Value and ethics in business

1. VALUE & ETHICS IN BUSINESS
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2. VALUES; Introduction &
Definition
Values are stable, evaluative beliefs that guide our preferences for
outcomes or courses of action in a variety of situations. They are
ONE’s perceptions about what is good or bad, right or wrong.
Values tell us what we “ought” to do. They serve as a moral compass
that directs our motivation and, potentially, our decisions and actions.
Values are related to self concept because they partly define who we are
as individuals and as members of groups with similar values.
“Values can be defined as those things that are important to or valued by
someone. That someone can be an individual or, collectively,
an organization. They are Stable, long-lasting beliefs about
what is important, define right or wrong, good or bad and
Include cross- cultural, ethical and organisational culture values.”

3. Values grow from a person’s experiences. Different experiences
produce different values, and a person’s values are modified as those
experiences accumulate and change. These patterns create what is known
as process of valuing. It is a lifelong process that incorporates an
elaborate system of rewards and punishments from significant others and
society in general.
People arrange values into a hierarchy of preferences, called a value system.
Some individuals value new challenges more than they value
conformity. Others value generosity more than frugality.
Each person’s unique value system is developed and reinforced
through socialization from parents, religious institutions, friends,
personal experiences, and the society in which he or she lives. As such, a
person’s hierarchy of values is stable and long-lasting. For example, one
study found that value systems of a sample of adolescents were remarkably
similar 20 years later when they were adults.

4. The Nature of Values

Values: are freely chosen, enduring beliefs or attitudes about
the worth of a person, object, idea, or action (e.g. freedom,
family, honesty, hard work)
Values frequently derive from a person’s cultural, ethnic, and
religious background; from societal traditions; and from the
values held by peer group and family
Values form a basic for “purposive Behavior”; (purposive
behavior is based on a person’s decisions/choices, and these
decisions/choices are based on the person’s underlying values.)
Values are learned and are greatly influenced by a person’s
socio cultural environment (e.g. demonstrate honesty,
observation and experience)
People need societal values to feel accepted, and they need
personal values to produce a sense of individuality.

5. Types Of Values
On The Basis of Sharing
The values exist only within individual are call them personal
values.
However, groups of people might hold the same or similar values, so
these values are shared values as these are usually shared by to the
team, department, organization, profession, or entire society.
The values shared by people throughout an organization are called
organizational values.

6. Rokeach Classification of
ValuesMilton rokeach has developed the Rokeach Value Survey (RSV) which
consists of two set of values, each set containing 18 individual value
items. They are
Terminal Values; Desirable end-states of existence; the goals that a
person would like to achieve during his or her lifetime.
Instrumental Values; Preferable modes of behavior or means of
achieving one’s terminal values.
i.e. Terminal values reflect what a person ultimately wants to
achieve where as instrumental values reflect how the person get
them. The examples of these values are given below

7. Allport Classification Of
ValuesThe Allport-Vernon Study of Values (1931) categorizes values into six
major types as follows:
Theoretical: Interest in the discovery of truth through reasoning and
systematic thinking.
Economic: Interest in usefulness and practicality, including the
accumulation of wealth.
Aesthetic: Interest in beauty, form and artistic harmony.
Social: Interest in people and human relationships.
Political: Interest in gaining power and influencing other people.
Religious: Interest in unity and understanding the cosmos as a whole.

8. Other Classification
Personal values. Personal values are established traits that are
representative of an individual’s moral character. These may have
an order of importance to us such as; honesty, responsibility, loyalty,
moral courage and friendliness. The values' people have integrated
into their character are made apparent by their attitudes, beliefs and
actions.
Social values. These values are formed in the home, schools, peer
groups, neighborhoods and communities. Through these
institutions, a behavior code is given and people not only learn what
is expected of them, but they build their own value . they are:
(1)Folkways - values people accept out of habit.
(2)Morals - morality that governs values.
(3)Institutional - ways or practices set up under law.
(4)Taboos - the emphatic do’s and don’ts of a particular
society.

9. Economic. These values are identified through such mediums as
equal employment, stable economy, balancing of supply and demand
of goods, money, private property, pride of ownership, and contrary
to the beliefs of some people, taxes.
Political. These include loyalty to country, concern for national
welfare, democracy, public service, voting, election and civic
responsibility.
Religious. These are characterized by reverence for life, human
dignity, and freedom to worship. Religious values are indicated by
the expressed belief in a supreme being, or another force beyond the
comprehension of people.

10. Work Values
Achievement (career advancement)
Concern for others (compassionate behavior)
Honesty (provision of accurate information)
Fairness (impartiality)