• Values and Culture o Werner von Siemens: Bribed Russian officials in 1852→ Showed he had the ability to adapt to the values and culture. o Siemens: The GE of Europe→ having to pay mega fines today. o Reality: The game has changed since 1852, but the culture hasn’t.
• Values are the Foundation o Underlie ALL leadership problem-solving efforts o Values influence the aims, division, and prioritization of analytical work the choice of solutions, and their implementation.--> Values ties into very closely as to how you decide the best decision. o There must be some integrated value of solutions in order to find the most optimal decision. o Definition: Values: the principles, standards, or qualities you consider worthwhile or desirable.--> You and your company may value different things. o Some people use the word norm as a replacement for values o Norms: the principles of right action…. o Virtues: those special common values that a society deems right.
• Cardinal Virtues (Aristotle)
• Prudence: strong, steady disposition to choose appropriate means toward good ends.
• Justice: continuing commitment to render unto each her or her due
• Temperance: rational disciplining of desires
• Courage: enables to one to do the right thing despite the threat of personal injury or loss.
• What motivates you / business? o Cooperation (Aristotle) or Competition (Hobbes)? o These might lead to different norms (values) in a company. o Note: no industry, nation, or organization is entirely one way or the other. o In the absence of balance, disaster often follows.
• Perspective is Important o Social norms (values) are not global
• An overseas experience is vital
• Even in the US there are significant variations. o Ignoring societal norms (values) is done at great peril
• It was once common to accept that the only role of business was to maximize return for its shareholders.

• Values: A Look at Zappos o Employees, family o Risk-taking o WOW Philosophy: 10 Core Values
• Deliver WOW through Service
• Embrace and Drive Change
• Create fun and a little weirdness
• Be adventurous, creative, and open minded
• Pursue growth and learning
• Build open and honest relationships with communication
• Build a positive team and family spirit
• Do More with less
• Be passionate and determined
• Be Humbled o How do the core values of Zappos reflect the vale it places on its human capital?--> They clearly value their employees and want them to stay with company for awhile. Want them to demonstrate these values even when no one is looking. → During an interview, test the company about what their values are? And also do research on it. o What effects do core values have on the hiring practice of firms?--> Looking at what type of character you are, seeing if the core values of the firm are a good fit with the persons core values. o Will Amazon’s acquisition of Zappos create a clash of cultural values?
• Can be measured by consumer reviews, do the employees stay with the company (CEO of Zappos did stay with company) o J&J – The Credo
• What does Credo mean? → “Beliefs”
• When was it created?--> 1943 by Robert Woods Johnson
• What are the elements of the Credo?
• Responsibility to the shareholders, Quality, Reasonable price
• “Provide customers high-quality products at a fair price”
• “Treat employees with dignity and respect and pay them fairly.”
• “Be good corporate citizens and protect the environment”
• “Provide shareholders with a fair return”
• Illustrations (p. 14 and 93)→ New employees spent a full day talking about the Credo.
• “The purpose of business is to treat our customers good and if we do so, we will have a good profit returned”
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About the Personal Strategic Plan (Due Wednesday 9/3)
• Unexamined life is not worth living
• Purpose: Develop a better sense of self o Personal values and mission o Identify a quick hit improvement o SWOT Analysis
• Be sure to ask yourself “what are my