Values play a vital role in business affairs in the following ways :
- Corporate Culture: As stated earlier, an effective value system creates a strong corporate culture which is necessary for high performance and growth in business. Companies have given excellent performance year after year follow high corporate values such as “Customer is the king”, “People are our biggest assets”. etc.
- Ends Means Chain: Value help to establish proper relationship between business goals and means. When business adopts well-considered social values, its goals are socially justifiable. Business values are useful for determining socially worthwhile goals which in turn determine sound business practices for attaining these goals.
- Guides to Action: Business values serve as social guides to decisions and actions in business. These values provide the right answers to the basic question as to what is good business ? Values are universal in nature and indicate to businessmen the right behavior.
- Objective Standards: Business values serve objective standards or norms against which the conduct of businessmen and their performance can be judged.
- Social Responsibility: Business has social obligations. Business values help to persuade businessmen to discharge their social obligations. Business firms follow ethical norms to fulfill their responsibilities to different section of society.