Final answer:
Values guide an individual's decisions and actions and are a reflection of what they deem important or worthwhile. Value theory helps individuals articulate these principles and apply them to personal and societal well-being. These guiding principles stem from cultural traditions, beliefs, and ethical theories.
Step-by-step explanation:
The term that refers to the terminal and instrumental values that are guiding principles in an individual's life is often encompassed by the concept of values. Values represent judgments about the way people ought to think, feel, or act based on what is considered good, worthwhile, or important. For instance, deciding to read 'Invisible Man' by Ralph Ellison because it is a great American novel or due to a belief in the importance of understanding racial injustice reflects values regarding literature and social awareness.
Value theory provides individuals with the tools to identify, question, and express the values that are significant to them personally and within society. It enables people to articulate what they find desirable or pleasurable, their idea of well-being, and their vision of a just society. Values can be deeply rooted in cultural traditions, personal beliefs, and ethical frameworks like virtue ethics or the principles espoused by a person's superego, which acts as their moral compass.
Ultimately, grappling with different theories and the values they espouse can guide individuals in making deliberate life choices that align with their sense of what is morally right and contribute to their and society's well-being.