Company as a fiction - Our Findings on Corporate Value Architectures

Years of intensive work with various corporations and management levels have led the Deep Mind team at SelfFusion to several categorical conclusions. One of the most significant pertains to corporate or company value hierarchies. It is essential to understand that, in its essence, a company does not exist as a physical entity with a mind or consciousness. There is no such phenomenon as a company that can independently "create" its own values.

The Fiction of the Corporate Entity and the Role of Key Decision Makers (KDMs)

In reality, only key decision makers (KDMs) define a company’s actual values and, more importantly, the hierarchical structure of those values. KDMs include founders, executives with real decision-making authority, owners, major investors, and other influential figures within the organization.

Empirical evidence strongly suggests that an organization’s values are largely a reflection of the personal values of its KDMs. This finding aligns with Self-Determination Theory (Deci & Ryan, 2000), which asserts that organizational values extend from the internalized values of those in power. Additionally, Upper Echelons Theory (Hambrick & Mason, 1984) highlights how corporate strategy and ethical foundations are shaped by the cognitive frameworks and value priorities of top executives.

Since these studies have been extensively analyzed in various SelfFusion materials, we do not find it necessary to elaborate further on the strong scientific foundation supporting this perspective.

Money as an Instrumental vs. Singular Value

A critical distinction must be made between instrumental values and singular end-values when analyzing the Structured Internal Value Hierarchy (SIVH) of a Key Decision Maker (KDM). While money (as profit) is often perceived as a dominant value in corporate environments, it never stands alone in an individual's personal value hierarchy. For human beings, money is always instrumental—it serves as a means to an end rather than an end in itself.

For example, an individual may prioritize freedom, family welfare, innovation, social transformation, or personal growth, with money merely acting as an enabler for one of these higher-order values. When analyzing the SIVH of a person with a sufficiently high IQ to grasp the inevitability of value hierarchies, the probability of them genuinely believing that money is their singular highest value is effectively zero.

Among countless other examples, this observation aligns with Maslow's Hierarchy of Needs (1943), where financial security serves a foundational role but ultimately enables the pursuit of self-actualization and other non-materialistic aspirations. Despite the criticisms Maslow’s model has received over the years, one would need an exceptionally distorted conceptualization of the experience of being alive to place money as the singular, existential highest value within their personal value hierarchy.

Thus, from a human psychological standpoint, money cannot singularly top an individual's value hierarchy. However, in the context of a company, profit (money for the KDM) can indeed become the singular highest value within the Corporate Value Architecture (CVA).

When Does Profit Become the Singular Top of CVA?

Profit becomes the singular highest value within the Corporate Value Architecture (CVA) primarily when the Key Decision Maker (KDM) is disengaged from the company beyond financial oversight. If the KDM actively participates in leadership, makes strategic decisions, and shapes the company's culture, their Structured Internal Value Hierarchy (SIVH) naturally embeds itself into the CVA.

However, when a KDM treats the company solely as a financial instrument, with minimal involvement beyond profit extraction, Profit becomes the de facto singular top of the CVA. In such cases, the company ceases to be an extension of a broader human vision and instead operates purely as a profit-generating mechanism, devoid of deeper meaning or purpose.

The Challenge of Attracting Talent and Cognitive Dissonance in KDMs

Many KDMs possess a higher-order SIVH, meaning that Profit is merely an instrumental value rather than an intrinsicone. In these cases, the company’s mission extends beyond financial gains — aiming instead to foster innovation, social impact, or long-term legacy.

However, a fundamental paradox arises when the CVA does not transparently reflect these deeper values. In such situations, attracting and retaining highly talented individuals becomes an insurmountable challenge. Skilled professionals seek alignment between corporate purpose and personal fulfillment — they are not merely looking for financial compensation but a workplace where their efforts contribute to a meaningful mission.

If a company’s true value structure is profit-centric yet attempts to project higher aspirations, this inevitably leads to severe cognitive dissonance — both among employees and, more critically, within the KDMs themselves. The contradiction between what is stated and what is actualized weakens the company’s credibility, creating long-term instability and disengagement at all levels of the organization.

Conclusion: The Illusion of Corporate Values

Our research strongly supports the assertion that corporations do not inherently create values — only individuals do. A company's values are merely a projection of the values held by those with decision-making power. This means that any claim of a company possessing autonomous values is ultimately a fiction, sustainable only as long as Key Decision Makers (KDMs) actively engage in shaping, enforcing, and living those values.

However, when KDMs disengage from the active process of value formation, Profit inevitably becomes the dominant value in the Corporate Value Architecture (CVA). In such cases, all other aspirational values become secondary, leading to a profound misalignment between perception and reality.

This misalignment has far-reaching consequences, including:

• Difficulty attracting and retaining top talent, as professionals seek workplaces with clearly defined and authentically upheld values.
  

• A hollowed-out corporate culture, where stated values exist in rhetoric but lack real influence over decision-making.
  

• Existential dissonance for leadership, as KDMs may find themselves trapped in an organizational structure that no longer reflects their deeper aspirations.

Ultimately, the integrity and authenticity of a company’s values depend entirely on the engagement and consistency of its leadership. Without a structured and enforced value hierarchy, corporate values become an illusion — a narrative without substance.