QualityManagement

forOrganizational
Excellence
Lecture/PresentationNotes

By:
Dr.DavidL.GoetschandStanleyDavis
Basedonthebook
QualityManagementforOrganizationalExcellence
(SixthEdition)

QualityManagement,6thed.
GoetschandDavis

2010PearsonHigherEducation,
UpperSaddleRiver,NJ07458.AllRightsReserved.

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
Managers Role in Ethics
Organizations Role in Ethics

QualityManagement,6thed.
GoetschandDavis

2010PearsonHigherEducation,
UpperSaddleRiver,NJ07458.AllRightsReserved.

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

QualityManagement,6thed.
GoetschandDavis

2010PearsonHigherEducation,
UpperSaddleRiver,NJ07458.AllRightsReserved.

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.

QualityManagement,6thed.
GoetschandDavis

2010PearsonHigherEducation,
UpperSaddleRiver,NJ07458.AllRightsReserved.

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.

QualityManagement,6thed.
GoetschandDavis

2010PearsonHigherEducation,
UpperSaddleRiver,NJ07458.AllRightsReserved.

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.

QualityManagement,6thed.
GoetschandDavis

2010PearsonHigherEducation,
UpperSaddleRiver,NJ07458.AllRightsReserved.

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 bestratio approach, black-and-white approach, and fullpotential approach.

QualityManagement,6thed.
GoetschandDavis

2010PearsonHigherEducation,
UpperSaddleRiver,NJ07458.AllRightsReserved.

Four:

Quality Management, Ethics, and Corporate

Social Responsibility
(Continued)

The organizations 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.).

QualityManagement,6thed.
GoetschandDavis

2010PearsonHigherEducation,
UpperSaddleRiver,NJ07458.AllRightsReserved.

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.

QualityManagement,6thed.
GoetschandDavis

2010PearsonHigherEducation,
UpperSaddleRiver,NJ07458.AllRightsReserved.