CORPORATE VALUES

Presented by:
Sitanshu Saurav (MBA/4503/09)
Nitin kumar (MBA/4532/09)
Introduction
• A value system is a set of consistent ethic
values (more specifically the personal and
cultural values) and measures used for the
purpose of ethical or ideological integrity.
A well defined value system is a moral
code.
Personal and communal values
 Personal value system: This is held by and
applied to one individual only.
 Communal or cultural value system: This is
held by and applied to a
community/group/society. Some communal
value systems are reflected in the form of legal
codes or law.
 Corporate value
system
• Corporate values provide a very powerful
communication tool. For the internal
organization the values can be used to derive
the company principles. And these provide a
steering mechanism by answering the question
how should we act if these ... are our values?
• For the external world the corporate values
provide more insight in the company. Of
course many companies, specifically those
that traded on the stock exchange provide
social and financial information, but the
corporate values are like a concise overview
of the style of the company.
 Fred Wenstop and Arild Myrmel have proposed a
structure for corporate value systems that
consists of three value categories.
1.Core Values: which prescribe the attitude and
character of an organization, and are often found
in sections on Code of conduct on its web page.
The philosophical antecedents of these values
are Virtue ethics.
2. Protected Values: These are protected through
rules, standards and certifications. They are
often concerned with areas such as health,
environment and safety.
3. Created Values: This is the values that
stakeholders, including the shareholders expect
in return for their contributions to the firm.
These values are subject to trade-off by
decision-makers or bargaining processes.
 Examples
• The first example shows that the values are
expressed in small statements (followed by an
additional detailing which is omitted here):

• We are passionate about consumers

• We value each other
• Freedom to succeed
• Proud of what we do
• To be the best
• The second example shows values as
keywords with an additional detailed
description (not showed here):
• Integrity
• Teamwork
• Respect
• Professionalism
• The detailed description of value gives more
insight in the value. Sometimes the heading
doesn't completely cover the main keyword.
But that is another point and not part of this
article. From the above values you can observe
already some differences (the order in which
the values are presented is also important,
unless they are sorted in an alphabetical order,
which is not often the case.