, York County. Email him at [email protected].
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