Values

Values are principles that allow people to guide their behavior to fulfill them as individuals. They are fundamental beliefs that help people make ethical decisions or display ethical behavior and are a source of satisfaction and fulfillment. Values provide a guideline to formulate goals and objectives and reflect interests, feelings and convictions of an individual. Values refer to human needs and represent ideals, dreams and aspirations. Their importance is independent of the circumstances. Values translate into thoughts, concepts or ideas, but the most important of the lot is behavior. Values also constitute the foundations for co-existence of a community and relations with others. They regulate our behavior to the benefit of collective wellbeing. In an organization, values serve as a framework for the behavior of its members. These values are based on the nature of the organization and its projection into the future. To this end, they must encourage the attitudes and actions required to achieve the organizations objectives. The way values are defined in an organization can also be used to put them into practice. If theyre only words and generic concepts, theyre much less useful in practice than when theyre defined in terms of attitudes, b ehaviors and specific actions. The organizations that benefit the most from applying values as a managerial tool translate them into codes of conduct, with precise indications regarding the attitudes and actions that favor the culture of the organization or community according to its interests. Values serve as a practical guide for the decisions people make every day at work and help them identify what to do in each situation. Otherwise, the internal credibility of the organization, its leadership and its culture weaken, giving rise to a crisis of values. Leaders at all levels and areas of the organization are responsible for defining values. Heads of organizations, bosses, supervisors or coordinators, must be aware that everything they do or not do communicates the values of the organization to the rest of the team. The other members of the organization are responsible for knowing the values of that community. What are values for? Values are the guide of behavior; they are part of ones identity as individuals, and guide their behaviors at home, at work, or any other area of our life. They show one how to behave and how not to behave when faced with desires or impulses, whether alone or with others. They are like a compass that helps us behave consistently, regardless of the situation. When are values useful in organizations? Values play an important role in the efficiency and effectiveness of organizations: When they have the same meaning for all members of the organization. When they are shared and are equally important for all. When they are put into practice at all levels, particularly by leaders. When they are remembered every day.

Values in organizations help their members: Relate and function better, be better coordinated and better pre pared in their planning, and achieve their goals efficiently. Be more aware of their direction and of the organizations short, medium and long term goals. Be collectively more creative and effective in meeting their challenges and fulfilling their tactical or strategic needs, both specific and general. Consequently, the members of an organization with shared values: Feel more fulfilled as individuals and appreciate more their own behaviors. Feel very satisfied being part of that community, and feel more identified and committed to the purposes of the organization. Perform better, fulfill their specific responsibilities, and meet their professional commitments. Make more individual contributions and are more creative, because through their actio ns they feel more fulfilled and satisfied as individuals. An organizations values are the pillars of its culture which facilitates and assures the integration and growth of its members. So, it is very beneficial for any organization to invest time and effort in fostering a culture based on shared values that are expressed through the everyday behavior of its members. Why are values weakened? There are many reasons, but three that cause a sort of vicious circle in the deterioration of values are: 1. Needs can be more pressing than values Values themselves dont deteriorate, what weakens is capacity of people to believe in certain principles and their relevance, as a result of the pressure that certain needs exert on them. For example, when we decide were not going to stand in line like everybody else its because we consider that our individual needs are more important than those of others. 2. It is much easier to convey other values The real impact of values in an organization is reflected in the actions and attitudes of its members. Its behavior that translates values into our daily activities. For example, imagine a parent teaching her child the importance of truth or responsibility. A moment later, the child tells the parent that a debt collector has just called on the phone, and the parent casually says: Tell him Im not home. 3. There is great social pressure in favor of anti-values In a society that over-stimulates consumption, citizens end up being valued more for what they have than for what they are as individuals. As a result, appearance, or power often become higher values than responsibility. Using values Although values are defined at an early age, and everyone attributes particular significance to specific values, how to put them into practice is a personal decision. People decide what attitude and what behavior they will assume in relationship to individuals, opportunities, difficulties or responsibilities, with varying levels of awareness. When people want to establish a good relationship with other people, or want to be part of an organization, they decide to accept the values required for that relationship.

Types of values
Ever since human beings have lived in community, they have had to establish principles to guide their behavior towards others, in this sense, honesty, responsibility, truth, solidarity, cooperation, tolerance, respect and peace, among others, are considered universal values. However, in order to understand them better, it is useful to classify values according to the following criteria: Personal values: These are considered essential principles on which people build their life and guide them to relate with other people. They are usually a blend of family values and social-cultural values, together with peoples own values, according to their experiences. Family values: These are valued in a family and are considered either good or bad. These derive from the fundamental beliefs of the parents, who use them to educate their children. They are the basic principles and guidelines of initial behavior in society, and are conveyed through ones behaviors in the family, from the simplest to the most complex. Social-cultural values: These are the prevailing values of our society, which change with time, and either coincide or not with family or personal values. They constitute a complex mix of different values, and at times they contradict one another, or pose a dilemma. Material values: These values allow an individual to survive, and are related to his/her basic needs as human beings, such as food and clothing and protection from the environment. They are fundamental needs, part of the complex web that is created between personal, family and social-cultural values. If exaggerated, material values can be in contradiction with spiritual values. Spiritual values: They refer to the importance people give to non-material aspects in our lives. They are part of our human needs and allow people to feel fulfilled. They add meaning and foundation to life. Moral values: The attitude and behavior that a society considers essential for coexistence, order, and general wellbeing are moral values.

The Formation of Values

We start forming values in our childhood. First we learn to appreciate things that fulfill our basic needs, but we value especially those people that provide them to us. Their behavior towards us becomes the main reference of what is valuable. Thus, our character and personality are molded through the attitudes and behavior of the people who raise us, whether theyre our parents or other relatives. Their behaviors determine in large part what will subsequently become our most important beliefs and principles. We learn to value the substance and the form of everything they say and do, and what they do nt say and dont do. Each gesture or comment affects how we learn to make choices. We also learn to differentiate between the theory and practice of values. The consistency and coherence of our parents behavior is what strengthens our formation. If they practice what they preach, our personality will be stronger than if they dont. Later, when we are students, we start feeling social pressures and the pressure of values that are different from ours, as we relate to other people. The strength of the values formed through our parents is put to the test. Values are often confused with habits, and many parents hope that school will form the values that were not instilled at home. This is not possible, because school does not fulfill the basic needs of life, that is the responsibility of those who raise us. Teachers, leaders, and value models at school can reinforce what was formed at home, but they cannot replace them. If the convictions formed at home are not solid, they will soon be exposed to an intense social competition against other beliefs. It very difficult to form values because, unlike norms, values are convictions; they are behaviors we gladly decide to follow and produce satisfaction. We can follow norms against our will, but values have the support of our will. We have learned their importance due to the benefits they produce, individually and collectively. Those who play a leadership role in our lives are most powerful at conveying to us their values. They are our parents, elder siblings, grandparents, some relatives, teachers, peers we admire, professors, and bosses. However, to convey something, we must first possess it. Values are only conveyed through the example of our daily attitudes and behaviors. They can seldom be formed by explaining them or through a list of what is considered correct or incorrect. Memorizing their theoretical meaning does not guarantee their implementation.

Values of Indian Managers

The present globalized era is a rapid changing era. To prove themselves, all are running to cope with the challenges they face and due to this they are forgetting the major components of business ethics. Whenever someone is faced with a decision making problem there are 3 questions: Will it work? (Pragmatic Approach) Is it Pleasant? (Affective Approach) Is it Right? (Ethical Approach)

To find out what values managers should have, it is important to know what is expected of them. Several expectation a firm has from a manager are: A manager should: choose wisely and utilize scarce resources optimally. develop a visionary prospective of their work. be dedicated in their work and have the realization that results are important but quality should not be compromised. have long term vision.

Thus values of Indian Managers should be as follows: Should always take the correct action. Should have faith and self-confidence. Should take the actions that not only benefit the firm but the society as well. Should move from lies and towards truth. Should take the best from western models and tune them to Indian conditions.

Ethical Decision Making

Making good ethical decisions requires a trained sensitivity to ethical issues and a practiced method for exploring the ethical aspects of a decision and weighing the considerations that should impact our choice of a course of action. Having a method for ethical decision making is absolutely essential. When practiced regularly, the method becomes so familiar that we work through it automatically without consulting the specific steps. The more novel and difficult the ethical choice we face, the more we need to rely on discussion and dialogue with others about the dilemma. Only by careful exploration of the problem, aided by the insights and different perspectives of others, can we make good ethical choices in such situations. A Framework for Ethical Decision Making 1. a) b) 2. c) d) e) 3. f) 4. g) h) 5. i) j) Recognize an Ethical Issue Could this decision or situation be damaging to someone or to some group?Does this decision involve a choice between a good and bad alternative, or perhaps between two "goods" or between two "bads"? Is this issue about more than what is legal or what is most efficient? If so, how? Get the Facts What are the relevant facts of the case? What facts are not known? Can I learn more about the situation? Do I know enough to make a decision? What individuals and groups have an important stake in the outcome? Are some concerns more important? Why? What are the options for acting? Have all the relevant persons and groups been consulted? Have I identified creative options? Evaluate Alternative Actions Evaluate the options by asking the following questions: Which option will produce the most good and do the least harm? (The Utilitarian Approach) Which option best respects the rights of all who have a stake? (The Rights Approach) Which option treats people equally or proportionately? (The Justice Approach) Which option best serves the community as a whole not just some members? (The Common Good Approach) Which option leads me to act as the sort of person I want to be? (The Virtue Approach) Make a Decision and Test It Considering all these approaches, which option best addresses the situation? If I told someone I respect-or told a television audience-which option I have chosen, what would they say? Act and Reflect on the Outcome How can my decision be implemented with the greatest care and attention to the concerns of all stakeholders? How did my decision turn out and what have I learned from this specific situation?

Business Ethics and the Changing Environment and Stakeholder Management

Businesses and governments operate in changing technological, legal, economic, social, and political environments with competing stakeholders and power claims. There is more than one side to every complex issue and debate involving businesses, consumers, families, other institutions, and professionals. When stakeholders and companies cannot agree or negotiate competing claims among themselves, the issues generally go to the courts. Stakeholders are individuals, companies, groups, and even nations that cause and respond to external issues, opportunities, and threats. Corporate scandals, globalization, deregulation, mergers, technology, and global terrorism have accelerated the rate of change and the uncertainty in which stakeholders must make business and moral decisions. Issues concerning questionable ethical and illegal business practices confront everyone and macro level issues that occur among stakeholders have increased in rapidly changing business environments. Add the ongoing issues resulting from disruptive technologies and increased working hours on professional and personal stress levels, and you can see the pressures created on stakeholders. Large issues can become personal quickly, depending on who is involved and who is at risk. Environmental Forces and Stakeholders Organizations are embedded in and interact with multiple changing local, national, and international environments. These environments are increasingly merging into a global system of dynamically interrelated interactions among businesses and economies. We must think globally before acting locally in many situations. The macro level environmental forces shown in Figure Below affect the performance and operation of industries, organizations, and jobs.

This framework can be used as a starting point to identify trends, issues, opportunities, and ethical problems that affect people and stakes in different levels. A first step toward understanding stakeholder issues is to gain an understanding of environmental forces that influence stakes. The government and legal environment continues to issue regulatory laws and procedures to protect consumers and restrict unfair corporate practices. Uneven regulation of fraudulent and anticompetitive practices affects competition, shareholders, and consumers. Legal questions and issues affect all of the environmental dimensions and every stakeholder and investor. How much power should the government have to administer laws to protect citizens and ensure that business transactions are fair? Also, who protects the consumer in a free market system? The demographic and social environment continues to change as national boundaries experience the effects of globalization and the workforce becomes more diverse. Employers and employees are faced with aging populations, minorities becoming majorities, generational differences, and the effects of downsizing and outsourcing on morale productivity, and security. How can companies effectively integrate a workforce that is increasingly both younger and older, less educated and more educated, and technologically sophisticated and technologically unskilled? These environmental factors are incorporated into a stakeholder and issues management approach that also includes an ethical analysis of actors external and internal to organizations. A larger perspective underlying these analytical approaches is the question: How can the common good of all stakeholders in controversial situations be realized? Stakeholder Management Approach How do companies, the media, political groups, consumers, employees, competitors, and other groups respond when they are affected by an issue, dilemma, threat, or opportunity from the environments just described? The stakeholder management approach is a way of understanding the ethical effects of environmental forces and groups on specific issues that affect real time stakeholders and their welfare.

The stakeholder approach begins to address these questions by enabling individuals and groups to articulate collaborative, winwin strategies based on: 1. Identifying and prioritizing issues, threats, or opportunities 2. Mapping who the stakeholders are 3. Identifying their stakes, interests, and power sources 4. Showing who the members of coalitions are or may become 5. Showing what each stakeholders ethics are (and should be) 6. Developing collaborative strategies and dialogue from a higher ground perspective to move plans and interactions to the desired closure for all parties Chapter 2 lays out specific steps and strategies for analyzing stakeholders. Here, our aim is to develop awareness of the ethics and social responsibilities of different stakeholders. As Figure 1.2 illustrates, there can be a wide range of stakeholders in any situation. We turn to a general discussion of business ethics in the following section to introduce the subject and motivate you to investigate ethical dimensions of organizational and professional behavior.