Thinking Outside of the Firm: Self-Transcendence Values’ Effects on Corporate Reputation

Abstract

While organizational values’ implications for firm effectiveness and employee outcomes have been studied extensively in management literature, the question of how organizational values influence marketing outcomes remains under-researched. Our research applies stakeholder theory to propose that an expanded organizational values framework is needed to account for marketing-relevant stakeholders (e.g., customers and the general public) and not solely those “inside” the firm (e.g., employees and shareholders). Using Schwartz’s human values model, the Stakeholder-organizational values framework is conceptualized and empirically explored. We use a corpus of CEO letters to examine the differential effects of firms’ emphases on Self-enhancement (e.g., corporate profitability) values versus Self-transcendence (e.g., societal benefits) values on customer satisfaction and corporate reputation. The study finds a significant relationship between firm Self-transcendence values orientation and corporate character reputation. Ultimately, the framework and original dictionary of terms provide an innovative method for assessing firms’ organizational values from a multi-stakeholder perspective.