Doctorate in Quality

Management (DQM)
program
Osama El Meligy
November 19th , 2021.

Sustainability and Social

Responsibility
 • Learners introduce themselves.
• Introducing the course and the
methodology.
1- Sustainability in a rapidly and
unprecedently changing world.
2-Sustainability and UN Sustainable
Development Goals.
Agenda 3-Concepts and Principles of Social
Responsibility in the context of a
Sustainability Strategy.
4-Building blocks for strategy on
Sustainability
• Assignments to groups and individuals.
• Questions and Answers session.
Social
Responsibility in
• Sustainability in a rapidly and
the context of unprecedently changing world
Sustainability
Strategy
1- Sustainability in a rapidly and
unprecedently changing world
• The world is changing in a rapid and unprecedented way.
• Social, Economic and Environmental changes
• Crisis and Epidemics/Pandemics spreading.
• Increasing dependence on technology and transition to a digital economy and communication

Organizations should sustain themselves and not only continue to deliver their services to their national
economies and societies during times of adversity and hardship, but also leverage the opportunities
brought about by Industry 4.0 technologies; blockchain; big data, to deliver these services in a more agile
and efficient way.
Good Governance is a key factor for organizational resilience and managing business .

4
Sustainability in a rapidly and unprecedently
changing world (Cont’d)

• Adapting to Change

5
Irresponsible decisions and poor
governance can lead to the fall of
Giants.
• FIFA corruption scandal
• In 2016 FIFA, the international governing body of Association football
(soccer), struggled with the ongoing repercussions triggered when the
protracted suspicion of fraudulent dealings, racketeering, and money
laundering involving high-ranking FIFA officials was confirmed.
• TIC (Testing-Inspection –Certification Association), anti corruption committee
white paper about the Dangers and Risks of Counterfeiting: Counterfeiting a
product’s certification mark or falsifying a test report or certificate can pose
serious dangers to the end user as well as their environment. When products are
tested and certified, it is typically to prevent harm from electrical shock, fire,
exposure, burns, chemical risk, electromagnetic or ionizing radiation, or
personal injury, which may include death. Manufacturers and distributors who
bypass the proper testing and certification requirements, put users of their
products at risk.
• PIP Breast Implant scandal in Europe (industrial grade silicone used instead of
medical grade).
• The melamine in Baby Food scandal in China
https://en.wikipedia.org/wiki/2008_Chinese_milk_scandal
• Randox drug testing lab scandal in UK
see https://www.imarcresearch.com/blog/pip-breast-implant-scandal and
https://www.independent.co.uk/news/uk/crime/forensic-labs-data-
manipulation-criminal-convictions-doubt-randox-testing-services-investigation-
a8066966.html

6
Irresponsible decisions and poor
governance can lead to the fall of Giants
• The Enron -Arthur Anderson scandal
• The Enron scandal, publicized in October 2001, led to the
bankruptcy of the Enron Corporation, an American energy
company based in Houston, Texas, and the de facto dissolution
of Arthur Andersen, which was one of the five largest audit and
accountancy partnerships in the world.
• The Volkswagen emissions scandal,
• Also known as Dieselgate or Emissionsgate , began in
September 2015, when the United States Environmental
Protection Agency (EPA) issued a notice of violation of the Clean
Air Act to German automaker Volkswagen Group for knowingly
falsifying emissions data.
Outcome: Fines and lawsuits
• BP oil spill, Deep Water Horizon explosion
• The Deepwater Horizon oil spill (also referred to as the BP
oil spill, oil leak, or oil disaster; the Gulf of Mexico oil spill; and
the Macondo blowout) was an industrial disaster that began on
April 20, 2010, in the Gulf of Mexico on the BP-operated
Macondo Prospect, considered to be the largest marine oil spill
in the history

7
2-Sustainability and UN Sustainable Development
Goals

• "To achieve an equitable, inclusive and more

prosperous future for all, we must foster a culture
of integrity, transparency, and accountability and
good governance”

• Ban Ki Moon, UN Secretary General (International

Anti-Corruption Day, 2013)

8
 3-Concepts and Principles of Social Responsibility in
the context of a Sustainability Strategy

• Transparency
• Accountability
• Responsiveness
• Effectiveness and Efficiency
• Inclusiveness and Equality
• Rule of law
• Integrity, Impartiality and Ownership

9
 Description of concept

Sustainability aims to ensure that organizations continually and effectively support the
appropriate political and economic objectives

Why is Sustainability important?

Organizations should address three different types of sustainability:

• Meeting present and future needs of people, prosperity and planet: all services that are
required to ensure human health, promote economic activity and preserve the environment;

• Financial: where possible, income to ensure continuous operations should be generated

through the provision of demanded services. Complementary to this, the government should
retain the responsibility for funding essential services of wider public interest. In addition, it
should ensure international liaison activities and the costs associated with obtaining and
maintaining international recognition for their organizations;

• Human and technical competences: sustainability issues related to an organization include the

Sustainability ongoing capacity of competent staff to meet the identified needs.

To achieve the desired impact, organization need to meet not only the needs of today but also
address future issues by developing the capacity to adapt to change such as increased reactivity
to innovation and expanding digitalization.

The benefits of sustainability strategy are:

• Enhanced economic competitiveness

• Ensuring long-term health and well-being of people

• Safe and reliable physical infrastructure

• Ensuring a responsible approach to the environmental impact of the organization

• Ensuring the organization can respond in a timely and innovative manner to the implications
arising from the rapid technological developments.

10
Case study: National
Sustainable Development
Goals
• Case study 1:
Good Project Governance, Sustainable Development Goal
In the context of a national level strategy, one objective was to make
the Egyptian Cotton, Textile and Garment Industry number 1 in the
world within 5 years, double the exports and penetrate new
international markets. The National Quality Board, headed by the
minister of trade and industry, was called for a meeting by the
Secretary General of the National Quality Board to set up some policies
in line with the National Quality Policy. The secretariat invited
participation from stakeholders of this strategic issue who are not
members of the Board, such as union of cotton farmers, the textile
export council, the Egyptian federation of textile industries and the
fashion and designer’s association. Among the subjects on the agenda
for the first meeting was launching an online survey to assess the
challenges and opportunities ahead of this strategic goal, with focus on
SMEs, and how to maximize their contribution by benefitting from the
services of the NQI. If properly implemented this will automatically
secure hundreds of thousands of jobs, increase income of millions of
workers and enhance the image and reputation of Egyptian exports
https://www.unido.org/news/unidos-egyptian-cotton-project-brings-together-key-stakeholders-
egyptian-cotton-value-chain-advance-and-innovate-egyptian-cotton-industry

11
Case study :
responsive to todays • Sustainability of resources (natural resources) and
protecting environment is a core principle of good
needs without governance. That is why it is necessary that products and
services should address strategic challenges such as
affecting needs of carbon footprint, water footprint, land degradation,
biodiversity and climate change

future generations • Moreover, organizations should give the model and

example in environmental responsibility, by adopting
international standards for Environmental Management
and Social Responsibility, and applying Carbon and Water
footprint initiatives

12
 Description of the concept :Transparency means that decisions taken, and
their enforcement are done in a manner that follows rules and regulations.
It also means that information is freely available and directly accessible to
those who will be affected by such decisions and their enforcement.

Why is Transparency important ?

Transparency implies that :
• The organizations should provide basic information in a timely
and convenient form that facilitates their understanding by
stakeholders.
• The organizations should allow free flow of information.
• Processes, institutions and information should be directly
accessible to those concerned with them, and enough
information should be provided to understand and monitor
them.

Principle 1: It also means that enough information is provided and that it is accessible
in easily understandable forms and media.
Benefits of Transparency
Transparency • Better engagement of stakeholders
• Better corruption risk management in procurement, hiring and
financial operations.
Note: Using electronic information techniques is a useful and convenient
way of providing information on products and services in a timely manner.
However, consideration should be given to the difficulty some individuals or
small enterprises may have in accessing information provided
electronically. It is therefore important to make these documents available
as hard copy, if requested.

13
 Description of the concept :Accountability is a key requirement of social
responsibility. Not only governmental institutions but also the private sector and
civil society organizations must be accountable to the public and to their
institutional stakeholders.
Who is accountable to whom varies depending on whether decisions or actions
taken are internal or external to an organization or institution. In general, an
organization or an institution is accountable to those who will be affected by its
decisions or actions. Accountability cannot be enforced without transparency
and the rule of law.
Why is Accountability important?
Importance of Accountability can be expressed at two main levels: answerability
(the duty of an individual or organization to answer for their decisions and
actions) and sanctions (the power to sanction misdemeanors and malpractice).

Principle 2: Both forms involve power transmission through the obligation of the agent to
inform the principal of their conduct, and the capacity of the principal to ask
questions and to pass judgement (Bovens 2006; Hood 2010).

Accountability Benefits
-to ensure responsible organizational behavior and to tame undue private power
(Kosack and Fung 2014; Brandeis 1913*)
-High levels of corruption and poor quality of public services, especially in
developing countries, enhanced the demand for accountability from civil society
in its downward form. In recent years, bottom-up accountability mechanisms,
also known as social accountability, have been highly valued as an alternative to
the limited success of top-down accountability to curb corruption, especially in
countries with a systematic problem of corruption and weak institutional systems
(UNCAC 2004).
• https://www.u4.no/publications/does-more-transparency-improve-
accountability.pdf Transparency International , does more transparency
improve accountability

14
 • Description of the concept: A prominent theme in the literature of
Good Governance is responsiveness: the effort that is made by an
organization to provide helpful, expeditious service to its clients. The
first step in acting according to responsiveness is to commit to interact
cooperatively and respectfully with clients. Good Governance requires
that institutions and processes try to serve all stakeholders within a
reasonable timeframe.
• Why is Responsiveness important?
Responsive organization ensures that its communications
are comprehensible. This may mean that forms and statements or
rules are written simply enough so that average people can read,
understand, and comply with them. It may also mean providing
Principle 3: translations of rules and documents for people who speak languages
other than official language, or large-print versions for people with
impaired vision.
Responsiveness • Benefits
Responsiveness is strongly connected to the purpose of the
managerial function of marketing. Marketing is the process by which
an organization studies the marketplace, society, and other
elements of the organization’s environment and then orients itself
toward offering goods or services for which there is genuinely a need
or demand (rather than offering goods or services that the
organization thinks ought to be offered because it supposedly knows
what people need or knows what people want).
Standards, Technical Regulations and CA services will be market
relevant and timely published and delivered.

15
Case study : Making
timely decisions
Sustainability and Good Governance is about making timely,
informed, responsible and mindful decisions towards achieving
SDGs
Bureaucratic and late decision-making and dictatorial decision-
making are common features of poor and risky decisions.
A Policy for decentralization and delegation was approved to
enhance the decision-making process for the holding company
and all its subsidiaries.

Source :
RESPONSIVENESS
By Barry D. Friedman, Ph.D.
North Georgia College & State University
Copyright 2009 by North Georgia College & State University

16
 • Description of the concept: Sustainability and Good governance
means that processes and institutions produce results that meet
the needs of society while making the best use of resources at
their disposal. The concept of efficiency in the context of good
governance also covers the sustainable use of natural resources
and the protection of the environment.

• Why is Effectiveness and Efficiency important?

• Higher Productivity
Principle 4: • Better performance

Effectiveness and • Benefits

Efficiency • Achieving goals and targets

• Best use of resources and natural resources
• Eliminating waste
• Eliminating defect

Source: ISO Management Systems Standards such as ISO 9001 for

Quality Management, ISO 14001 for Environmental Management and
ISO 27001 for Information Security Management

17
 Description of concept
• Inclusiveness emphasizes the need to obtain the necessary shared
understanding of the content of the policy and help ensure its
successful implementation.

Why is Inclusiveness important?

• The private sector, including MSME providers or users of

Principle 5: Government services and products, should play a major role in

ensuring that there is sufficient and appropriate capacity to meet
a country’s needs. It is vital therefore that they are directly
Inclusiveness and involved in the development and implementation of a National
System. In addition to the private sector, civil society should also
be encouraged to appropriately participate in National Policy
Equality related initiatives.
• Non-governmental organizations also often play a significant role
functioning as a trusted voice of society and can assist in
addressing issues such as consumer safety.
• The empowerment of women should also underpin the
development process so that gender mainstreaming and gender
parity, including support for and the incentivization of
organizations owned and run by women are suitably addressed.

18
Principle 5: Inclusiveness
and Equality, contd.
Benefits

• Inputs that provide different perspectives on local, and Regional needs;

• Ensuring that the resources required to initiate, strengthen and maintain an appropriate QI
recognises and balances public funded service capacity with what can and should be provided by
the private sector.

• Feedback on what is required to ensure that the QI related services offered by NQI institutions
continue to meet the needs of the intended users and consumers.

Case study 3: Women empowerment and child labor

These are 2 challenges facing successful implementation of the SDGs in the

country, where cases of child abuse and discrimination against women were
found. The National Quality Board held a meeting to establish a national policy
in the context of the National Quality Policy, specifically to improve the
national Gender Equality index compared to international ones, where it
showed that the country was in a very low rank internationally. A master plan
was initiated with timelines and accountabilities for all parties, KPIs were
agreed upon and a monthly progress report established to be presented for
the steering governing committee.

Among the issues addressed: Fair wages for women, % of women in

management jobs, % Women to Men at work, and the definition of a policy to
stop harassment and assaults against women

19
 • Description of the concept : Rule of law is a principle under which all persons,
institutions and entities are accountable to laws that are: Publicly promulgated,
Equally enforced, Independently adjudicated and consistent with International
Human Rights principles
Social responsibility requires fair legal frameworks that are enforced
impartially.
It also requires full protection of human rights, particularly those of
minorities.
Impartial enforcement of laws requires an independent judiciary and an
impartial and incorruptible police force.
Principle 6: Rule of
•
Law Why is respecting the rule of law important?
•
•
Respecting the rule of law is the essence of any society.
Accountability is very much attached to respecting the rule of law.

• The benefits
• Rule of law promotes prosperity
• Rule of law promotes fairness and justice
• Rule of law provides a framework for empowering compliance to
legislations and regulations

20
 Description of concept
• Integrity emphasizes the need to address the way the organization is directed, overseen, and
implemented at the National (and if relevant at the Regional) level, to create an environment
where an organization is encouraged to operate in an impartial manner.
Why is Ownership, Integrity and Impartiality important?
• Owning the process, making ethically sound and transparent choices, defining clear roles and
responsibilities are all issues that require appropriate attention. Good governance,
trustworthy decision making, sound financial management, appropriate allocation of
resources, impartial market surveillance, and accurate monitoring should also be

Principle 7: appropriately addressed. The importance of building of an institutional memory should also
be considered. Ownership, integrity and impartiality are crucial when addressing corruption
and the exertion of undue influence. Greater trust from the consumer side can be promoted
by a more proactive consumer protection mindset.

Integrity, • To encourage the development of a value adding and continuously relevant QI, a particular
Ministry should be mandated to take a leadership role and be given the national
responsibility to own such an initiative. The choice should also be consistent with any

Impartiality and
overarching Quality Policy. A logical choice, should they have officials with the requisite
knowledge, could be the Ministry responsible for government planning and the overall
coordination of the government budget.

Ownership
Benefits
• The benefits of ownership, integrity and impartiality for the Social Responsibility and
Governance are:
• Organizations operate impartially in accordance with the relevant international
standards;
• Provision of the authority and guidance required to move from an unstructured and
uncoordinated approach to a strategic, cohesive, relevant, and cost-effective
Governance system;
• Increased levels of trust amongst users its products and services in local and
international markets;
• Minimization of organizational conflicts of interest and other unintended
consequences that are often evident where oversight and integrity is lacking;

21
 Harvard Business School recommend 8 Building Blocks of a Strategy
1-Look outside to identify threats and opportunities
At the highest level, strategy is concerned with the external market and how the organization’s
resources should be allocated to create an exploitable advantage
2. Look inside at resources, capabilities, and practices
Resources and internal capabilities can constrain your choice of strategy. A strategy to exploit an
un-served market might not be feasible if your organization lacks the necessary financial capital
and human know-how.
3. Consider strategies for addressing threats and opportunities
Christensen has advocated that strategy teams first prioritize the threats and opportunities they
find (he calls them “driving forces” of competition), and then discuss each in broad
strokes. (mention SWOT and PESTLE analysis? – But maybe not necessary – I seem to remember
you talk about these later) Yes referred to PESTEL in coming module

4-Building blocks 4. Build a good “fit” among strategy-supporting activities

Michael Porter, (Bishop William Lawrence Professor at Harvard Business School), has made the

for strategy on point that strategy is more than just a blueprint for winning customers; it is also about combining
organization activities into a chain whose links are mutually supporting and effective
5. Create alignment

Sustainability. Once you’ve developed a satisfactory strategy, your job is only half done. Now you must create
alignment between the people and the activities of the organization and its strategy.
6.Communicate. You must help people understand the strategy and how their jobs contribute to
it. You want to create a situation in which even the lowest-ranking employees can articulate the
goals of the organization and explain how what they do every day furthers them.
7.Coordinate work processes. You must align people’s activities with the business’s strategic
intentions.
8.Be prepared for change
Create a winning strategy and implement it well, and you might cruise along for years without
any problems. But no strategy is effective forever. Something in the external environment
eventually changes–new technology appears, customer needs shift, new competitors emerge–
rendering it ineffective. Unfortunately, many management teams cannot recognize when their
strategies have become obsolete.

https://hbr.org/2008/02/the-building-blocks-of-strateg

22
Questions and Answers
session.

• Feedback.
• Ideas.
• Suggestions
• Questions.
Thank you