Every organisation has a destiny, which it can reach by using the right direction and values. Organisations have value statements, which are used to show what an organisation stands for; that is, the values that guide it towards its goals and objectives. Exelon Corporation; the largest nuclear power generator in the US, is also guided by the value statement in its provision of energy to the public.
These values include diversity, integrity and safety, environmentalism, leadership, accountability and volunteerism. These values define the guiding principle that the corporation uses in relation to its customers and employees. According to Slack, Orife and Anderson (2010), the satisfaction of the employees depends on how the company is committed to its corporate vision (p.421).
Other companies’ value statements include Microsoft Company “As a company we value integrity, openness, honesty, personal excellence, constructive self criticism, continues self improvement and mutual respect” (Verma, 2009. p.155).
Another example is Starbucks Corporation, which stands for the following: “Embracing diversity, provide great work environment, roasting and fresh delivery of coffee, develop satisfied customer and contribute positively to the environment and community at large” (Verma, 2009, p.155).
One of the main strengths of a value statement is that it shows the employees and customers of the company its commitment towards realisations of goals and objectives for their benefit. For instance, Exelon Corporation being an energy generating company will like to show its commitment to environmental preservation and safety of its employees to the public and its customers.
However, many companies have set values and standards, which they have not managed to achieve, thus compromising their value statements. For instance, many companies have been caught up in corporate scandals in the recent past, which shows a compromise of what they stand for.
In a recap, value statement shows the principles that will guide the company in pursuance of its mission and vision. Thus, they are very important in the strategic planning process. As Gilbert (2010, p.6) postulates, it is the role of the company’s manager to ensure that its values are followed.
References
Gilbert, M. (2010). How is Our Leadership Serving the Highest Vision of Our Planet? Integral Leadership Review, 10 (3), 1-8.
Slack, F., Orife, J. & Anderson, F. (2010). Effects of Commitment to Corporate Vision on Employee Satisfaction with their Organization: An Empirical Study in The United States. International Journal of Management, 27 (3), 421-436.
Verma, H. V. (2009). Mission statements- a study of intent and influence. Journal of Services Research, 9 (2), 153-172.