Quality Management, Ethics, and

Corporate Social Responsibility

Christina Frye
Myriah 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 Promise
Telling Keeping

Fairness Respect for

individual
Supplier Partnership
 Employee
Empowerment &
Quality Culture
 Employee Empowerment and Quality
Culture

Ordinary
Subpar Good Enough Extraordinary

How do we shift the distribution of our performers to gain

more “extraordinary” performers?
Results if We Create an Ethical Culture
Employee
Commitment
& Trust

Investor
Ethical
Loyalty & Profits
Culture
Trust

Customer
Satisfaction
& Trust
 Continuous Process Improvement
Good Enough is Never Good Enough
• Gap-cause analysisroot causesethics
audits and feedback
• System-wide improvement
• Training-continuously improving ethics
training
• Standardizing solutionskeep 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.