Trisha T.

Dela Cruz
Master of Business Administration

Ethics of Business: Management and Leadership

Statement of Values

Values statements, or value statements, are the core, guiding principles of an organization; they
define what a company believes in and how people in the organization are expected to behave—
with each other, customers, vendors and other stakeholders

A values statement is, in essence, the moral direction of the organization that guides how it works,
makes decisions and takes action.

Example: If a crisis strikes and your company has a values statement, everyone knows how to
react, so it will reduce or lessen into a minimum level or this can be avoided. Remember that your
values statement will have an impact on all stakeholders of your firm from customers to investors.

It is used to both inform and guide the decisions and behaviors of the people inside the organization
and signal to external stakeholders what’s important to the company. An organization’s core values
shape daily culture and establish standards of conduct against which actions and decisions can be
assessed.

A values statement should be:

• Memorable
• Actionable
• Timeless

The format of the values statement depends on the organizations; some organizations use one, two
or three words to describe their core values while others provide a short phrase.

When drafting a values statement, some questions to consider include:

• What do we stand for?
• What behaviors do we value over all else?
• How will we conduct our activities to achieve our mission and vision?
• How do we treat members of our own organization and community?

What is the difference between a mission, vision and values statement?

It’s easy to confuse a values statement with a mission statement and vision statement, but they
reflect three very different aspects of who you are as a business.
Mission statements explain why your organization exists – why it was created in the first place.
Was it to help the community? Provide a service? Fulfill an unmet need? The mission statement
supports the vision and values statement and serves to communicate purpose and direction to
employee team members, customers and stakeholders.

Vision statements are forward-looking statements that state what an organization is striving to
achieve. This statement can include a problem the business is trying to solve. The vision statement
should inspire current and prospective employees and customers by showing its aspirations as an
organization.

Values statements explain what’s important to your organization, how you conduct business and
how you conduct yourselves. They are a guideline that helps demonstrate the type of company
culture you have and helps establish your brand reputation.

Processes how a company operates—including where it sources its products, how items are
delivered to customers, and the way employees are treated. There must always be a constant
process.

Examples of Values

1.

“We believe in conducting business honestly and ethically and it’s been that way since 1874.”

VISION
“To be a leading provider of innovative and energy efficient products used to heat, treat and
conserve water, providing value to our residential and commercial customers.”

MISSION
• Living our values with honesty and integrity
• Taking care of our customers
• Leading through innovation
• Investing in people and operational excellence
• Supplementing organic growth with strategic acquisitions

2.
STATEMENT OF VALUES (ADIDAS)
“At Adidas, we are rebellious optimists driven by action, with a desire to shape a better future
together”

VISION
“Adidas vision statement is to be the design leaders with a focus on getting the best out of the
athletes with performance guaranteed products in the sports market globally.”

MISSION
To be the best sports brand in the world. Every day, we come to work to create and sell the best
sports products in the world, and to offer the best service and consumer experience – and to do it
all in a sustainable way. We are the best when we are the credible, inclusive, and sustainable leader
in our industry.

3.

Vision Statement
“We uplift lives, impact society and help shape the nation.”

Mission Statement
• We pioneer concepts that promote integrated lifestyles in the townships we build.
• We advocate responsible stewardship of the environment.
• We deliver long-term value for our employees and shareholders.
• We spur economic growth all over the country.

The Company initially established a reputation for building high-end residential condominiums
and commercial properties in convenient urban locations with easy access to offices, leisure, and
entertainment amenities in Metro Manila.
Benefits of a Values Statement

1. Shapes Your Company Culture: While a mission and vision statement explain purpose
and goals, a values statement explains a company’s moral compass. As a company, If you
are the manager or supervisor you should give your people a baseline of expectations for
how to conduct themselves.

Ex. Customer service

2. Shows Transparency: A survey by Glassdoor showed that 90 percent of job seekers find
transparency an important quality in an organization. Being honest and open in your values
statement shows what kind of that company are you. Through this, it may encourage team
members to follow suit.

3. Helps With Recruitment: A clear and honest values statement will catch the eye of those
interested in working for your company, it easily gives prospective employees an
understanding of the type of environment in which they would work.

4. Can Increase Business: A values statement shows what your business stands for, and a
good values statement can set you apart from the competition. A company that embodies
its values statement is more likely to have longer-lasting relationships with its employees
and customers.

Code of Conduct and Ethics

The Company's Code of Business Conduct and Ethics is to deter misconduct and to promote,
among other things, honest and ethical behavior, as well as to ensure that the Company's business
is conducted in a consistently lawful and ethical manner to the maximum extent possible.

● A code of conduct directs the precise actions of a company's personnel. It may include
professional responsibility standards such as punctuality, dress code, break policy and
accuracy. Most businesses have an employee code of conduct in place to maintain
professionalism and to avoid employee conflict
● Code of Business Conduct and Ethics provides an orientation or training on ethical
behavior for both staff and supervisors. Leaders inside the organizations need to train their
employees in what is considered ethical behavior.
● To prevent conflict or harassment, a code of conduct could highlight ethical attitudes and
staff communication protocols, while also defining the repercussions for improper
behavior that violates the code.

Examples: Gift-giving and acceptance are two examples of ethical dilemmas that employees
encounter on a regular basis. This can sometimes be tricky to navigate because, in some
 cultures, small gifts are tokens of respect and gratitude. Accepting huge gifts may give the
impression of a bad relationship between the company and the beneficiary, and vice versa. To
reach a generally acceptable resolution, collaborate with management while consulting the
Code.

Importance of Code of Conduct

• With a code of conduct in place, the organization has a framework to inform

ethical decision-making for each and every stakeholder. While it is not a one-size-
fits-all answer to every problem an employee has, so through the code of conduct, it
demonstrates the organization's guiding values and assists employees in making better
decisions in their daily activities.

Example: public organizations are required to have a code of conduct in place.

Furthermore, if an employee engages in illegal activities while at work, a code of
conduct gives proof of justification that this employee committed violation of such
company’s policy.

By creating a code of conduct:

• The staff understands what rules and expectations management has. It defines how we
act while at work, how we communicate to both internal and external people.
• The organization has concrete company policies to help compliance. It can be the basis
for creating companies’ policy

Example: dress code, data privacy, confidentiality.

• Potential customers and business partners understand the values of the organization. So
through the Code of Conduct they will easily understand the value of your org if we
have a clear and transparent code of conduct.

Example: employee handbook

So far, we've focused on the internal consequences of a code of conduct. However,

developing a code of conduct can help you attract new clients. Showing the
principles that the firm believes in and supporting them up with actions can assist
potential customers develop a favorable and receptive mindset.
DIFFERENCES OF CODE OF CONDUCT AND CODE OF ETHICS

Code of Conduct

It offers principles defining the ethics of a business, but it also contains specific rules for employee
actions and behavior.

A code of conduct is closely related to a code of ethics, to the extent where the phrases are often
interchangeable. With similarities come differences. Both are used in an attempt to regulate
behavior in very different ways. A Code of Conduct is a set of rules that outline acceptable
behaviors and actions expected of employees within an organization. These rules often focus on
behavior in the workplace and may include areas such as discrimination, harassment, and conflicts
of interest.

Code of Ethics
Influence employee attitude and decision-making A code of ethics document may define the
business or organization's objective and values, how professionals are expected to handle
problems, ethical principles based on the organization's core values, and the standards to which
the professional is held.
For example, if a firm is committed to environmental protection and "being green," the code of
ethics will stipulate that each employee presented with a problem is expected to adopt the
“greenest” solution. It is based on the principle of "treat others as you would like to be treated. “

Common Types of Business Codes Of Ethics

Here are some common types of business codes of ethics that companies may use:
1. General Business Code of Ethics: A general business code of ethics is a comprehensive
set of ethical principles and guidelines that apply to all employees in the company. It
outlines the company's values, expectations, and standards of behavior for all aspects of
the business, including interactions with customers, vendors, and other stakeholders.
2. Industry-Specific Code of Ethics: An industry-specific code of ethics is tailored to the
specific industry in which the company operates. For example, a healthcare company may
have a code of ethics that addresses issues related to patient privacy and informed consent.
3. Functional Code of Ethics: A functional code of ethics is specific to a particular function
or department within the company. For example, a code of ethics for the finance
department may address issues related to financial reporting and the handling of
confidential financial information.
4. Supplier Code of Ethics: A supplier code of ethics outlines the ethical standards that the
company expects its suppliers and vendors to meet. This may include guidelines for labor
practices, environmental sustainability, and product safety.
5. Customer Code of Ethics: A customer code of ethics outlines the company's commitment
to ethical behavior and customer service. It may include guidelines for fair pricing, product
quality, and customer privacy.
Please note that these are just a few examples of the types of codes of ethics that businesses may
use. The specific type of code of ethics that a company uses will depend on its size, industry, and
business objectives.
Regardless of the type of code of ethics, the goal is to promote ethical behavior, foster a positive
work culture, and maintain the trust and respect of customers and stakeholders.

EXAMPLE OF CODE OF BUSINESS CONDUCT AND ETHICS

7
References:
Carlson, R. (2019). Company Values Statement as part of the Business plan. The Balance.
https://www.thebalancemoney.com/company-values-statement-as-part-of-the-business-plan-
393483#main
How to write mission, vision, and values statements - 100 examples to help guide you through the
process — Bâton Global. (n.d.). https://www.batonglobal.com/post/how-to-write-mission-vision-
and-values-statements-with-examples
Vision | Values | A. O. Smith Corp. (n.d.). https://www.aosmith.com/About/Vision-and-Values/
Megaworld Corporation | Vision, Mission and Values. (n.d.).
https://www.megaworldcorp.com/investors/company/mission-vision-and-values
MegaWorld Corporation | Corporate Profile. (n.d.).
https://www.megaworldcorp.com/investors/company/corporate-profile
Cylosoft, Inc. - www.cylosoft.com. (n.d.). Code of Business Conduct and Ethics Training outline.
https://www.hrclassroom.com/content/cobc.aspx
Code of Business Conduct and Ethics. (n.d.).
https://www.sec.gov/Archives/edgar/data/1094007/000119312504044901/dex14.htm
Valamis. (2023, June 17). Code of conduct. Valamis. https://www.valamis.com/hub/code-of-
conduct
Ayala Land Inc. (2022, June 6). Code of Conduct and Ethics - Ayala Land Investor Relations.
Ayala Land Investor Relations. https://ir.ayalaland.com.ph/corporate-governance/code-of-
conduct-and-ethics/
Business conduct and ethics. (n.d.). https://www.bpi.com.ph/about-bpi/governance/board-and-
governance/business-conduct-ethics