Štefka Gorenak, Faculty of Commercial and Business Sciences,
Slovenia gorenak.stefka@siol.net
Vito Bobek, University of Applied Sciences FH Joanneum, Graz,
Austria; Palemid - Consulting, Research, Education LLC,
Maribor, Slovenia vito.bobek@palemid.si
Trends and Future of Sustainable Development,
9-10 June 2011, Tampere, Finland

P aper deals with:
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Strategic Corporate Social Responsibility,
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Relationship and potential synergies among the TQM, Total responsibility Management (TRM), CSR and CC (corporate citizenship),
Implementation of TRM into corporate strategy, importance of
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 the responsible leadership and stakeholder engagement,
Sustainable indicators and ISO 26000 in Slovenian multinational company Responsible competitivenes,
Gorenje Group – from TRM to CC
Aim:
 to present the successful case - implementation of TRM or
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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…).

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Total Quality Management (TQM) and
Total Responsibility Management (TRM):
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Innovation imperative – innovative corporate strategies, innovative CSR,
Competitiveness of the responsible companies,
Community involvement.

Total Responsibility Management (TRM)
in brief means:
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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 :
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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.

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
Group
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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
(Europe).
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).

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.

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

 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.

 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.

The aim:
 to motivate individuals to change their wasteful habits,
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 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.

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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.

Štefka Gorenak, gorenak.stefka@siol.net
Vito Bobek, vito.bobek@palemid.si