How to Build Value Through Values, Essay Example

It is important for large companies to engage in ethical business practices (Silverstein, 2013). However, many organizations put forth a value statement in order to maintain its image. For example, Walmart has issued a value statement that claims that the stores practices are guided by “Three Basic Beliefs” that include “Respect for the Individual, Service to our Customers, and Strive for Excellence” (Walmart, 2005). The value statement is a 26 page document that elaborates on these goals. Interestingly, there is a section about worker safety, which is ironic given that the company is well-known for failing to promote sustainable pay and benefits for its workers.

Conscious capitalism can be defined as a marketing strategy that allows companies to appear to care for the well-being of their employees and customers, when in reality they are primarily focused on profitability (Kofman, 2006). Walmart is a prime example of this because they attempt to act as if they are acting in the best interests of all stakeholders in their company and release documents, such as their value statement, in an attempt to demonstrate this. The organizational factors that contribute to conscious capitalism for Walmart and similar companies is their executive structure. There are many high paid executives on top of the corporate ladder of the company that are able to earn large profits due to the lack of benefits workers receive on a lower level. This is less likely to be the case in smaller companies that require skilled workers.

A values-based leader is an individual that enters business more because he or she believes that the organization will contribute to the world than for purposes of profitability. These individuals must truly want to help others and not simply rise above their employees due to their place of power. It is more manageable for small organizations to maintain their values due to the extent of power that lower level employees have. Decisions made are therefore conducted to benefit the company and the customers, not just the high level executives.

References

Kofman, Fred (2006). Conscious Business: How to Build Value Through Values. Boulder: Sounds True.

Silverstein K. (2013). Enron, Ethics And Today’s Corporate Values. Forbes. Retrieved from http://www.forbes.com/sites/kensilverstein/2013/05/14/enron-ethics-and-todays-corporate-values/

Walmart. (2005). Statement of Ethics. Retrieved from http://media.corporate-ir.net/media_files/IROL/11/112761/corpgov/Ethics%20_Current.pdf