Title: Understanding ethical values and economic value
Abstract: Values, this word has two meanings which cannot be said as mutually exclusive. In ethics, “values” denote orientations, standards and objectives which guide and drive people's actions. In economics, “value” is related with money and denote the exchange, utility and capitalised value of goods. The value is measured against demand, usefulness and relative rarity. “Value” also denotes the financial earning power of companies (shareholder value). Understanding of the terms “values” and “value creation” differs greatly. Value is not inherent in a commodity, but is rather a relation between persons and expressed as a relation between things. Value is what a customer is willing to pay for a product or service. Philosophers often use value as an attributive or a predicative. Sociologists or anthropologists, on the other hand, usually use value as a substantive. Examples of this include economic value, protected value, existence or preservation value, moral values or selforiented values, social values, capitalist values, liberal values, socialist values, green values and democratic values. Now a days, organisations try to create win-win situation in order to maximise all the types of “values”. Value creation in contemporary industrial business is a complex and multi-faceted issue in which new aspects are emerging. It is crucial to create processes that contribute to achieve appropriate fit between all types of values. There are organisations where ethical values are part of a positive strategy to achieve competitive advantage. Organizations need to be aware that ethical values and principles change over time and vary across contexts. The ethical aspects of business might form a new and critical source for value creation between companies acting in global business markets. This paper addresses the need for maintaining a balance between both the types that may help profit making businesses in maintaining their profitability levels.
Publication Year: 2012
Publication Date: 2012-01-01
Language: en
Type: article
Indexed In: ['crossref']
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