Corporate values

By Celina Chew
Published on July 11, 2011

The values of a company define its character - who it is, what it stands for, what it believes in and how it treats its stakeholders and the environment in which it operates. It is rare today for a multinational company not to have a formal statement of its corporate values. Although the direct link between values and business performance is hard to measure, most companies believe that they need to demonstrate strong corporate values. This is especially important for reputation and risk management; strong, clear corporate values enhance brand and reputation building, recruitment and retention, and often serve as a shield in managing risk in increasingly complex legal and regulatory environments.

In the article "The Value of Corporate Values", Reggie Van Lee, Lisa Fabish and Nancy McGraw describe "values" as a company's "institutional standards of behaviour". After defining such values, companies try to embed them in the company's practices in the hope that they will reinforce behaviours that benefit the company. This, in turn, will strengthen a company's commitment to its values.

However, merely having an articulated set of corporate values is not sufficient. If corporate values are not authentic or lived by the company, they can [according to Patrick M Lencioni in "Make Your Values Mean Something"] be destructive and not merely harmless, as some executives assume. He said: "Empty value statements create cynical and dispirited employees, alienate customers, and undermine managerial credibility".

Therefore, it is important to consider the following questions: What are your company's values? Have they been articulated in a simple, user-friendly way? Can your employees [or you] repeat them? Are your employees acting consistently with them?

Bayer recently re-formulated its corporate values, using the acronym "LIFE". Each letter stands for a value: L for Leadership, I for Integrity, F for Flexibility and E for Efficiency. Each value is further defined by a set of examples that reflect the essence of each value and give guidance to employees as to how each value is to be lived and applied in their daily work. The LIFE values also fit beautifully with our mission statement: "Bayer: Science for a Better Life", namely, innovating and inventing for solutions that improve society, especially, in the areas in which Bayer operates. Innovation and science are part of Bayer's corporate DNA. We reformulated our corporate values to make them easier to remember, more focused and more user-friendly.

The corporate values of many companies reflect similar concepts like integrity, collaboration, teamwork, innovation, openness and honesty, focus on customers. It is therefore important to breathe life into corporate values and integrate them into every business-related activity undertaken by the company's employees. They should be embedded in the company's processes, from recruitment to performance management, from research to production. In other words, corporate values should be applied by employees when conducting the company's business as well as dealing with colleagues, business partners and stakeholders. Employees should be measured against such corporate values to ensure that corporate values form the basis for every decision made in the company.

Bayer's aspiration is that every employee will apply the LIFE values as a check-list for every business-related activity. In order to ensure that the LIFE values are interpreted, understood and lived consistently in the company, open and candid dialogue between management and employees about LIFE has been implemented in the form of structured discussions and workshops, and the sharing of LIFE stories and anecdotes. Employees are encouraged to be creative and inspiring in the way they live LIFE and make it relevant in their daily work.

Corporate values define a company's character and influence the success of a company by providing a set of shared fundamental beliefs that gives a cohesive and consistent direction for the company. To borrow the words of James C. Collins and Jerry I. Porras ("Building Your Company's Vision"), "it is more important to know who you are than where you are going, for where you are going will change as the world around you changes…. Leaders die, products become obsolete, markets change, new technologies emerge, and management fads come and go but core ideology should ensure as a source of guidance and inspiration". Corporate values can guide and inspire if they are well articulated, well embedded and authentic.

Celina Chew is senior Bayer representative for the Country Group North Asean and managing director of Bayer Thai.

Source: http://www.nationmultimedia.com/home/2011/07/11/business/Hi!-Managers-Corporate-values-30159942.html

'Banpu Spirit' Benefits long-term growth

Published: 22/10/2009 at 12:00 AM
Newspaper section: Business

Upon arrival at the head office of Banpu Plc, I noticed four small symbols everywhere. From my conversation with CEO Chanin Vongkusolkit, I learned these symbols represent Banpu's corporate values or "Banpu Spirit": Innovation, Integrity, Care and Synergy. These are considered the foundation of Banpu's business practice.

"We identified the Banpu Spirit back in 2004. Since then, we have worked hard to embed the Banpu Spirit in our team members at all locations," Mr Chanin told me.

Growth strategy through partnership: Mr Chanin is concerned about three challenges in the future: regulations, market demand and asset prices. "In the past, we grew by taking over other power plants and mining businesses. However, lately investors are more interested in commodities because of higher asset prices. Hence, it is not as easy to expand as before".

Through the years, Banpu has been involved in business partnerships with both Asian and Western countries. "In 1996, we got permission under the IPP (Independent Power Producer) programme for the 1,400-megawatt BCLP power plant at Rayong. The project was delayed by the 1997 economic crisis, but is now running smoothly after opening in 2006. Integrity is the key to a good working relationship with partners," he said.

Diversity is also an issue when expanding regionally. Banpu has more than 4,000 employees in Australia, China, Indonesia and Thailand, but only 10% of its workforce is in Thailand. "In order to manage a diverse workplace, you have to respect differences and have a proper business planning process that uses the same terminology for effective communication. Secondly, you have to properly measure business results. Finally, you have to have a reward system that is competitive within the industry."

Social contribution is a way of life: Banpu has been recognised for continuous social engagement before CSR was widely publicised. Banpu also claims its Thai operations have never caused a dispute with surrounding communities.

"Global warming is a major concern not only for senior management but also for me," said Mr Chanin. Both coal mining and coal-fired power plants cause a hot debate on the topic.

"It is the nature of our business to have gained some knowledge on this subject because we have to properly manage our operations. We wish to contribute to society by sharing what we have done."

When entering the Chinese market, Banpu set working conditions that have avoided the frequent incidents seen elsewhere in the Chinese mining industry. "We see room for improvement on environmental issues related to our business in China," he added.

Together everyone achieves more: Mr Chanin also believes a clear organisational chart supports effective operations and leads to team-building as employees increase their skills. New initiatives such as "knowledge-sharing sessions" can also mould everyone together as a team.

"Management must set an example with a high level of discipline and fairness toward subordinates. At the end of the day, everyone should hold the same beliefs and attitudes reflected in Banpu Spirit," he said.

Executive Briefcase has begun a series called "Executive Mind", sharing experiences from chief executives who have successfully managed their organisations. The author is a former CEO of the Thailand Management Association. He can be reached at sorayuth@trainprofessional.com

Source: http://www.bangkokpost.com/business/economics/26062/banpu-spirit-benefits-long-term-growth