Value-based corporate governance

1. The importance of value-based corporate management

Value-based corporate management is more than just a buzzword. It is a decisive factor that shapes the success of a company in the modern business world. But what exactly does value-based corporate management mean and why has it become so important?

What is value-based corporate management?

Value-based corporate governance means that a company focuses on creating value for all relevant stakeholders. This involves finding a balance between various interests and at the same time creating value for shareholders, employees, customers and society as a whole.

Why is value-based corporate management important?

The motives for pursuing value-oriented corporate management are complex. However, it is primarily about ensuring the long-term success of the company. A company that values is not only financially successful in the long term, but also gains reputation and recognition.

Employees are the most powerful engine for building a value-adding company. If a company cultivates a culture of integrity, transparency, and responsibility, this will greatly improve employee motivation, loyalty, and productivity. Such an environment promotes creativity, innovation and a stronger identification bond between employees and the company.

The role of leadership in value-based corporate management

A key aspect of creating value-based corporate governance is the role of managers. It is not surprising that management's corporate values and actions have an enormous influence on corporate culture and thus also on value-based corporate management. It is therefore the responsibility of managers to set an example of values and to ensure that they are anchored at all levels of the company.

There are many challenges to overcome on the way to successful, value-oriented corporate management. However, it is a worthwhile investment that strengthens the company in many areas and leads to long-term success.

2. Basic principles and core values in corporate governance

The quality of corporate governance plays a decisive role in the success of a company. It is the way goals are set, decisions are made and employees are managed. The basic principles and core values are always at the heart of entrepreneurial decisions.

Common values that provide guidance

Core values are fundamental convictions that show what a company stands for. They provide the ethical dimension and framework for action and define what is important in the organization. They serve as an anchor point and provide guidance when making decisions. They also help create an identity that all employees can share.

Basic principles, on the other hand, are fundamental assumptions, beliefs or rules that serve as the basis for behavior in the organization. They determine how things are done in the organization, such as the way of communication or the type of collaboration.

Interplay of values and principles

Basic principles and core values are closely linked. The values define the 'what' in an organization, while the principles determine the 'how'. They create a shared culture that enables the company to move towards common goals and achieve them efficiently.

Put into practice

Efficient corporate management requires that these values and principles not only exist on paper, but are also put into practice and lived out. This is achieved through a culture of open and honest communication, in which every employee feels that they are being heard and making a valuable contribution. Also through leadership that sets an example and exemplifies the established values and principles.

Only in this way can the basic principles and core values actually contribute to a positive and performance-oriented corporate culture, which in turn motivates employees and contributes to the overall success of the company.

3. Tax-free employer subsidies as a tool for employee motivation

Tax-free employer subsidies are an effective tool for increasing employee motivation and retention. These are allowances that are paid in addition to wages or salaries and are not subject to income tax. You can grant them in various forms, for example as benefits in kind. This tool thus meets both the organizational needs of the company and the individual concerns and interests of your employees.

The benefits for the company
Tax-free employer subsidies offer a range of benefits. They represent an economically attractive alternative to a salary increase, as they are less financially intensive and yet represent an appreciative gesture towards employees. You benefit from this in many ways: You can increase work performance and thus productivity, reduce fluctuation and retain your employees with your company in the long term. You also act as an exemplary employer who focuses on the needs and well-being of its employees.

The effect on employees

The effect of tax-free employer subsidies on your employees should not be underestimated. They are a form of recognition and show that their achievements and commitment are appreciated. As a result, employees feel motivated to do their work with commitment and joy. They can also make a targeted contribution to meeting the individual needs of employees by granting them freedom of use. In doing so, they gain appreciation and achieve a positive effect on employee motivation and retention.

Payment in kind

One way to pay out tax-free employer subsidies is benefits in kind. This has the advantage that they can be granted tax-free up to a value of 44 euros per month. For example, you can grant them as vouchers or in the form of an additional service. The latter means that you negotiate special offers with local or regional providers and partners, which can then be used by your employees. This not only contributes to employee satisfaction, but can also have positive effects on the local economy.

Whether as recognition for exceptional performance, as a motivation boost, or as part of the salary structure, tax-free employer subsidies are an efficient tool for employee motivation that you should consider.

4. The relationship between value-oriented corporate management and employee retention

Value-based corporate management and employee retention are two crucial elements for a company's long-term success. But how are they connected, and how can one effectively support the other?

The importance of employee retention

Employees are the backbone of every company. High employee retention not only leads to lower turnover rates and associated costs, but also promotes productivity and overall sentiment within the organization. Satisfied and committed employees contribute directly to the company's success.

Importance of value-based corporate management

Value-based corporate management is a management strategy that aims to take into account the interests of all stakeholders (employees, customers, society, environment) while maximizing corporate value. These are not only financial values, but also social and ecological aspects that are taken into account in a healthy and future-oriented company.

The relationship between value-based corporate management and employee retention

Now the question is: How are these two aspects related? The answer is simple: value-based corporate management promotes employee retention in a natural way. When a company values creating a pleasant working environment, paying fair salaries, valuing employees and involving them in decisions, this results in motivated and committed employees. They feel valued and feel that they are contributing to something bigger. This creates a sustainable relationship between employees and the company.

In conclusion, it can be stated that a company that pursues a value-oriented management strategy not only invests sensibly in its future, but also creates a working atmosphere that motivates and binds employees. It is a two-way process in which both sides benefit — in the spirit of value-oriented corporate management.

5. Supporting the local economy as part of corporate responsibility

In today's globalized world, it is easy to lose touch with the local community and transact the majority of business through national or international channels. But there are many reasons why it pays off for companies to support the local economy.

The role of small and medium-sized enterprises

First of all, supporting small and medium-sized enterprises (SMEs) helps to strengthen the local economy. SMEs often make up the majority of employees in their region and are therefore a key driver of economic growth. By supporting these companies, you contribute to creating jobs and increasing regional economic strength.

Strengthening regional supply chains

In addition, supporting the local economy makes it possible to strengthen regional supply chains. Supply chains based on local companies are often more stable and resilient to global fluctuations and disruptions. They can also help to reduce CO2 emissions by avoiding long transport routes.

Promoting the common good

By promoting the local economy, companies can also contribute to the common good. They help to preserve the cultural heritage of their region, they contribute to regional identity and promote a stronger sense of belonging within the community.

Positive company image

Last but not least, supporting the local economy can also help improve the company's image. Companies that are committed to their region are often viewed positively and enjoy a high reputation among the population.

There are many possible measures to effectively support the local economy: For example, you can prefer local suppliers, support local non-profit organizations, or offer tax-free employer subsidies that boost consumption in the region. Ultimately, supporting the local economy can bring not only economic but also social and cultural benefits and thus contribute to the sustainable development of the entire region.

6. Effective strategies for implementing value-based corporate management

On the way to value-based corporate management, there are various routes you can take. But which strategy is the most effective? It depends on your company, team, and industry. Here are some proven strategies that can help you implement.

Focus on shared values

The first step towards value-based corporate management is to develop and communicate clear core values. These should represent the identity of your company and serve as a guide for decisions at all levels of the company. It is important that these values are shared and accepted by all employees, as they will influence behavior and operations across the organization.

Transparency and open communication

Value-based corporate management is based on open communication and transparency. Employees should feel that their opinion is valued and that they are part of the decision-making process. Regular meetings, in which teams have room for discussion, can be an important building block for a transparent culture.

Employee development and recognition

Value-oriented companies recognize the importance of the personal and professional development of their employees. Continuous education, training and workshops can give your employees the opportunity to expand their skills and develop further. Recognition for their hard work and achievements can also increase employee motivation and satisfaction.

Sustainable use of resources

Another important aspect of value-based corporate management is the sustainable use of resources. This not only affects the environment, but also the economic and social aspects of your company. Using resources sustainably can help your company to be successful in the long term and at the same time achieve positive effects on society and the environment.

Supporting the local economy

Supporting the local economy can also be an effective strategy for implementing value-based corporate governance. By considering local suppliers and service providers, you can help strengthen the economy in your region while building a close and personal relationship with your partners.

Implementing value-based corporate governance can be challenging, but with the right strategies and dedicated leadership, it can bring significant benefits to your company, employees, and society in general.