Quality Management for Organizational Excellence Lecture/Presentation Notes By: Dr. David L. Goetsch and Stanley Davis Based on the book Quality Management for Organizational Excellence (Sixth Edition)

Four: Quality Management, Ethics, and Corporate Social Responsibility MAJOR TOPICS Definition and Overview of Ethics Trust and Total Quality Values and Total Quality Integrity and Total Quality Responsibility and Total Quality Manager’s Role in Ethics Organization’s Role in Ethics

Handling Ethical Dilemmas Four: Quality Management, Ethics, and Corporate Social Responsibility (Continued) Handling Ethical Dilemmas Ethics Training and Codes of Business Conduct Models for Making Ethical Decisions Beliefs versus Behavior: Why the Disparity? Ethical Dilemmas: Cases Corporate Social Responsibility Defined

Four: Quality Management, Ethics, and Corporate Social Responsibility (Continued) Ethics is about doing the right thing within a moral framework. The most common impediment to ethical conduct is human nature because people tend to behave according to perceived personal interest.

Four: Quality Management, Ethics, and Corporate Social Responsibility (Continued) Trust is a critical element of ethics, which, in turn, makes ethics critical in total quality. Many of the fundamental elements of total quality depend on trust and ethical behavior, including communication, interpersonal relations, conflict management, problem solving, teamwork, employee involvement and empowerment, and customer focus. Trust can be built by being loyal to those not present, keeping promises, and sincerely apologizing when necessary.

Four: Quality Management, Ethics, and Corporate Social Responsibility (Continued) Values are those core beliefs that guide our behavior. Individuals and organizations apply their knowledge and skills most willingly to efforts in which they believe. Managers should work to establish an environment in which values that lead to ethical behavior and values that lead to peak performance are the same. Integrity requires honesty, but it is more than just honest. Integrity is a combination of honesty and dependability. People with integrity can be counted on to do the right thing, do it correctly, and do it on time.

Four: Quality Management, Ethics, and Corporate Social Responsibility (Continued) Accepting responsibility is part of ethical behavior. People who pass blame are not behaving ethically. In a total quality setting, people are responsible for their performance. When speaking of their organization, ethical people say, “we” instead of “they.” Managers play a key role in ethics in an organization. They are responsible for setting an example of ethical behavior, helping employees make ethical choices, and helping employees follow through and behave ethically after making an ethical choice. In carrying out these responsibilities, managers can use the best-ratio approach, black-and-white approach, and full-potential approach.

Four: Quality Management, Ethics, and Corporate Social Responsibility (Continued) The organization’s role in fostering ethical behavior includes creating an ethical environment and setting an ethical example. Key in creating an ethical environment is having a comprehensive ethics policy. Key in setting an example is following the policy, expecting all employees to follow the policy, and rewarding those who do. In handling ethical dilemmas, managers should select the option that is most likely to build trust, integrity, and a sense of responsibility and that is most likely to pass the various ethics tests (i.e., front-page, morning-after, etc.).

Four: Quality Management, Ethics, and Corporate Social Responsibility (Continued) People who believe in ethical values will sometimes make unethical decisions because of self-interest, self-protection, conflicting values, or because they see the benefits as being intangible or deferred. Key elements of corporate social responsibility include the ethical aspects of the following issues: human rights, safety and health, business practice, governance, environmental engagement, consumer relations, marketplace activities, community involvement and social development.