The values construct has been widely promoted as a basis for understanding the priorities and underpinning beliefs of organizations (Rokeach
1968). In particular, espoused values have been positioned as a critical element in the way that organizations deal with the need for cohesion and performance (Kabanoff et al.
1995) and as a basis for understanding the way in which ethical business issues are considered and addressed (Pruzan
2001). Espoused values are those ‘determined by the top management team … often stated explicitly in corporate documents’ (Bansal
2003, p. 520). Over the past two decades, an increasing number of organizations, both profit and not-for-profit, have explicitly espoused their values on their websites. In a study of values relevant to business research, McDonald and Gandz (
1991) reported that just three of the 32 organizations investigated were able to provide the authors with any documented list of values. Some 25 years later, almost eight out of ten US and UK organizations devoted web space to communicating their espoused values. Espoused values are distinct from other forms of organizational values including those that may be enacted (Howell et al.
2012), attributed to the organization, or shared amongst members (Bourne and Jenkins
2013). Recently, espoused values have been linked to organizational performance (Jonsen et al.
2015), social integration (Grøgaard and Colman
2016) and organizational commitment (Howell et al.
2012). At the same time, espoused values are acknowledged to involve a degree of impression management and sensitivity to cultural norms (Kabanoff and Daly
2002; Zander et al.
2016).
The impact of espoused values on organizational actions and their recent prominence on organization websites suggests that they should be a matter of academic interest and that it is timely to explore the phenomenon. The purpose of this paper is threefold: to construct an inventory of espoused values that captures the actual terms used by organizations on their websites; to explore relations between these value categories in order to build a conceptual map of espoused values; and to consider the ethical implications of this for organizing and organizations. We present an extensive inventory of espoused values, built from the words and phrases that are explicitly used by profit and not-for-profit organizations in the UK and the USA. The inventory, together with its synonyms, is grounded in the contemporary lexicon of a range of organizations and so is sufficiently comprehensive to capture value terms relevant to a variety of contexts. We then present an underlying structure of espoused values developed empirically through the aggregated judgements of 53 individuals working in a range of organizations by applying non-metric multidimensional scaling (MDS). The resulting map reveals a structural arrangement of espoused values that allows us to compare this with other structural arrangements in the organizational and individual values literature, and to consider the wider implications for ethical practices in organizations.
The paper is organized as follows. First, we review the literature on organizational values with a specific emphasis on espoused values and summarize the principal empirical studies that have contributed to our understanding. From there, we position the study of espoused values in the context of the wider work on organizational values and their structure. After an outline of our research design, we develop an approach that integrates a comprehensive inventory into a map of espoused organizational values, which we discuss in relation to earlier work. We go on to consider how such a framework can help our understanding of ethical practices in organizations and finally, we consider the limitations of this work and suggest further research that will build upon it.
Organizational Values
Organizational values have been positioned as central to concepts such as culture (Gagliardi
1986; Schein
1985) and organizational identity (Gioia et al.
2000; Scott and Lane
2000), and have been linked with other fields of organizational research including strategy (Bansal
2003; Carlisle and Baden-Fuller
2004), change (Burnes and Jackson
2011; Kabanoff et al.
1995) and leadership (Cha and Edmondson
2006; Stadler and Hinterhuber
2005). Comparing and contrasting the values of individuals and their organization has advanced understanding of the problems and challenges relating to person–organization fit (Cable and Edwards
2004; Kristof
1996), commitment (Finegan
2000; Stride and Higgs
2013) and employee attitudes (Ostroff et al.
2005). Organization values are associated with corporate governance (Kabanoff and Nesbit
1997; Nohria and Ghoshal
1994), relationships with external constituents (Voss et al.
2000), ethical behaviour (Auster and Freeman
2013; Pruzan
2001) and firm performance (Jonsen et al.
2015). In short, organizational values are associated with a wide range of organizational phenomena, actions, orientations and outcomes.
Organizational values are different from, but related to, individual, cultural and societal values. Schwartz (
1992) showed that the values of individuals arise out of psychological and social needs and are structured such that types of values are more or less compatible with one another, with the implication that individuals endorse certain values and reject those that are essentially opposite in nature. Cultural distinctions in values are revealed through the aggregation of the value priorities of individuals within the culture (Rokeach
1973; Schwartz
1992), while societal values are shaped by those in power (d’Andrade
2008) and represent that society’s concerns and beliefs with regard to the effective functioning of its institutions (Fischer et al.
2010).
The first values of an organization are typically initiated by and reflect the individual values of the founders (Schein
1985). These initial values are sustained by organizational members (Zander et al.
2016), become embedded and reinforced through organizational structures and practices (Buenger et al.
1996) and modified from time to time in response to external or internal change (Amis et al.
2002). Organizational values, generally, include forms that reflect individual values of founders, aggregated ‘shared’ values of groups of members, those attributed to the organization, embedded in structures and processes, and those that represent collective concerns and beliefs with regard to its effective functioning, sanctioned and espoused by senior managers (Bourne and Jenkins
2013).
Espoused values therefore have a significant role in representing the intent of organizations to operate in particular ways and to encourage particular behaviours from organizational members. In this sense, they are aligned to the concept of business codes which represent the various codes of ethics, codes of practice and corporate ethics statements made by organizations which may impact ethical behaviour and performance (Kaptein and Schwartz
2008; Scholtens and Dam
2007). In recent years, espoused values have been linked directly to a number of organizational outcomes. Jonsen et al. (
2015) suggest that espousing differential values improved financial performance through impression management, employee fit and clarity in focus. Meanwhile, Grøgaard and Colman (
2016) found that despite—or perhaps because of—widespread local interpretation of the meaning and significance of espoused values amongst a MNE’s subsidiaries, they had a positive impact on social integration. Similarly, Howell et al. (
2012) found affective commitment to an organization increased when members perceived congruence between its espoused and enacted values. Conversely, however, they found affective commitment decreased when espoused values were not widely shared.
This last point brings to attention the extent to which espoused values can be viewed as accurate representations of prioritized values in organizations. Kabanoff and Daly (
2002, p. 90) allude to this in their description of espoused values as those that ‘reflect what senior managers actually believe their organization to be like, what they would like or prefer their organizations to be like, or what they would like significant stakeholders to believe the organization is like’. This description acknowledges the opportunity for impression management and conformity to social expectations. Because of the public nature of espoused values, senior managers are likely to be sensitive to cultural norms so emphasize more socially desirable values, exclude those that are undesirable and over-claim the most desirable and under-claim the least (Crane
1999; Randall and Fernandes
1991). Espoused values, therefore, may be somewhat sanitized both in what they include and in what is left out and so can only be an incomplete representation of the values of the organization (Zander et al.
2016). However, their partiality is an important organizational phenomenon; what is included and omitted is an indication of the way in which senior managers intend their organization both to operate and to be seen to be operating.
Regardless of the underlying intentions of espousing values, their presence on official websites will have an impact on the way that internal and external stakeholders perceive the organization. Making such values explicit allows obvious contradictions between espoused values and the actions of organizations to be exposed, while employees, customers and other stakeholders may self-select on the basis of their perceived congruence with the values (Grøgaard and Colman
2016; Jonsen et al.
2015). The case of US Energy conglomerate Enron, which filed for bankruptcy in 2002, was a notorious example of how the espoused values of an organization (in Enron’s case these were Respect, Integrity, Communications and Excellence) were completely at odds with the values enacted by the organization in its daily operations (Kunen
2002; Lencioni
2002).
Espoused values are manifestations of senior managers’ concerns for the effective functioning of their organization, and, as such, they are required to accommodate the needs and expectations of both internal and external stakeholders, as well as the context and the aims of the organization (Fischer et al.
2010). In doing so, the espoused values of any organization are likely to include combinations that compete in the sense that they would not typically sit together in the value systems of individuals (Schwartz
1992). Instead, these reveal the paradoxes that organizations are typically required to accommodate (Smith and Lewis
2011; Zander et al.
2016). Theoretical ideas of the structure of values at the level of the individual emphasize polarities (Rokeach
1973; Schwartz
1992), a preference for one value as opposed to another. The ‘structure’ of espoused values, however, is unlikely to reveal tensions within a value system as organizations may need simultaneously to include competing values in order to accommodate the various functions that they are required to undertake. Espoused values statements may combine what Quinn and Rohrbaugh (
1983) describe as ‘competing values’ that are required to coexist within a single organization.
Espoused values are a distinct form of organizational values that are increasingly documented, and which are associated with organizational outcomes. The espousing of values may involve a degree of impression management and social conformity, so raising ethical questions, while structures of values reveal the paradoxes that organizations as complex structures need to accommodate. A rigorous basis for understanding and evaluating espoused values in organizations is therefore timely and can provide us with an important insight into the value items which are deliberately selected and promoted to characterize an organization. The recent trend for organizations to explicitly provide a statement of espoused values now affords us the opportunity to consider this aspect of organizations from a wider empirical perspective.
Researching Organizational Values
Rather than reflecting the way in which individuals describe the values of organizations as they see them, espoused values are constructed by multiple (often more senior) individuals as formal and deliberate representations of an organization’s values. To date there has been no systematic empirical exploration of the espoused values of organizations to enable a comprehensive inventory and framework to be defined. In fact, the identification of the form of organizational values being investigated has been somewhat confused in earlier studies. Few scholars have put together scales to measure a particular form of organizational value, whereas some others use measures indiscriminately across value forms without recognizing that a framework designed to measure one value form might not be appropriate for another.
Inventories that have been adopted in a range of studies include the Organizational Cultural Profile (OCP) and McDonald and Gandz’s (
1991) list of business values, while researchers such as Jonsen et al. (
2015) have generated inventories that are specific to the context they are studying. Inventories are typically derived from a combination of literature sources, interview data and document search and thus might not distinguish between the types of values measured. Prominent examples of frameworks of organizational values include the Competing Values Framework (Quinn and Rohrbaugh
1983), Kabanoff et al.’s (
1995) Justice-Based Typology of Organizational Value Structures and Wiener’s (
1988) Types of Values framework. Perhaps the best-known framework of organizational values is Quinn and Rohrbaugh’s (
1983) Competing Values Framework. This features two primary competing dimensions: organizational focus (internal vs. external) and preferred structure (stability and control vs. flexibility and change). These dimensions form a typology comprising four types of organizational effectiveness: human relations; open systems; internal process; and rational goal. Each type encapsulates a set of values, although Quinn and Rohrbaugh did not elaborate these; instead, it has fallen to others to develop suitable measures of organizational values (Kalliath et al.
1999; Ostroff et al.
2005).
One of the problems with the aforementioned frameworks is the absence of any consideration or emphasis on the explicit, espoused values of the organization. One exception to this is the approach taken by Kabanoff et al. (
1995) and Kabanoff and Daly (
2002) who do explore the espoused values of organizations. Taking a distributive justice perspective, Kabanoff et al. focused on the competing demands of organizational cohesion which, they argued, favours ‘equality’ values, and organizational performance, which favours ‘equity’ values. Kabanoff and his colleagues’ interest centred on distributive justice and the tensions between equality and equity, and consequently their inventory and typology each reflect these internal concerns. They do not set out to capture values that reflect organizations’ relationships with their wider environment, which means that the application of their typology of espoused values is limited to studies with a similar internal focus.
In conclusion, we suggest that to advance research in organizational values an appropriate start point is the development of a comprehensive inventory of espoused organizational values derived from a wide empirical base. We also suggest that the opportunity for theory development will be advanced through a better understanding of the structural relationship between espoused values. In order to achieve this, we present an inventory derived from the values espoused by a large number of organizations in both the UK and the USA, which is then structured into a conceptual map through an empirical process to identify distance between value items.