Why Values Are Important in Business

Why Values Are Important in Business

You may think that business and values do not have much in common. Perhaps business seems directly functional, while values seem to have to do with personal perspectives and cultural background. However, values are incredibly important to how businesses operate with their partners and their clients – whether the outfit is an auto mechanic in Boulder or any business.

 

Why is it important for a business to have values?

 

Ethics is not just important to the consumer or to affiliates of an organization but to an organization itself. In fact, W. Michael Hoffman has pointed out in risk assessment publication Corporate Compliance Insights that lack of values actually increases the risk of a firm. Here are a few key reasons why business management should be values-driven:

 

Pressures of the market – When you have to find ways to cut costs, you may not have as many checks and balances in place to maintain proper behavior. Employees might have their own ability to act one way or another, leading to possible ethical violations.

 

Diversity – In the United States, there are people interacting with different genders, religions, and ages. This diversity leads to different perceptions of what it means to act professionally within a business. While there must be commonly understood codes of conduct, the way that a person comprehends the exact same scenario and information can be very different from another person’s based on their demographic characteristics.

 

Globalization – People from various cultural backgrounds will not all experience different situations and circumstances the same. In certain cases, ethics becomes confusing related to the issue of culture, in which case the issue is sometimes considered a cultural sensitivity rather than a simple ethical precept.

 

Remote workers – Since so many people are working from a distant location part or all of the time, it is important to have values that infuse the organization at the management level.

 

Business partnerships – Your alliances with other businesses are another area in which ethical errors might occur. Values-driven tactics are effective not just at defining the ways that interactions occur internally but with external partners as well.

 

Team structure – There is more of a communal, integrated, team-based notion of internal growth in business today, with merit and individual aptitude leading the way to decision-making. Removing the top-down nature in which decisions have traditionally been generated has allowed all players to feel part of the process.

 

Entrepreneurship & intrapreneurship – Often now, companies are advocating that members of their staff, even at the entry level, become more innovative, try tactics (within structured confines) that embrace risk, and even get to use some funding. This method, called intrapreneurship, gives anyone working at a business a chance to feel like they are the owner and assume the relevant responsibilities.

 

Key values within a business setting

 

The above elements of business tell us reasons that values are important to business. However, what exactly are we talking about? What are the most common business values?

 

Here are some of the top values that are used by the world’s best businesses, according to responses to a questionnaire conducted by the Stanford Graduate School of Business. Alumni of the Stanford business school were asked to list the values that were most critical within a business setting. Here are a few key values, along with the comments that were made by those who responded.

 

Golden rule treatment – Wealthfront CEO Andy Rachleff noted that he thinks the golden rule is a fundamental precept of a solid business interaction. When a person approaches others with respect and with a goal of making a strong impression in a business setting, typically the favor will be returned. You will not only gain credibility but will also have greater peace-of-mind. You can put yourself at risk by acting in a manner that assumes mutual concern; however, even if you do get hurt occasionally with this strategy, you can simply discontinue your engagement with anyone who does not treat you in kind.

 

Integrity – Approaching your communications with all parties from a perspective of consistency and authenticity will point you in the right direction, according to Pagatech cofounder Jay Alabraba. Taking this honest approach will mean that you are not deceiving anyone or scamming them. In other words, you want to transparently convey what you are offering to everyone, regardless whether it hurts your immediate profits. University Games CEO Bob Moog also mentioned this value as a high-priority one in a business setting, noting that he had many handshake deals with other businesspeople, resulting in beneficial relationships that had lasted decades.

 

Straightforwardness – People often want to see a person who is going to talk with them directly and straightforwardly, advised Thought Leadership Lab CEO Denise Brosseau. Often people will want to work with startups or other organizations outside of Wall Street since smaller and less traditional companies can often have a greater degree of directness. This direct dynamic is aligned well with entrepreneurialism and the notion of getting to hand-select the partners through which one conducts business, said Brosseau. In that capacity, a company is able to not only offer straightforwardness itself but be able to filter for that quality in its clientele.

 

Mutuality – Tiny Prints co-founder Laura Ching noted that trust is built into a company that creates a familial, open-communication environment. When firms look for new employees, they can specifically have a desire to hire people who care about the strength of their bonds with others. The culture of an organization can also further enforce and enhance the notion that interconnection is critical to the mission of the company. People should be able to get courtesy from one another, but also friendliness. In that type of setting, people will feel comfortable to get even better at interacting with their peers. Loyalty and retention can both be high with employees and, in turn, with customers; after all, your clients become attached to certain members of your staff. When there is an implicit sense of honesty and having one another’s best interests at heart, you are able to acquire feedback that would otherwise be challenging to attain.

 

Transparent messaging – When a company has many different projects occurring at the same time, conducted by a broad array of players, there can be a huge range in the perspectives – leading, potentially, to communication difficulties between different projects that are ultimately interrelated. Empowered Careers CEO Steve Poizner commented that executives at companies should promote a business culture for which truth is critical to all interactions, regardless of all other factors. Additionally, said Poizner, being strong and unafraid allows someone to make the kind of impact they want with their customers and in their community.

 

Gratitude – We all want to be appreciated by businesses when we give them our money and invest in a relationship with them. As indicated by Ariat International CEO Beth Cross, organizations should remember that their clients care to know that they are appreciated.

 

Simple value – You can find out what the client needs in various ways, as noted by Design Within Reach founder Rob Forbes. Whether you use market research or simply release your offering to the market, you would be wise to think in terms of what the customer would actually value. By creating products that are high-quality and then communicating their story to your customer, you are able to give something to others through a business context that is authentic and can improve their quality of life.

 

Passion – Passion is another of those terms that may seem to be antithetical to the dry and serious needs of business. However, you really do want to care about what you do for a living – and be able to say the same about the people from whom you buy your goods and services.

 

An honest Boulder auto mechanic

 

It helps to get an idea of why values are important to business, and the specific values that should be high-priority for organizations. How can this search for values be reflected in your choice of car mechanic? We originally started Independent Motors because we felt our city needed an auto repair shop that was more in line with Boulder’s values – Community, Loyalty, and Honesty. See Our History and Beliefs.