Universal Human Values
MBA FINANCE
BATCH OF 2022-24
Article on
Evaluating the Impact of Human Values on
Business Performance
ABSTRACT
In modern commerce, universal human values are becoming more and more important.
Businesses can no longer afford to function only on the basis of profit maximization as
stakeholders, workers, and customers place a higher value on ethical actions and social
responsibility. The article explores the complex relationship between personal ideals and
corporate success. A survey of the literature reveals the advantages of value-driven businesses,
such as better client retention, better brand recognition, and more staff engagement. The study
also looks at implementation difficulties, the benefit of leadership dedication, and the possibility
of ethical principles and immediate financial objectives colliding. The study makes the case—
based on a look at of these variables—that incorporating human values into company culture has
advantages for employees' careers as well as larger, social, and universal benefits.
Keywords: - Business performance , Corporate culture ,Ethical leadership , Human
values , Social responsibility
Introduction
There is a major shift occurring in the modern corporate environment. Businesses are becoming
more and more motivated by a more holistic viewpoint that acknowledges their influence on
society and the environment, rather than just the pursuit of short-term profits. The modification is
driven by several factors. First of all, buyers are becoming more morally conscious and actively
looking for out companies that share their opinions and exhibit social responsibility. Growing
social and environmental consciousness among customers is driving this trend by forcing them to
hold companies accountable for their wider effects. In addition, businesses are exposed to a
variety of cultures and ethical frameworks due to the interconnected and linked morality of the
globe. It need a global base of shared values that encourages justice, respect, and upright conduct
across boundaries to negotiate this complexity.
Further, the talent pool of the future is made up of people who place a high priority on working
for companies that uphold and promote moral principles. Talented people look for jobs who are
not only profitable but also make beneficial changes to the environment and society at large.
Businesses may draw and keep the best individuals through incorporating these ideals into their
culture, which promotes creativity and long-term success. Ultimately, including human values
promotes a productive workplace where employees experience dignity, trust, and value. This
results in more production, more engaged workers, and a more profound sense of devotion to the
company.
As result, implementing human values into corporate culture is now an essential necessity and
not a matter of choice. Businesses and society may benefit from this integration, which
encourages moral behaviour, improves brand reputation, draws in top talent, and advances an
even and sustainable future. This essay looks at the idea of human values in further detail, looks
at the advantages and difficulties of incorporating them into corporate culture, and looks at
practical strategies that company executives may use to effectively integrate these values in their
workplaces. This article seeks to contribute to a future in which organizations produce long-
lasting prosperity for the world around them as well as for themselves by exploring the internal
and external impacts of adopting a values-driven planning.
Past Studies and Literature
A substantial body of research has explored the multifaceted relationship between human values,
corporate culture, and business performance. Studies consistently demonstrate the positive
impact of value-driven organizations across various domains:
o Employee Engagement and Morale: Dutton et al. (2010) found that when
workers believe their company is acting morally, they enjoy higher
levels of engagement, motivation, and job satisfaction. This instantly
translates into higher output and lower employee attrition, which
strengthens the bottom line.
o
Brand Reputation and Customer Loyalty: According to the Nielsen
Global Corporate Sustainability Report (2015), consumers clearly favour
businesses that exhibit moral and socially conscious business practices.
Businesses with a solid ethical reputation get a competitive edge via
increased client loyalty, trust, and favorable word-of-mouth advertising.
o Recruiting and Retaining Top Talent: Research shows that people,
especially younger generations, are very driven to contribute to
companies that share their values. This is exemplified by Deloitte's 2018
study on Millennials at Work. Companies can attract and retain top
talent, stimulate creativity, and give employees a sense of purpose
through implementing human values.
Financial Achievement and Long-term Sustainability: Studies by researchers
such as Wang & Choi (2013) and Agle et al. (2006) indicate a favorable
relationship between moral behavior and financial results. A dedication to
human values lowers the likelihood of legal and reputation-related issues
enhancing stakeholder trust and financial stability. Building trust with investors
is facilitated by this emphasis on long-term sustainability and ethical business
practices. Investors respect ethical organizations in a market that is prone to
volatility.
While these studies offer compelling evidence for the benefits of value-driven organizations, it is
important to acknowledge the complexities involved in implementation. The next section will
explore the challenges that businesses may encounter when integrating human values into their
corporate culture.
Challenges and Silent Features
Despite the potential benefits, the successful implementation of human values in business
operations requires careful consideration of several challenges:
Defining and Operationalizing Values: While certain values like honesty and integrity
are considered universal, their interpretation and translation into concrete actions may
vary across cultures and organizational contexts. This necessitates a clear definition and
operationalization of the chosen values within the specific context of the organization to
avoid ambiguity and ensure consistency in application.
Balancing Values with Profit: Businesses may face short-term financial pressure that
seems to conflict with long-term sustainability goals or ethical considerations. Ethical
leadership comes into play here, requiring thoughtful navigation of these scenarios
while preserving the integrity of core values. This necessitates a long-term perspective
that prioritizes sustainable growth and responsible practices over short-term gains.
The Risk of 'Values-Washing': Some organizations may engage in the superficial
adoption of ethical jargon to improve their public image without fundamentally changing
internal operations. This inauthentic practice, known as "values-washing," can be
highly damaging to trust, leading to negative publicity and a loss of credibility.
Additionally, it is crucial to acknowledge the presence of silent features within
organizations. These can be individuals or departments that project an image of ethical
behavior, while their actions contradict those values. This lack of alignment between stated
values and internal practices can significantly undermine the organization's efforts to establish a
truly values-driven culture.
By understanding these challenges and employing strategies to address them, organizations can
overcome the obstacles to successfully integrating human values into their corporate culture and
reap the long-term benefits it offers.
Observations and Implications
The reviewed literature reveals several essential observations and implications for businesses
seeking to integrate human values:
Leadership as the Cornerstone: Senior leaders play a pivotal role in setting the ethical
tone and modeling the desired behaviors. Authentic leadership commitment is critical for
successfully nurturing a values-driven culture.
Transparency and Accountability: Open communication across all levels of the
organization regarding ethical dilemmas, successes, and shortcomings fosters trust and
continuous improvement.
Employee Involvement: By empowering employees to actively contribute to decision-
making and problem-solving based on ethical principles, companies can reinforce the
shared values and create a sense of ownership.
Metrics and Measurement: While less tangible than traditional financial metrics, it's
essential to develop indicators to assess whether the organization is genuinely living its
espoused values.
Continuous Learning and Improvement: Building ethics-centered practices requires
consistent training, development, and reflection on experiences. Organizations should
invest in upskilling their employees and leaders in ethical decision-making and values-
based problem-solving.
Professional and Universal/Social Implications
Adopting values-driven business practices carries implications far beyond the bottom line,
extending into the broader professional landscape and society as a whole:
Professional Implications
o Evolution of Leadership Paradigms: Leaders are increasingly expected to
balance conventional measures of success with ethical considerations, driving an
evolution in leadership styles.
o Increased Need for Ethical Decision-Making Skills: Employees at all levels
must be equipped to navigate increasingly complex and nuanced ethical
dilemmas.
o Enhanced Professional Reputation: Professionals associated with values-driven
organizations benefit from an improved reputation in the marketplace,
contributing to career growth.
Universal and Social Implications
o Greater Social Responsibility: Businesses committed to human values have the
potential to contribute positively to social justice, equity, and inclusivity through
their practices and initiatives.
o Environmental Sustainability: Prioritizing values such as environmental
stewardship and responsible consumption can lead to significant contributions
towards environmental preservation.
o Economic Stability: Ethical businesses operating with transparency and a
commitment to long-term sustainability contribute to a fairer and more stable
economic system.
Conclusion
The integration of human values into corporate culture is emerging as a strategic imperative for
businesses seeking both continued success and a positive contribution to society. While
challenges exist, the research and practical examples indicate that ethical leadership,
commitment to transparency, and authentic actions aligned with espoused values can lead to
tangible benefits, positively impacting employee engagement, brand reputation, financial
performance, and the broader community.
As businesses navigate an ever-changing landscape, those embracing human values are well-
positioned to build trust, attract the best talent, and create a legacy of positive impact that extends
beyond profit. By fostering a culture where human values and business objectives work in
harmony, organizations can achieve a sustainable and responsible form of capitalism that
benefits not only themselves but the world around them.
References
Agle, B. R., Donaldson, T., Freeman, R. E., Jensen, M. C., Mitchell, R. K., & Wood, D.
J. (2006). Dialogue: Toward superior stakeholder theory. Business Ethics Quarterly,
18(2), 153-190.
Deloitte (2018). Millennials at work: Reshaping the
workplace. https://www.deloitte.com/global/en/issues/work/content/
genzmillennialsurvey.html
Dutton, J. E., Sosik, H. V., & Cannella, A. A. (2010). The transformational power of
collective belief: A review of the literature. The Journal of Management, 36(4), 889-974.
Nielsen Global Corporate Sustainability Report (2015). [invalid URL removed]
Wang, H., & Choi, J. (2013). A new look at the corporate social-financial performance
relationship: The moderating roles of temporal and interdomain consistency in corporate
social performance. Journal of Management, 39(2), 416-441.
