VALUE

Important and lasting beliefs or ideals shared by the members of a culture about
what is good or bad and desirable or undesirable. Values have major influence on a
person's behavior and attitude and serve as broad guidelines in all situations. Some
common business values are fairness, innovation and community involvement.

ORGANIZATIONAL VALUES
Every organization has a set of values, whether or not they are written down. The
values guide the perspective of the organization as well as its actions. Writing
down a set of commonly-held values can help an organization define its culture
and beliefs. When members of the organization subscribe to a common set of
values, the organization appears united when it deals with various issues.
Even if an organization has not explicitly spelled out the values it uses to guide its
actions, it has values. They may be unstated, but they play an important role in
determining how the organization confronts problems and issues. Values may
come from the common purpose for which the organization works, the
organization’s leadership or from other sources.

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 How to Create Organizational Values Statements
Creating a values statement for an organization involves examining the
organization's purpose and goals. Once it is clear where the organization wants to
go, a values statement guides it while it makes decisions on how to get there. The
contents of such a guide depend on the members of the organization, their beliefs
and what they consider desirable behavior. The ethics of possible courses of action
also influence the values statement. When finalized, the organizational values
statement goes beyond particular situations and applies broadly to the
organization's area of activity.
To create an organizational values statement, you have to have a clear idea of what
values are, and what values the organization wants to highlight. Values are
enduring beliefs or concepts that relate to desirable behavior or results. They are
influenced by attitudes, interests and preferences, but are more stable and less
easily changed. They are related to virtues, but are more practical and more easily
applicable as a guide for decisions. You can find the basis for an organization's
values statement in the virtuous beliefs, attitudes and preferences of its members.
Goals
The purpose of an organizational values statement is to help the organization
achieve its goals in an ethical manner, in keeping with the beliefs of its members.
The values statement highlights those values that are relevant to the carrying out of
the activities of the organization as it works toward meeting its targets. When
members have to make difficult decisions in the course of their work, they can look
at the values statement to help guide them. It has to contain values relevant to those
situations to fulfill its purpose.

Here are some examples of core values from which you may wish to
choose:
 Dependability
 Reliability
 Loyalty
 Commitment
 Open-mindedness

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 Consistency
 Honesty
 Efficiency
 Innovation
 Creativity
 Good humor
 Compassion
 Spirit of adventure
 Motivation
 Positivity
 Optimism
 Passion
 Respect
 Fitness
 Courage
 Education
 Perseverance
 Patriotism
 Service to others
 Environmentalism

IMPORTANCE OF ORGANIZATION VALUES

Values are important to us all… we are governed by them in our daily life, whether
we recognise them or not, and they guide our decision making in everything that
we do… should I go for that job? Is it the right time to look at starting a family?
Should I start my own business?
When it comes to company values it's not really any different...

Company values should provide the framework which an organisation engages

with employees, customers, stakeholders – all of its audiences - and ultimately
influences and shapes the company culture. Some companies choose to have two
or three core values, others have more, and some just have one core value that
encapsulates them as an organisation.

You may find a number of themes running through various company core values
that place importance on things like 'team', 'excellence', ‘integrity’, ‘ethics’ and so

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on, and more often than not there will be an aspect that addresses corporate social
responsibility and recognises issues facing the wider community. This could
include anything from ensuring you have green policies for dealing with company
waste and recycling, to committing to support local charitable causes.

Are the values of your organization living, breathing principles that all company
leaders and employees uphold? Or are they just words on a piece of paper? Your
organization’s values – when consistently put into action – define the culture.
When all members of the organization live the core values, the organization
projects a brand of integrity to employees and the outside world.
All organizations have a culture, whether or not the culture is intentionally created
and nurtured. Some cultures create a work place where employees love to work
and customers and clients enjoy doing business. Other organizations develop into
toxic environments where employees don’t thrive and become disengaged, and
results suffer. Organizations can create productive and positive cultures by
deliberately defining values and ensuring those values form the basis for decision-
making and action among all employees.
Your organization’s values – when consistently put into action – define the culture
When our actions are consistent with our values, we are in integrity. When an
organization has adopted sound values, each employee finds that he or she is
working alongside others who share and uphold the same values. Organizations
that live their values are places where individuals are proud to work. Businesses
known for their values tend to be highly respected and sought-after places to
work. They also are very successful companies.
The 2012 Great Place to Work® Institute report claims the stock price growth of
the 100 firms with the most ethical cultures outperformed stock market and peer
measures by almost 300 percent.
How your company values can become the core of the organization:
1. Clearly identify your organizational values
Make sure the values are clear and understandable to everyone in the organization
from the Board and the CEO, to the custodian. Leadership determines values and
principles, but it is good practice to engage all members of the organization to get

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input, feedback, and acceptance. Values are not consensus-driven, but engagement
is important to gain buy-in.
2. Leadership models the values
Consistency and sincerity are the keys to upholding values. Values become the
core of the organization and are fully embraced when leaders set the tone, refer to
them frequently and model them in their actions.
3. Describe values in terms of actions
Making the values actionable helps all employees gain clarity on what it looks like
to embody the value in practice. Example: If open communication is one of your
values, you might include one descriptor as: everyone in the organization,
regardless of position, is responsible for sharing their perspective on
improvements.
4. Incorporate specific actionable items into each person’s job description that
represent the values
If Customer Service is one of your organization’s values, the receptionist might
have in his/her job description: Treat all interactions with respect, warmth, and
helpfulness. React and respond to requests quickly; focus on going above and
beyond.
5. Make the values part of performance conversations
During informal conversation as well as more formal annual reviews, emphasize
the values. Ask how individuals are furthering the values of the organization.
Share how you’ve seen that individual employee model a value.
6. Make hiring, promotion and firing contingent on living the values
Ensure the right people are working there. Make sure potential new hires are in
alignment with the values. Ask specific questions that illuminate how they have
handled value-laden situations in the past. Hold all members of the organization
accountable for upholding the values. Take action if an employee’s behavior is
contrary to a core value. Provide specifics to explain how an individual is not
upholding a particular value and give recommendations for correction. If an
employee’s behavior consistently fails to uphold the organization’s values,
termination might be the best option.
Employees who are not aligned with the values can have a negative influence on
the rest and begin to corrode the culture. A team made up of individuals with

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shared values has an advantage over a team with less coherence. Employee
alignment with the organization’s beliefs and values is key to a thriving
organization.
7. Regularly reinforce, acknowledge, and recognize good examples of living
the values
Acknowledge employees who demonstrate the values. Let them know what you
saw and how you and the company were impacted. Be specific. An example: If one
of the company’s values is Integrity, after a member of the team made a
challenging hiring decision, you might say, “I know that was a tough decision. You
were pulled in many directions. I’m proud of you for making a decision that you
believe is the right one for the company and all of us who work here. You showed
a tremendous amount of integrity. I know I can trust you to make decisions that put
the best interest of the organization first.”

Six Steps

Organizational culture can be seen as a “personality" created by the

organization's values, attitudes and behaviors. This “personality" attracts and
keeps great talent, creates a positive public image and helps build long-lasting
relationships with stakeholders, vendors and customers.

But a good organizational culture doesn't spring up out of serendipity. It

requires intentional and thoughtful identification of the core values the
organization is built upon. Last month, I discussed how strong personal
values can direct your organization in a positive direction, but it's also
important to identify values for the whole team .

Here, six steps to identifying those organizational values and building a strong
company culture:

1) Assess Your Current Organizational Culture

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First, take a benchmark of your current culture. To do this, you need to truly
assess where your company stands—not what you think it represents or what
you want it to represent, but what impression the current brand truly gives off.
What do people say about your organization, both externally and internally?

To figure out your organizational identity, interview vendors, clients,

employees and your leadership team—either in focus groups or via an online
survey. Ask them what words they would use to describe what's important to
the organization and how effective the organization is at putting those values
into action.

2) Review Your Strategic Business Plan

Next, think about your company's future. Where does your organization want
to be in one, three or five years?

Since your corporate culture is closely tied to your business strategy, it's
important to define where you're headed early on the values process . Meet
with your executive team to figure out a plan for revenue, growth, staff,
productions and expansion.

3) Determine the Culture Needed to Achieve Your Plan

Now that you have a clear picture of what your organizational culture is
today, and where you want your organization to be in the next one to five
years, it's time to look at your organizational values in this context.

Review your strategic plan and answer this question: "In order for us to get
from point A to point B, what organizational culture do we need to achieve?"
Consider the variety of personalities, backgrounds, skills and education you
want to have on your team.

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For example, some of Starbucks' core values are diversity, customer service
and quality products. When you walk into a Starbucks store, you know you
can expect a diverse staff, happy clientele and delicious drinks.

4) Decide If Your Values Need to Shift

Now that you know the culture and the talent you need, you can start to
finalize your new—or revised—set of values. Take a look at your initial
survey or focus group results, and decide if those are the values needed to
reach your strategic goals. One tool that can be tremendously helpful is a pack
of Values Cards.

You can put them on a conference table, and let the executive team start
picking the ones they identify with the company. Or you can pick a few
values, and explain why you think they are the most relevant to your
organization's mission.

5) Define What Your Chosen Values Really Mean

An organizational value is not just a word painted on the wall. It must be clear
what specific behaviors and processes the employee is supposed to do at work
to honor this value.

For example, if your organization values loyalty, who does this loyalty refer
to? Does "loyalty" mean the client comes first? Does it mean your team comes
first? What about loyalty to your boss? Members of the organization should
have a clear understanding of how to put each value into action.
6) Incorporate These Values into Organizational Processes

Finally, your newly defined values will need to be integrated in all operational
areas, including the talent lifecycle. During recruiting and hiring, ask
candidates about their own values and reiterate values in employee contracts.

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Within on-boarding and employee development, align your values with
performance reviews and compensation.

A solid foundation of values for your organization will not only help you hire
the right people, but also build an organization culture that's engaging,
genuine and most of all, impactful.

Five companies that Organization Values play role

 Zappos. Zappos has received a lot of attention for their core values – “Deliver
WOW through service”, Create fun” and “Be Humble” (are 3 of their 10
values). Zappos takes those values seriously and has developed strategies to
ensure employees live the values in everything they do. Because it is known as
a great place to work, Zappos receives many more applications from highly
qualified individuals than they can hire. If they find an applicant to be self-
centered and arrogant, regardless of other qualifications and talents, they don’t
hire that individual. Humility is a strong value of Zappos.
 Southwest Airlines. Similarly to Zappos, Southwest Airlines filters new hires
by their values. Their core values are “a warrior spirit, a servant’s heart, and a
fun-luving attitude”. (That’s how they spell “love”.) If potential candidates
don’t demonstrate enthusiasm, or are not outgoing and friendly, they won’t be
hired regardless of their other qualifications. Southwest Airlines has been a
profitable company for more than 40 consecutive years.
 Maple Leaf Food. In 2008, Maple Leaf Food was implicated in a foodborne
illness caused by an outbreak of Listeria. One of their values is “Do What’s
Right: By acting with integrity, behaving responsibly and treating people with
respect.” CEO Michael McCain immediately apologized and took full
responsibility for fixing the problem.

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Nestlé Pakistan, as part of its global and local obligations, believes in Creating
Shared Value (CSV) for the communities in which it works and lives. Pakistan is a
developing economy and more than 60% of the population lives in the rural areas.
There is a huge potential for rural development, particularly in the livestock sector
where companies like Nestlé are adding real value for improving the quality of life
for rural communities.

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At Nestlé, social responsibility does not end with a few philanthropic activities.
Instead, CSV is embedded in our business model; where direct engagement and
support to communities is extended across the value chain. This adds value to the
business and supports socioeconomic development for the communities.
Additionally, ethical business practices, transparency and consumer trust – based
on high quality products with a focus on Nutrition, Health and Wellness – remains
the hallmark of our core business.
The company is committed to the stakeholders and the communities for mutual
growth and sustainability. Based on the strong foundations of compliance and
sustainable business practices, this is the Nestlé way of doing business. Nestlé
Pakistan is also a signatory to the UN Global Compact for Ethical Business.

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 The key focus areas for Nestlé Pakistan’s Creating Shared Value (CSV)
programmes are as follows:

 Nutrition
 Water
 Environmental Sustainability
 Rural Development
 Our People

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