Final answer:
Organizational values form the core of a company's culture and guide employees' behavior. They include espoused values, observable artifacts, and basic underlying assumptions that influence decision-making. Companies uphold these principles through codes of ethics to align with societal norms and legal requirements.
Step-by-step explanation:
Beliefs and principles defined by an organization to guide and regulate its employees' conduct are typically referred to as the organizational values. These values, along with an organization's mission statement and vision statement, form the core of the company's organizational culture. Organizational culture affects the values, beliefs, workplace culture, and overall behavior of individuals within an organization. It reflects in various layers including observable artifacts, such as symbols and practices, espoused values endorsed by management, and basic underlying assumptions that guide the organization's decision-making process.
Organizational values are critical as they express the company's standards for discerning what is deemed important and just within the society and the organization itself. They reflect the ideals that guide the company's decisions and shape how the employees interact and treat one another and stakeholders. It is therefore beneficial during a job search to identify organizations whose culture aligns closely with one's personal values and beliefs, recognizing that sometimes a perfect fit may not be possible but adapting to the prevailing culture is essential for work success.
A business usually maintains these principles and beliefs - including a code of ethics - to align with societal values, company goals, and to comply with laws and regulations. These guiding principles are essential for maintaining a brand's integrity and trust within the community and between its employees.