ATHANASIOS HATZIMANOLIS Extending Total Quality Management_ Social Responsibility and Total Expec

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  • 8/7/2019 ATHANASIOS HATZIMANOLIS Extending Total Quality Management_ Social Responsibility and Total Expec



    Extending Total Quality Management: Social Responsibility

    and Total Expectations Management

    Athanasios Hadjimanolis

    Dr. Athanasios Hadjimanolis

    Associate Professor

    Business School

    European University Cyprus

    e-mail address: [email protected]

  • 8/7/2019 ATHANASIOS HATZIMANOLIS Extending Total Quality Management_ Social Responsibility and Total Expec



    Extending Total Quality Management: Social Responsibility

    and Total Expectations Management


    The paper examines the central values and philosophy, as well as, the evolution of Total

    Quality Management (TQM) and the possibility of its extension to Total Expectations

    Management (TEM) a much broader management system that takes into account not only

    the expectations and needs of customers, but also those of all other legitimate

    stakeholders. TEM includes the various dimensions of corporate social responsibility

    (environmental, ethical, and social) and their integration into a single management

    system. The transformation of TQM, an important institution including organizations,

    standards, and management models, is further examined in the context of the institutional

    approach. The impact of new trends in global economy and the potential role of new

    international standards, like ISO 26000, are also assessed. Potential barriers of applying

    such an expanded management system in small firms in the context of a small peripheral

    country are investigated through an illustrative SME case study.

    Keywords: TQM, Corporate Social Responsibility, expectations, management

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    1. Introduction

    Total Quality Management (TQM) is today widely accepted as a philosophy for the

    achievement of improved performance and competitiveness in a global market (Goetsch

    and Davis, 2006). The ethical foundations and the basic principles and values of TQM

    and its evolution over the last few decades have been widely debated in the literature

    (Boje and Winsor, 1993, Rayborn and Payne, 1996). While TQM is widely appraised it

    has also attracted criticism as another management fad failing to achieve in practice its

    promised exaggerated benefits (Juran, 1993, Brown, 1993). Another line of criticism

    focuses on its inadequacy to respond to current societal needs and trends and the social

    responsibility of business (Hazlett et al, 2007).

    The institutional approach to social responsibility is well established in the literature

    (Campbell, 2007). TQM is not just management rhetoric or a set of methods and tools, it

    can also be seen as an important relevant institutionalized field, since it includes

    standards, organizations both state and private (e.g. quality assurance auditors and

    certifying bodies, etc) and managerial practices and models (Mueller and Carter, 2005, p.

    20). The question then is whether TQM is capable to transform in such a way that it will

    accommodate the current requirements for more socially responsive businesses.

    Institutions, even those including global standards, are probably different in different

    countries due to cultural and social effects (Matten and Moon, 2008).

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    The present paper considers the European context of social responsibility. The European

    Union puts particular emphasis on sustainability. The latter concept has been extended

    from the environmental sphere to include societal and equitable goals. The European

    sustainable development strategy tries to integrate and reconcile the economic, social,

    and environmental dimensions of sustainability (Delbard, 2008).

    The main purpose of this paper is to propose a new management philosophy the Total

    expectations management (TEM). This holistic approach includes the consideration of

    the needs and expectations of not only customers, but also all other stakeholders that are

    affected by the actions of the firm or affect the firm (Mc Adam and Leonard, 2003). It

    extends the philosophy of total quality management to correspond to modern trends and

    needs. The new approach is also consistent with the recent Corporate Social

    Responsibility (CSR) research shift from why firms engage in CSR and what CSR is, to

    how to formulate and especially implement CSR strategies (Basu and Palazzo, 2008).

    The values and ethical principles of social responsibility, which form the foundation of

    the new philosophy, are then briefly reviewed and compared to those of TQM (Hazlett et

    al, 2007).

    It is further examined, at the practical implementation level, whether TQM concepts,

    models, and standards can be used as a basis for TEM by extending their scope or

    whether a completely new approach would be necessary. Existing approaches like

    integrated management standards and new developments as the introduction of the new

    standard for corporate social responsibility (ISO 26000) are evaluated. Despite good

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    intentions CSR strategy implementation can not be successful unless firms translate

    vision into methods and tools and develop practical knowledge, by gradually building

    socially responsive managerial skills and competences.

    The feasibility of TEM and difficulties of its applicability are then examined in a specific

    and demanding context that of a small peripheral country (Cyprus). An illustrative case

    study of an SME is used for the evaluation of CSR barriers and enablers. Problems of

    applicability are expected to be exacerbated in such an environment.

    Section 2 below presents the theory of TQM and the model of TEM. Section 3 discusses

    the methodology. Section 4 considers the new societal and economic developments and

    trends that underlie the need for extension of TQM and introduction of TEM. Section 5

    considers the applicability of TEM in small countries and presents an SME case study.

    Finally Section 6 presents the conclusions.

    2. Theory of TQM and social responsibility

    The quality movement started first with quality control that was focused on products and

    expanded then to quality assurance with an emphasis on both products and processes. It

    has gradually developed into total quality management at the end of the 1980s and then in

    the 1990s covering the totality of a business or organization including products and

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    processes (Mangelsdorf, 1999). At the same time the concepts of transparency and

    responsibility of the third generation of TQM have emerged (Foster and Jonker, 2003).

    The initial focus on the quality of outputs of a firm has expanded to the focus on

    management of the entire organization. The concept of business excellence that affects all

    aspects of business has emerged out of the total quality management philosophy

    (Ghobadian et al, 2007, Robson and Mitchell, 2007).

    An evolutionary process of the quality movement from a set of techniques for statistical

    quality control to an ever wider consideration of quality management is clearly

    discernible (Zbaracki, 1998). The latter includes operations of the business itself and all

    other links of the supply chain starting from suppliers and including distributors and other

    collaborators (Corbert and Klassen, 2006).

    TQM can be seen as a set of practices, a philosophy and a set of values or as management

    rhetoric. The emphasis in this paper is on philosophy and values with only passing

    references to the other dimensions. The main values of TQM and its ethical basis are

    usually deduced by reference to quality gurus like Deming, Juran, and Crosby (Hackman

    and Wageman, 1995, McAdam and Leonard, 2003). TQM can be seen as an integrative

    management system and a systemic change initiative, which extends the traditional focus

    of firms to internal operations into an external focus on the needs and expectations of the

    customer. The main values, beliefs and ethical principles of TQM, such as integrity of

    products and mistake prevention are summarized below under three main headings, i.e.

    product related, people related and system and society related (Table 1). The values show

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    the strong ethical basis of TQM and its relationship to the democratic ideals of equality,

    liberty, etc.

    [Enter Table 1 about here]

    Total quality management has received sharp criticism and was considered as an indirect

    effort to resurrect the Taylor theory of management (Boje and Winsor, 1993). Its

    emphasis on principles and values as mentioned above is criticized as part of its rhetoric

    and a utopian description of an ideal environment (De Cock and Hipkin, 1997). The main

    criticisms against TQM can be summarized as follows:

    1. It is just another management fad

    2. It has no universally accepted definition

    3. It lacks an appropriate theory

    4. It has failed in practice to deliver the promises

    5. It increases the control of the firm on its employees with their conformance to

    standard work instructions reducing their discretion, work planning and initiative.

    6. It manipulates the social environment of the firm, while it misleads employees to

    believe that they have self-control and have real authority

    7. It tries to create internal and external uniformity by suppressing the diversity of


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    TQM is then far from a synonym of quality and success. Despite its rhetoric as a

    management panacea there are many examples of TQM failure and problems of safety or

    environmental pollution in firms that have adopted TQM related quality systems. The

    difficulties of application and the long time required for implementation should not be

    underestimated (Yong and Wilkinson, 1999).

    There is today a discussion about the need for extended management models to include,

    apart from quality, the various dimensions of corporate social responsibility, especially

    the environmental one. The proposed new management model of total expectations

    management (TEM) refers to a balanced approach to manage expectations of customers

    and suppliers, but also all other relevant stakeholders. The concept and theory of

    stakeholders and the corporate social responsibilities against the various groups of

    stakeholders is briefly considered before the further explanation of TEM, its rationale,

    and its relationship to TQM. The basic issue is whether TQM has been superseded and

    can be replaced by a new model or it can serve as a foundation for a broader system

    (McAdams and Leonard, 2004). Also whether TEM can develop into an operationally

    useful management model and company management can balance the interests of

    stakeholder groups and communicate effectively with them.

    ISO 9000 certified firms, quality assurance organizations, consultants and academics and

    the relevant TQM philosophy, methods, and tools they share and use can be seen as

    forming an institutional field (Mueller and Carter, 2005). The concept of institutional

    field is defined here as a system of interacting actors and their actions and relations

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    (Davis and Marquis, 2005). The quality management field due to market pressures,

    conceived in a broad sense, and social developments further described below is in a state

    of flux. It is then the argument of this paper that TQM could be transformed into a new

    field, i.e. Total Expectations Management adding new players and rules of the game,

    but building on the existing foundations.

    The Stakeholder Theory has been elaborated by Freeman (1984) and refers to internal

    and external groups that are affected by or affect the corporation. Such groups are the

    shareholders, the employees, customers, suppliers, local communities, and ecological

    organizations. After the definition and classification of stakeholders for the specific firm

    and the identification of their needs, the stakeholder assessment process tries to establish

    their power, impact, and involvement level (Mitchell et al, 1997).

    The corporate social responsibility (CSR) concept recognizes that firms apart from their

    responsibility to produce profit for their shareholders they have responsibilities to their

    stakeholders (Moir, 2001). The main dimensions of CSR include the environmental,

    social, and economic aspects (McAdam and Leonard, 2003). Acceptance of CSR means

    commitment to ethical and transparent business actions for the common good and

    avoidance of harm to humans and nature (Campbell, 2007).

    Total expectations management (TEM) aims to the satisfaction of wider stakeholder

    groups by undertaking social responsibility and an effort for a convergence of interests,

    which in TQM were only indirect targets (Foster and Jonker, 2003). TEM offers a holistic

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    1. Incorporation of TEM philosophy in the strategy of the firm.

    2. Identification of stakeholder groups and assessment of their needs and


    3. Assessment of their power and impact on the decisions of the firm

    4. Forecasting the impact on the operations of the firm by stakeholder group and

    planning for increasing positive and reducing negative impacts

    5. Making decisions for the level of engagement of stakeholder groups in the

    decision process of the firm (consultation)

    6. Management of relations and impacts

    7. Developing suitable tools and methods for balancing the interests of the diverse

    stakeholder groups

    Problems may arise in the implementation of TEM due to the increased complexity that is

    introduced and the potentially conflicting interests of stakeholder groups (e.g.

    shareholders profit versus the cost of maintaining a clean environment for the community)

    (Zwetsloot and Marrewijk, 2004). Trade-offs have then to be struck between conflicting

    expectations and a balanced approach should be followed (Wood, 1991). There may also

    be disagreement within the firm regarding the methods of achieving balance between

    economic performance, satisfaction of stakeholders, and social responsibility. A detailed

    consideration of the implementation aspects of stakeholder analysis and TEM

    implementation is outside the scope of this paper. There are however relevant approaches

    in the literature like the Miles framework (Miles 1987).

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    An alternative approach, instead of the development of a new management system like

    TEM, could be the integration of specific standards like ISO 9000 (quality standard), ISO

    14000 (environmental standard), OHSAS 18001 (a standard for health and safety), and

    SA 8000 or ISO 26000 (social responsibility standards) into an integrated management

    system. Newer versions of these standards have a trend towards compatibility between

    them, there are however major problems in the development of a universal system

    (Karapetrovic, 2002). The additional problem is that an integrated system continues to

    focus on customers and suppliers only and remains at the level of methodology rather

    than philosophy of a holistic management system. TEM in contrast extends the focus on

    the total value added chain and all stakeholder groups. The standards mentioned above

    are, however, potentially useful as tools adaptable to the philosophy of satisfaction of


    The business excellence models like the European EFQM, which is based on the TQM

    philosophy, have already integrated, even if partially so, the social dimension with the

    criterion influence on society (Robson and Mitchell, 2007, Zwetsloot, 2004). There is

    therefore a partial overlapping of the expanded TQM systems with the proposed new

    management system that would facilitate the adoption of TEM.

    The new developments that affect and shape the new approach of TEM are discussed in

    Section 4 after a short discussion of methodology in the next section.

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    3. Methodology

    While the paper is mainly conceptual it also uses secondary sources to document the

    current trends and developments that a modern management philosophy should address.

    In addition it uses the case study method to examine the applicability of total expectations

    management in an SME. The experiences of the particular firm with quality and

    environmental management are examined and the barriers and enablers of applying

    quality and environmental protection concepts analyzed in order to estimate the

    difficulties of TEM application in SMEs.

    The research design of the case study focuses mainly on a description of the actual

    behavior of the firm, instead of sole perceptions of managers, especially actions going

    beyond legal expectations according to the suggestions of Thompson and Smith (1991).

    The author worked in this firm for several years till the end of September of 2004 (with

    an additional six months period as a consultant) and had a first hand experience of its

    activities and strategies. The account of the activities based on participant observation

    provides a unique longitudinal type research over the about 10 years period under

    consideration (1996-2005). Internal documents, correspondence with suppliers and

    customers, and discussions with key managers with a semi-structured approach were also

    used to document relevant attitudes and behavior. Information from the web site of the

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    firm was additionally obtained regarding its environmental and health and safety policy

    and measures.

    4. New developments reflecting TEM

    The current economic context of increased competitor pressure due to globalization

    makes the discussion of total expectations management (TEM) especially relevant. The

    potential effect of the recent financial and economic crisis is, however, beyond the scope

    of this paper.

    The major trends that affect and shape the new approach (TEM) are summarized below in

    Table 2. Environmental degradation and climatic change have led to an increased societal

    concern. ISO 14001 a widely recognized and reputable environmental standard covers the

    environmental dimension of social responsibility and was officially adopted by ISO in

    1996. It is a voluntary international standard that refers to the structure, application, and

    maintenance of a typical environmental system. One of its disadvantages is that it does

    not contain environmental performance measurements. There are substantial similarities

    between ISO 9001 and ISO 14001 in their new versions (Jorgensen et al, 2006).

    ISO 26000 is a guiding tool for a balanced assessment of multiple stakeholders and is

    expected to become a reliable and widely acceptable international standard. The process

    of its development started in 2005 (Castka and Balzarova, 2007). It is expected to be

    introduced as a voluntary standard in 2010 and it is not designed for certification.

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    [Enter Table 2 about here]

    The brief survey of new trends suggests that the proposed total expectations management

    model reflects the new trends and is a response to them, it also promotes the self control

    of firms with good conduct codes and corresponds to the new role of a firm responsible

    to state and society. While the above discussion has presented the normative aspects of

    TEM the next section considers the potential difficulties and barriers of its application in

    the specific context of a small country.

    5. Applicability of TEM in small countries and SMEs

    5.1 The case of Cyprus

    The social and cultural environment of a country affects its management systems and the

    practices of corporate social responsibility (Frynas, 2006). The introduction of a new

    management philosophy, as a radical change, can not succeed without its simultaneous

    adaptation to the local social and cultural institutions. There is a current need to re-focus

    CSR away from multinational enterprises and USA to European countries most of them

    having a high proportion of SMEs. The cumulative effect of SMEs on the environment

    and society in general is substantial (Perrini, 2006).

    Some of the main issues that have to be taken into account in the application of a new

    management system as TEM and which could form potential barriers to its application in

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    a country like Cyprus are summarized in Table 3. In Cyprus the vast majority of firms are

    SMEs and most of them family firms using traditional management methods. Delegation

    of authority, team work, and encouraging initiative among employees are rather limited.

    There are also institutional gaps and deficiencies at the state level. The nature of SMEs

    with the lack of adequate resources and management knowledge and the conservatism

    that they usually exhibit increase the obstacles of the introduction of new management

    systems (Castka et al, 2004b).

    An important point to be emphasized is that in a small country like Cyprus SMEs are not

    invisible, as it is usually assumed for small firms, but may be leaders in their sector and

    well-known to the media and the public and not just the local community. Some of the

    current practices and values of Cyprus culture (e.g. the centrality and authority of

    management) are therefore probably not congruent with the values and philosophy of

    TEM (for example its emphasis on the system, rather than particular parts, and collective

    efforts) and may present barriers to its successful implementation.

    [Enter Table 3 about here]

    CSR is a relatively new concept in Cyprus first introduced by banks and other large firms.

    A recent survey in Cyprus carried out by the Cyprus Employers and Industrialists

    Organization (CEIO), between March and May 2007, among executives of 384 firms

    (most of them SMEs) of all industrial sectors (but mainly manufacturing and construction)

    has tried to find their views on corporate social responsibility and good practices for its

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    promotion. The majority of the respondents know the concept, but this knowledge was

    not found to be related to gender, education, or position in the firm. Information about

    CSR comes mainly from the press and 70% of the respondents consider that their firm

    has partially or to a large extent adopted CSR practices (CEIO, 2008). Most firms offer

    flexible working hours, and promote flexible employment forms, but have not adopted

    plans for balancing personal and professional life or facilities for employee child care.

    Regarding CSR practices corporate philanthropy and sponsorship of sports activities or

    cultural events are the main ones used.

    5.2. SME Case-study

    Alpha Chemicals (disguised name) is a medium size family-owned firm (with around 80

    employees) in the chemical sector. Due to space limitations only some of its activities

    related to quality and environmental issues are considered here. The firm is active in both

    local and export markets. It is used here as an exemplar case in the sense that it has

    been a pioneer in Cyprus for quality and environmental issues.

    It has adopted quality management systems in 1996 as one of a handful of firms in

    Cyprus certifying with ISO 9000 at that time. It was among the first to build an on-line

    database for all ISO documents making their updating much easier. The firm provided

    external training for its personnel, e.g. training for internal auditors.

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    The main motives for the introduction of the ISO 9000 system were external pressures

    from customers (multinational enterprises [MNEs] which had contract manufacturing

    agreements with Alpha for the Middle East Market) and a desire to build reputation and

    image in local and export markets. Similarly these MNEs recommended strict health and

    safety measures for safeguarding the health of employees during manufacturing of

    contract products and environmental protection measures.

    Alpha a leader in its sector has a high visibility in the local market. The nature of the

    sector and its potential adverse impact on both employee health and the environment

    were also important factors in the adoption of quality and especially environmental

    standards, although environmental regulations during the nineties were not yet costly in

    terms of non-compliance (fines etc.) The company installed systems for health and safety

    of the personnel and pollution abatement equipment like ventilation, air filters, solvent

    vapor treatment systems, etc. It even earned an award as responsible employer for its

    health and safety measures. There was, however, no long term environmental policy as

    part of strategic planning, but rather an ad hoc project by project approach.

    Government was an important stakeholder for the company due to its power to affect the

    firm for the following reasons:

    Most products have to be registered with a Government department before


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    The company was anxious about getting a government permit to expand the


    Fast residential development in the area had led to close distance of the factory

    from the nearest houses, which could affect the decision for granting expansion

    permit in case of environmental problems.

    The institutional context shaped the sensitivity of Alpha towards environmental issues.

    There was minimal environmental legislation until the end of nineteen eighties. The

    situation changed rapidly in the nineteen nineties with the introduction and gradual

    enforcement of detailed environmental legislation. At about the same time (mid nineties)

    the company started to upgrade its environmental protection systems. In recent years and

    especially since the year 2000 the harmonization with EU legislation and the stricter

    enforcement of legislation has forced even laggard firms to comply with it.

    The company has also placed significant emphasis on product safety aspects for its

    customers. It has changed the composition or completely withdrawn products, which

    although available for many years in the market, were presenting risks in their use by

    customers (farmers) especially when they were neglecting safety precautions in their use.

    It was also involved in an innovative collaborative research project for the development

    of water based products to replace environmentally polluting solvent-based ones.

    Alpha had the necessary scientific personnel and the sources of information. Actually the

    multinational firms that had contract manufacturing agreements with Alpha and were also

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    the suppliers of raw materials provided information in terms of detailed guidelines,

    answers to technical questions by e-mail or phone and exchange of tacit knowledge

    during the local visits of experts.

    The background of the owner-manager, who has a degree in Chemistry, and his

    experience in industry has played a key role in developing quality and environmental

    policies. The role of one of the owners sons, who was persuaded about the value of

    quality policies and became a champion of quality systems within the firm, was also

    instrumental in the fast adoption of the ISO 9000 system.

    The company after introducing ISO 9000 quality systems and getting experience in their

    use was considering at the end of nineteen nineties the adoption of ISO 14001

    environmental standards. Excessive attention of the top management group to everyday

    problems and operational issues and the unexpected problems during the adoption of an

    enterprise resource planning (ERP) system led to the postponement of the adoption of the

    environmental standard and is still today a project under consideration.

    5.3. Discussion

    The case illustrates the adoption of quality systems due to external pressures (by major

    international customers) and the introduction of environmental protection and health and

    safety measures due to the anticipation of forthcoming environmental legislation and as

    part of a risk management process. At the same time the company realized the need to

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    create good relationships with particularly powerful external stakeholders like the

    government and large suppliers and customers. It can be said that its attitude was more

    calculated out of self-interest rather than originating from social motivations. The state

    has thus a particular role as regulator and facilitator to encourage SMEs to engage in CSR

    activities. The above findings agree with those of Russo and Tencati, 2008, p.1) that

    SMEs have informal CSR strategies and are attempting to secure their license to operate

    in the communities.

    The main concerns and strategies of the firm were two of the three suggested strategies

    by Hart (1995), i.e. pollution prevention and product stewardship (especially diminishing

    the adverse impact of products in use). The third strategy according to Hart (1995), i.e.

    the sustainable development strategy manifested in the mission of the firm is not explicit

    in this case. The company has used its network of suppliers and customers, especially

    MNEs, as source of knowledge. This is considered as typical for SMEs involved in CSR

    activities (Ortiz-Avram and Kuehne, 2008). This finding agrees with the social capital

    approach to the corporate social responsibility, since the cumulative effect of these

    relationships over the years and the trust developed between members of the network

    forms a stock of social capital for the firm (Perrini, 2006, Spence and Schmidpeter,

    2003). The problem of the multi-stakeholder approach that the case illustrates is that

    dealing with separate stakeholders one by one for evaluation of their power, saliency, and

    urgency is just not practical or even feasible and SMEs consider simultaneously the

    effects of their activities on multiple important stakeholders.

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    Operational priorities are paramount in small firms and frequently take precedence over

    strategic issues as shown by the delay in introduction of ISO 14001, although there is also

    the possibility that the firm is still uncertain about the benefits of the system (over the

    existing situation) versus its costs.

    6. Conclusions

    The current demanding business environment of the globalization era requires a new

    management philosophy focusing on social responsibility and the expectations of the

    many internal and external stakeholders. The philosophy of total expectations

    management (TEM) has been proposed as the most suitable one for todays business. The

    new approach is compatible with TQM as discussed above. It can be considered as an

    expansion of the TQM philosophy and TEM could develop through a transformation of

    the institutionalized field of total quality management. The new approach will build on

    the tradition of TQM and business excellence models. The methods, tools, and standards

    of TQM can serve as useful blueprints for development of TEM implementation tools.

    Voluntary standards, complemented by government legislation, form probably the way

    forward for CSR. Global standards may facilitate convergence of CSR practices on an

    international scale. There is, however, some skepticism whether global standards are the

    best solution for CSR strategy development and implementation in small firms. The

    proposition of this paper, based on the literature review and the results of the case study,

    is that after accepting the philosophy of expectations management, SMEs can then

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    develop their own approach to its implementation. They should be encouraged and

    motivated by the state and other actors (non-governmental organizations, trade

    associations, etc.) to start behaving responsibly, even in an informal way.


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    Table 1 Principles and values of TQM

    Product related People related System and Society related

    No defects Meaning of work Management by fact: relyingon scientific method and


    Integrity of products and


    Service to people Business excellence

    Mistake prevention Personality


    High moral behavior

    Focus on operation


    Empowerment of


    External focus/

    Focus on customer

    Considering mistakes aslearning opportunities


    Human dignity and welfare

    Optimal use of resources Leadership Transparency

    Performance improvement Teamwork Reliability/Trust

    Change in processes No fear Discipline

    Pro-activeness Continuous improvement and


    Source: Prepared by the author on the basis of literature sources (e.g. Rayborn and

    Payne, 1996, De Cock and Hipkin, 1997).

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    Table 2 Major trends that affect and shape the new approach (TEM)

    Trend Examples

    Increased demands /requirements of


    Investor driven CRS initiatives (social

    investmentCustomer requirements

    Emerging institutional pressures New legislation/EU directives

    Integration moves Integration of ISO 9000 and ISO 14000,

    ISO 26000, etc into an integrated system

    Changing public priorities/expectations Mass media, ecological organizations

    New international initiatives/Global


    U.N. Global Compact, SA 8000, ISO

    26000/Certified accountability systems

    Business excellence models European (EFQM), American (Baldridge),

    Japanese Deming Prize

    Source: Prepared by the author on the basis of literature sources (e.g. Castka andalzarova, 2007, Waddock, 2008)

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    Table 3 Main potential barriers to TEM implementation

    Issue Actual situation

    Cultural compatibility Compatibility between Cyprus culture andthe underlying values of TQM and TEM

    Current stage of diffusion of ISO standards

    In Cyprus/TQM practice

    Relatively low diffusion of TQM and

    environmental standards in the context of


    Resources, time and efforts required Limited resources and managerial time of


    Strategic implications for firms Flexibility reduction due to delays in

    decision making /Increasing complexity of


    Source: Prepared by the author