corporate social responsibility & total quality management
DESCRIPTION
A presentation that focuses on the relation between the Total Quality Management and Corporate Social ResponsibilityTRANSCRIPT
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CSR & TQM
Dr. Sherif Tehemar, BDS, MSc., PhD, FACOMS
Consultant, Dental Department Director
CSR /GLD Team Leader
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Corporate So
cial
Responsibility Accountability
Supply Chain Joint Commission International
Management
Ris
k
Leadership
Enga
gem
ent ISO
Qu
alit
y
Total Triple Bottom Line
Improvement
Continuous
Reporting
Global
Initiatives
Australian Council on Healthcare Standards
Eth
ical
Bu
sin
ess
Sustainability C
hai
n
Supply Environment 6 Sigma P
DC
A
FOCUS DMAIC
Performance Policies
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Improve
Implement
Insure
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Better Quality of Life & Sustainable Future
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Quality Inspection
Quality Assurance
TQM
The Evolution of TQM
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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)
TQM Definition
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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
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A product or service demonstrated good quality if its production and use caused little to no harm to society.
TQM Limitation
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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)
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Additional Criteria
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Additional Criteria
Management ISO 9000/1
Environmental ISO 14000
Societal ISO 26000
The Quality Triple Bottom
Line
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The Evolution of CSR
Function of Executive
Social Consciousness
Iron Law of Responsibility
Conventional Wisdom
Corporate social Responsiveness/Business ethics
Global reporting Initiatives
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What is CSR?
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Definition of social responsibility by the World Business Council for Sustainable Development
“Corporate Social Responsibility is the continuing commitment
economic and contribute to ethicallyby business to behave
of the the quality of life while improving development
local community workforce and their families as well as of the
and society at large"
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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.
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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.
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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.
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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
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Is TQM in Danger?
Corporate Sustainability Initiatives; The Next TQM (Fust & Walker,2007)
Is Sustainability the new Total Quality Management (Elkington, 2010)
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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.
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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.
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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
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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.
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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.
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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.
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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 (Anti-obesity Campaign)
Education Community
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Thank You…..