quality management, ethics, and corporate social responsibility christina frye myriah fillenwarth
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Quality Management, Ethics, and Corporate Social Responsibility
Christina FryeMyriah Fillenwarth
Our Goals
• Tie the semester together for you• Answer your questions• Turn the view of ethics from a negative to a
positive
Ground Rules
• Ask dumb questions• Make mistakes• Collaborate• Have an open mind• Share what you know• Have fun!
Icebreaker
Objectives
• After this class you will be able to answer the following questions– What are ethics, integrity, values, and morals?– Why do we have unethical behavior?– How can we look at ethics from a systems view?– How does ethics fit into total quality?– How can we drive ethical behavior to instill total
quality?
What Are Ethics?
• Ethics are about doing the right thing within a moral framework.
• The values of an individual or an organization define what is ethical.
What are Values?
• Values are deeply held beliefs that form the very core of who we are
Integrity
• Integrity is a combination of honesty and dependability
Moral
• What is right and what is wrong
What does it mean to be ethical?
Why do we have unethical behavior?
Employees Needs and Wants (Maslow’s Hierarchy)
Ethics from a Systems View
Customer Focus
Leadership and Management Commitment
Four Cornerstones of Ethical Leadership
Truth Telling
Promise Keeping
Fairness Respect for individual
Supplier Partnership
Employee Empowerment & Quality Culture
Employee Empowerment and Quality Culture
Subpar
OrdinaryGood Enough Extraordinary
How do we shift the distribution of our performers to gain more “extraordinary” performers?
Results if We Create an Ethical Culture
Ethical Culture
Customer Satisfaction
& Trust
Employee Commitment
& Trust
ProfitsInvestor
Loyalty & Trust
Continuous Process ImprovementGood Enough is Never Good Enough
• Gap-cause analysisroot causesethics audits and feedback
• System-wide improvement• Training-continuously improving ethics
training• Standardizing solutionskeep from
reoccurring• Move beyond what is in our internal system to
look at the entire system
Corporate Social Responsibility
• An organization’s obligation to maximize its positive impact on stakeholders and to minimize its negative impact on society
• Four Levels– Legal– Economic– Ethical– Philanthropic
Code of Conduct
• Formal statements that describe what an organization expects of its employees
• Code of Ethics: comprehensive document consisting of general statements that serve as principles and the basis for the rules of conduct
• Statement of Values: serves the general public and addresses stakeholder interests
Activity Rules• Divide into four organizations• Think about the organization’s core values as they
relate to the 5 pillars of total quality– Customer focus, leadership and management
commitment, employee empowerment and quality culture, supplier partnership, continuous process improvement
• Come up with at least one statement for each pillar that you will include in your code of ethics/code of conduct
• How will you distribute your code or make it available to your employees?
Review
• Define ethics, value, integrity, and moral• Who is at stake/impacted by our decisions?• How does ethics fit into each of the 5
principles of TQ?
TRUST
Enhance Transfer
• How will you apply something we talked about today?
• What is your goal?
References• Best Buy Co., Inc. (2007). 2007 Corporate Social Responsibility Report. Retrieved April 2, 2010 from
http://www.bbycommunications.com/csr/CSR_2007_Final.pdf • Clawson, J. G. (2009). Level three leadership: Getting below the surface (4th ed.). Upper Saddle
River, NJ: Prentice Hall.• Ferrell, O. C., Fraedrick, J., & Ferrell, L. (2010). Business ethics: Ethical decision making and cases:
2009 update (7th ed.). Mason, OH: South-Western Cengage Learning.• Goetsch, D. L., & Davis, S. B. (2010). Quality management for organizational excellence:
Introduction to total quality (6th ed.). Upper Saddle River, NJ: Prentice Hall.• Henderson, D. R. & Hooper, C. L. (2009, September 9). Pfizer’s $2.3 billion-dollar settlement.
Retrieved March 28, 2010 from www.forbes.com/2009/09/08.• Nintendo of America. (2010). Nintendo of America’s code of conduct. Retrieved April 2, 2010 from
http://www.nintendo.com/corp/coc.jsp• Piechocki, M. (2007, October 1). Five orthopedic device companies reach settlement with DOJ for
investigation into consulting practices. Retrieved March 29, 2010 from www.orthosupersite.com/view.aspx?rid=24187
• University of Illinois Ethics Office. (2010). Code of conduct. Retrieved April 2, 2010 from http://ethics.uillinois.edu/policies/code.cfm
• YUM! Brand, Inc. (2010). Supplier code of conduct. Retrieved April 2, 2010 from http://www.kfc.com/about/supplier.asp.
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