Before I read Lynn Sharp Paine’s Value Shift: Why Companies Must Merge Social and Financial Imperatives to Achieve Superior Performance, I had not paid much attention to the values in business management. However, after reading this book, I have realized that the principles of business ethics are an important tool for analyzing and solving problems faced by a person engaged in business. Now I understand that the values serve as important guidelines for decision-making and are the basis of honesty and moral conduct.
We live in a constantly developing society, in which attitudes and ideas about material wealth are changing. In the past two decades, the business community paid great attention to various ethical issues. Currently, business ethics represents the worldview for effective entrepreneurial activity. Lynn Sharp Paine demonstrates a new standard for corporate performance, which covers both moral and financial aspects. The author gives tips for managers on creating organizational infrastructure and hiring employees whose views correspond to the company’s value system.
Why is the growing interest in values important for business? On the one hand, the ethical behavior of the company is a mirror image of its culture, a common set of guidelines rooted in the organization. On the other hand, ethical behavior and culture become part of the definition of the corporate identity of the organization. Values are one of the key elements of the motivational sphere of society, regulating people’s behavior, and building it in accordance with social goals (Paine, 2003). The business environment largely determines the quality of life, the state’s goals, and the degree of the public mood. In business management, ethics performs two main functions: firstly, value orientation, and secondly, standardization and development of norms of behavior in a specific situation.
What does this change in the value system mean to business managers and employees? Corporate values in the form of trust and mutual respect in all processes are the signs of successful management. This is not only a social virtue but also a financial indicator that can be measured in financial profit (Paine, 2003). A company whose employees rely on corporate values reaps its benefits in the form of business growth and innovation, successful partnerships, and effective management. I have understood that clearly defined values of the company, which are known to its employees, suppliers, and customers, increase the level of responsibility. Value-driven companies often make significant strides in attracting and retaining good employees.
I agree with the author’s position that the maximum gain in business is possible only in the case of mutual trust between people. Trust is the basis of the activities of any organization, society, and even the economy as a whole. People working in an atmosphere of mutual understanding cooperate much more productively, achieving the desired results faster and at a lower cost. In the absence of trust, the business slows down, and costs increase (Paine, 2003). Trust is based on a combination of honesty, enthusiasm, the right attitude towards others, skills, professional experience, and performance. A competent but dishonest person is no more credible than an honest but incompetent. Employees that trust each other willingly share information, and are ready to help, and work with high productivity.
Value Shift: Why Companies Must Merge Social and Financial Imperatives to Achieve Superior Performance is a valuable book for managers who are progressive and ethic-minded. This reading has changed my view on business and proper prioritization. I will keep in mind that values that characterize the company are one of the most important components for success. They should be focused on achieving certain commercial and social goals, as well as the quality of goods or services.
References
Paine, L. S. (2003). Value shift: Why companies must merge social and financial imperatives to achieve superior performance. McGraw Hill Professional.