Which statement best describes the function of a value statement?

A value statement serves the essential role of articulating an organization's core ethical beliefs and guiding principles. It reflects what the organization stands for and highlights the values that drive its decision-making and interactions with stakeholders, including employees, customers, and the community. By expressing these ethical commitments, a value statement helps to shape the culture of the organization and informs the behavior expected from everyone within it.

This foundational understanding goes beyond day-to-day operations or tactical goals. While defining business practices, setting sales goals, or outlining operational procedures are crucial aspects of running a business, these actions are typically governed by a broader set of values. The value statement serves as a compass that guides these more specific initiatives, ensuring that they align with the organization’s core beliefs and ethics. Hence, choosing the expression of ethical commitments accurately reflects the primary purpose of a value statement.