What are values?
Values are socially and personally shared conceptions of the good, desirable, and righteous. They are stabilized beliefs about personally or socially preferred modes of conduct or endstates of existence. They determine how one ought to or ought not to behave or act. In conversations, we qualify values using words like ought, should, good, right, and fair. Values are so central to individuals‘ personality and cognitive structure that they influence every facet of human behaviour - attitudes, decisions, oral judgments, evaluations, and social action. Intrinsic qualities of values determine our outer behavior. People seek these qualities in activities they engage, in objects they acquire, in principles they cultivate, in situations they live through, in professions they work, and in evaluations they make. Values are, thus, prime drivers of personal, social, and professional choices. Values are the principles & priorities which help us make decisions on a daily basis. If one truly values honesty, he will choose to be honest in interactions. If one values family strongly, he will make time in his life for family. If growth is a top value for one, he will make decisions which encourage personal development. Values are constantly changing & developing throughout our lives. In childhood, our values are usually the ones held by parents and other adults around us. As we continue to mature, other influences such as peers & the media affect our values. With so many influence telling us what to value, how do we know what is really important for us? Values, therefore, become part of complex attitude sets that influence our behaviour and the behaviour of all those with whom we interact. What we value guides not only our personal choices but also our perceptions of the worth of others. We are more likely, for example, to evaluate highly someone who holds the same hard-work value we do than someone who finds work distasteful, with personal gratification a more important value. We may also call the person lazy and worthless, a negative value label. The Global Economic Ethic Manifesto (‗‗Manifesto‘‘) is a moral framework/code of conduct which is both interactive and interdependent with the economic function of the main institutions of the economic system: markets, governments, civil society, and supranational organizations, which lays out a common fundamental vision of what is legitimate, just, and fair in economic activities. The Manifesto articulates substantially defined values and ethical standards. It includes five universally accepted principles and values of which one is ‗the principle of humanity‘. The principle with its sub-headings are mentioned below : The principle of humanity : The fundamental principle of a desirable global economic ethic is humanity: Being human must be the ethical yardstick for all economic action. Article 1: The ethical goal of sustainable economic action, as well as its social prerequisite, is the creation of a fundamental framework for sustainably fulfilling human beings‘ basic needs so they can live in dignity.

tolerance. The Modelling Period from ages 8 to 13 is when we begin to consciously and unconsciously model basic behaviours of other people. we pick up and store everything that goes on in our environments and from our parents and other people and events that occur around us. By age 21 the formation of core values is just about complete and will not change unless a significant emotional event occurs. ‗‗what you do not wish done to yourself. promotes mutual responsibility. but the deliberate pursuit of personal advantage to the detriment to one‘s partners – that is. most of which will be used throughout the rest of his or her life. Article 4: The Golden Rule of Reciprocity. The Imprint Period. we may not have the ability to determine the difference between useful and un-useful information. The young person picks up relationship and social values. fairness. . It is imprinted in our mind. and respect for all persons involved. During our Imprint Period ages 0 to 7 we continue to absorb everything like a sponge. The Basic Programming Period which may occur pre-birth until age 4 2. The Socializing Period from ages 14 to 21. so by age 4 most of our major programming and personality has been formed. do not do to others. During our Basic Programming we soak up everything. The ‗filter‘ means that at that age. From Massey‘s research he suggests that our major values about life are picked up during this period about age 10. Article 3: It is legitimate to pursue one‘s own interests. and largely without any filters. How Values Are Formed? Research by Sociologist Morris Massey in part. It‘s just information that goes straight in. with unethical means – is irreconcilable with sustainable economic activity to mutual advantage. either through individual ways of conduct or through dishonourable trading or working conditions. solidarity. The Global Economic Ethic Manifesto 215 exploitation and the abuse of situations of dependence as well as the arbitrary discrimination of persons are irreconcilable with the principle of humanity. 1.‘‘ which for thousands of years has been acknowledged in all religious and humanist traditions. which occurs from birth until age 7.Article 2: Never may human beings be treated badly. and 4. suggests that there are 4 major periods that a person will go through in the creation of values and personality. The Modelling Period which occurs from age 8 until 13. Then we may also begin to mimic the values of those people. In addition he suggests that our values are based on where we and what was happening in the world at that time The Socialization Period from ages 14 to 21. 3.

energy and money. it is easier to keep our priorities in the right order & our actions in line with our beliefs. you are most likely to make the time for your family. ―It is perfectly possible to make a decent living without compromising the integrity of the company or the individual. ―Business that makes noting but money is a poor kind of business‖. Holland. if we make an effort to understand our values. However. If you sit down & realize that family is important to you. However. intellectual property knowledge and skill. rules of their operations on a day today…. Ethics is related to all disciplines of management like accounting information. duties and corporate governance between a company and its shareholders. An "order of importance" to us. Incongruence and conflict shows up when a person says that they value X but we observe them putting their time.Our Values are Organised In our minds we arrange our values in hierarchies. many of these same people make very little time for their families. wrote business executive R. right or wrong. As said by Joe Paterno once that success without honor is an unseasoned dish. customers. Congruence is when they say they value X. fair or unfair. ―Quite apart from the issues . determining what ought to be. Increasingly. suppliers and dealers. It deals with issues regarding the moral and ethical rights. employees. Why is Values Clarification Important? If values affect so many decisions & actions in our lives. A business/society that lacks ethical principles is bound to fail sooner or later. Deciding what is right (or what is more right) in a particular situation. Importance of Values and Ethics in Business Ethics refers to a code of conduct that guides an individual in dealing with others. it is best that we understand them & that our behaviour is in line with our values. ―there has been a dramatic increase in the ethical expectation of businesses and professionals over the past 10 years. clients and employees are deliberately seeking out those who define the basic ground. and then you can see that that's also how they invest their time energy and money. It will satisfy your hunger. There is a discrepancy between what they profess to value. energy and money into other things by comparison. government. international business and economic system.‖ Business Ethics is a form of the art of applied ethics that examines ethical principles and moral or ethical problems that can arise in business environment. customers. production. sales and marketing. Many professionals say that family is their top value. Values clarification simply refers to any process a person might go through to discover and clarify their values and to bring values in line with behaviour. human resource management. These can be recognized by watching where and on what a person invests their time. media. According to International Ethical Business Registry. deciding what is consistent with one‘s personal or organizational value s ystem are all ethics. Henry Ford said. but won‘t taste good. In business world the organization‘s culture sets standards for determining the difference between good or bad. and their actions. Ethics is important not only in business but in all aspects of life because it is the vital part and the foundation on which the society is build.

hence the company must decide whether to adhere to constant ethical principles or to adjust to domestic standards and culture. Value is what you get‖ – Warren Buffet Thus. Said Cohen and Greenfield. but will serve as an adequate term of reference when considering the articles in this issue of Manager. the fact is that ethical behaviour in business serves the individual and the enterprise much better in long run.  and its relevance to wider issues of social sense. This definition allows us free choice as consumers and producers to decide the merits (and demerits) of business products and services. monetary / non-monetary motivation. media and society in an honest and fair way by knowing the difference between right or wrong and choosing what is right. remuneration and retention of employees. It could. Part of the problem. training. global. ―If ethics are poor at the top. Two dimensions to business ethics Business ethics has two dimensions?  Honesty and truthfulness about the product or service. induction. however the other methods can be creating a common interest by favourable corporate culture. legal and government regulations and environment. natural. government.of rightness and wrongness. But that is rare. this is the foundation of ethical decision making. Much more often. The ethical issues in business have become more complicated because of the global and diversified nature of many large corporation and because of the complexity of economic. he added. still be regarded as simplistic. customers. the concept of Corporate Social Responsibility (CSR) or Corporate Responsibility. selecting. social. i. without being caught in a philosophical cat‘scradle. promotion. norms. REMEMBER: GOOD ETHICS IS GOOD BUSINESS. framing attitudes for acceptable behaviour. deciding the policies for recruiting. a manager should treat his employees. that behaviour is copied down through the organization‖.‖. But that is rare. Managers have to remember that leading by example is the first step in fostering a culture of ethical behaviour in the companies as rightly said by Robert Noyce. Good people often let bad things happen. setting high standards. But a valued company earned a kind of customer loyalty most corporations only dream of because it appeals to its customers more than a product‖. Why? The vast majority of managers mean to run ethical organisation. yet corporate corruption is widespread. political. ―Price is what you pay. ―Consumers are used to buying products despite how they feel about the company that sells them. of course.e. is that some leaders are out-and-out crooks. of course. and thy direct the malfeasance from the top. shareholders. ―Non-corporation with the evil is as much a duty as is co-operation with good‖ – Mahatma Gandhi. we . making written code of ethics implacable at all levels from top to bottom. Some management guru stressed that ethical companies have an advantage over their competitors.

which imposes the increase. Consider what happened at Sears.believe employees bend or break ethics rules because those in charge are blind to unethical behaviour and may even unknowingly encourage it. We give a pass to A researcher whose unethical behaviour fraudulent clinical trial if the outcome is saves lives is considered good. We overlook the unethical behaviour of others when it‘s in our interest to remain ignorant. it‘s a good idea to look at what you‘re encouraging them to do. Even the best intentioned executives are often unaware of their own or their employee‘s unethical behaviour. consulting and law firms leads to unconscious padding. When holding off or outsourcing work. Indirect Blindness The slippery We are less able to see other‘s slope unethical behaviour when it develops gradually Overvaluing outcomes Auditors may be more likely to accept a client firm‘s questionable financial statements if infractions are accrued over time. Examine both ―good‖ and ―bad‘ decisions for their ethical implications. . Here are some of the reasons – and what to do about them. but they encourage a negative one. more ethical than one whose fraudulent trial leads to deaths. When employees behave in undesirable ways. employees met the goal by overcharging for their services and ―repairing‖ things that weren‘t broken. Reward solid decision processes. Investigate whether a change in behaviour has occurred. not just good outcomes. Simply being aware of them doesn‘t necessarily reduce their negative effect on decision making. Remedies Brainstorm unintended consequences when devising goals and incentives. when management gave automotive mechanics a sales goal of $147 an hour—presumably to increase the speed of repairs. ask whether the assignment might invite unethical behaviour and take ownership of the implications. Rather than work faster. Example The pressure to maximise billable hours in accounting. Ill-conceived goals Description We set goals and incentives to promote a desired behaviour. Be alert for even trivial ethical infractions and address them immediately. however. Roebuck in the 1990s. Consider alternative goals that may be more important to reward. We hold others less accountable for unethical behaviour when it is carried out through third parties. A drug company deflects attention from a price increase by selling rights to another company. Motivated Blindness Baseball officials failed to notice they‘d created conditions that encouraged steroid usage. Root out conflicts of interest.

Comment by Ray Moorcroft FInstAM. Tenbrunsel 9. No.‘ Business Ethics as Practice‘. ‗Organizational values and procedures as antecedents for goal interdependence and collaborative effectiveness‘. we will be dissatisfied. Journal of Business Ethics 97:443–460 2. 107–122 3.Conclusion So finally it can be concluded that values help us get and stay motivated. Why? by Max H. Harvard Business Review. Martin Kornberger and Carl Rhodes:2007. Damodar and Rooplekha Khuntia:2010. Good people often let bad things happen. Personal Value Systems of Japanese Trainees and Managers in a Changing Competitive System by Roy J. Martin Parker and René ten Bos. So we need to be very clear on our personal values and try to align our business values to our values then only our business can be successful. Vol. Suar. Getting Value from Shared Values by Paul McDonald and Jeffery Gandz 6. unhappy and will definitely not generate results we want. November 2011 8.Bazerman and Ann E. Values provide us with a strong foundation: a method for living our life to the fullest. Robert C.‘ Influence of Personal Values and Value Congruence on Unethical Practices and Work Behavior‘. Editor 5. Empowerment and Ethical values by Ralph Saemann 10.‘ Darden Restaurants CEO Joe Lee on the importance of core values: Integrity and fairness‘. Review: For Business Ethics by Campbell Jones. The Environment and the Need for New Technology. British Journal of Management. 2005 7.Guoquan and Dean Tjosvold:2008. Academy of Management Executive. Stewart. References 1. Adams. If our business values and personal values are in alignment then it is great. Thomas A. Asia Pacific J Manage. It would be difficult to be a bank robber if we think we have to serve the world as there is no alignment. 1 12. Schwind . If not. Richard B. Clegg. 18.:2002. Values relate to our purpose in life and are used as guiding principles and rules to make our life easier. Journal of Business Ethics. ―Why don‘t we try to be India‘s most respected company?‖. Chen .‘ The Global Economic Ethic Manifesto: Implementing a Moral Values Foundation in the Multinational Enterprise‘. Hemphill. 25:93–112 11. 16. Peterson and Hermann F. And Waheeda Lillevik:2011. Ford. Vol. 101:213–230 4.

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