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Values-based management combines the goals of Corporate Social Responsibility (CSR) with the metrics used in Value-Based Management (VBM). Note that "values-based" means multiple types of values while VBM often focuses on economic values. The goal of values-based management is to be responsive to the needs of all stakeholders in multiple ways, including responding to customers' desire for ethical stewardship on the part of companies.
There are many general benefits to a values-based approach. First, if you improve the community in which you are situated, you create a better business environment. When companies donate resources to education, they get a better educated workforce. Funding community centers may reduce crime. Reducing poverty in your neighborhood means helping your customers get richer, so they can afford more of your products. Other charitable endeavors give both tax breaks and free publicity.
One of the greatest success stories of values-based management is Walmart's sustainability initiative (third link below). Walmart has made environmental sustainability a key corporate goal, focusing on zero waste and renewable energy. According to a recent report, these initiatives have saved Walmart approximately $150 million in 2013. The basic value of environmental responsibility not only helps reduce global warming, an issue that affects every single customer and employee and stockholder of Walmart, but also helps the bottom line.
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