Values are important in society and business. Ethics is related to essential values but applied to business and work behaviors. We sometimes think values are only based in our religious or cultural perspective. Many times values are skewed in the interest of ourselves. We run into a situation where values are highly subjective and in turn we are slowly damaging our long term prospects through human capital erosion.
Let me give you an example. In businesses we often think that values are about winning at all costs and returning shareholder wealth above all else. While winning can lead to increase in shareholder value is can also lead to major declines. Those declines can come in terms of lost customer trust and/or human capital decline.
For example, an executive may win a huge bonus and gain a contract by using misleading information. It isn't a problem until a few years later when they can't deliver on those promises. One could say the same for a construction company that uses inferior materials even though they know its wrong.
We run into a situation where values are distorted for political, personal, and business gain. When we don't think wider we often miss the importance of values to society and to the entire economy. Business transactions and our entire economy is based in trust that roots to our universal values.
Another examples is when society rewards those who do the wrong thing or those who are rewarded through nepotism. When this occurs you begin to erode the foundations of our society. We become tribal and the friction between classes rise as some take all and few others receive much.
Rewarding only certain individuals within a company, society, or government when they are not actually earning those rewards when compared objectively to others destroys that trust. It also erodes our competitiveness because performance and rewards are not connected (nepotism destroys human capital development).
I have seen it. People who want something take it, those who shouldn't be promoted are moved up, those who stand up for values are squashed, the mindful suppressed and the ignorant empowered (through rewards, praise, poor justice, or social pressure), etc., etc., etc. That doesn't neglect the very smart government officials, business leaders, and investors that live their values in their activities.
A big problem is that its difficult to gain commitments from some leaders, politicians and executive officers because the sometimes there is short term thinking. It is important for them to influencers to move from talking about values (the subjective values that help them and their social groups-Trees) to enacted values (That which pushes all of society forward-Forest).
If we want a powerful society we will need to ensure that we aren't just rewarding our friends and those with the wrong values but ensuring we are creating societal motivation by rewarding good behavior and supporting those who earned their keep through actual performance. While nepotism is common in many societies (greasing palms), and a dangerous long term practice, we should actively seek to draw in the new and the talented. Why the best and brightest must move up beyond those in the connected for long term health of companies and country.
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