Values Beget Value: A Conversation with Gautam Mahajan

Reading time: 5 min

by Passodue

In the world of Business Ethics, we sometimes meet people we share ideas, research and projects with, even when we live and work thousands of miles apart. We first got to know Gautam Mahajan in this context: we spoke at one of his conferences and contributed several articles to the scientific journal he edits.

Gautam Mahajan is President of the Customer Value Foundation and Founder Editor of the Journal of Creating Value. Throughout his career, he has worked in strategy, management and customer value creation, gaining experience in the corporate world, consulting, and education. He is the author of several books on customer value and its role in organizational success.

Among the many ideas underpinning Mahajan’s approach, we were particularly impressed by one because of its far-reaching implications: values beget value.

We therefore asked him to explore this perspective in greater depth.

Questions

1. Gautam, what does “Values Beget Value” actually mean?

The starting point is that we can create value for ourselves independently, but the most significant part of the value we accumulate in our lives and in business comes from what others do for us. And people are more willing to contribute to our success when they feel that we are creating value for them as well.

This principle applies as much to personal relationships as it does to professional ones. Trust, honesty, integrity and the will to do good are not merely individual qualities; they can generate mutual benefits and contribute to the prosperity of organizations.

The mechanism I have described is circular: when we create value for others, we increase the likelihood that they will do the same for us. In this sense, values are closely connected to results; indeed, they can be one of the conditions that make those results possible.

2. You often refer to Japan to explain these concepts. What can we learn from the relationship between trust and value creation in Japanese culture?

Japan offers interesting examples of how trust can become an integral part of the way society functions on a daily basis. In a context where people expect one another to behave properly, trust does not remain a private virtue: it becomes a kind of social operating system.

This has tangible consequences. When trust is high, fewer checks and precautions are needed. Decisions can be made more quickly, relationships can last longer, and collaboration becomes easier.

By contrast, in environments characterized by low trust, a significant amount of resources is absorbed by checks, approvals, contracts and surveillance systems. These activities may be necessary, but they do not directly create value: their primary purpose is to protect against the risk of others behaving improperly.

Trust, therefore, is not merely desirable, it actively increases productivity. It is a resource that can free up time, organizational capacity and opportunities for collaboration.

3. In your view, doing good is another way to create value. How does this mechanism work?

Doing good can trigger a dynamic of reciprocity, both at an individual and at a societal level.

When a company invests in the community in which it operates, for example, it can help build stronger relationships, while gaining trust and loyalty in return. Similarly, when more experienced people help junior colleagues, knowledge circulates instead of remaining concentrated in the hands of a few.

Encouraging these behaviours does not necessarily depend on incentives or penalties. They can arise from a willingness to contribute to others’ well-being, generating a positive response that ultimately benefits us too.

This does not mean that every generous act should be performed in expectation of an immediate return. The point is rather to recognize that relationships develop over time and that the value created for others can have positive consequences extending beyond a single exchange.

For businesses, it is important to view relationships with customers, colleagues and communities not merely in terms of transactions, but as a network of relationships in which value can grow through mutual contribution.

4. Why do you often emphasize the importance of acknowledging imperfections rather than hiding them?

Hiding mistakes may temporarily protect a person’s or an organization’s image, but the risk is that problems won’t be addressed promptly.

In her book Orientation, Pallavi Aiyar describes the Japanese practice of repairing broken pottery with golden lacquer, which highlights the cracks rather than trying to conceal them. The image is meaningful: acknowledging an imperfection can become an act of transparency and an opportunity to strengthen trust.

The same applies to organizations. Admitting a flaw or a mistake can encourage problem-solving, learning and collaboration. Pretending that everything is perfect, on the other hand, can delay necessary action and undermine relationships.

Transparency does not eliminate mistakes, but it can help us address them earlier and more effectively. In this sense, it is a way to prevent value destruction and create the conditions for improvement.

5. So, giving begets giving, while taking begets taking. What implications does this principle have for businesses?

Companies may be tempted to focus exclusively on what they can gain from customers, colleagues and suppliers. However, an approach centered solely on extracting value carries the risk of gradually damaging the relationships on which an organization’s success depends.

Creating value means asking what we can offer others and how we can contribute to their results. This requires going the extra mile and recognizing that a company’s success also depends on the quality of the relationships it builds.

A value-oriented approach supports profitability over time because it fosters trust, collaboration and a willingness to continue working together.

Ultimately, creating value and unlocking the value trapped in relationships characterized by a lack of trust are two complementary challenges. Organizations that invest in trust, integrity and mutual contribution can establish the conditions for better and more sustainable results.

Conclusion

Gautam Mahajan’s reflections invite us to move beyond a widespread belief in the business world: that ethical values and economic results are inherently opposed.

Applying the principles of Business Ethics does not automatically guarantee success, nor does it eliminate the need for controls, accountability and difficult decisions. It can, however, significantly increase the value created by an organization and unlock the value hidden within relationships that lack synergy.

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