Value-Based Management and Responsibility in the Management of People

Abstract

Today's markets require credibility, transparency, and sustainability. This demand obliges organisations to make ever greater advances in the field of management by values. Until recently, value-based management was considered just another management approach to be covered in day-to-day operations. Today, it is considered part of the strategic management of the firms. The paradigm shift began when pressure from the market and society as a whole began to insist that companies should behave like members of the ecosystem, taking full responsibility and employing their capacity to generate change. This implies that value-based management should be deployed throughout the entire organisation. This, in turn, requires companies to identify and commit to certain values that will become the cornerstone of their strategy and management style. The aim of this chapter is to claim that value-based management is a competitive advantage for family business in particular.