THE ROLE OF VALUES IN CORPORATE LIFE

Genesis chapter 1







Today we are walking in: The Role of Values in Corporate Life




Today we look to the word-LEADER- H5057 nagiyd-- leader, ruler, captain, prince; excellent thing, (chief) governor, leader, noble, prince, (chief) ruler.







The Torah Testifies.............................

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The prophets proclaim...............







Isaiah 55:4 - Behold, I have given him for a witness to the people, a leader H5057 and commander to the people.


















The writings bear witness.............







2Chronicles 32:21 - And the LORD sent an angel, which cut off all the mighty men of valour, and the leaders H5057 and captains in the camp of the king of Assyria. So he returned with shame of face to his own land. And when he was come into the house of his god, they that came forth of his own bowels slew him there with the sword









Chapter 6

The Role of Values in Corporate Life




“Leadership is the wise use of power. Power is the capacity to translate intention into reality and sustain it.”

—Warren G. Bennis, leadership expert and author




A popular television show depicts what life would be like in the world, particularly in America, if suddenly all the electrical power went out—and no one could turn it back on again. While the TV show is fiction, the problem it portrays is a reality for many people in certain regions of the world, including the country of Nigeria.




Several years ago, while on a speaking trip to Nigeria, I was talking with a top lawyer in that nation who was one of my hosts. I inquired, “Nigeria is the seventh-largest oil producer in the world, but most Nigerians don’t have electricity. Everywhere I go, people use generators for power. There is no national grid in place to run electricity to people. Explain that to me.” He said, “Well, it’s not in the best interests of the politicians for the people to have electricity. Every time they discuss that issue in the parliament, they vote it down.”




When I asked why government leaders would vote down giving people access to electricity, he replied, “Most of the politicians own either generator companies or companies that prepare them or provide fuel for them.” Because the politicians had a particular business interest, the majority of their country’s citizens were being denied a key resource for their lives.




Perhaps you, too, live in a nation where corruption or mismanagement is holding back resources or improvements from its people. When I became aware of the underlying problem in Nigeria, I knew I could not address the issue directly, because it was a symptom of a greater issue—an apparent lack of values among many of the nation’s leaders. Therefore, when I had the opportunity to speak to a number of these leaders, I talked about character and how it affects national life. I knew that when leaders catch a vision of character, they begin to change their values and their conduct. Subsequently, their values become their policies.




Slowly, the situation has begun to change in Nigeria. There have been efforts to reform and privatize the electric industry. But there are still many internal challenges, and there have been setbacks. Reportedly, 120 million people in that nation, or three quarters of the population, still do not have access to electricity.1 But leaders are continuing to work on the problem. Such issues require commitment and perseverance, as well as the development of shared values among the leaders and citizens.




When leaders catch a vision of character, they begin to change their values and their conduct; subsequently, their values become their policies.




Corporate Influence




As a leader, always be aware of this reality: Your personal values and moral principles have a significant influence on those who participate with you in your corporate effort, as well as others who are affected by your policies and conduct. I use the word corporate here to refer to any form of association or joint effort, on any level—families, nonprofit organizations, churches, businesses, local communities, county or regional governments, states or provinces, nations, coalitions of nations, and so forth.




You set the tone for your followers. Your leadership role and its influence include some or all of the following:

Maximizing the corporate vision.




Transforming the corporate culture to the point that your personal beliefs, attitudes, standards, and behavior are adopted by your followers or constituents.

Establishing policy, or the regulations and laws that govern your constituents.




Determining the direction, security, and prosperity of the group.




Setting standards in relation to corporate ethics and intended outcomes.




Effecting change.




These are substantial responsibilities, and it is essential to know how the corporate values that you establish and promote will impact the ethical environment and success of your endeavor. Additionally, although you are a leader in the realm of your own gifting, you are also a member of other corporate entities whose values exert influence on you. Are you aware of the impact they are having on you? Moreover, what responsibilities do you have as a participant in these groups?




For example, you are the citizen of a nation. Do you know the vision and values of your country? Are its values constant, or are they shifting? What influence do these values exert on you? What are your commitments to your nation?




You may also be a member of a community organization, such as a volunteer group. Are you aware of its purpose and values? Could you express them to someone else? Do you agree with them? What are your responsibilities in relation to this group?




In this teaching, we will look at the vital role that values play in corporate life. We will further explore how to apply to our particular leadership situations what we’ve learned about values and morals over the last few teachings, and we will discover how corporate values influence our own lives.




Values and Corporate Life




As I wrote in teaching 1, leaders have always fulfilled a central role in human life. Organizations, communities, societies, and nations are founded, established, and maintained by leaders. People look to leaders for direction, and they listen to their views. Even when a leader is wrong, many people still think he is right, simply because he is a leader. Additionally, what a leader values usually determines how a group functions.




Corporate Entities Have Character




Each corporate body manifests a distinct character, just as each human being does. And, as is the case with individuals, that character can be either positive or negative. It all depends on what values the group holds. If an individual leads a group long enough, his character will eventually permeate the community. As a corporate entity is directed by its leader/executive/supervisor/administrator, it manifests particular beliefs, convictions, values, and moral principles. It may also manifest ethical flaws and their consequences—sometimes on a large scale. For example, a business’s motivation for creating its products, as well as the manner in which it creates them, is related to its corporate values. Values, morals, and ethics are clearly significant on a corporate level, just as they are in the life of an individual.




If an individual leads a group long enough, his character will eventually permeate the community.




Corporate Values Should Be Intentional




Leaders have an indispensable role in the development of corporate culture. Every leader of a common endeavor should be intentional about establishing positive values that will govern how the members function—with honesty, respect for others, a conscientiousness about quality, a commitment to providing excellent service, an eagerness to be productive, and so forth. Good character can be developed through careful training, but it can also deteriorate through neglect. A leader should not only personally adopt strong values, moral standards, discipline, and an ethical code, but he should also encourage the group’s members to do so.




Principles of Corporate Values




In teaching 4, we defined values in this twofold way:

Ideas, principles, and qualities on which you personally place high worth.

Standards or ideals that determine your conduct or policy.

Let’s see at how these definitions apply in a collective context by looking at several principles of corporate values.




1. Values Are the Foundation of a Corporate Entity




Corporate values shape the lives and daily experiences of the members, sometimes in profound ways. These values can take the form of (1) core ethical values that become moral standards and disciplines; and (2) specific ideas and approaches upon which the organization places high worth and on which it has chosen to focus.




Core Ethical Values




We know that an individual’s values are derived from his beliefs and convictions. In a similar way, a corporate entity’s values develop from the beliefs and convictions of the leader and the group members, which are based on their purpose. A group’s values are the source of its character. For example, a nation’s laws, which reflect its character, should be derived from the core values of its people; these laws should then be guarded and enforced by its leaders.




An organization’s core values are the guiding principles by which it is committed to achieve its vision. The “core” of a person or thing is the place from which its energy emanates. Therefore, the core values of an organization, a business, or a country are its center of control. They control its associations, moral standards, discipline, and environment.




If a corporate entity’s ideals and standards are based on solid principles, they will minimize and contain incidences of corruption within the organization. Conversely, in unprincipled corporate entities, corruption will be unconstrained. In the case of a nation, if the leaders do not value honesty, justice, and respect for the weakest of their citizens, there will be corruption and abuse throughout the country’s system of government.




The Red Cross is an example of an organization whose strong values are based on its convictions. Its stated mission is “compassionate care to those in need...preventing and relieving suffering, here at home and around the world.” It holds the conviction that every human life is worth saving, protecting, and helping. It doesn’t matter who the person is; if he is in need, the Red Cross wants to help him. The organization has demonstrated its values by, among other outreaches, providing international assistance in seventy countries and working to “meet the needs of the world’s most vulnerable communities.”2




A corporate entity’s core values are the guiding principles by which it is committed to achieve its vision.




Specific Ideas and Focuses




Let’s look now at the second definition of corporate values, in which an organization has specific ideas and approaches upon which it places high worth, and on which it has chosen to focus. For instance, in the business world, each company reflects distinct characteristics. Rolls-Royce is unique among automobile manufacturers. Its vision is not just to produce cars. Rather, it is to create an “experience” of driving. To achieve this vision, the company builds every car by hand. “A pioneering spirit and a sense of adventure define Rolls-Royce,” the company says on its Web site, where consumers can read background stories about its “legendary” models.3




People can buy a functional car from almost any automobile company. If they want to be purely pragmatic—and many consumers do—they can buy a much less expensive car that runs well. But if a customer is looking for unique performance and custom features, he will go to a Rolls-Royce dealer or another high-end car company because of the specific value it places on bespoke workmanship.




The quality of a car is a manifestation of the character of the individuals who built it—and the character of these individuals reflects the overall values and character of the company they work for. Those who are employed by a particular company abide by corporate values that may be distinct from the corporate values of other companies. For example, if your job was to oversee the installation of seats in Rolls-Royce cars, you couldn’t focus solely on the mechanics of the installation—you would have to make sure your performance contributed to the “experience” for the consumer, by your personal care of the product and your fine attention to detail.




Similarly, corporate values can indicate ideas that are important to one group but not to another related group. To use the example of automobiles again, one company may value speed of production more than quality of goods produced. The former was a value that many American car companies appeared to embrace a number of years ago. Their primary value seemed to be getting as many cars as possible through the assembly line, as quickly as possible. Quality took a “backseat.” Essentially, the idea was, “We want to assemble vehicles faster and at less cost. So, we’ll use cheaper parts, and we won’t be as concerned about quality, in order to make more money.”




In contrast, the values of Japanese companies seemed to include producing well-made cars that would last a long time, run well, and require fewer repairs. The car industries of two different countries were manufacturing the same mode of transportation but under distinct value systems. In the end, the companies who prized quality won out among consumers, forcing their rival companies to focus more on quality, as well. This gave consumers more choices when looking for reliable transportation.

In relation to all companies, we can—and should—ask ourselves, “What are the values and character of this business? How does its character compare to other companies that make a similar product?” We can ask similar questions of all forms of corporate entities.




2. A Corporate Entity Must Promote Positive Values to Function Well




Corporate bodies have to promote and protect positive values in their community if it is to function well, maintain its viability, and thrive.




Society, or the “National Community”




For instance, society—the “national community” of a country—must support values like cooperation, honesty, and trust, or it will decline. For the community’s well-being, these values have to be found among its citizens and those with whom the citizens interact. The national community must work to preserve its cherished values, and its leaders must endeavor to protect those values in various ways for the sake of its members. The community comes to rely on those positive values in order to function. (When a nation’s leaders and/or citizens do not esteem and protect positive values, the community will become oppressed and demoralized—a situation that has occurred in various nations throughout history, such as the former Soviet Union and North Korea.) Let’s look at a few illustrations related to values of trust and safety in the context of communities that esteem positive values.




When a member of a society buys a bottle of water from a business within that society, he places faith in that business, as well as the manufacturer, that the water is safe for him to drink. The consumer hasn’t witnessed the bottling process personally, and the bottle is sealed, so he can’t test it for contamination before he purchases it. He has to trust that the business is offering bottled water from a reputable company. And, he has to have faith that this company has character—that what it states on its label concerning the contents of its product is truthful.




Some countries have instituted safety ordinances, holding companies accountable to live up to the standards that the national community has established for the welfare and protection of its citizens. As a corporate entity, the United States of America has created agencies such as the Food and Drug Administration (FDA), whose motto (value) is “Protecting and Promoting Your Health”4 and whose task is to monitor the quality of the food and drink that are offered for sale to the nation’s people.

The “national community” of a country must support values like cooperation, honesty, and trust, or it will decline.




Another example of corporate trust is the confidence that members of a society place in their banks. When people make deposits, they have faith that their money will still be there when they want to make a withdrawal. If a bank is reputable, its guarantee that the money will be kept safe and available is one of its corporate values, which it extends to its depositors. There is a legal and moral transaction between an individual and his bank anytime he makes a deposit or utilizes the bank’s other financial services.




Many national communities maintain programs to ensure that the society’s values are upheld in such financial dealings. Years ago, the United States government created the Federal Deposit Insurance Corporation (FDIC). If a depositor’s funds are held in a participating bank, his money is insured for up to $250,000; these funds are guaranteed if the financial institution should fail. Although the FDIC was established by the government, it is not funded by it. It is financed primarily by the insurance premiums that member banks pay to the agency. Banks take part in this program in order to show good faith to their depositors and to protect their own values and reputation in the community.5




Even so, large banks or other lenders sometimes experience massive failures, such as we saw happen during the global economic downturn of 2007–08 and the years following. A lending institution’s failure may result from the reckless investments or unethical practices of its executives. Yet, even in such cases, the U.S. government may still authorize “bailouts” of banks, in order to cover depositors’ funds that are above the insured amount. (Other governments have taken similar action.) It does so for the purpose of protecting the economy—and, ultimately, the community’s values of trust and safety.




These bailouts are usually controversial, since the money for them does come from the government—through the taxpayers. In this way, certain members of the national community sometimes end up paying for the mistakes and unethical conduct of other members of the national community, often causing the first group to feel that they have been taken advantage of. Under such circumstances, the national community’s bond—based on mutual cooperation, honesty, and trust—can begin to break down. Leaders of all fields and industries must therefore seek to abide by strong core values, keeping the crucial relationship of mutual trust in their societies strong.