Corporate Social Responsibility & Total Quality Management


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A presentation that focuses on the relation between the Total Quality Management and Corporate Social Responsibility

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Corporate Social Responsibility & Total Quality Management

  1. 1. CSR & TQM Dr. Sherif Tehemar, BDS, MSc., PhD, FACOMS Consultant, Dental Department Director CSR /GLD Team Leader
  2. 2. Social Risk Initiatives Responsibility Continuous Global Total Corporate ISO Improvement Leadership Supply Chain DMAIC Management Joint Commission International Reporting Environment 6 Sigma PDCA Chain Australian Council on Healthcare Standards Performance Supply Policies Ethical Business Quality Engagement Accountability FOCUS Triple Bottom Line Sustainability
  3. 3. Improve Implement Insure
  4. 4. Better Quality of Life & Sustainable Future
  5. 5. The Evolution of TQM Quality Inspection Quality Assurance TQM
  6. 6. TQM Definition TQM is an integrated management philosophy and set of practices that emphasizes, among other things, Continuous improvement, Meeting customers' requirements, Reducing rework, Long range thinking, Increased employee involvement and teamwork, Process redesign, Competitive benchmarking, Team-based problem-solving, Constant measurement of results, and Closer relationships with suppliers (Ross, 1993)
  7. 7. TQM Strength  Scientific evidence –based system that take into consideration human behavior.  Well-established and adopted worldwide  Leadership Engagement  Staff Involvement  Continuous Improvement  Risk Management
  8. 8. TQM Limitation A product or service demonstrated good quality if its production and use caused little to no harm to society.
  9. 9. TQM Limitation The March 2008 Quality Progress Quick Poll indicated 82.8% of the respondents agreed that social responsibility and environmental sustainability should be considered a part of quality management.* * Seeking Sustainable Success, ASQ (2009)
  10. 10. Additional Criteria
  11. 11. Additional Criteria Management ISO 9000/1 The Quality Triple Bottom Line Societal ISO 26000 Environmental ISO 14000
  12. 12. The Evolution of CSR Corporate social Responsiveness/Business ethics Conventional Wisdom Iron Law of Responsibility Social Consciousness Function of Executive Global reporting Initiatives
  13. 13. What is CSR?
  14. 14. Definition of social responsibility by the World Business Council for Sustainable Development “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large"
  15. 15. ISO Definition ISO 26000 defines social responsibility as the “responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior that:  Contributes to sustainable development, including health and the welfare of society;  Takes into account the expectations of stakeholders;  Is in compliance with applicable law and consistent with international norms of behavior; and  Is integrated throughout the organization and practiced in its relationships.
  16. 16. McKinsey Report (2009)  66% of chief financial officers agree that environmental, social, and governance programs create value for shareholders in typical times.  66% of executives believe shareholder value created by environmental and governance programs will increase in the next five years relative to their contributions before the economic crisis.
  17. 17. CSR Report  86 percent Of FTSE (U.S Top Corporate Index) 100 corporations issued CSR reports in 2007.  French law requires ALL LARGE FIRMS listed on the Paris stock exchange to integrate CSR data into their financial reports.  Number of GRI reports has gone from 12 in 1992 to 1500 in 2010  80% in 2009-2010 of the Global Fortune 250 companies report versus 50% companies in 2007.
  18. 18. CSR in the Market  200% increase in brand recognition after year 1 (reference: Scandic)  Top performers: study showed that 95% of the top 100 best global brands adopt best CSR practices  26% increase in employee loyalty  Brand recognition, reputation and loyalty, reflect on profits starting year 2  Awards & Recognition
  19. 19. Is TQM in Danger? Corporate Sustainability Initiatives; The Next TQM (Fust & Walker,2007) Is Sustainability the new Total Quality Management (Elkington, 2010)
  20. 20. Waste Reduction Intersection With Quality Tools and Approaches • Lean • Just-in-time (JIT ) and kanban • Statistical quality control and Six Sigma is one tool within this. Waste reduction is often a catalyst for corporate CSR programs as the link to cost reduction requires only minimal analysis.
  21. 21. Reactivity/Proactivity Intersection With Quality Tools and Approaches • Prevention and continuous improvement are more effective than inspection. The system for causing quality is prevention, not appraisal. Monitoring approaches when used alone for suppliers will fail to address root causes for social and environmental challenges.
  22. 22. Worker Empowerment Intersection With Quality Tools and Approaches In the TQM framework, employees are expected to seek, identify, and correct quality problems. Workers are empowered by instilling quality management approaches and are provided incentives and rewards for identifying quality problems for both internal and external customers. For CSR, inclusive models for ensuring the rights of workers in global supply chains include secure communication channels, robust grievance systems, and worker education and skills development. These are common attributes for ensuring fair working conditions in the supply chain. Worker empowerment tied to quality can be an easier sell to management than a link to the broader sustainability agenda
  23. 23. Governance Intersection With Quality Tools and Approaches Use of quality control frameworks to build systems that lead to more informed senior accountability. For CSR, partnerships with quality departments to include CSR considerations, emphasizing the “perceived quality” element of “design quality” aspects, is important.
  24. 24. Health & Safety Intersection With Quality Tools and Approaches Approaches to modeling and mitigating disaster scenarios, such as the BP spill of 2010, include FMEA—a step-by-step approach for identifying all possible failures in a product or service. For CSR, when considering disasters, stakeholders may perceive it as irresponsible (i.e., lack of CSR) to not have high quality when lives are at stake.
  25. 25. Internal Alignment Intersection With Quality Tools and Approaches Each department must see other departments as internal customers. Barriers begin to fall when this is practiced. Internal collaboration both vertically and horizontally are needed to identify and manage CSR issues, which are inherently cross-functional.
  26. 26. Projects/Activities Project/Activities QRM CSR Pillar Nursing Empowerment Staff Satisfaction Workplace Staff Retention Staff Satisfaction Workplace Patient Education Patient Satisfaction Marketplace Medication Reconciliation Patient Safety Marketplace Attitude Patient Satisfaction Marketplace Go Green Environment ISO OHSAS Patient education Activities Education/Satisfaction Community Out-reach Program (Antiobesity Campaign) Education Community
  27. 27. Thank You…..