Company Values

1. Company Values Mark Sanofsky

2. Agenda • Values Defined • Values & Your Company • Values Statements • Code of Ethics • Summary & Reading List

3. In a period when big business is often vilified as being ethically challenged, many companies are attempting to counter this perception by adopting formal statements of corporate values.

4. What values does your company find important? • What values do you find important?

5. Values Defined Basic convictions that “a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence.”

6. Company Values • Something that is important to your company -ex. Intel values risk taking, discipline, & results orientation • Affects how employees do their work -in the short term (day-to-day) or long term • Affects decision making processes -company decisions and/or employee decisions

7. Why are company values important to your company?

8. In a recent poll of senior executives representing 365 companies, they stated that reputation & relationships w/ suppliers, customers, and employees were greatly influenced by values.

9. Those factors impact overall business strategy as much as • Earnings • Revenue growth

10. How can companies use values?

11. Values Statements • Code of Ethics

12. Values Statements state: • What your company values are. • How you intend to apply those values on a day-to-day basis.

13. Intel Example What is one value that is important to Intel? • Risk Taking

14. Intel Example Cont’d How would Intel apply risk taking on a day-to- day basis? • Devote more money to R&D • Reward employees for innovative ideas • Not punish employees for failed ideas

15. Intel’s values statement could appear like… Here at Intel we promote risk taking because we understand that risks are an essential part of product leadership. Employees are encouraged to present new ideas daily and are rewarded significantly when ideas become implemented. Also, employees are not punished when ideas fail, because at Intel we recognize that failed ideas are part of the risk taking process and help us to become better innovators.

16. Exercise • Form a group of about 5-7 people • Brainstorm at least ten values that you think are important to your company (10 minutes). • Choose your group’s top three values (5 minutes). • Identify how those values could be applied in day-to-day activities through a value statement (10 minutes).

17. Real life example T.E. Brennan Company is dedicated to providing its clients with unsurpassed risk management and management consulting. We provide the highest levels of professional conduct, service, quality, and confidentiality. We maintain admirable, long-term relationships that are founded on trust and integrity. We satisfy our clients by providing timely, cost-effective services that enhance their business objectives by increasing their efficiency, marketability, productivity and profitability. We are a fee-for-service company. We do not accept any remuneration from any source other than our clients. Our impartiality will not be compromised. T.E. Brennan Company recognizes its obligation to its valued employees, their families, its shareholders, the community, and the general public. We conduct our business in a manner that respects the legitimate rights and interests of all these groups, mindful of their concerns and needs.

18. Code of Ethics

19. Why have a code of ethics? • to define acceptable behaviors • to promote high standards of practice • to provide a benchmark for members to use for self evaluation • to establish a framework for professional behavior and responsibilities • as a vehicle for occupational identity • as a mark of occupational maturity

20. How do you write your code of ethics? • Identify purpose of your new code • Is your new document intended to guide people or to set out requirements? • A code of ethics should be tailored to the needs and values of your organization. • Will your new ethics document include some sort of enforcement? If so, what kind?

21. How do you write your code of ethics cont’d? • Remember the value listed first will have natural prominence. • Choose who will be involved in making the code. • What steps will be taken to ensure that your code is implemented in organizational policies and practices? -the most important step!

22. What steps will be taken to ensure that your code is implemented in organizational policies and practices?

23. Each employee is given a copy of the code. • The code is reviewed in each employee performance evaluation. • Monthly meetings designed specifically to discuss the code of ethics. • Consistent reprimand from superiors for failure to abide by the code. • Rewards linked to abiding by the code of ethics.

24. Benefits of Values Statements & the Code of Ethics • Relatively low cost • Increase company’s reputation • Better relationships with customers, employees, and suppliers. • Avoid unnecessary fines and losses due to unethical behavior.

25. Summary Decide now to implement your company values through -Values Statements -Code of Ethics

26. Sources for more Information • Journal of Business Ethics • Business Ethics Quarterly Magazine • Accountancy Age Magazine • Business Horizons Magazine • www.ethicsweb.ca/codes/ • www.solutionportals.com/Help/HowTo/Values/Overview.htm • www.vnunet.com/accountancyage/features/2141856/really-mean • www.press.arrivenet.com/business/article.php/711580.html