Ethical Values are Good For Business (Part 2)

By Linda Fisher Thornton

In Part 1 of this series “Ethical Values Are Good For Business” I shared the importance of clearing up the confusion employees have in balancing ethical values with bottom line profitability. In Part 2, I’ll address the importance of aligning strategy with the organization’s values.

Only When Strategy and Ethics Align

Ethical values are good for business, but only when values and strategy align. Consumers are seeking brands that support well-being, sustainability, and social justice, realizing that these brands are more likely to have the best interests of consumers and society at heart. Because of this, brands will benefit from assessing their alignment between values, culture, and strategy.

Strategy development may have been done without values integration in the past, but times have changed. There are many more variables that need to be considered beyond financial gains, and those organizations that fail to attend to this important shift may miss out on the very financial gains they seek.

The strategies for building values-infused strategy are different from the ways companies have developed traditional strategies. David Lancefield writes in Practicing strategy in an uncertain world (s+b) that “strategy should be conceived, developed, and executed in a more inclusive, dynamic, creative, and experimental way.” Lancefield also suggests that strategy should be created in the context of today’s industry ecosystems, which might mean taking into consideration the connectedness and interdependency of the organization with its partners, sponsors, and suppliers.

To create a strategy that works, consider the organization’s values, culture, connections and stakeholders, and broader impact as well as trends outside the organization that will impact its ultimate success.