Values need to be driven by the Board

 

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A New Report from the UK Institute of Business Ethics (IBE) found that Boards need to set and maintain company values.

The author writes that “Culture affects a company’s ability to generate value. A strong culture makes for sustainable value creation. A weak one can destroy the business overnight. This why is boards must be involved and not simply relegate culture to compliance teams.”Directors have to understand how values influence the business model and what drives good behaviour by employees.”

Since values influence trust it is important for boards to understand trust and the role it plays in their company. Values are thus a primary task for boards, and an integral part of their governance role.

This totally in line with what I have always told audiences. Values influence behaviors and should be articulated into specific behaviors that staff could emulate or held accountable for.

Values are not just empty words on walls. They should be described, lived and measured.

Adherence to Values can go a long way to build Trust and ultimately Reputation.

For more information on Trust, read a New Paradigm for Organizational Trust. Also access this handy resource on trust: A Free and living Bibliography of Trust #trust – Essential for #OD & Reputation Managers

One thought on “Values need to be driven by the Board

  1. I am commenting on my own post.

    Values statements are often used by investigative journalists as a yardstick during investigations and exposes. After all values is a reflection of how a Board thinks!

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