• Significance of Values and Ethics in Business.

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    August 25, 2016 /  Coupons

    In an increasingly competitive market and a slow-down in economic activity (reported by various players in the small business sector), the temptation exists to ignore values that we may put forward as central to the company in PR documents and business forms. In practice, there seems to be a conflict between values that sounds good (we would like people to believe that we live by these values) and the real values that we pursue linked to apparent self interest. I would like to put forward the suggestion that values that sound good may in fact be the only ones that will benefit an organization in the long run and it is worth the risk to actually live and take decisions that reflect the values of integrity, customer centricity, honesty etc. As an example, Toyota has always been known for its quality and reliability – a fact that has contributed to its great success. Unfortunately, in an apparent attempt to dethrone GM, quality to customers ( a good value) was sacrificed in favour of greater production (self interest). The negative effects of Toyota having to recall millions of vehicles will remain with us for a long time and has damaged the image and claim to reliability. The mere fact that it is reported even in this newsletter, indicates the hidden costs to the company.

    At another level, a comment that recently struck me, was one by an executive of a small (unsuccessful) business. In view of the practices of some hardnosed and unethical suppliers, it was suggested that the company employs the same tactics to stay in business. The point here is that they feel aggrieved by the behaviour of the supplier and by following similar practices, they want to join the ranks of those that cause dissatisfaction in their clients. This very practice will cause them to be even less successful, losing clients to the competition. It is not suggested that solid business practices such as proper work standards be dropped (bad for you) as you would like employees to be happy (good for them). Far from it. The answer would be to find a solution that will benefit both parties. That this is not always possible, goes without saying, but does not negate the fact that by pursuing practices that supports good values, will inevitably also benefit you. What are the values that live in your organization, and are they different to the ones you would like to be active , and even the ones that you claim your organization live by? In the Compass Aligned Performance System, the values that guide behaviour and decisions in a company is analysed and fixed. It is an exciting exercise during this very effective and logical strategic planning and execution process that will assist greatly in focusing your organization on those aspects that are most important for success.

    Posted by Cameron @ 12:07 am

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