Importance of Business Values in an Organization


Business values are the set standards that an enterprise observes when dealing with its clients, employees, and other stakeholders. Organizations have to define their values and responsibilities as they establish the business relationship with other stakeholders. Top-level management in an organization decides the company values and responsibilities in the business environment. The following paper analyzes the “Reality Check Do Codes Make a Difference?” article to determine the critical issues addressed, and the key stakeholders involved. In addition, the discussion critiques this article’s views.

Main Article Issues

The author discusses the significant achievements of Johnson and Johnson Company and the ways the company’s operations have changed the business view of values and responsibilities. In 2011, the company had sales amounting to $65, which made it one of the profitable companies. The company CEO Ralph Larsen claimed that a firm that maintains a strong culture and value system would not only survive the harsh business environment but also make profits in the long run. J&J Company, success is attributed to its effective credo that addresses the company values and responsibilities. Lack of codes led to the legal suits against the company in 2012 for engaging in a misleading market promotion strategy.

The Mission statement of the company is not well defined. However, the company has a one-page document known as, “Our Credo,” which has guided the organization for over 60 years. The document defines the company’s responsibilities toward the employees, customers, society, and stakeholders. Our credo is written in over 36 languages to cover the cultural diversity of the organization’s workplace. This document states that the company’s responsibilities toward its clients extend beyond product production and marketing goals. The values of the company are to put the customers first, and the organization’s stakeholders last. Johnson believed that if the customer’s needs and expectations were met first, then the business would benefit. In 1982, the company brand name was tainted due to the TYLENOL crisis. However, the company managed the situation by applying the Credo values.

Importance of Values in an Organization

Johnson company ways of managing customers’ needs and expectations can be very useful for many organizations facing high competition. Customers’, values improve the consumers’ loyalty and ensure that the company’s products match the clients’ expectations. Business concern for the clients improves the sales revenue, which has been a major strength of the enterprise. During the troubled period, the business managers ought to refer to the company values as a guide to success.

Business values address the company’s ethical stance; they act as a tool of communication to the outside world of what the business stands for in the industry. They elaborate on ways that a company should handle different players in the organization. In case a conflict in decision-making develops, the managers can use business values to help them decide on the appropriate action.


The above article has failed to address some pertinent issues in business values. First, the article emphasizes more on customers’ value to the organization and assumes other stakeholders such as suppliers’ value in a firm. Some of these stakeholders are as important as the clients are since; they too contribute to business growth. Finally, the article fails to acknowledge the importance of the mission statement in an organization.


In conclusion, organizational values are important for the firm during the decision-making process since; they guide the managers on the choices to make. Every firm must have an elaborate value statement that defines how the company will relate to other organizations’ stakeholders. Customers’ value increases an organization’s profit since it improves consumers’ loyalty.

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