It is core values that hold a transnational organization together and constitute the common thread that binds its employees hailing from a myriad of cultures. High-performance organizations tend to have well-defined , strong core values that have been internalized by their entire workforce worldwide. The core values impact on all other aspects of organizational functioning such as structure, strategy, conflict resolution, communication and human resources management. Successful transnational organizations include the value of 'respect for diversity and proficiency in intercultural management skills' as part of their core values. The process of embedding core values is a continuous one and requires constant monitoring, evaluation and reevaluation .
When there is a conflict between core values and corporate culture on the one hand, and the cultural heritage of individual employees on the other, it is core values that ought to be paramount. Thus, transnational organizations go to great lengths to recruit managers who can align themselves with their core values. They also spend considerable resources to ensure that the managers they have inducted are able to internalize organizational core values and successfully apply these values in their work life.