Designing and Implementing a CSR Strategy - Module 2

8/11/2019 Designing and Implementing a CSR Strategy - Module 2

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Implementation of Social Responsibility:Improving the Quality of Life for Humanity

2014 BES Business Excellence Solutions, Ltd. 1

Gregory H. Watson

Management Seminar

China (Shanghai)

Pilot Free Trade Zone

24 July 2014

Implementation of Social Responsibility:Improving the Quality of Life for Humanity

Module 1: Understanding how Corporate Social Responsibility

Relates to the Obligations of Organizations

Module 2: Implementing the Principles of Social Responsibility

Using the Methods of Quality Management



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IMPLEMENTING THE PRINCIPLES OF SOCIAL RESPONSIBILITY

USING THE METHODS OF QUALITY MANAGEMENT


Part 2:

IMPLEMENTATION OF SOCIAL RESPONSIBILITY:IMPROVING THE QUALITY OF LIFE FOR HUMANITY

Corporate culture and corporate responsibility merge!

4 2014 BES Business Excellence Solutions, Ltd.

Laozi or Lao Tzu []Zhou Dynasty [6thCentury BCE)

These two together merge; they have different names yet

theyrecalled the same; that which is even more profound thanthe profoundthe gateway of all subtleties.

Lao-Tzu

Te-Tao Ching, Chapter 1
http://en.wikipedia.org/wiki/Image:Laozi.jpg


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What challenge? Economic growth or development? What do organizations need: growth or development? Russell

Ackoff described the difference between these ideas this way:

Growth: increasing more of what is already existing. Development: changing the state of what already exists.

Should organizations focus just on their financial or bottom

lineperformance or should they expand to consider what is

called the quadruple bottom line of the economic, social,

environmental and spiritual aspects of doing business. If this

change is made then how would an organizations financial

accounting and work performance measurement systems be

required to change? The spiritual component focuses self-

fulfillment of individuals, not on religious aspects of belief.

More specifically: How should a Chinese organization prepare

itself to become a leading global brand? What must change in

their fundamental CSR policy and activities to gain this level? 2014 BES Business Excellence Solutions, Ltd. 5

Concept of a social contract The idea of the social contract originated in the so-called

Ageof Enlightenment and it was expressed by such diverse

philosophers such as BritainsJohn Locke (1689) and Frances

Jean-Jacques Rousseau (1762). The idea describes a balance

between the rights of the society and the rights of individuals

as well as the question of the authority of the state over the

individual. From a legal perspective, the rights of people have

been assigned to corporations and they act as an accountable

entity in societyjust as individuals do.

What is the purpose of granting such a charter to businesses?

Achieving the greatest prosperity or greatest good for society!

Question to consider: Under what circumstances does either a

corporation or an individual participate in society to achieve

mutual benefit through coordinated activities that results in

the achievement of this greatest good?



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Concept of prosperity proposed by Frederick Taylor:


.

.

Oneof the dangers to be guarded against, when the pay of a man or

woman is made in any way to depend upon the quantity of the work

done, is that in the effort to increase the quantity the quality is aptto deteriorate.

The system must be first.

But, you cannot inspect quality into products!

Frederick Winslow Taylor (1856-1915)

Founder of Scientific Management

Principles of Scientific Management (1911)

Efficiency in business delivers a fair deal to employees:

1. Need for clearly defined objectives with delegation of authority

2. Application of common sense to define principles of management

3. Competent counsel to challenge ways of thinking and working

4. Self-executing discipline must be created with esprit de corps5. Need for equity in working assignments and tasking (fair deal)

6. Reliable, immediate, and adequate work records are required

7. The flow of work must be controlled

8. Establish rational work schedules and standards

9. Need to control the performance of working processes

10. Requirement of a systematic approach to standard operations

11. Necessity of written standard practice instructions

12. Management must provide recognition for efficient performance

8

Harrington Emerson (1853-1931)

Engineering Consultant

Twelve Principles of Efficiency (1908)

Was the first to raise questions regarding the efficiency and

productivity of large scale operations (1908).

Developed twelve principles of operating efficiency to

systematize the lessons learned throughout the industrial

revolution:

2014 BES Business Excellence Solutions, Ltd.


5/21

Henry Fords definition of prosperity:


Thinkingmen know that work is the salvation of the race, morally, physically,socially. Work does more than get us our living: it gets us our life.

Sincethe public makes a business, the primary obligation of business is to thepublic. Those who work for and with the business are part of this public. Anthis settles on the fundamental corporate policyto whom shall the benefits ofimprovements accrue?

A business cannot serve both the public and money power.

Abusiness that does not make a profit for the buyer of a commodity, as well as

for the seller is not a good business.Thetest of the service of a corporation is in how far its benefits are passed onto the consumer.

The essential law of prosperity . . . we can make prosperity continuous anduniversal.

Men must be led into prosperity.

Henry Ford (1863-1943)

Founder of Ford Motor CompanyToday and Tomorrow (1926)

The wisdom of Russian dissident Alexander Ilyin:


Scrutinize the history of Russia, the fate of its people, ponder upon its

wreck and humiliation and you will see, that all its basic difficulties came

from an over-emphasis on volumeand quantity.

We trust and are confident that the hour will come when Russia will rise

from disintegration and humiliation and begin an epoch of new

development and greatness. But it will revive and blossom only after the

Russian people understand that they must search for salvation in quality.

Ivan Aleksandrovich Ilyin (1993-1954)

Russian Dissident Philosopher

Essay: Salvation through Quality (1928)Translated by: Gregory H. Watson

Quality is the outcome of a cooperative social system!

Productivity and capacity are false measures of value!


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What is the meaning of freedom for the greatest good?


Ama-gi(2350 B.C.)an historical imperative for mankind:

The Sumerian cuneiform that means a returnto motherand

expresses the idea of freedomthat occurs from the process

of reform. It is the earliest concept related to quality.

Freedom from waste, loss, bigotry, abuse, hunger, debt, fear,

defects, failureall of the negatives in lifesexperience whichdestroy the quality in the lives of all humanity.

Mankind must cooperate in order to achieve this quality level!

Considering quality as a common global value

Quality is socially responsible: mankind must not squander the

worlds scarce resources by consuming them poorly. In the end,

quality outcomes generate economic value!

Economic freedom is an essential ingredient of democracy. What is

this freedom? A form of equality establishing characteristics that

are equal in terms of quality or value.

But we must view quality beyond the micro-economic requirements

of one business. Quality is an obligationof social responsibility.

The idea of qualityfor prosperityis a macro-economicapplicationof quality thinkingand doingso that it can become a culturalway

of beingthat applies to society as a whole.

To achieve macro-economic quality, the whole of a society must

embrace this way of quality; prosperity must become the objective

for all mankind through a pursuit of quality!

Ilyin was right: mankindssalvation is through quality!

http://upload.wikimedia.org/wikipedia/commons/5/5d/Ama-gi.svg


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What do most organizations believe that CSR involves?

Related international standards and business guidelines:

ISO45001/OHSAS18001Occupational Safety and Health

ISO14000Environmental Management ISO26000/SA8000Social Accountability

United Nations Global CompactMoral Imperatives

However:

There is no global agreement on the specific content of CSR elements

Minimum international agreementCSR company makes safe, quality

products; while others add:

Secure employment for employees

Corporate philanthropy and charitable projects

Positive contribution to social needs (e.g., health care and education)

Fair trade and labor practices

Creating Shared Value (CSV)corporate success and social welfare will

operate in an interdependent manner (e.g., the triple bottom line of

profit, people and planet)


So, what is CSR and how can it be managed for quality? CorporateSocial Responsibility(CSR) became popular in the 1960s

and has remained a term that is used (often in a very indiscriminate

manner) to describe the set of legal and moral responsibilities that

have been assumed by an organizations. CSR has been added to the

mission statements of organizations to describe what the company

believes in and what it will support regarding social, environmental

and human aspects of its citizenship in exercising its social contract.

CSR is a self-regulatedelement in an organizationsbusiness model

and acts as the corporate conscience which may also be stated as agoverning policy to define the expectations that stakeholders may

reasonably anticipate that the organization will embrace as its agreed

responsibility for community social action and how it will encourage

positive impact through its activities on the environment, consumers,

employees, and the local communities in which it operates.



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How could Chinese companies design CSR systems? China Quality Outline encourages development of global brands

by leading members of Chinese industry.

However, this requires development of organizations that havean ability to operate effectively in the global marketplace which

in turn requires that these organizations become aligned with

all global systems especially those related to brand identity

and reputation. This particular imperative means that Chinese

leading companies must translate their cultures from the view

of beingexcellent in Chinato beingexcellent globally.

Such a transition will require development of global social

systems that are more compatible with the value systems that

are prevalent within the major world markets.

This objective may be accomplished by an imaginative orcreative extension of an organizations system of managing for

quality as defined by its regional customers in terms of their

respected and desired value propositions. 2014 BES Business Excellence Solutions, Ltd. 15

How to develop a best practice global CSR system?


Developing a CSR system is secondary to developing the core business.

It is essential that a business operate effectively and efficiently and that

it delivers an economic benefit that allows it to sustain its operation (or

deliver strength in the long-term). Thus, profitability is a pre-condition

for an effective CSR system.

CSR contributes to increasing competitiveness of an organization that is

already competitive and is now seeking to achieve an enhanced level

of excellence by becoming the bestof the bestwithin its industry.

Basic CSR mitigates various risk elements and the operational impact

that they generate and supports the organizations relationships withits external partners, customers, and governmental authorities.

Advanced CSR increases the value of organizations by developing the

human capital of the organization relative to society and integrating

the business into the local and global communities where it operates.

Thus, CSR implements the long-term organization strategy and it must

become a planned aspect of the corporate development program.


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What is the strategic value of CSR for organizations?


EnvironmentalAnalysis

StrategicPlan

CustomerExpectations

InvestorExpectations

StrategicBenchmarking OperationalPlans

- Strategic Intent- Core Competence- Process Capability- Product Line- Strategic Alliances- Technology Portfolio

Organization

- Strategic Intent- Core Competence- Process Capability- Product Line- Strategic Alliances- Technology Portfolio

Competitor

OperationalBenchmarking

Situational Awareness

Long-Term Sensemaking

Short-Term Sensemaking

The obligation of management is

to deliver profit in the short-term

and strength in the long-term. Thisrequires elimination of waste and

increasing efficiency in the short

term and building organizational

competence and capability in the

long-term.

Each of these perspectives has a

different challenge for reducing

waste and potential for loss in the

organization.

Head-to-Head

Comparison

Search for Competitive Advantage

Advantage by positioning,

technology, or policy

Waste elimination and

efficiency improvement.

Advantage in productive value

through efficiency, effectiveness,

or economics.

What is a natural sequence to expand CSR values? Most organizations that have been in business for some time

already possess the foundation of a CSR systemthe base is an

ISO9000 approach to quality management. However, the

ISO9000 standard does not specify what an organization must

do to operate it only identifies areas to address in which the

organization must develop the content of its specific practices.

Likewise, mature organizations have already implemented their

safety and product quality methods to reduce risk of injury to

workers and to increase the probability to make good products

for their customers. These items represent the core aspectsof a comprehensive risk management system for a business.

After this base has been developed, then management must

define what will be their next step to advance performance.

Developing a mature, value-enhancing CSR system means that

senior managers must identify topics will increase the value of

their business model and a sequence in which to address them. 2014 BES Business Excellence Solutions, Ltd. 18


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Corporate Social Responsibility System Architecture:


Bra

ndAwareness

BrandReputation

BrandLoyalty

Basic

CSR

Advanced

CSR

Level 1: Risk Management

Level 2: Social Alignment

Level 3: Corporate Philanthropy

Level 4: Value Creation

Social Responsibility Framework

International and National Laws, Regulations and Guidelines

Level 1: CSR as Risk Management

Quality Management System

Environmental Management System

Safety Management System

Occupational Health Management System

Supplier Management System

Customer Experience Management System

Business Risk Management System


The initial focus for development of a CSR System must

be placed upon the tangible quality aspects of product

and service quality. This first level serves as a foundation

for CSR and must be designed to fit an organizations

culture. The second level will roundoutthe basic CSR

competence by aligning CSR to the locality in which it

operates.

Theme: doingwhat is required and doing it well

Components of the

Risk Management

System


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Establishing a foundation for responsible action:*


ISO9000 Quality Management

ISO3100 Risk Management

ISO14000 and EMAS - Environmental Management

OHSAS18001 and ISO45001 Occupational Safety and Health

ISO/IEC27000 Information Technology Security

ISO26000 and SA8000 Social Accountability

* Note that these steps are illustrative and not prescriptive.

Specifically, they do not imply a recommended sequence

for implementation of these standard and systems.

Color Code:

Third-Party certification is available.

Third-Party certification is notavailable.

Note that in most

Western companies

the certification need

is a choice by the top

management. Most

organizations focus

only on achieving

voluntary standard

compliance.

Build core flexibility into the system; not core rigidity!


* Leonard-Barton, D. A. (1992), Core Capabilities and Core Rigidities, Strategic Management Journal, 13, pp. 111-125.

Harvard professor Dorothy A. Leonard has described a circumstancewhereby traditional sources of the core capabilities of a firm (e.g.,technical systems, personnel skills and human competence, andorganizational management systems) create a dysfunctional statethat she calls corerigidity a condition where the organizationsinnovation becomes restricted by a state of inertiathat is inducedby inflexibility in the design of its organizational components.

To overcome this situation, flexibility must be consciously designedinto the infrastructure of the organizational values and norms thatdefine the CSR system. Such systems invoke essential behavioralcharacteristics of social systems through engagement of motivations

of individuals thereby persuading people to align their personalenergy and commitment to the organizationsstrategic direction.

This distinct core CSR capability responds to externalities in flexibleways by linking psychological factors with external dynamics neededfor organizations to response to changing market circumstances inall dimensions: legislative, regulatory, economic, competitive andtechnicalall which can increase risks to the organizationsbusinessmodel.


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Level 2: CSR as Social Alignment

Providing benefits to employees that are beyond

the legally required social benefits.

Expanding education and training to development

of community feedersystemsfor key employee

skills and capabilities that are required for future

development of the corporation

Development of community infrastructure thatwill also support targeted objectives for corporate

development for future infrastructure (e.g., roads,

IT system access, etc.)


The focus for development of the second level in a CSR

System is upon the integration of social systems that are

beyond the level that is required by common practice or

law. This second level completes the basic componentsof a CSR system by aligning it with the locality in which it

operates.

Theme: doingmore than what is required

Components of the

Social Alignment

System

Level 3: CSR as Corporate Philanthropy

In this level focus of CSR activity shifts to more intangible

areas of outreach beginning with the building of external

relationships with organizations that are closeto home.

Organizations will typically choose a vital few of the

philanthropic causes to develop innovative relationships

based on alignment with its strategic intent and future

direction.

Local community social outreach and support

Local charity and social engagement

CSR enables corporate brand development


Components of

Corporate

Philanthropy

Development of a third level CSR System concentrates

on the generosity in financial donations for the good of

the local society. This level initiates the outreach efforts

of an organization by making financial donations to the

local charities or encouraging employees to participate

in the projects of these charitable groups. Emphasis is on

local beneficiaries that contribute to the community.

Theme: givingback to society from financial benefits


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Level 4: CSR as Value Creation

Commitment is directed by the Board of Directors of

the corporation and is included in strategic planning

of the organization.

Development of a global leadership position occurs

through a formal philanthropic foundation which is a

participant in the organizations budgeting process

and acts as a vehicle for concentrating on externaloutreach on a global basis.

At this level the corporation is an active participant in

global activities (e.g., World Economic Forum, United

Nations Global Contract, etc.). 2014 BES Business Excellence Solutions, Ltd. 25

The focus for development of the highest level of a CSR

System is on value creation by leveraging investment to

differentiate a corporation from its competitors by its

approach to the pursuit of corporate responsibility. Thiscreates a competitive advantage by building brand value

through CSR: an action-based commitment to pursue its

responsibilities in the world for the benefit of humanity.

Theme: doingwell by doing good

Components of the

Value Creation

System


Big QStrategic Quality Little QOperational Quality

Culture (Company)

Vision, Mission and Values

Policy and Philosophy

Competition (Business Learning)

Innovation

Leverage

Benchmarking

Change (Renewal)

Strategic

Operational

Cascade (Alignment)

Improvement Projects

Objectives and Targets

Measures

Communication (Awareness)

Message

Media

Competence (People)

Individual and team development

Training/development program

Capability (Process)

Daily process management

Data bases and analytic software

Compliance (Product)

Quality management system

Performance agreements

Certification (Standardization)

System certifications/standards

Functional certifications/standards

Industry certifications/standards

Conformity (Learning)

Business and operational reviews

Correction (Repair & Improvement)

Corrective / Preventive Actions

Business Excellence in Corporate Culture Operations Excellence in Local CultureHow can CSR become embedded into work processes?


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Key Point: The global system becomes the local system!

There is a need for diversity in culture as an organization

expands from its initial national base to become a globalcompetitor.

However, your international customers anticipate that an

infrastructure will be consistent across all interactions and

engagements on a global basis.

Therefore, your global system devolvesinto a local system!

This presents a problem in terms of how to align the way

organizations operate in alignment with the diversity ofcultures at the local level when they conflict with a global

cultural framework for the corporation!


Establish a Common Purpose

Build Shared Objectives

Lead the Local Action

Evaluate Results and Process

Continual

Improvement

Develop an Integrated Plan


So, how to develop a universal process of managing? *

* Hewlett-Packard Corporate Quality, The Process of Management, 1987.

The Process of Management (POM) is

distinct from content or work that

the people manage.

This process applies PDCA (Plan-Do-

Check-Act) continual improvement to

the tasks of management. Content is

a set of actions and issues that flow

through this sequence of activities.

Thus, management has two aspects:one related to content or the what

that is managed and another related

to the process by which this content

is defined, developed, deployed and

monitored to generate a state of the

continual improvement for the whole

organization.

Adapted from Hewlett-Packard


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Competitiveness emanates from process and content!

2014 BES Business Excellence Solutions, Ltd. 29 2014 BES Business Excellence Solutions, Ltd. 29

Quality is required in both the content of deliverable as well as

in the delivery process itself.

The content that is

delivered to customers.

The process for delivering content to customers.

We often use the word qualityto refer to the attributesof aproduct (its content) as well as the methods by which these

attributes are produced (the process).

Quality outcomes what is known about quality:


Theory of Attractive Quality Noriaki Kanos Mental Model:

Degree of Performance

Customer Satisfaction

High

High

Low

Low

Indifferent Feeling

Indifferent

Function


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Quality processes discovering and delivering quality:


Quality Journey

What theCustomer

Wants

What theCustomer

is Promised

What theCustomer

Gets

Design Gap Conformity Gap

Customer

Entitlement

Customer

Expectation The basis

for Customer

Perception

Quality Loss

Excellence

Reliability

by Design

Quality by

Management

CreativeIdeas Implementation

in Practice

Quality Design Process Gregory H. Watsons Mental Model:

Customer Feedback


Raw Aptitude

Skills

Knowledge

ABILITY

Customer Requirements

CAPACITY

Resource Limited

Constraints (Cp)

CAPABILITYEntropy (dCpk) Actual Achieved (Cpk)

Targeted Capability (Cpm)

Continual Improvement Loop

(+ dCpk)

Human Competence

+ Experience

MASTERY

Experience will

either increase or

degrade the

process capability

Organizations purchasecapacity!

Organizations developcompetence!

Social systems develop capability from inherent ability:


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What is waste?

Waste is any activity that adds cost or time, and does not add value or that

increases risk to employees through hazardous work conditions.

Japanese quality uses three words to describe waste:

Muri (): No waste from bad thinkingirrational waste.

This type of waste arises from poor decision-making.

Mura ( ): No waste from unbalanced workingflow waste.

This type of waste arises from poor integration.

Muda (

): No waste in work disciplineprocess waste.

This type of waste arises from poor operations.


Each of these wastes may occur at any level of an organization!

Waste of all resources represents poor management responsibility!

How does management create systemic waste? Management decisions are constrained by a bounded level

of rationalityas all decisions are subject to three issues:

Ability of the manager to make the decision (competence)

Integrity of the data to properly describe the observation (the

cost of bad data is the illusion of knowledgeSteven Hawking).

Timing urgency or rapidity with which decisions must be made.

Problematic decisions about mergers and acquisitions, capital

equipment investments, organization design or restructuring,

product commercialization, operations expense management,

or personnel development and promotion can all be classifiedas muri waste (irrational) which may cause the business

system to flow unevenly (mura waste) and also create the

various categories of totally useless waste within all the

operating areas of the organization (mudawaste).

Thus, management can be a stimulus by which organizations

create waste in all of its forms!



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Financial measures distort operational decisions: Management decisions must support setting expectations for

financial performance to satisfy organizational investors.

However, distortion in understanding the drivers of operatingperformance occurs when we attempt to convert production

units into financial units this is because financial values are

based on an uncontrollable :customerwillingness to payor

an external reality of market value, rather than the internal

value that attempts to achieve cost payback and achieve the

profitability targets of the investors.

Product pricing is based on estimates of standard costs the

average cost (therefore a centraltendencyor expected cost

for production and service delivery) and ignore the variation

that occurs in the components of cost.

Distortion also occurs due to a fundamental misunderstanding

of the concept of quality costs as taught in business schools.


Uncommon wisdom about the Quality-Cost trade-off:


The CommonWisdomof quality cost: Quality Investments result in diminishing

returns where further increases in quality are off-set by additional cost of achieving

this quality performance. After this point an economic trade-off must be made to

achieve additional quality performance by compromising with higher product cost.

Defect Rate

Cost of Control

Point of DiminishingEconomic Returns

fromQuality Investments

Failures Cost

99% Good = 4s

Timeline of Improvement and Investment

The model was created in the 1950s to describe the relationship between quality

and costs. The failures identified are defects that escape to end customers while

the costs account for increasing the number of inspectors to sortout defects!

Where did this model

originate and how was

this improvement level

achieved? Does it still

hold true in operations

today?

What do you think?


19/21

Weaknesses in standard cost accounting:Standard cost accounting bases price calculations on the average

costs of work performed to produce a fixed volume of units. This

standard cost accounting methodology divides cost into two

categories: fixed and variable costs which are further divided

into direct and indirect costs. Actual expenses are allocated by a

system that assigns indirect costs to direct costs (loading costs)

so that all costs can be absorbed into the financial structure and

are supportive of the pricing process. When evaluating benefits

of capital equipment purchased an equipmentutilizationfactor

is calculated to check the value of parts produced compared to

the cost to see if the investment is being fullyabsorbedinto the

pricing. This accounting approach has a distorting influence on

the outcome as it encourages production of inventory to assurethat the capital payback for an individual asset is optimized, even

if production of unrequired units occurs and it must be held in

inventory and not contribute to immediate revenue generation. 2014 BES Business Excellence Solutions, Ltd. 37

How does cost change as muri and mura are reduced?


Apply the principles of activity-based costing to understand transaction costs.

Quality improvement is achieved not by adding inspectors, whose work is not very

efficient, but by improving the process to eliminate the root cause(s) of poor quality,

so problems are permanently resolved and work is standardized on best practice so

that mistakes are not replicated in the next generation of new products.

Defect Rate

Process Costs

Cost of Quality:

Failure analysisScrapRework100% sortingRe-inspectionRe-testWarranty

DowngradingAllowancesOvertimeExpeditingInventory

Cost of Prevention:

Process controlTraining

InspectionTestingAudits

RedesignAutomation

Failures Cost

Timeline of Improvement and Investment

Process costs actually decreaseas quality improves!

s

5s

6s


20/21

Remember that costs are an artificial results indicator! Production processes produce units which are assigned value based

on accounting rules. Value of these goods changes as the market

perception changes (e.g., depreciation) so that the decision made at

one point of time to produce goods with a certain value will appear

to be a bad decision when its market value is diminished in the

future. While we produce units we value them monetarily.

Because the value of goods is dependent on market conditions, it is

necessary for judgments about process costing to be based on the

lowest total cost of operations (both internal for the company and

external at suppliers and customers) because estimates of beneficial

value are subject to market variability and are out of the control of

internal managers. The public must be willing to pay the price! We

only produce thingswe assign value to things to get cost. Value is

what changes as a function of customer perception!

Thus, no matter how a process is designed, it must be implemented

with minimal waste in all circumstances! What happens as process

waste is eliminated as expressed by activity costs? Value increases! 2014 BES Business Excellence Solutions, Ltd. 39

How effective and efficient are our improvement tools?

The most important quality methods for CSR relate to the set of

strategic quality management practices:

Hoshin KanriStrategic direction setting and implementation

Business ExcellenceManagement process self-assessment

Strategic BenchmarkingDiscovering better ways to work

Performance MeasurementIntegrated measurement system

Strategy ManagementSearch and decision-making for change

Change ManagementDesigning and implementing change

Business ReviewReviewing operational performance results

Structural DesignManaging the structure of the organization

Resource ManagementManaging efficient use of all resources


Which quality methods and tools apply to competitive CSR?

Taking a systems approach to managerial engineering of the business!


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How will quality develop in the future?Impact of Technology:

Cloud computing, data mining, and automated control systems will

drive changes in the way we apply the methods of quality and also

how we coordinate and collaborate to solve universal problems.

Impact of Culture:

Shifting political realities will create a more diverse culture around

quality where emphasis will be on the science of quality and its

theoretical basis rather than emulating a particular national culture.

Impact of Crisis:

Foreseeable economic and environmental crisis will affect all global

societies and require collaborative actions on behalf of humanity

to resolve root causes, rather than the nationalistic, self-centered

way to deal with such issues as characterizes current approaches.


The Challenge: Increase quality (process) in social institutions to assure

superior quality of life (content) for all people (customers).


Thank you! Any questions?

Designing and Implementing a CSR Strategy - Module 2

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