CSR & TQM

Dr. Sherif Tehemar, BDS, MSc., PhD, FACOMS

Consultant, Dental Department Director

CSR /GLD Team Leader

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

Improve

Implement

Insure

Better Quality of Life & Sustainable Future

Quality Inspection

Quality Assurance

TQM

The Evolution of TQM

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

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

A product or service demonstrated good quality if its production and use caused little to no harm to society.

TQM Limitation

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)

Additional Criteria

Additional Criteria

Management ISO 9000/1

Environmental ISO 14000

Societal ISO 26000

The Quality Triple Bottom

Line

The Evolution of CSR

Function of Executive

Social Consciousness

Iron Law of Responsibility

Conventional Wisdom

Corporate social Responsiveness/Business ethics

Global reporting Initiatives

What is CSR?

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"

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.

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.

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.

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

Is TQM in Danger?

Corporate Sustainability Initiatives; The Next TQM (Fust & Walker,2007)

Is Sustainability the new Total Quality Management (Elkington, 2010)

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.

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.

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

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.

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.

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.

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

Thank You…..