Implementation of Total Responsibility Management into Corporate


Implementation of Total responsibility Management into

Corporate Strategy

Štefka Gorenak, Faculty of Commercial and Business Sciences,


Vito Bobek, University of Applied Sciences FH Joanneum, Graz,

Austria; Palemid - Consulting, Research, Education LLC,

Maribor, Slovenia

Trends and Future of Sustainable Development,

9-10 June 2011, Tampere, Finland


P aper deals with:

Strategic Corporate Social Responsibility,

Relationship and potential synergies among the TQM, Total responsibility Management (TRM), CSR and CC (corporate citizenship),

Implementation of TRM into corporate strategy, importance of

 the responsible leadership and stakeholder engagement,

Sustainable indicators and ISO 26000 in Slovenian multinational company Responsible competitivenes,

Gorenje Group – from TRM to CC


 to present the successful case - implementation of TRM or

CSR strategy into business practice in Slovenian multinational company, and to analyze the innovative and holistic implementation of TRM into Gorenje Group strategy including its measurement

(sustainable indicators) and sinergies (competitiveness, community engegement, innovative CSR…).

TQM, TRM, CC - Innovative CSR

Total Quality Management (TQM) and

Total Responsibility Management (TRM):

Innovation imperative – innovative corporate strategies, innovative CSR,

Competitiveness of the responsible companies,

Community involvement.

Total Responsibility Management (TRM)

in brief means:

inspiration: vision setting and leadership systems;

integration: corporate strategy, employee and operating practices;

innovation: improvement and learning systems;

plus indicators – measurement - sustainable indicators

(Global Reporting Initiative – GRI - tripple bottom line - , economic, social, environmental)


TRM core values/concepts :

Visionary and committed leadership.

Stakeholder-driven excellence and responsible practices.

Organisational and personal learning through dialogue and mutual engagement with relevant stakeholders

(primary and secondary stakeholders).

Valuing employees, partners, other stakeholders.

Agility and focus on the future (short and long term).

Managing for responsibility and improvement.

Management by fact, transparency, accountability.

Public responsibility and citizenship.

Focus on positive results, impacts and value-added for stakeholders with responsible ecological practices.

Putting responsibility management into practice – Corporate Strategy

Top management need to take a long-term perspective, make a public commitment, communicate the commitment, be a role model for the company’s values, integrate vision and values into strategies and practices and support changes.

Responsibility management approaches must be both systemic and holistic of they are to be effective.

ISO 26000 was designed as a holistic approach involving the interdependence of seven factors: community involvement and development, human rights, labor practices, the environment, consumer issues, fair operating practices and organizational governance

Successful implementation of Total

Responsibility Management - Case Gorenje


Core business: The production and sales of large Household Appliances

Organisation: A Parent Company Gorenje, d.d., and 83 Companies (59

International) - on the 31st of December 2010

Export: 9

5 percent of sales

Gorenje's market share: in key markets was 4.5 percent and 11.6 percent in markets where they generate the greater part of their revenue


Represented in: 70 Countries Worldwide, mostly in Europe

Sales under Own Brand Name: 90 percent

Average number of employees: 11,174 employees (2010)

Consolidated revenue: EUR 1.4 bn (2010)

Geographical sales structure of large household appliances in

the 2010: The greater part of this amount (69 percent of value volume) was generated in the markets of Eastern (Russia, Ukraine) and Southeastern Europe (Serbia, Czech Republic…), followed by the markets of

Western Europe (Germany, Netherland, Denmark, Norway…) with 27 percent, and the markets of the Middle (UAE, Iran, Turkey…) and Far

East (China, Taiwan, Hong Kong).

Gorenje Corporate Sustainability


The Gorenje Corporate Sustainability Board is made up of the members of the management boards of the subgroups responsible for ecology and technology and the heads of the Corporate Center departments

Corporate Human Resources & Organization,

Communications and Environment & Sustainability.

CSR in Gorenje Group incorporates:

Responsibility to employees

(education and traning of employees, taking care for young and promising staff, healthcare of employees, assurance of sustainable employment of disabled persons, communications with employees); age management..

Responsibility to users of products and services

( assurance of product safety, assurance of environmentally friendly products)

CSR in Gorenje Group incorporates:

 Responsibility to closer and wider social environment

Responsibility to customers ensures that the product is of high quality, accessible, safe and environmental frendly causing less social and environmental impacts.

More long-term attention should be paid to education of sustainable customers and all stakeholders (values) in welfare society.

CSR in Gorenje Group incorporates:

 responsibility to the natural environment corporate culture (short- and long-term) - ISO 14001 was implemented ten years ago. They meet requirements of the EMAS regulation (in 2003).

Eco cycle - new products environment-friendly, produced through environment-friendly technological procedures and materials, using environment-friendly technological procedures and materials, and consuming less power, water and detergent.

These appliances rank among the most cost-efficient household applicances in the market (the highest European standards materials and components are at least 80 percent recyclable).

Most of Gorenje products rank in the A, A + , or even A ++ energy class.

Eco family initiative

The aim:

 to motivate individuals to change their wasteful habits,

 to introduce energy-efficient technology in their homes and to seek alternative options.

By establishing the Eco Family initiative, Gorenje is extending the framework of thinking about the agents of efforts for a cleaner environment;

In addition to asking what I can do as an individual or employee, it seeks to answer how we as society can contribute.

Two books entitled “Ecofamily – Environmentally Friendly

Operation in Order to Preserve the Planet” and

“Ecofamily – Help the Planet with the Informed

Behaviour”, have been published within the initiative of the

Eco Family.

Gorenje Group - case

Corporate social responsibility is included in the corporation strategies which include the permanent measurement (sustainable indicators) to the stakeholders.

Long-term competitive advantages and sustainable development are expected.

Gorenje Group, with a good corporate citizenship is involved in a wide array of community activities.

Gorenje Group presents the successful case of holistic and innovative corporate social responsibility and sustainable development in Slovenia.

Thank you for your attention!

Štefka Gorenak,

Vito Bobek,