How important are values to your business?

[MatthewSBN]

The founder of a smoked hummus company this week explained to us why sticking to her beliefs has made her business a success.

Co-founder of Ben & Jerry's ice-cream, Jerry Greenfield, also shares this view, priding his company's global triumph on the values at the core of his business.

But is staying true to your values really that important when going into business? Or should you expect to compromise on your beliefs in the interest of turning a profit?

 

[Nuno]

Sometimes I wonder if Ben & Jerry's "global triumph" is at all connected with them selling their company to Unilever in 2000.

(Thats the Unilever with 170,000 employees and 2012 revenue of 51 billion euros, Unilever.)

There's purity in that there marketing muscle. Or value anyway.

 

[fisicx]

But is staying true to your values really that important when going into business?

Only if those values result in a profit. No point is sticking to your values if you are going to go bust because of them.

Ben and Jerry sold out. No amount of spin can hide the fact that they did it for the money. It had nothing to do with their perceives values.

 

[sebsuma]

yes it is important to stick to your values right up until you sell or retire. If you don't people will realise that you are not staying true to your words and will go elsewhere

 

[sebsuma]

Your values shouldn't effect your profit in reply to fisicx. If a value is treating an employee well and you start making a loss should you treat them badly?

 

[Nuno]

yes it is important to stick to your values right up until you sell or retire. If you don't people will realise that you are not staying true to your words and will go elsewhere

Yup. After you sell or retire go apeshit crazy. They weren't real values were they? Just values like a hooker's smile. 'Values-lite ~ now with extra sincerity.'

Your values shouldn't effect your profit in reply to fisicx. If a value is treating an employee well and you start making a loss should you treat them badly?

If you make a loss you won't have any employees to treat well or badly will you?

 

[businessfunding]

Ban & Jerry is really a terrible example I'm afraid.

They launched a big and noisy campaign against Hagen Dazs for restrictive practices and immediately after instituted exactly the same practices.

In most businesses values can equate to common sense - your biggest value is you existing customer, so don't rip them off or p!ss then off!

 

yes it is important to stick to your values right up until you sell or retire. If you don't people will realise that you are not staying true to your words and will go elsewhere

Not if you sell cheap enough.

There is not a lot more honest in business than the price.

 

[entreb]

Core values are vital to business success because they serve as the heart of our business. We may have plans in mind, but if we don't have to strong and consistent desire to accomplish it, our business cannot succeed.

 

[ZedS]

A strong set of values should be the foundation of any business. Sadly it seems that today, that's what sets small businesses apart from many larger corporations. Forgive the sweeping statement but it just seems that smaller companies value and honour their customers more - unlike the top dogs, for them it's all about profits, at whatever expense.

 

[Paul_Rosser]

The founder of a smoked hummus company this week explained to us why sticking to her beliefs has made her business a success.

Co-founder of Ben & Jerry's ice-cream, Jerry Greenfield, also shares this view, priding his company's global triumph on the values at the core of his business.

But is staying true to your values really that important when going into business? Or should you expect to compromise on your beliefs in the interest of turning a profit?

Values and beliefs are two different things.

A companies values are defined by the people running the company, if it's more than one person then they need to find a set of common values for the business based on each of their personal values.

Once a company has clearly defined values then all business decisions should be made based on these, including only ever hiring staff with similar values.

Beliefs are things you believe to be true based on your own experience and level of understanding at that time.

Values very rarely change but your beliefs should.

 

[cjd]

The Mafia has very strong values. As does the Taliban. Both successful organisations.

I'm not too sure about Google's 'Do no Evil' values either.

Personally, I think you can't go far wrong with 'do as you would be done by'

 

[Paul_Rosser]

The Mafia has very strong values. As does the Taliban. Both successful organisations.

I'm not too sure about Google's 'Do no Evil' values either.

Personally, I think you can't go far wrong with 'do as you would be done by'

Thats the problem everyone wants to think they have "good" values and in a lot of cases it's simply not true.

Companies spend a lot of time and effort in deciding their values should be all about good customer service, caring about their staff etc. When in reality they couldn't care less about these things and are just interested in making money and having something which sounds good on their website.

You can't choose your values, you already have them you just need to work out what they are and which ones should apply to your business.

 

[Ian J]

I am a specialist factoring broker and my recommendations are only ever given in the best interests of my client.

Unfortunately there are very few of us "gentlemen brokers" around as too many are owned by insolvency practitioners who only introduce clients to the factoring companies that reciprocate with lucrative insolvency work or else have another income stream auditing clients on behalf of factoring companies and only dole out their leads to the factors that reciprocate or else demand ludicrously high introductory commissions and only deal with the few factoring companies that will pay them.

I'm sure that I could double my income if I let greed get the better of my personal values

 

[Ogs Logs]

If you can make your values = profit then you're on to a winner.

We wouldn't betray our values in exchange for profit.

 

[ludwig]

I have a small wholesale plant business selling to garden centres. I have strict principles on quality and sustainability. I work tirelessly to ensure that my product is the best, my prices keen and my service unbeatable. Some of my customers get it. Others do not give a damn and are happy to bring in plants that have been shipped half way around the world and passed through many hands because they are seduced by dealing with a bigger company. I have worked myself to the point of exhaustion this year and I am repaid with late payments and in some cases the replacement of my plants in favour of poorer, less hardy and more expensive produce from around the world. Despite this I cannot let go of my principals. I would not be happy selling an inferior product or one that is produced in a way that I do not think is sustainable. So.... I would say that it might not be the best for your business but if you are principled in nature then you have no choice but to be true to yourself.

 

[Jeff Nev]

I agree with ZedS, the foundations of a business is what keeps it running because they are the things that drive the businesses in the end. For small businesses especially, nobody will deal with a small business with bad principles, they will only deal with larger corrupt ones because they have a greater power.

Jeff

 

[RichardAskew]

I very strongly believe that we live and die by our values. If you lose your reputation you have nothing, we don't want to get business once but time and time again.

Especially in the social age, it is more important than ever, if you don't behave correctly 20,000 people could be aware in seconds.

 

[jack_sparrow]

I think it depends on the business. Sometimes people buy something, because they believe in the message it brings. Values are extremely powerful.

 

[GelatoChef]

Your values shouldn't effect your profit in reply to fisicx. If a value is treating an employee well and you start making a loss should you treat them badly?

I'd be interested in hearing examples of how treating your employees well ever results in a loss specifically due to that as a value...

 

[jv43]

I think the question we should ask ourselves is not "should the company stick to its values" but more "what values should a company have and how should they be determined?"
The guy at the head of a large corporations often thinks he's doing loads for society just because he's creating a strong dividend for shareholders. A whole corporation might have values that are completely miss aligned with the ones of society. Unfortunately I don't think that is a real problem. Many examples show that scandals barely affect the performance of a company, especially if it is doing well anyway. Nobody cared the production of our Iphone's pushed people to suicide. Apple was still recognised as the most valuable brand in the world by forbes the year after. And they're just an example.

 

[Paul_Rosser]

I think the question we should ask ourselves is not "should the company stick to its values" but more "what values should a company have and how should they be determined?"
.

Every person already has their own personal values and in a single owner business the owners personal values will decide what the companies values are.

Where there is more than one owner a common set of values should be decided based on each of their personal values, if the owners find that they have few or no common values then they really shouldn't be in business together as it won't end well.

 

[jv43]

Every person already has their own personal values and in a single owner business the owners personal values will decide what the companies values are.

Where there is more than one owner a common set of values should be decided based on each of their personal values, if the owners find that they have few or no common values then they really shouldn't be in business together as it won't end well.

I don't really agree that values are "already there" within a person. I feel they evolve and are a result of what we see and learn. Maybe the principles & beliefs are more adapted terms. However, I still feel that it is interesting for us to understand what dynamics influence the ethical attitude of companies today. I feel that extreme competitiveness and the short-termism of financial markets often lead businesses to disregard what most of us would consider a minimal ethical conduct. Is Ben & Jerry's successful because they sticked to the values of their founders? Maybe... but it's not necessarily the case. Nestle are very far from the values of Henry Nestle but are still of the largest and most successful food manufacturer in the world.

 

[Paul_Rosser]

I don't really agree that values are "already there" within a person. I feel they evolve and are a result of what we see and learn. Maybe the principles & beliefs are more adapted terms..

It's actually the other way round, beliefs often change and values don't.

What you believe to be true at this moment in time is based upon your experience, which may change as your experience does.

Values are those core things which make you who you are, trust, honesty, greed etc.

Most of the books say there are no bad values, so a company based on greed and dishonesty will do well provided everyone who works there has the same values.

I personally disagree with that but think a company can't just create a set of whats perceived as "good" values unless they are actually true and apply to everyone from the top down.

When employing staff the most important thing is to ensure they have similar values to the company, but most put much more importance on the persons skills and just assume they will fit in.

 

[The web design girl]

Hi guys. I think values and beliefs are so important. They make us who we are. We are in charge of our own business's and so our companies should reflect us. We control it and not the other way round. High values are what brings customers back and maintains our pride in our work. I run a web design company and there have been times were I have turned down work that conflicted with my beliefs. This sense of pride gives me a boost. Knowing that I got were I am without compromise is good. This reflects well in our company reputation. I would rather have a bit less profit and no regrets.

 

[jv43]

Hi guys. I think values and beliefs are so important. They make us who we are. We are in charge of our own business's and so our companies should reflect us. We control it and not the other way round. High values are what brings customers back and maintains our pride in our work. I run a web design company and there have been times were I have turned down work that conflicted with my beliefs. This sense of pride gives me a boost. Knowing that I got were I am without compromise is good. This reflects well in our company reputation. I would rather have a bit less profit and no regrets.

Agreed! but I must say I feel this is only for small business where there is a clear leader and his values are what makes the work meaningful; for him/her and for employees.

But as soon as you look at larger corporations its a completely different story. People don't even realise how harmful and unethical their actions can be since the task is so divided and they are under so much pressure, it's difficult to step back and see. Going back to Nestle, who's infant milk was related to the death of babies in developing countries because Nestle allegedly convinced mothers that it was better for their babies than breast milk (this kind of publicity for infant formula is illegal in the western world). However, the guy doing the marketing campaign in Switzerland had no understanding of the reports on the region and the risk of infant milk there, the guy in the factory doesn't even know where it is going, etc....

However, these companies still work really well because they have great marketing, including internal marketing making their employees believe they are doing something good!

 

[Paul_Rosser]

Agreed! but I must say I feel this is only for small business where there is a clear leader and his values are what makes the work meaningful; for him/her and for employees.

I disagree, provided the owners of the business have a common set of values and only employ staff with the same or similar then it can apply to any company.

One good example being Asda who choose all their staff based on values not skills and are consistently voted one of the best places to work.

Obviously it's a lot easier if you understand values prior to employing people as it's a lot harder to re-structure an existing company than getting it right in the first place.

 

[jv43]

I disagree, provided the owners of the business have a common set of values and only employ staff with the same or similar then it can apply to any company.

One good example being Asda who choose all their staff based on values not skills and are consistently voted one of the best places to work.

Obviously it's a lot easier if you understand values prior to employing people as it's a lot harder to re-structure an existing company than getting it right in the first place.

I must say I was not aware of the history of Asda and I will read up more on the way they choose staff. However, speaking of owners Asda now bellonging to Walmart will must probably not have the same set of values, especially considering all the ethical issues Walmart has been facing.

Just like I used Nestle, I think it it possible to find counter examples. While these might both be opposite extremes, I feel that there's very little corporations, especially if listed on a large stock exchange that have the ability to maintain high values, simply because of the sheer pressure to focus on short term profits for shareholders. It is going back to your idea of owners sharing the right values.

 

[fisicx]

So if my values are to rip people off for as much as I can get away with and only pey people in cash so I can avoid tax and VAT then is that OK. If my values include refusing to sell to anyone who isn't chinese or to sell fake watches from a market stall does that make my values important?

This is one of those fatuous arguements that only works if those in the discussion all have the same values and beliefs.

 

[HorseLatitudes]

Values and business don't mix in my opinion (well in successful business anyway).

I'm not sure I can think of a single person who 'got to the top' by being nice.

But then again, I don't run my own business so I may be wrong.

 

[The web design girl]

Hi, I have been self employed for years. After working for Harrods from age 16-18 i set my own business. It s very successful and I make sure that I am ALWAYS NICE Unlike a lot of web design companies my client base is largely returning customers. I receive more work through word of mouth recommendations then any other form of advertising. Being the kind of person who's values are to rip people off won't stay in business long enough for it to be successful. I do agree that the larger a company is the easier it is to loose the values that were initially important. But that's the great thing of running our own small business, we are in control of our actions.

 

[fisicx]

Being the kind of person who's values are to rip people off won't stay in business long enough for it to be successful.

Really? I know of a good number of webdesign companies who rip people off and are very successful. There are a lot of large multinationals whose ethics and values are very questionable but still mange to rake in billions every year.

 

[The web design girl]

Yes, really. It works for me anyway. I think people are taking a stand more. RyanAir are known for being rubbish and unfriendly. They thought they could get away with it as there flights were cheap, but now they are paying the price. They are acing to change their image as people have been willing to pay for more expensive flights from 'nicer companies'. Even in these economic times Supermarkets such as Waitrose are booming, expanding and opening up more stores. Waitrose is a much 'nicer' place to shop than Asda. But I do value your opinion

 

[The web design girl]

Sorry, their flights!

 

[Paul_Rosser]

Values and business don't mix in my opinion (well in successful business anyway).

I'm not sure I can think of a single person who 'got to the top' by being nice.

But then again, I don't run my own business so I may be wrong.

Your values can be around greed and the accumulation of money and provided everyone in your company shares them then you will do well.

People seem to think values have to be "good" ones like honesty, integrity etc. and while a lot of firms do put things like that on their website to make them look good it's often very far from the truth.

Regardless of what your values are it's important to work them out and understand them as when people really upset you it's usually because they have violated one of your values.

 

[Paul_Rosser]

So if my values are to rip people off for as much as I can get away with and only pey people in cash so I can avoid tax and VAT then is that OK. If my values include refusing to sell to anyone who isn't chinese or to sell fake watches from a market stall does that make my values important?

This is one of those fatuous arguements that only works if those in the discussion all have the same values and beliefs.

If those are your values and you live by them, then you will be happy and if you only employ staff who share your values then they will also be happy.

 

[HorseLatitudes]

I hadn't thought of it that way actually.

 

[Paul_Rosser]

It took me a few months of coaching to really understand values, some people it takes years.

But understanding how important values are and the effect when someone violates one of yours is really useful.

 

[SolutionLab]

Fisicx, there's two side of the web design argument. Being good in itself is not that useful from a business point of view because it often means lower profit margins because one doesn't scam people on hosting and more work because it implies one actually tries to do a good job.

However, in theory, doing a good job helps you on the long-term and in a free market economy one assumes that is good for business.

Where it all breaks down is on the client side because of information problems, specifically informational asymmetry. Because many small businesses don't really want to get involved with the design process and treat it as an "IT thing", they never get informed as to what constitutes a good website and what doesn't. Which in turn means the huge amount of design agencies which just slap WordPress and a theme together are still doing ok. There are several Nobel laureates in economics explaining why that is (including the latest if I'm not mistaken).

As for Web Design Girl, there's nice and there's nice. Most bastards I met in my life were very nice people - as long as it benefited them. Which goes for companies as well, cue Dove's Natural Beauty rubbish or the fact that these are the same nice people who sell Axe - just like the nice people who make the Hannah-Barbera cartoons for kids also sell Nuts. All nice people.

Anyway, that said, values are important and not just the mission statement type or the branding type. Values are the heuristics through which we as people understand the world around us and make decisions faster, so for practical purposes we are hard-wired to have values. The nice people at Dove also have values : financial success. In turn, these values paint the world as we see it and will thus inevitably reflect in the way we do business and react to our situation. What we often do, is confuse the term “values” with, say, “Judeo-Christian values” or,say, “Buddhist values”, forgetting that “values” is just a neurological machine that will run on whatever we put in there.

 

[ryedale]

Really? I know of a good number of webdesign companies who rip people off and are very successful. There are a lot of large multinationals whose ethics and values are very questionable but still mange to rake in billions every year.

I've dealt with a lot of companies like this in the past that clients have previously been with.. companies that are charging people £90 for a .co.uk renewal or £150 to change 2 lines of text on one page and so on

In most cases, they seem to be successful because they have vast amounts of funding to throw at Ad-Words or other advertising campaigns and they suck people in with false promises, preying particularly on small businesses that don't know better or don't do their research and tie them in with crazy contracts that don't get read properly

There's been plenty of occasions when we could have ripped clients off massively and made a lot more money but I'd rather treat other small businesses the way I'd like to by treated myself even if that doesn't make me super rich! and I think clients respect that. We haven't had to advertise in any form for over three years, everything comes from word of mouth referrals or repeat work and I'd much rather it was that way.