The Evolution of Social Responsibility: Resources For Making the Quality Connection The resources listed here contain supporting information for the presentation “Quality and Social Responsibility: Achieving Sustainable Results.” See the sources behind the key facts you’ll find in the slides and speaker notes, organized by slide number. Slide Key fact Source 4 A formal definition of social responsibility is the responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior. ASQ/ANSI/ISO 26000-2010: Guidance on social responsibility. Milwaukee, WI: ASQ Quality Press, 2010. http://asq.org/quality-press/displayitem/?item=T866. 4 “Research demonstrates that most consumers (60-79%) expect organizations to be responsible regarding issues of health and safety, environmental sustainability, ensuring responsible supply chains, and treating workers fairly.” Council on Foundations. “Increasing Impact, Enhancing Value: A Practitioners Guide to Leading Corporate Philanthropy.” Council on Foundations. 2012. http://www.cof.org/files/Bamboo/whoweserve/cor porate/documents/CorporateGuide.pdf. 5 Socially responsible attributes such as providing safe working environments, safe food processing conditions, and fair labor practices, positively influence consumer purchasing decisions. Auger, Pat, Timothy M. Devinney, Jordan J. J. Louviere, and Paul F. Burke. “The Importance of Social Product Attributes in Consumer Purchasing Decisions: A Multi-Country Comparative Study.” Social Science Research Network. June 18, 2009. http://papers.ssrn.com/sol3/papers.cfm?abstract_i d=1270474. 5 Many companies have reported tangible business gains from proclaiming commitment to socially responsible practices in annual reports, on websites, and through policy statements. Lourenço, Isabel, Manuel Castelo Branco, José Dias Curto, and Teresa Eugénio. “ How Does the Market Value Corporate Sustainability Performance?” Paper presented at the 10th Seminar GRUDIS, Porto, Portugal, January 22, 2011, http://www.fep.up.pt/conferencias/10seminariogr udis/Louren%C3%A7o,%20Isabel%20et%20al%20%20How%20does%20the%20market%20value%20c orporate%20sustainability%20performance%20%20Paper_DJSI_Grudis2011.pdf. Slide Key fact Source 5 66% of chief financial officers agreed that environmental, social, and governance programs create value for shareholders, and 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. McKinsey & Company. “Valuing Corporate Social Responsibility: McKinsey Global Survey Results.” McKinsey Quarterly, February 2009, http://www.mckinseyquarterly.com/Valuing_corpo rate_social_responsibility_McKinsey_Global_Surve y_Results_2309. 6 Goodwill Industries in Illinois saved approximately $120,000 on cooking oil by removing deep-fat fryers. In addition to providing healthier food, it cut the number of food service-related slips and falls and reduced preventative maintenance costs. Brush, Molly. “Goodwill Industries of Southeastern Wisconsin: Integrating Quality and Social Responsibility.” ASQ, December 2009, http://asq.org/2009/12/lean/integrating-qualityand-social-responsibility.pdf. 8 Total quality management… 1) Addresses ALL areas of an organization 2) Emphasizes customer satisfaction 3) Uses continuous improvement methods and tools Tague, Nancy R. The Quality Toolbox: Second Edition. Milwaukee, WI: ASQ Quality Press, 2005. http://asq.org/quality-press/displayitem/?item=H1224. 8 There was a doubling in SR reports issued by S&P 500 businesses from 2011 to 2012. Now, more than half of S&P 500 companies issue SR reports. Boerner, Hank. “New Report: S&P 500 Index Companies Step Up Sustainability Reporting.” CSRWire, Dec. 21, 2012, http://www.csrwire.com/blog/posts/653-newreport-s-p-500-index-companies-step-upsustainability-reporting. 10 In 2011, more than 140 participants from 33 countries evaluated several dozen social, political, economic, and technical forces that could shape the future of quality, identifying “global responsibility” as the #1 force. ASQ. Emergence: 2011 Future of Quality Study. ASQ. September 2011, http://asq.org/asq.org/2011/09/globalquality/emergence-2011-future-of-qualitystudy.pdf. 11 Two building blocks in the evolution of SR are ISO 14001, an international standard on environmental management systems, and ISO 9001, an international standard on quality management systems. ASQ. “ISO 9000 and Other Standards.” Learn About Quality, 2005, http://asq.org/learn-aboutquality/iso-9000/overview/overview.html. 2 The Evolution of Social Responsibility: Making the Quality Connection Slide Key fact Source 11-12, 17-18 In 1988, the Malcolm Baldrige Criteria for Performance Excellence were first released. The Criteria emphasize SR as one of the 11 core values underpinning the Baldrige Award. In 2003, the Criteria were refined to include a focus on governance accountability, a principal component of social responsibility. The International Organization for Standardization (ISO) has developed ISO 26000, a consensus standard on Social Responsibility that is applicable to all organizations. ASQ. “Baldrige Award.” Knowledge Center Topics, January 2013, http://asq.org/knowledgecenter/baldrige/index.html. 16 U.S. socially responsible-based investments account for $2.7 trillion. Wine, Elizabeth. “SRI Plows the Path to Prosperity.” onwallstreet, August 1, 2009, http://www.onwallstreet.com/ows_issues/2009_8/ sri-plows-the-path-to-profitability-2663476-1.html. 16 U.S. retail companies spend $20 billion on energy each year. The carbon dioxide produced as a result is harmful to the environment. ENERGY STAR, “National Association of Manufacturers (NAM) and EPA Challenge U.S. Manufacturers to Save Energy,” 2008, http://www.energystar.gov/index.cfm?c=industry.b us_nam_epa. 16 U.S. service-providing industries are expected to increase employment by 13 percent – 15.8 million jobs – from 20062016, affecting thousands of communities! AFL-CIO: Department for Professional Employees (2009). “The Service Sector: Projections and Current Stats.” http://www.dpeaflcio.org/programs/factsheets/fs_ 2009_service_sector.pdf. 17 Quality professionals have the tools to improve social responsibility results: Baldrige Criteria, lean methods, Six Sigma. ASQ. Learn About Quality, 2005: “Malcolm Baldrige National Quality Award,” http://asq.org/learn-about-quality/malcolmbaldrige-award/overview/overview.html Lean, http://asq.org/learn-aboutquality/lean/overview/overview.html “Six Sigma,” http://asq.org/learn-aboutquality/six-sigma/overview/overview.html 19 By eliminating the waste of overproduction, transportation, inventory, scrap, motion, etc. through lean manufacturing processes and quality tools, companies are practicing social responsibility. Levinson, William A., and Raymond A. Rerick. Lean Enterprise: A Synergistic Approach to Minimizing Waste. Milwaukee, WI: ASQ Quality Press, 2002, pages xiii-xiv, 38. 13-15 ASQ/ANSI/ISO 26000-2010: Guidance on social responsibility. Milwaukee, WI: ASQ Quality Press, 2010. http://asq.org/quality-press/displayitem/?item=T866. The Evolution of Social Responsibility: Making the Quality Connection 3 Slide Key fact Source 21 By focusing on an appropriate set of sources of competitive advantage, companies can use environmentally beneficial strategies selectively to become more competitive over the long run. Implementation of these strategies will require fundamental changes in core business processes such as product development, marketing and sales, manufacturing, supply chain management, and customer service. Environmental Protection Agency: Office of Prevention, Pesticides, and Toxic Substances, “The Lean and Green Supply Chain: A Practical Guide for Materials Managers and Supply Chain Managers to Reduce Costs and Improve Environmental Performance,” 2000, http://www.epa.gov/ppic/pubs/lean.pdf. 23 The SRO.org was created to help the world understand how social responsibility and quality can achieve sustainable results. Version 2.0 of the site will be released in May 2013. ASQ. TheSro.org, to be released May 2013. 24 Pathways to Social Responsibility is a publication that highlights the creativity of organizations that have successfully integrated SR into their missions. 2013 will see the fifth edition of Pathways. Pathways to Social Responsibility: Successful Practices for Sustaining the Future. Milwaukee, WI: ASQ, 2009-2012. 2009, http://asq.org/2009/04/socialresponsibility/pathways-to-socialresponsibility.pdf 2010, http://asq.org/2010/04/socialresponsibility/pathways-2010.pdf 2011, http://asq.org/2011/04/socialresponsibility/pathways-2011.pdf 2012, http://asq.org/2012/07/socialresponsibility/pathways-2012.pdf 24 The Spencer Hutchens Jr Medal recognizes individuals who demonstrate outstanding leadership as an advocate for social responsibility. “Hutchens Medal,” ASQ, asq.org/aboutasq/awards/hutchens.html. 25 Quality for Life shares the stories of professionals who use quality tools to make a positive impact on the lives of others. “Quality for Life,” ASQ, www4.asq.org/qualityforlife/. 4 The Evolution of Social Responsibility: Making the Quality Connection