The Importance Of Values In Business

How an Organized is Led and Governed is Critical to its Success 

A report a few years ago titled Reputation Assurance: The Value of A Good Name, from PriceWaterhouseCoopers, stated, "A single-minded focus that seeks only to satisfy shareholders may ultimately lead to crises and erosion of shareholder value."

When business owners and leaders actively demonstrate strong values, they are better able to:

• create meaningful relationships with diverse stakeholders to drive high performance as they build and develop internal talent, and
• inspire and energize their employees and peers, by demonstrating what is expected of the team, and then simultaneously building and developing internal talent.

 Dov Seidman, author of HOW: Why HOW We Do Anything Means Everything…in Business (and in Life) believes there is a link between enlightened corporate behavior and performance. He argues that the most successful businesses of the future will also be the most moral ones, not as a result of formal Corporate Social Responsibility (CSR) initiatives and programs, but from what he labels sustainable values. 

Unlike situational values, sustainable values are ones with sustaining human relationships built into their day-to-day practices and behaviors. In Seidman's view, how an organization is led, governed and operates is equally as important to its future success as the products and services it produces.

In fact, values are such an important item on the leadership agenda that astute leaders are now actively seeking new systems and methodologies for cascading critical values throughout their organizations. This is one area where smaller and medium sized businesses will have an advantage over monolithic, huge enterprises as it is much easier to cultivate consistent values-based behaviors across a workforce of 200 than 20,000.

Values are also very important to employees. In fact, the 2012 PWC Annual Global CEO survey reports that 59% of workers say they will seek employers whose corporate responsibility behavior matches their own values. This was higher than the 52% who said they are attracted to employers offering opportunities for career progression.

Values are important to employees. Values are important to consumers. Values are important to society.

It is little wonder that incisive and wise business owners and leaders are now deliberately and purposely using shared values as one of the best levers for optimal people performance within their organizations. As a result, they are creating great businesses that deliver significantly more than just money. 

This article is partially excerpted from our top-ranked personal development book Project You: Living A Determined Life, which is available in Kindle and paperback formats at Amazon.