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UNIT 1: DEFINITION OF QUALITY

1. Definition and evolution of quality
1.1. WHAT IS QUALITY
The concept of quality is subjective and difficult to define some aspects of quality can be defined.
Ultimately, the evaluation of quality is done by the customer.
Quality as:
Conformance to specifications.
Customer needs and expectations.
Value.
Excellence.

1.2. MULTIPLE DEFINITIONS OF QUALITY

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1.3. PHASES IN THE PHILOSOPHY OF QUALITY

Middle Ages > craft guilds (no intermediaries)
17th Century > international commerce
Industrial Revolution > new factories
Early 20th Century > Taylorism (statistical methods)
WWII > The West (inspection) vs. Japan (prevention)

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2. Quality dimensions
2.1. QUALITY DIMENSIONS OF A PRODUCT
Garvins 8 dimensions (1998):
Performance: basic operating characteristics.
Features: extra items added to basic features.
Reliability: probability product will operate over time.
Conformance: meeting pre-established standards.
Durability: life span before replacement.
Serviceability: ease of getting repairs, speed & competence of repairs.
Aesthetics: it refers to the colors and the aspect of a product.
Perceived quality: subjective perceptions based on brand name, advertising, etc.

2.2. QUALITY DIMENSIONS OF A SERVICE

Zeithaml et al.s 5 dimensions (1993):
Tangible elements: Appearance of physical facilities, equipment, personnel and
communication materials.
Empathy: Individual attention offered by companies to their customers; capacity of workers to
put themselves in their customers shoes.
Reliability: Ability to perform the promised service in a reliable and accurate way.
Responsiveness: Availability of the company to help customers and suppliers as fast as
possible.
Assurance: Knowledge and care shown by the workers and their ability to inspire trust and
credibility, lack of hazards, risks or concerns.
Model of service quality measurement:
- SERVQUAL (Parasuraman et al., 1985): Off-line market
Expected > Before the service
- E-S-Qual (Parasuraman et al., 20055): On-line market
Perceived > After the service

Expected Q > Perceived Q > Dissatisfied

Expected Q = Perceived Q > Satisfied
Expected Q < Perceived Q > Delighted
If a client is dissatisfied with a product or service, then the companies try to satisfy it by providing more
benefits than before.

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2. Quality management and control tools

Within the organization, it is necessary to talk about...
Quality costs:
- Prevention costs.
- Evaluation costs.
No-quality costs:
- Internal errors.
- External errors.
- Tangibles: easy to measure.
- Intangibles: difficult to measure.

2.1. MAIN QUALITY MANAGEMENT THEORIES: THE GURUS OF QUALITY

Difference between:
- Academia
- Practitioners:
Walter Shewhart (1891-1967)
Armand Feigenbaum (1922)
W. Edwards Deming (1900-1993)
Joseph Juran (1904-2008)
Philip Crosby (1926-2001)
Kaoru Ishikawa (1915-1989) > quality and control tools
Walter Shewhart (1891-1967)
Shewhart was the first one to apply statistical techniques to industry (manufacturing).
Father of Statistical Process Control (SPC), implemented for the first time in 1924 at Bell
Telephone (USA).
His main book is: Economic Control of Quality of Manufactured Products (1931).

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Armand V. Feigenbaum (1922)

Originator of the term Total Quality Control.
Quality is a way of managing a business organization and it is everyones responsibility. Quality
is what the customer says it is.
Feigenbaum emphasizes the cost of quality.
Significant quality improvement can only be achieved in a company through the participation of
everyone in the workforce, who must, therefore, have a good understanding of what
management is trying to do.
Quality improvement process represents the best return-on-investment opportunity for many
companies in todays competitive environment.
His main book is Total Quality Control (1961).
Feigenbaums 10 benchmarks for Total Quality success:
1.
Quality is a company-wide process.
2.
Quality is what the customer says it is.
3.
Quality and costs are a sum, not a difference.
4.
Quality requires both individual and team zealotry.
5.
Quality is a way of managing.
6.
Quality and innovation are mutually dependent.
7.
Quality is an ethic.
8.
Quality requires continuous improvement.
9.
Quality is the most cost-efficient, least capital-intensive route to productivity.
10.
Quality is implemented with a total system connected to customers and suppliers.
W. Edwards Deming (1900-1993)
Quality, though a reduction in statistical variation, improves productivity and competitive
position (Influenced by Shewhart)
Defines quality in terms of quality of:
- Design (a working BMW and a non-working BMW have a different quality of conformance
but the same design).
- Conformance (a well-manufactured BMW and a well-manufactured Ford Ka have a
different quality of design but the same conformance).
- Sales.
- Service function.
All employees have to be trained in statistical quality techniques.
Change in organizational culture, same as in Japan.
Main books: Quality, Productivity, and Competitive Position (1982) and Out of the Crisis (1986.
PDCA or Shewharts Cycle or Continuous Improvement Cycle.

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Continuous Improvement Cycle

Demings 14 points for management (1986)
1.
Constancy of purpose towards improvement of product and service.
2.
New philosophy where errors and negativism are unacceptable.
3.
Cease dependence on inspection to achieve quality (process improvement).
4.
End the practice of awarding business on the basis of price tag.
5.
Improve constantly and forever the system of production and service.
6.
Training.
7.
Adopt and implement leadership.
8.
Drive out fear.
9.
Break down barriers between departments.
10.
Eliminate slogans and targets.
11.
Eliminate standards for the workforce and goals for managers.
12.
Eliminate barriers depriving people of taking pride in their work.
13.
Stimulate education and self-improvement in everyone.
14.
Act to accomplish the transformation.

Joseph Juran (1904-2008)

Focused on the role of senior people in quality management.
Quality control must be an integral part of the management function and practiced throughout
the organization.
Developed the quality trilogy: quality planning, quality control and quality improvement.
Emphasizes the cost of quality.

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Defines quality as fitness for purpose and use. The goals of quality improvement are increased
conformance and decreased cost of quality.
His main books are Quality Control Handbook (1951) and The Juran Trilogy (1986).

2.2. QUALITY TRILOGY

Jurans method for quality improvement

1. Build awareness of the need and the opportunity for improvement.
2. Set goals for improvement.
3. Organize to reach the goals.
4. Provide training.
5. Carry out projects to solve problems.
6. Report progress.
7. Give recognition.
8. Communicate results.
9. Keep score.
10. Maintain momentum by making annual improvement part of the regular system and
processes of the company.
Philip Crosby (1926-2001)
Addresses given to top management (great motivator).
4 principles of quality management:
Quality is defined as conformance to requirements.
The system for achieving quality is prevention, not evaluation.
The only performance standard is zero defects.
The measurement of quality is the cost of quality.
Main book: Quality Is Free (1979).
Crosbys 14-step quality improvement program:
1. Management commitment.
2. Quality improvement team.
3. Quality measurement.
4. Cost of quality evaluation.

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5. Quality awareness.
6. Corrective action.
7. Establish an ad hoc committee for the zero defects program.
8. Supervisor training.
9. Zero defects day.
10. Goal-setting.
11. Error cause removal.
12. Recognition.
13. Quality councils.
14. Do it over again.
What are the common points detected in the gurus theories?
- All consultants > own interests to survive on the market.
- Main teaching:
Deming / Shewhast > SPC
Feisenbaun > Q costs
Juran > Q
Continuous improvement in order to make the business better off.
- Importance on training and preparing employees for their task.
- Constant improvement (never enough).
4 main points:
- Top management support + participation
- Train + educated employees
- Quality management means > entire organization
- Continuous improvement

2.3. PATHS OF QUALITY

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Ishikawas basic quality tools:

1. Histogram: is a bar graph showing frequency data. Provides the easiest way to evaluate the
distribution of data.

2. Paretos chart: are used to identify and prioritize problems to be solved. Histograms aided by
the 80/20 rule adapted by Joseph Juran: approximately 80% of the problems are created by
approximately 20% of the causes (ABC method for good classification in warehouses)

3. Cause and effect diagrams: is also called the Ishikawa diagram or the fishbone diagram. It is
a tool for discovering all the possible causes of a particular effect. The main purpose of this
diagram is to act as a first step in problem solving by creating a list of possible causes. It does
not take into account the possible relationship among causes.

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4. Scatter diagram: Are used to study and identify the possible relationship between the changes
observed in two different sets of variables.

5. Flow charts: is a pictorial representation showing every step in a process. Example:

manufacturing process, activity planning, etc.

6. Process control charts: are used to determine whether a process will produce a product or
service with consistent measurable properties. Example: a patients vital signs, a machines
performance, etc.

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7. Data checks sheets or Control sheets

Unit summary
- Definition of quality: evolution, costs, dimensions, gurus.
- Quality improvement tools.

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UNIT 2: QUALITY MANAGEMENT

SYSTEMS (QMSs)
1. Definition of quality management
Quality management means assurance trying to prevent mistakes during the manufacturing
process or the provision of the service. This increases efficiency and the relationship among the
suppliers and clients and it brings continuos improvement to the company.
This assurance is provided by the quality management systems.
Normalization > creating norms that are discussed by different countries.
Standardization > the norm is applied to all countries. It is the same as enrollment protocol, but
it doesnt mean that all the companies do the same.
Certification > companies can implement the norms (that are not compulsory) and when they
comply with the quality management systems, they obtain a certification which is a paper which
says that the company complies the norms.
Internal audit > are done by the organization to control all.
External audit > somebody independent from the organization (it forms part of a certification
body) will analyze our company in order if we comply the requirements to obtain the certificate.

Process map > is the model of ISO 9000 which allows to identify and detect the processes and
the activities of the company, in order to see the interrelations among them. It has the philosophy
of PDCA.

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The ISO is voluntary to implement for the company.

1.1. QUALITY PATHS

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IMPORTANT

Like passing an
exam, it is the evaluation

2.2. ACCREDITATION BODY

We cannot find the ISO logo, we find the logo

of the company who made the certification,
which proves that the company complies with
ISO standards

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2.3. PREVIOUS DEFINITIONS

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2.4. CONCEPTS RELATING TO MANAGEMENT

2. Formalization of quality management

2.1. MAIN ASPECTS ANALYZED
- QMS vs Standards (common dimensions).
- ISO.
- Main QMS standards ISO 9000 & ISO 9001:
Structure of the norm.
Motivations to implement.
Benefits of implementation.
Evolution of certificates.
Diffusion.
Certification intensity.
Internalization.

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> QMS vs Standards

Fundamentals of Quality Management Systems:

- Universal: entire organization.
- Open: understandable accessible
- Integrator: it has common objectives.
- Rigorous: consistent with organization objectives.

Definitions

International
Intern
National

Req. Implemention + Doc +

Mant + Improvement of QMS

ISO

Yes or No

Generic

Entire organization

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> ISO
Story:
1946: delegates from 25 countries met at the Institution of Civil Engineers in London and
decided to create a new international organization to facilitate the international coordination and
unification of industrial standards.
1947: ISO began operations. Since then:
More than 19,500 international standards have been published.
164 members.
3,368 technical committees (which write standards).
More than 150 people working full time at the headquarters in Geneva (Switzerland).

No entra al examen

> Main QMS standards

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ISO 9000 family is a series of generic standards for quality management systems.
ISO 9000 family put the requirements to implement a quality management system.
ISO 9000 family is:
- NOT a series of product standards.
- NOT a guarantee of product or service quality.
- NOT a quality management system.
- Does NOT describe a quality management system.
An ISO 9001 audit will demonstrate that an organization has the minimum requirements for a
quality management system that give assurance of its capability to meet specified and implied
requirements that will satisfy the customer.

3. ISO 9000: 2005

3.1. INTRODUCTION
Quality management principles:
Eight quality management principles have been identified that can be used by top management in
order to lead an organization towards improved performance:
1. Customer focus: To define and satisfy customers needs and requirements. It is the most
important.
2. Leadership: To create and maintain an internal environment which people can become fully
involved in achieving the organizations objectives.
3. Involvement of people: To achieve that all the people and working teams belonging to the
company develop their tasks according to their real and potential capacity. People should be
active in this implementation.
4. Process approach: To assimilate activities to processes to ease their management and
results achievement.
5. System approach to management: Identifying, understanding and managing interrelated
processes as a system with one objective: organizations efficiency and efficacy
improvement.
6. Continual improvement: Trying to make all the activities following the global improvement as
a permanent objective.
7. Fact-based approach to decision-making: Analyzing the data and relevant information
before making any decision
8. Mutually beneficial supplier relationships: Involving the external suppliers into the
organizations activity to improve the common capacity and working.
These provide the foundation for QMS standards in the ISO 9000 family.
Companies cannot implement and certify the ISO 9000, the only one that it is certifiable is ISO
9001.

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Exercise:
1. Create a figure interrelating the 8 principles.

CONTINUAL
IMPROVEMENT

3.2. SCOPE
Objective:
- Describes fundamentals of QMSs, which form the subject of the ISO 9000 family.
- Defines related terms.
It is applicable to:
- Organizations seeking advantage through the implementation of a QMS;
- Organizations seeking confidence from their suppliers that their product requirements will be
satisfied;
- Users of the products;
- Those concerned with a mutual understanding of the terminology used in QM;
- Those internal or external to the organization who assess the QMS or audit it for conformity
with the requirements of ISO 9001;
- Those internal or external to the organization who give advice or training on the QMS
appropriate to that organization;
- Developers of related standards.

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3.3. FUNDAMENTALS OF QUALITY MANAGEMENT SYSTEM

Quality Management Systems can help organizations to increase their clients satisfaction.
The model applied is the process map.
Customers are the beginning and at the end of the continual improvement of the quality
management system.

3.4. TERMS AND DEFINITIONS

These concepts are used in all the ISO family:
1. Terms relating to quality.
2. Terms relating to management.
3. Terms relating to organization.
4. Terms relating to process and product.
5. Terms relating to characteristics.
6. Terms relating to conformity.
7. Terms relating to documentation.
8. Terms relating to examination.
9. Terms relating to audit.
10. Terms relating to quality management for measurement processes.

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4. ISO 9001: 2008

When the company wants to implement a quality management system, it will implement the ISO
9001.
Realized by Technical Committee ISO/TC 176.

The ISO 9001 is useful because

- It has the requirements to
follow if an organization wants
to certify its Management
System and quality assurance.
- Establishes the patters to
create a business culture
focused on customers.
- Defines a management model
to satisfy customers needs and
expectations.
It influences in aspects such as:
Process approach.
Customer satisfaction (asking).
Continual improvement.
Personnel training.
From Analysis to Evaluation > It is done by a consultant.
Certification > It is done by an auditor.

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EXERCISE: What we have to take into account when analyzing a company?

Customers

Employees

Measures

Facilities / tangible de.

Labor climate

Propose different answers

depending on the service.

Employees behaviors

Motivations / Incentives

Do content analysis

Efficiency / Fashness

Future perspectives (implication)

Do open and closed questions

Customers / Recovery

Leadership

Purpose questions that can be

comparable

Overall satisfaction

Team work
Flexibility
Overall satisfaction

5. NORM STRUCTURE
INTRODUCTION
Difference between a consultant and an auditor:
- Consultant: will be working for the organization until the evaluation part (it is not part of the
company). A consultant can be an auditor but he/she wont be able to certificate, because he
cannot play both roles in the same company.
- Auditor: the external person from a certification body, who realizes an audit in order to give
the certification to a company. It has to be independent from the company.
* Audit: an evaluation, first is internal and if the company wants to certify it has to be external.
The internal audit is more demanded that external audit.
If nonconformities are detected (noncomplying) the company must implement corrective
actions. Normally, the companies ask for the certification.
The normative references of the ISO 9001 are in the ISO 9000.
Quality Management System adoption > Strategic decision of the organization

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Factors affecting Quality Management Systems design and implementation:

a) Organizations environment, changes in the environment and its related risks.
b) Changing needs.
c) Particular objectives.
d) Products provided.
e) Processes applied.
f) Size and structure of the organization.
The purpose is not providing uniformity in the QMSs structure or documentation.

5.1. SCOPE
They implement the ISO 9001 in order to prove that they are doing right.
Objective: Specifies requirements for a quality management system where an organization:
a) Needs to demonstrate its ability to consistently provide product that meets customer and
applicable regulatory requirements.
b) Aims to enhance customer satisfaction through the effective application of the system,
including processes for continual improvement of the system and the assurance of conformity
to customer and applicable regulatory requirements.
Application: Applicable to all organizations, regardless of:
- Type.
- Size.
- Product provided.
- Sector.
All companies can implement this standard but with different processes and characteristics
depending on the kind of company.

5.2. QUALITY MANAGEMENT SYSTEM

General requirements: The organization shall establish, document, implement and maintain a
QMS and continually improve its effectiveness in accordance with the requirements of this norm.
This management system has to be documented in order to have proves when the auditor is
coming to analyze the company.
The organization shall:
Identify the processes needed for the QMS and their application throughout the organization.
Determine the sequence and interaction of these processes.
Determine criteria and methods needed to ensure that both the operation and control of these
processes are effective.
Ensure the availability of resources and information necessary to support the operation and
monitoring of these processes.
Monitor, measure and analyze these processes.
Implement actions necessary to achieve planned results and continual improvement.
Most important requirement: DOCUMENTATION.
General requirements of the documentation > It shall include:
Documented statements of a quality policy and quality objectives.
A quality manual.
Documented procedures and records required in this norm.

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Documents, included records determined by the organization as needed to ensure the

effectiveness planning, operation and control of its processes.
Set of documents created as a consequence of any activity affecting quality, relevant external
documentation for the MS. Base of the system. Huge effort for the organization.
One should say all what is done and do all what is said. The QMS must reflect the activities
actually realized, warranting its conformance: one should write down all what is done, and do all
what is written down.
Constant updating.

5.3. DOCUMENTATION PYRAMID

More detailed information is provided.

Templats and formats > Audits evidence

Four levels of detail of the information regarding the quality management system:
1. Quality manual: it is the most important document. It describes the quality management
system methodology (extent QMS, responsibles, procedures / processes,
interrelationships). It is easy to understand. General structure:
- Introduction.
- Main characteristics of the organization.
- Quality policies.
- Responsibilities (signed).
- Quality management system characteristics.
2. General procedures: it is a specifically way of performing an action. It is described the
Why, When, Where and What. This helps in keeping the knowledge within the
organization. It is useful because it keeps organization knowledge, it is the
systematization tasks and it allows the among collaboration departments.
3. Working instructions: here is explained specifically how these activities are done
related to the quality management system. For example, how to use a machine? Which is
the temperature needed to boil a specific product in order to get the final product? or How
to perform the service?

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4. Records:
here
we find models (tables) and templates which will be analyzed by the
Positive
things of
documentation
auditor.

- Enables communication.
- Contribute to achieve conformity to customers requirements and quality improvement.
- Everybody can know what the customers are asking.
- Important for training people.
- Repeatability and traceability.

5.4. MANAGEMENT RESPONSABILITY

Top management shall provide evidence of its commitment to the development and implementation
of the QMS and continually improving its effectiveness by:
- Management commitment: quality policy and objectives, resources, communication
Everything related with trying to improve customer satisfaction. The top management has to
show evidence.
- Customer focus: the top management has to ensure that customer requirements are met.
- Quality policy: it establishes the requirements of the quality management systems:
Appropriate organizations policy and objectives.
Committed to continuous improvement.
Reviewing the objectives.
Communicated and understood.
- Planning: top management needs to determine quality objectives (standards and
requirements) which must be measurable, and should develop a plan of quality management
system.
- Responsibility, authority and communication: top management is responsible of how the
quality management system is communicated, then if it is well done, the quality management
system is implemented.
- Management review: the top management should be revising the quality management
system periodically (normally it is once a year). The organization should analyze and check if
what was planned has been implemented. Check if the performance is complying which with
has been designed and implemented.

5.5. RESOURCE MANAGEMENT

Top management shall ensure the availability of the resources needed for the implementation of
the organizations strategies and objectives:
- Provision of resources: determine and provide all the resources needed in order to
implement and improve the quality management system, and also to satisfy customers.
- Human resources: must ensure that the personal is trained providing the necessary skills,
competences and with enough experience.
- Infrastructure: determine provide and maintain infrastructure needed to achieve conformity.
Here, we are talking about the buildings needed, the equipment, supporting services

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- Working environment: determine and manage work environment to achieve conformity (it
has to be problem-solving person).

5.6. PRODUCTION REALIZATION

The organization shall ensure that is realizing its processes to satisfy stakeholders efficiently and
with efficacy:
- Planning of product realization: define and implement required processes to achieve
customers requirements.
- Customer-related processes: determine the requirements of the product
- Design and development: plan and control and it must do the product design and
development.
- Purchasing: the company should control all the process determining whose must be the its
suppliers, making the first order, then the reception, controlling if the reception fulfills with the
order and putting the products in the process.
- Production and service provision: it must control production, validate processes,
traceability, perseverate product.
- Control of monitoring and measuring devices: control, calibrate and realize the equipment
maintenance.
It is the most specific requirement of the norm.

5.7. MEASUREMENT, ANALYSIS AND IMPROVEMENT

The organization shall establish the procedures of measurement, monitoring, analysis and
improvement to:
a) Demonstrate the conformance with the product requirements.
b) Ensure QMS conformity.
c) Continual improvement of the system.
Activities:
- Monitoring and measurement:
Obtaining data (direct and indirect way) in order to increase customers satisfaction.
Internal audits.
Processes (methods) and products (characteristics).
- Control of nonconforming product: document a procedure to define controls and
responsibilities to manage nonconformities.
- Analysis of data: establish a procedure to analyze data in order to improve quality
management systems.
- Improvement:
Continuous improvement.
Corrective actions: determining nonconformities, fix these nonconformities and
implement preventive actions.
Implement preventive actions: wants to avoid nonconformities.

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6. EVALUATION: AUDIT
Systematic, independent and documented process for obtaining audit evidence and evaluating it
objectively to determine the extent to which audit criteria are fulfilled (set of policies, procedures
and requirements).
A methodical and independent exam carried out to:
1. Determine whether the activities and results relating to quality satisfy the established
provisions.
2. Check that these provisions are actually performed and are appropriate to achieve the
objectives.

6.1. AIM

- Check:
System adequacy to a specific normative reference.
Conformance of the activities and effectiveness of the system.
- Objective observation.
- Useful to:
Detect and identify weak points in the system (nonconformities).
Help in determining corrective actions.
- Who is participating:
Client: person or organization requesting an audit (potential client, client, auditee).
Auditee: organization being audited.
Auditor: person with demonstrated personal attributes and competence to conduct an
audit.

6.2. STAGES
1. Preparing the audit (objectives, scope, check lists, audit plan, etc.).
2. Audit execution (meeting, evaluation, post-audit meeting, report draft).
3. Audit report writing (write the final report, deliver the report to the client and auditee, decisions
on corrective actions, follow-up auditing plan, closing).
4. Final report (complete and precise)
- Unconditionally approved.
- Conditionally approved: must apply some corrective actions.
- Unconditionally disapproved: then the company did not pass the audit and it must do all
the process again.
Continual information is very important.

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Interested parties
Who is coming to
evaluate, it just only
evaluates if the
company is
Asked by clients that
complying the
want to have some
requirements. It is
commercial exchange someone from
with the company and outside of the
they want to know how company.
the organization works

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6.3. INTERNAL AUDIT

An internal audit (First party audit) is an internal exam that evaluates whether the system is
satisfying the applicable requirements that must be done.
It is performed by the organizations own personnel.
Objective: to identify weak points in the system in order to solve them through corrective or
preventive actions implemented where nonconformities are detected.

6.4. EXTERNAL AUDIT

The aim of the external audit is to prove evidence of the organizations commitment to quality.
It is done by a external certification body.
Objective evaluation of the system and declaration about the correct application of the system or
existence of anomalies.
If the result is positive > ISO 9001 certificate > the system complies with all the requirements
of this standard.

7. CERTIFICATION
Certification: Action in which a third party verifies that a system, product or service, complies with
specific standards or specifications.
Characteristics:
- Voluntary.
- Differential advantage.
- Ensuring continuity of performance.
Types:
- Products and services.
- Personnel.
- Organizations (certifying an organizations behavior relating to quality).

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7.1. CERTIFICATION PROCESS

7.2. MAIN ASPECTS ANALYZED

Motivations to implement.
Benefits of implementation.
Evolution of certificates.
Diffusion.
Certification intensity.
Internalization.

7.3. MOTIVATIONS TO IMPLEMENT

Markets pressure

Not so huge, few

knowledge on ISO

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8. BENEFITS OF ISO 9001 IMPLEMENTATION

-

Improvement of the internal organization.

Greater knowledge of organizations activities.
Higher customer satisfaction.
More motivated employees.
Reduction in complaints.
No evidence of improving financial/economic performance: there is a big impact (5 first years)
but then, the process (quality philosophy) is internalized and so the benefits are not seen so
obvious. We can talk about the benefits tend to stagnate or decline: then there are companies
that abandon ISO and invest that money in other standards.

8.1. EVOLUTION OF ISO 9001 CERTIFICATIONS

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9. DIFFUSION
Three main points of view to analyze diffusion of MSSs:
- Factors: demand-supply / accumulative knowledge / etc
- Scope: worldwide / national / local level
- Model.

9.1. MODEL: S-CURVE

The number of
certificates stops
to grow

Companies that
are not renewing
the certificates
First implementers
appear and there
are a few followers

Others realize and

most companies
start certificating

9.2. CERTIFICATION INTENSITY

For mature
standards there is
a negative
relationship
between
certification
intensiveness and
competitiveness

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10. INTERNALIZATION
Internalization is how organizations implement and make the system becoming a routine.
Relationship with motivations and benefits: Those organizations that implement standards because
of internal factors will internalize them better and so will receive more benefits.
It is not necessary like that, maybe the ones with external factors try to do it in the best way
possible and then get more benefits.
So: the kind of factors do not really matter, the importance is in doing it right.

11. CUSTOMER SATISFACTION

A customers perceptions of the degree to which the customers requirements have been fulfilled
(ISO, 2005).
Quality management system standards regarding customer satisfaction.

12. ISO 1000 SERIES

12.1. ISO 10001: QUALITY MANAGEMENT - CUSTOMER SATISFACTION GUIDELINES ON CODES OF CONDUCT FOR ORGANIZATIONS
Provides guidelines for planning, designing, implementing, maintaining and improving the codes of
conduct in an organization. It helps the organization ensure that the codes reflect customer needs
and expectations that the published codes are appropriate.

12.2. ISO 10002: QUALITY MANAGEMENT - CUSTOMER SATISFACTION GUIDELINES FOR COMPLAINTS HANDLING IN ORGANIZATIONS
Provides guidelines for the management process for handling complaints relating to products in an
organization, including planning, designing, operating, maintaining and improving the process.

12.3. ISO 10003: QUALITY MANAGEMENT - CUSTOMER SATISFACTION GUIDELINES FOR DISPUTE RESOLUTION EXTERNAL TO ORGANIZATIONS
Provides guidelines for planning, designing, operating, maintaining and improving an effective
process when the organization fails to resolve customer complaints.

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12.4. ISO 10004: QUALITY MANAGEMENT - CUSTOMER SATISFACTION MEASUREMENT AND MONITORING OF CUSTOMER SATISFACTION
Provides guidelines to help organizations in establishing effective processes for customer
satisfaction measurement and monitoring. It is applicable to all types of organizations, regardless
of size, type or provided product.

13. NORMS UPDATES 2015: MAIN CHANGES

13.1. ISO 9001

Risk management > approach based on risks (preventive actions are eliminated).
To implement actions to manage risks and opportunities with the aim of:
- Improving the quality management system efficiency.
- Achieving better results.
- Preventing negative effects.
Structure: Process approach.
Model: Process map + PDCA

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4. Context of the organization.

4.1. Understanding the organization and its context:
Determine internal and external aspects compulsory for its aim and strategic decision, which
affect the ability to achieve the planned results.
4.2. Understanding the stakeholders needs and expectations:
Organizations activities have an impact. According to this, it shall be determined:
- Stakeholders.
- Stakeholders compulsory requirements.
They should be monitored and the information revised.
4.3. Determining the scope of the quality management system:
Determine the limits and applicability of quality management system to establish the scope.
4.4. Quality management system and its processes:
The organization shall establish, document, implement and maintain a quality management
system and continuously improve its efficacy in conformance with the norm requirements.
5. Leadership.
5.1. Leadership and commitment:
Customer focus, assume responsibilities, accountability, establish quality objectives and
policy, promote process approach based or risk, resources provision, etc.
5.2. Policy:
Establish, implement and maintain a quality policy.
Communicate the quality policy.
5.3. Roles, responsibilities and authorities within the organization.
6. Planning.
6.1. Actions to manage risks and opportunities:
Planning based on determining the risks and opportunities related to the organizations
activities.
6.2. Quality policies and planning to achieve them.
6.3. Planning changes:
Changes in the QMS shall be planned.
7. Support.
7.1. Resources:
People, infrastructure, environment for the operation of processes, monitoring and
measurement resources, organization knowledge.
7.2. Competence:
Competent personnel.
7.3. Awareness:
People shall be aware of quality policy and objectives, contribution to the quality
management system efficiency and implications of nonconformities.
7.4. Communication.
7.5. Documented information:
What shall it include, creation and updating and control.

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8. Operation.
8.1. Operational planning and control:
Planning, implementation and control processes needed to comply with the requirements of
products and services.
8.2. Products and services requirements:
Communication with the client, determine products and services requirements, review these
requirements and changes in requirements.
8.3. Design and development of products and services.
8.4. Controls of processes, product and services provided externally:
Requirements conformity, information for external suppliers.
8.5. Production and service provision:
Control of production and service provision, identification and traceability, clients or external
suppliers properties, subsequent activities of the fulfillment, changes control.
8.6. Fulfillment of products and services:
It cannot be done if they have nonconformities.
8.7. Control of nonconformities outputs.
9. Evaluation of performance.
9.1. Monitoring, measurement, analysis and evaluation:
Customer satisfaction, analysis and evaluation.
9.2. Internal audit.
9.3. Management review.
10. Improvement
10.1. General aspects:
Determine and select the improvement opportunities and implement any needed action to
comply with the clients requirements and increase customer satisfaction.
10.2. Nonconformities and corrective actions.
10.3. Continual improvement.

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UNIT 3: TOTAL QUALITY

MANAGEMENT (TQM)
1. DEFINITIONS AND PRINCIPLES OF TOTAL
QUALITY MANAGEMENT
Remember > Auditories can be:
- Internal.
- External: clients or certification bodies.

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1.1. COMMON DIMENSIONS

Common dimensions in all total quality management definitions (Dale, 2002):
Top management and leadership.
Planning and organization.
Use of tools and techniques.
Education and training.
Employee involvement.
Teamwork: collaboration among departments.
Measurement through indicators.
Feedback and cultural change.
Then the entire organization is involved.
Total Quality Management covers the following tasks:
Defining an organizations quality strategy within the framework of its global strategy.
Deploying quality strategy (planning and resource allocation).
Designing the organization regarding quality (organization chart, responsibilities).
Establishing the Mss of the organization (documentation).
Promoting quality culture within the organization (leadership, structure, HR management).
Verifying the efficacy of decisions and actions taken, evaluating results and establishing
corrective measures.

2. TOTAL QUALITY MANAGEMENT TOOLS AND

MODELS
This involves
They try to go beyond numerical statistical control of the product, service or activities (basic Quality
Management tools).
They are able to analyze complex situations, identify opportunities for improvement and develop
plans for continuous improvement.
Some of these tools are used in the innovation process. For this reason, we can joint total quality
management with innovation.
Main tools:
Brainstorming.
Quality circles.
Benchmarking.
6 Sigma.
5 Ss.
FMEA.
Poka-yoke.
QFD.

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There is no one tool important than the rest, each of the rules have a specific function. Only
implemented when it is needed.
Before implementing a given tool the organization needs to consider (Dale, 2002):
Main objective of the tool.
Benefits obtained and the way the tool will facilitate improvement.
Adjustment or integration with other tools used or planned for use.
Organizational changes to make the tool more effective.
Best method to introduce and use the tool.
Adequacy of the tool to the product, process, people and organization culture.
Resources, abilities and training required for tools introduction.
Potential difficulties and limitations.
When selecting a tool to use, two aspects should be considered (Dale & Shaw):
The isolated application of a tool, without integrating it within the strategy or planning, will only
lead to short-term benefits. To be effective in the long-term, an appropriate behavior and
attitude are needed from all employees.
No technique or tool is more important than another. Each has its role in the improvement
process.

2.1. BRAINSTORMING
This tool can be used to support many management tools and it seeks to generate ideas from a
group of people working together for this purpose.
A group of 6-8 people meets to contribute original ideas in an orderly manner. The process
requires the spontaneous participation of all members in order to elicit new ideas and creative and
innovative solutions, breaking pre-established paradigms.
The ideas are written down in a visible place to enable the continuous inspiration of new ideas. NO
idea is rejected.
Finally, the ideas are analyzed and the most effective and workable ideas are selected to solve the
studied situation.
Brainstorming is used in process improvement, barrier detection and the establishment of the
causes of a problem.

2.2. QUALITY CIRCLES

Definition: Groups of people in an organization who solve specific problems related to quality.
Groups of 6-12 people belonging to the same work area. They meet regularly to solve problems
related to a process or task. In most cases, the problem should be solved in 3-6 months.
The task of each member is to study some manufacturing or service problem within the scope of
the groups area. The group leader helps in training the members and organizing meetings.
Quality circles are applied to continuous improvement. They improve processes and systems,
increase productivity, decrease costs and increase employee motivation and involvement.
Benefits:
+ Solve a problem or improve an area that in most cases affects the jobs of members of they
own cycle.
+ It is a good tool to increase awareness, integration and communication of organizations
human resources.
+ Employee training and motivation is improved, because employees feel that they are part of
the organization.

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2.3. BENCHMARKING
Is the technique to search for the best practices that can be found outside and sometimes inside
the organization, related to:
Methods.
Processes regardless of type.
Products or services.
Always aimed to continuous improvement and focused on clients.
Types of benchmarking:
Internal benchmarking: This is done inside the organization or business group. Some
departments may have adopted successful practices that can also be used in other
departments.
External benchmarking: The comparison looks at external organizations. Through
benchmarking an organization aims to learn from others and become more aware that existing
knowledge outside the organization can be profitable to improve and be more competitive.
Benchmarking is an ongoing process to measure products, services and practices among the
strongest competitors or leading organizations.
- Direct competitor: Most organizations have one or more competitors that excel in the
realization of a process that they want to improve. Collecting information from a direct
competitor can be complicated.
- Non-competitor: When it is possible to obtain information from organizations that are not
direct competitors (for geographical reasons or because they belong to another sector).

2.4. 6 SIGMA
It can be defined as the business management philosophy focused on process improvement using
statistical methodologies on information derived from processes.
The objective is to reduce variation so that products and services meet or exceed customer
expectations.
= standard deviation, dispersion (variability of a set of values with respect to the average value).
Working approach to improve quality, structured and systematic, based on the measurement and
analysis of data, to improve results of all processes.
A response to the need to fight process variability. The objective is to obtain a product quality level
with a final index of 3.4 defects per million (6, is the standard deviation of a process variable).
It is used to radically improve the processes and achieve the following in a short period of time:
Increased customer satisfaction
Increased organization benefits
Introduction of a structured way of thinking that will normally be applied
It is a statistics process control.

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Try to reduce
deviation and defects

2.5. Ss
This represents the commitment of each employee to overall improvement of the environment and
working conditions.

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2.6. FMEA (Failure Mode and Effects Analysis)

Preventive technique used by teams to identify, evaluate and minimize the potential risks that may
affect the quality of a product or process, and to anticipate its appearance.
The objective is to anticipate the appearance of quality problems in products and processes,
identifying the risks of potential defects. It prioritizes through the evaluation of real risks and then
plans the introduction of corrective actions.
Design FMEA
This tool is used mainly by engineers or product managers to ensure that all potential product
failures, their possible causes and impacts have been considered. Analyze possible errors that can
occur at different stages of the production process.
Process FMEA

2.7. POKA-YOKE (AVOID ERRORS)

The nicest and easiest device normally created by the employees of the company.
Systems, mechanisms or devices that ensure the absence of defects or mistakes in the production
process. It involves using a process or design feature to prevent errors or negative impacts. It is:
Inexpensive.
Very effective for manufacturers.
Based on simplicity and naivete.
Something that already exists within the organization.
They try to:
Avoid human errors or forgetting as the source of defect causes.
Detect defects.
Ensure an adequate level of 100% quality.

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2.8. QFD (QUALITY FUNCTION DEPLOYMENT)

Structured system that provides the means to identify customer needs and expectations (customer
voice) and translate them into internal quality requirements.
This tool is used specifically to improve the products design and manufacturing process.
It is deployed in the planning stage with the participation of all the functions involved in the design
and development of the product or service.
Proposals:
Deploy product quality or service quality (based on the customer needs and requirements).
Deploy the quality function in all the activities and functions of the organization.
The basic element of Quality Function Deployment is the house quality. It is the matrix from which
all other elements are derived.
This matrix approach is what characterizes the method. The quality deployment will use a large
number of interrelated matrices and tables.

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3. BUSINESS EXCELLENCE MODELS: EFQM

MODEL
They are models to evaluate Total Quality Management which measure the management within
organizations implementing them.
They are different from the existing MSSs but complementary.
They are based on the basic principles which must be accomplished to achieve excellence.
These models are associated with Quality Awards, and are achieved according to compliance with
the models criteria.
These awards have a significant impact and are used as a self-assessment tool by many
organizations.
Main models, they are voluntary and complementary:
Deming Prize.
Malcolm Baldrige National Quality Award.
EFQM model.
EFQM and ISO 9001 are complementary.
Some of the benefits are:
o Accelerating improvement efforts by introducing a rigorous external viewpoint and
objective into the improvement process within the organization
o Testing how well the organization is applying self-assessment regarding the model
o Activating employees improvement efforts by setting a common goal which increases their
motivation
o Providing the opportunity to learn good practices from others o Gaining an external
perspective through a group of experts
o Learning from the feedback process. Each participant receives a complete report on his/her
strengths and improvement opportunities
o Putting a greater focus on different kinds of results obtained by the organization
o Providing an opportunity to gain public recognition if the organization achieves the award

3.1. EFQM EXCELLENCE MODEL

1988: 14 leading organizations decided to create the European Foundation for Quality
Management (known as EFQM).
1991: Creation of European Quality Award
Function: it is awarded based on the degree of compliance to assessment criteria achieved by
organizations applying for the award.
Framework: European Model for Total Quality Management. General structure of the criteria
applied to any organization.
Self-assessment approach.
2013 model version

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3.2. PRINCIPLES
Declaration of principles based on: The customer, employees and society satisfaction and the
impact on society are achieved through the initiatives of leadership, strategy, personnel
management, alliances and resources; processes, products and services that lead finally to
excellence in business results" (adapted from EFQM, 2009).

3.3. 8 FUNDAMENTAL CONCEPTS OF EXCELLENCE

1. Adding value for customers: understanding, anticipating and fulfilling needs expectations and
opportunities.
2. Creating a sustainable future: positive impact on environment (similarly to CMR). Enhance
performance and advantages:
- Economic.
- Social.
- Environmental.
3. Developing organizational capability: manage changes within and outside the organization
(alliances).
4. Harnessing creativity and innovation: this generates value with continuous improvement and
systematic innovation process. Trying to involve the stakeholders.
5. Leading with vision, inspiration and integrity: leaders need to shape future. The leaders act as
models.
6. Managing with agility: adaptation (identify and respond to opportunities and threads effectively
and efficiently.
7. Succeeding through the talent of people: valuating people with culture of improvement and
enrichment (empowerment).
8. Sustaining outstanding results: meeting short-term and long-term objectives such as
stakeholders needs, expectations

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3.4. WHAT DOES IT DO?

It is a framework to:
- Assess your performance, to identify key strengths and improvement areas.
- Integrate existing tools, procedures and processes, to align all and remove duplicates.
- Introduce a way of thinking that encourages reflection and stimulates continuous
improvement.
- Identify what actions are really driving your results, which areas need more attention, and
which approaches should be made redundant.
The model has two main parts: Enablers (areas in which the organization is going to work) and
Results (impact of this work). Each part has a punctuation of 100.

3.5. ENABLERS

The organization is going to

evaluate its effort on each of the
areas.

3.5.1. Leadership (100 points)

Excellent organizations have leaders that shape the future and make it happen, developing the
mission and vision, acting as role models for their values and ethics and always inspiring trust.
They are flexible, enabling the organization to anticipate and react adequately to ensure the
organizations ongoing success.

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Leaders have to be an example for the organization, focused on improving and internalizing
mission and vision of the organization. Organization needs a good leaders.
They define, observe, review and lead MS improvement and organizational performance.
They also contact clients, colleagues and representatives of society, reinforce the culture of
excellence for the organizations people and ensure that the organization is flexible and manages
changes effectively.

3.5.2. Strategy (100 points)

Excellent organizations implement their mission and vision by developing a strategy focused on
stakeholders. Policies, plans, objectives and processes are developed and used to fulfill this
strategy.
The strategy is based on understanding stakeholder needs and expectations and the external
environment, and internal capabilities and performance. It is developed, reviewed and updated,
together with support policies, to ensure financial, social and environmental sustainability, and it is
communicated and used through plans, processes and objectives.

3.5.3. People (100 points)

Excellent organizations value people and create a culture that can achieve mutual benefits from
personal and organizational objectives.
Develop peoples capabilities and promote fairness and equality.
They communicate, award and recognize, motivating people in order to build commitment and
allow them to use their capabilities to benefit the organization.
People planning supports the organizational strategy. Peoples knowledge and capabilities are
developed. They must be aligned, involved and empowered, with effective communication
throughout the whole organization, so that they are awarded, recognized and given attention.

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3.5.4. Partnership & resources (100 points)

Excellent organizations plan and manage external alliances, suppliers and internal resources to
support the strategy, policies and efficacy of working processes.
Suppliers and alliances are managed for sustained benefit.
Finance is managed to ensure sustained success; materials, buildings, natural resources and
equipment are managed in a sustainable way, technology is managed to support the use of
strategy, and information and knowledge are managed to support the decision-making process and
create organizational capability.

3.5.5. Processes, products & services (100 points)

Excellent organizations design, manage and improve processes that generate increasing addedvalue for customers and stakeholders.
Processes are designed and managed to optimize stakeholder value, while products and services
are developed to create optimal value for clients and to achieve effective market promotion and
delivery. The relationship with clients is managed and improved.

3.6. RESULTS

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3.6.1. Customer results (100 points)

This reflects how organizations measure exhaustively and achieve excellent results regarding their
clients.
Excellent organizations measure exhaustively and achieve important results regarding clients.
They focus on their impact on client perceptions.

3.6.2. People results (150 points)

How the organization measures and achieves excellent results regarding employee satisfaction.
Excellent organizations measure exhaustively and achieve important results regarding their
personnel.

3.6.3. Society results (100 points)

This reflects how the organization measures and achieves excellent results regarding the society.
Excellent organizations measure exhaustively and achieve important results regarding the society.
They give better guidance on how to include social and environmental aspects in their strategy.

3.6.4. Business results (150 points)

This reflects how organizations measure and which results they achieve related to specific financial
and non-financial parameters, comparing them against organization plans and objectives to
achieve their level of compliance.
Excellent organizations measure exhaustively and achieve important results regarding the key
elements of their strategy.
They are directly integrated with the strategic objective, and also the definition and measurement
areas on which the organization should focus.

3.7. BENEFITS OF EFQM MODEL

General benefits:

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Satisfied and loyal customers.

Successful leaders.
A common sense of purpose throughout the organization.
Constant, well managed change.
Engaged and motivated people and other stakeholders.
An upward flow ideas.
Efficient and effective use of data.
Efficient and effective operation.
Pride and the desire that drives further improvement.
Minimal fire-fighting/recurring problems.
Innovation is the norm.
Excellent results, including good financial performance.

3.8. SPECIFIC BENEFITS

- Future focus.
- Key results.
- Innovation.
- Sustainability.
- Reactive to change in the environment.
Benefits for management:
- See the link between strategy and operations.
- Engage employees in change.
- Lead improvements.
Benefits for leaders:
- Help deliver the strategy.
- Understand what is important to do as a leader.
- Develop a unique culture where excellence is the norm.
Benefits for employees:
- Provide their input to build a common direction.
- Understand the impact of their action.
- Contribute to progress.
How does it work?
The EFQM Excellence Model is used as a basis for (self-)assessment, an exercise in which an
organization is graded against a detailed set of 9 criteria.
These criteria are based on the 8 Fundamental Concepts of Excellence.
Finally, the RADAR logic is used to score organizations.
The model is updated every 3 years to ensure it reflects the current and future environment.

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3.9. RADAR
First of all the organization will choose what results it wants.

3.10. SELF-ASSESSMENT
A self-assessment using the EFQM Excellence Model will give the organization a holistic overview
of your organization. It is similar to the similar internal and external audit of ISO. It can help the
organization to:
Understand how effectively you are deploying your strategy.
Identify the causeand-effect relationships between the things you do and the results you
achieve.
Identify your current strengths and prioritize opportunities for improvement against your
strategic goals.
Identify opportunities for benchmarking; both in terms of things you can share and things you
want to learn.
Establish a baseline position so you can measure your progress over time.
The organization will grade each achievement and the EFQM auditors will come to the
organization in order to confirm this achievement.

3.11. LEVELS
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When the organizations had implemented this system, they can choose to obtain the award. There
are three levels:
1. Committed to Excellence.
2. Recognized for Excellence.
3. EFQM Excellence Award.
3.11.1 Committed to Excellence
The first milestone towards excellence.
To achieve this recognition, an organization needs to identify 3 priority improvement initiatives from
a self-assessment and, over the next 6 12 months implement these projects.
Why join?
Involve and align all staff members to improve your organization's performance.
Receive a validation and an internationally recognized certification.
Benefit from action oriented feedback.
Drive a culture of continuous improvement.
3.11.2. Recognized for Excellence
Designed for organizations that are well on their way to achieve sustainable excellence. It
recognizes the organizations efforts and identifies good practices.
The assessment is carried out by an independent team of EFQM Assessors.
Why join?
Receive value-adding feedback from a team of experts.
Benefit from international recognition.
Provide proof to peer organizations, suppliers and customers of your level of excellence.
Use of EFQM Logo for 2 years.
3.11.3. EFQM Excellence Award
Objective:
To recognize Europes best performing organizations, whether private, public or non-profit.
The feedback from the assessor teams is then presented to an independent jury that decides the
level of recognition for each Finalist.
To win the EFQM Excellence Award, an applicant must be able to demonstrate that their
performance not only exceeds that of their peers, but also that they will maintain this advantage
into the future. A prize winner is an organization which demonstrates role model behavior in one of
the following 8 criteria:
Leading with Vision, Inspiration & Integrity.
Managing Processes.
Succeeding through People.
Adding Value for Customers.
Nurturing Creativity and Innovation.
Building Partnerships.
Taking Responsibility for a Sustainable Future.

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Achieving Balanced Results.

4. PREVIOUS MODELS TO EFQM

There are two previous models: Deming Prize and Malcolm Baldrige National Quality Award.

4.1. DEMING PRIZE

1951: Beginning of awards bestowed on the outstanding organization in quality management.
Precursors: Japanese Union of Scientists and Engineers (JUSE), established the Deming Prize for
quality management in Japan in recognition of Demings contribution to the positive transformation
of Japanese industry in terms of quality and productivity. To obtain the award, a set of criteria was
established to decide which was the most outstanding company in this field.
Categories:

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4.2. MALCOM BALDRIGE NATIONAL QUALITY AWARD

1987
Precursors: United States Congress, to recognize quality as a key strategic element in the
competitiveness of US industry.
Objective: to establish a national program for the improvement of quality which recognizes
organizations with effective quality management practices and with significant quality
improvements in their products, disseminating information on their successful strategies and
programs.

Criteria:

5. RELATIONSHIP OF TQM TO INNOVATION

MANAGEMENT
TQM is related to innovation management.
Organizations that are more intensive in their TQM are more innovative.

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6. UNIT SUMMARY
- Definition and principles of TQM
- Tools and models of TQM:
Tool.
Models:
EFQM.
Deming.
Malcom Baldrige National Quality Award.
Relationship
between TQM and innovation management.

SUMMARY OF THE UNITS 1, 2 AND 3

TOTAL
QUALITY
MANAGEMENT

QUALITY

QUALITY
MANAGEMENT

TOTAL
QUALITY
MANAGEMENT

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UNIT 4: ENVIRONMENTAL
MANAGEMENT
1. DEFINITION AND EVOLUTION OF
ENVIRONMENTAL MANAGEMENT
1.1. DEFINITION
Environment:
Surroundings in which an organization operates, including air, water, land, natural resources,
flora, fauna, humans, and their interrelation (ISO, 2004)
Set of natural physical systems that make up the Earths system. Synonymous with the
natural environment, physical and biological, that surrounds the organization (Claver et al.,
2011)
Environmental aspect:
Element of an organizations activities, products or services that can interact with the
environment (ISO, 2004). A significant environmental aspect has or can have a significant
environmental impact
Environmental impact:
Any change to the environment, whether adverse or beneficial, wholly or partially resulting
from an organizations environmental aspects (ISO, 2004). We are focusing on negative
impact such as pollution in order to improve it.

1.2. RELATED CONCEPTS

Eco-efficiency:
Concept:
Production and distribution of products and services at competitive prices that satisfy
human needs while ecological impacts and resource intensity are reduced throughout their
life cycle.
Enables business profits from the production and sale of products while protecting the
environment at the same time.
Companies continuously achieving higher levels of efficiency, avoiding contamination by the
substitution of cleaner materials, technologies and products, and seeking more efficient use and
recovery of resources through good management, will be eco-efficient companies.
Company - environment relationship:
Two types of relationship:
- Influence of the company on the environment.
- Influence of the environment on the company.

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Sustainable criteria defined > Types of resources:

a) Renewable and non-exhaustible: use and consumption does not imply exhaustion (examples:
the sun and the wind).
b) Renewable and exhaustible: this resources can be exhausted, thus, we have to reduce its
consumption because it cannot be regenerated easily (example: forest). We have to do a
sustainable consumption.
c) Non-renewable: use and consumption involves complete destruction in the long-term
(examples: oil and coal).
We must determine a sustainable criteria in to be able to use these resources in the long-term.
Influence of the company on the environment:
- Fundamental role of organizations in sustainable development.
- Functions of the environment:
Natural environment provides important resources to the company, fundamental for
developing its activity.
The environment acts as a sink for waste generated by company activity (waste, air
emissions, discharges).
Influence of the environment on the company:
- Additional function of the environment:
Provides services or attractions that can be consumed by company clients in specific
sectors (tourism).
- Influences:
Legislative pressure: according to organizations law, the company can be punished for
some practices.
Competitive or market pressure: how the organization could attract the new segments of
consumers that are interested in reducing the environmental impact, consists on attract
people concerned by the environment.
Social and financial pressure: social pressure are NGO or political parties which want to
do the society a little bit better. Financial pressure are banks that can condition the credit
conditions depending on how the company treats the environment.
- Company positioning regarding the environment:
Environmental factor as a problem or threat: when the company is losing customers
which switch to other environmental respectful companies.
Environmental factor as an opportunity: it can be an obligation in order to survive in the
market and maintaining its customers (and attracting others).
Why organizations are worried about the environment:
1. Future: current employees want to act or behavior in environmental way in order to assure
the future of the humanity.
2. Pressures: legal, social, financial, market
3. Increasing in competitiveness on the organization: increasing profitability.
4. Strategic thinking: the company is working on building an idea about sustainability.

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1.3. BENEFITS OF APPROPRIATE ENVIRONMENTAL MANAGEMENT

1.
2.
3.
4.
5.
6.
7.
8.

Improvement of production processes.

Savings in raw materials consumption.
Savings in energy consumption.
Reduction of contamination control costs.
Improvement of companys image.
Avoidance of lawsuits, fines, penalties and criminal liability.
New competitive argument valued by clients.
New business arising.

1.4. HISTORICAL EVOLUTION OF ENVIRONMENTAL CONCERN

Two different stages:

- Lack of concern: No need to take care of the environment. Three stages:
1. Before the first Industrial Revolution: balanced between company and society, using only
the resources needed.
2. 1760 end of the 1940s: Mass production appears > industrial incidents > first
damages to the environment. There was an increase in consumption of natural
resources, and then an increase of the waste of this natural resources.
3. End of the 1940s beginning of the 1970s: there was a strong economic growth which
causes a high increase in consumption. This was caused by health problems and aware
problems of limited resources (UN resolution).

- Concern phase: Humanity realized about the importance of the environment. Then they had
unlimited resources and eco growth.
a) Beginning (1972-1987):
1. 1972: Meadows reports was published, which supported the growth but with a balanced
use of the resources.
2. 1992: Meadows published another report.
3. 1973: The European Union published an action program on environment:
Corrective action > Reduction of environmental impact. Organizations need
to invest in those practices that allow to reduce environment impacts.

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Corrective source > Environmental management practices. Organizations

should implement environmental practices according to new technologies.
Polluter pays: organizations are punished (paying fees for the pollution
produced, called fiscal aggressivity).
If businesses invest in some environmental practices, companies can get benefits
(grants, not paying punishments).
b) Consolidation (1987 - now)
4. 1987: Brundtland (minister of Norway) purposed a sustainable development which
implied the rational use of these natural resources.
5. 1992: Rio de Janeiro summit decided to create ISO 14001 Environmental Management
System Standard, which was applied at 1996.

2. ENVIRONMENTAL MANAGEMENT TOOLS AND

MODELS
2.1. BASIC TOOLS
Classification created by the teacher, dont put as proved thing.
Basic tools:
- Environmental impact assessment.
- Life cycle analysis (LCA).
- Ecodesign.
- Eco-label.
- Ecological marketing.
- EMS and environmental audit (EMAS)
ENVIRONMENTAL IMPACT ASSESSMENT: It is a legal and administrative procedure.
Objective:
Identification, prediction, interpretation and communication of environmental impacts that a
specific action will produce in case of its execution, as well as its prevention, correction and
evaluation, in order for the public administration to accept, modify or reject the action
(Seonez & Angulo, 1999).
Related documents:
Environmental impact study (Environmental Impact Study).
Environmental impact statement (Environmental Impact Statement).
Main agents:
Project developer (private or public), performing the Environmental Impact Study
(outsourcing).
Public administration.
Affected third parties (stakeholders).
Categories of effects: Corrective actions should be provided for every effect.
Intensity: depends on impact severity (significant, minimal & medium).
Time of appearance: short-term, medium-term, long-term
Persistence or duration: temporary (low persistence), permanent (high persistence)

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Reversibility and recoverability:

- Reversibility: possibility to return to the situation prior to the action naturally.
Nature itself recovers.
- Recoverability: requires human activity to return to the initial situation.
Example: The construction of a farm for pigs.
1. The company presents the project.
2. Environmental impact study (present and future): which is done by
environmental engineers.
3. Environmental Impact Statement: done by the administration which is more or
less a kind of license.
4. Project public > stakeholders.
5. Construction and start operations.
6. Administration gives assessment to analyze if the environmental impacts
forecasted in the study appear and how this organization manages its impacts. If
the company is not complying the environmental impact forecasted, it will have
to pay fees.
LIFE-CYCLE ASSESSMENT/ANALYSIS (LCA): Determines the environmental impact of a
product throughout all the phases of its life cycle with the aim of introducing improvements that
reduce this impact.
Objective process to assess the environmental aspects of a manufacturing system through all the
phases of the cycle.
It is one of the most important, it has ISO related with this tool.
Product-oriented tool
All the related environmental impacts are analyzed, identifying and quantifying the use of materials
and energy, and the generated waste, with the aim of introducing improvements to reduce the
impact.
Main purposes:
Setting the product and innovation policy.
Detecting the phase of the cycle in which the main environmental problems appear and
taking specific action on them.
Obtaining specific environmental information about suppliers.
Being able to objectively determine the environmental goodness of products in relation to
competitors or substitute products.
Being able to observe with detail the environmental impact in the use and consumption
phase.
Knowing the environmental impacts and problems at the end of the cycle
Enabling joint business actions to reduce environmental impact.
Enhancing the attainment of the Eco-label (environmental management tool).
ECO-DESIGN:
The way in which the design function can improve the environmental impact of a company (in all
the production phases of a product).
Related with Life-Cycle Assessment but it tries to create a product which reduces the
environmental impact.

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This involves incorporating environmental criteria in the creation and development phase for each
product, trying to anticipate the environmental impacts of the product in the production phase as
well as in the consumption phase and when it becomes waste, considering the environmental
impacts produced during the previous phases
When the eco-design integrated aspects of environmental impact reduction and economic
improvement (resulting in higher added-value or cost reduction) eco- efficient eco-design.
Utilities:
Add value to the company product.
Contribute to product differentiation with respect to competitors.
Gain recognition for environmental quality.
Give content to the environmental communication campaigns of the company.
Produce cost savings.
Avoid final consumer complaints.
Anticipate legal norms.
Sell knowledge to others.
Improvement actions:
Improvements in product concept.
Raw materials: selection of materials with low impacts.
Production.
Transport and distribution.
Client use of the product.
End of product life.
Achieving products that respond to:

It creates a value added,

which can produce better
uses, multifunctional
Higher level of
appreciation, so the
possibility of reuse or
recycle the product.

Using the least nonrenewable resources in

order to have a positive
effect on the environment.

Less consumption

Reduce of risk on health

problems because not
polluting materials are
used
Less consumption

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ECOLOGICAL LABEL (ECO-LABEL): It is a voluntary badge, awarded to

those products demonstrated to have low impact on the environment, in all
stages of their life cycle.
Achieving the Eco-label and use of the associated logo: an independent
evaluator confirms that the product complies with the established ecological
requirements depending on the product (certification).
Main advantage: guarantee for consumers that the environmental impact of
the product has been analyzed by a panel of experts and considered lower
than similar products.
Main objectives:
Business: To promote the design, production and commercialization of
products with a lower environmental impact and with required levels of
quality and safety.
Consumers: To offer greater information allowing the selection and use of products that are
less harmful for the environment.
Only the companies producing a product from the list, can ask for the label.
Significance for consumers:

Significance for businesses:

The Eco-label enhances product selection.
Recognized throughout Europe.
It is not an environmental label for industry by industry.
Adds value to products.
Achievement of eco-label:
1. Organization must ensure the product is within the categories of products belonging to Ecolabel (check in the list of products).
2. Meet ecological criteria > group of experts > analyze, evaluate and asses the environment
impact and the product life cycle.
3. Apply or submit the request to the institution which analyze, evaluate and asses the demand.
4. If the product complies with the requirements, then it can use the eco-label logo in its product.

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Countries with eco-label system:

ECOLOGICAL MARKETING:
Existence of green consumers: they consider how the products they purchase have been
obtained and produced, avoiding products that have harmful impacts on the environment during
their elaboration, use, consumption and waste
A company can use strong environmental positioning and design to focus on green consumers
Emergence of ecological marketing: study and use of different actions relating to the environment,
used to give greater recognition to companies and/or to their products among the consumers
Two perspectives:
Social.
Business.
Social perspective: set of activities focused on stimulating and facilitating the acceptance of
social ideas and behaviors considered beneficial for society, and on trying to reduce and
demotivate harmful ideas and behaviors.
The aim is not to get money, it is change societys mind.
Ecological marketing: set of actions performed by not-for-profit institutions to disseminate
desirable environmental ideas and behaviors among citizens and social and economic
agents
Social marketing objectives:
To inform about environmental aspects
To stimulate beneficial actions for the environment
To change harmful behaviors for the environment
To change societys values
Business perspective:
Applied by for-profit organizations seeking to satisfy green consumers needs.
Definition: process of planning, implementation and control of marketing variables used by a
company to satisfy consumer needs, achieve company objectives and minimize the negative
impact on environment

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2.2. ENVIRONMENTAL MANAGEMENT SYSTEMS: ISO 14001 AND EMAS

2.2.1. INTRODUCTION
1990s: Environmental Management Systems (EMSs) emerge.
Voluntary instruments (organizations implements by internal and external motivations) aimed at
companies that have reached a high level of environmental protection in the context of sustainable
development.
Companies that implement this Environmental Management Systems are committed with the
environment and want to improve its management.
Environmental Management Systems: Part of an organization's management system including
the organizational structure, planning activities, responsibilities, practices, procedures, processes
and resources to develop and implement its environmental policy and manage its interaction(s)
with the environment (ISO, 2004).
In order to implement a volunteer Environmental Management System, the organization has to
comply with the legal system. In some cases, companies take advantage of legal law practices,
and if they implement a Environmental Management System, they can comply better with the law.
Environmental Management Systems can help organizations to:
- Identify and control environmental aspects, impacts and risks relevant to the organization.
- Improve their environmental policy and facilitate the achievement of their objectives, while
complying with environmental legislation.
- Define the basic principles that guide organizations towards their future environmental
responsibilities.
- Establish objectives in the short, medium and long term for the environmental performance of
the business, analyzing the cost-benefit balance for each organization and its stakeholders.
- Determine what resources are needed to successfully achieve predetermined objectives,
assigning responsibilities in each case.
- Defining and documenting the different tasks and operations, responsibilities, authority and
procedures to assure that all employees act daily in minimizing or eliminating the negative
impacts that the company could cause on the environment.
- Improve communication within the organization, and train people so they can assume their
responsibilities. It is not an indicator of management system, but the organization should
have some in order to reduce the environmental impacts.
- Measure environmental performance every day, in order to see if the objectives are achieved
and to modify them when necessary.

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The company needs to publish annually reports regarding its environmental practices.
Dangers from the lack of an EMS in a company:
1. Loss of natural markets.
2. Pressure on the company.
3. Inability to increase market share: as the organization cannot show that it is doing
something positive for the environment, then, the clients will go to another company.
Environmental Management System implementation: important elements
Priority: implementing this management system is an strategic decision which should be in
the top.
Communication: the organization should communicate implementation within inside and
outside the organization.
Requirements: what we need and we have available in order to implement this management
system and what the organization needs to comply.
Life cycle of products: analyze all the stages of the life of the products and integrate this
analysis to the environmental management systems.
Resources: analyze if the resources needed are in the company, and if not try to allocate
them.
Improvement: once you have implemented it, the company has to try to improve
implementing policies and objectives.
Spreading EMS: trying to make our suppliers and clients to implement this management
system.

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2.2.2. ISO 14001 STANDARD

Main norms of EMS:

In general terms, ISO 14001 is the same than ISO 9001 but regarding environmental aspects. It
certifiable.
Structure of the norm:
1. Objective:
The objective is to specify requirements for an environmental management system, to enable
an organization to develop a policy and objectives taking into account legal requirements and
information about significant environmental aspects. It applies to those environmental aspects
which the organization can control and those which it can influence. It does not itself state
specific environmental performance criteria.
It is certifiable. All kind of companies can implement this ISO.
It is applicable to any organization that wishes to:
a) Implement, maintain and improve an EMS;
b) Assure itself of its conformity with its stated environmental policy;
c) Demonstrate such conformity with this international standard by:
making a self-determination and self-declaration; or
seeking confirmation of its self-declaration by a party external to the organization; or
seeking certification/registration of its environmental management system by an
external organization.
2. EMS requirements:
- General requirements: The organization shall establish, document, implement, maintain and
continually improve an environmental management system in accordance with the
requirements of this international standard and determine how it will fulfill these requirements.
The organization shall define the scope of its EMS.
The organization will have different aspects but always taking into account with continuous
improvement.
PDCA cycle: the unique tool of this ISO.
As the companies normally have implemented ISO 9001, then when they want to implement
ISO 14001, they are more used to, and maybe it cannot be necessary the help of a
consultant. But it is not mandatory to implement ISO 9001 before ISO 14001.

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Model > PDCA cycle: improving a companys environmental activities.

- Environmental policy: Top management shall define the organizations environmental policy
and ensure that within the defined scope of its EMS, it:
Is appropriate to the nature, scale and environmental impacts of the organizations
activities, products and services;
Includes a commitment to continual improvement and prevention of pollution;
Includes a commitment to comply with applicable environmental legal requirements
and other environmental requirements to which the organization subscribes;
Provides the framework for setting and reviewing environmental objectives and
targets;
Is documented, implemented and maintained (documentation is important for passing
the audit, training and improvement of the company);
Is communicated to all persons working for or on behalf of the organization;
Is available to the public
Company should define the environmental policy according to the general strategy of
the company.
- Planning:
Environmental aspects: the organization should establish and maintain procedures
that will help the organization in three main aspects:
- Identify environmental impacts.
- Determining the aspects which have an impact.
- Documenting on the information.
Legal and other environment requirements: the organization should establish
procedures that allow to identify first legal requirements and determine how these
legal requirements will be implemented in EMS.
Objectives, targets and program(s): should be documented and available to the
entire organization and measurable.

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- Implementation and operation:

Resources, roles, responsibility and authority: ensure the implementation and report
to the top management.
Competence, training and awareness: personnel should be trained in order to know
what they need to do in this EMS.
Communication: it has to be internal and external communication (with reports for
example).
Documentation. **
Control of documents: once this documentation is determined, the documentation
should be updated and controlled in order to update the different aspects which
organization must contain.
Operational control: reviewing policies and objectives are met or not.
Emergency preparedness and response: having planned the action when some
emergency appears (it should have an emergency system)
3. **Documentation: The standard indicates that the Environmental Management System
documentation shall include:
- Policy, objectives and environmental targets.
- Description of EMS scope.
- Description of main elements of the EMS and their interaction, as well as the reference to
related documents.
- Documents, including records required by the standard.
- Documents, including records determined by the organization as necessary to ensure the
efficacy of planning, operation and control of processes related to significant environmental
aspects.
4. Checking and corrective action:
- Monitoring and measurement: are those procedures to maintain and measure main
characteristics of EMS, and should be documented. Document is significant to environmental
impacts.
- Evaluation of compliance: evaluate periodically compliance both legal and EMS
requirements.
- Non-conformity, corrective and preventive actions: the organization should establish the
procedure to detect these non-conformities, and when they are detected implement corrective
actions. When this is fixed, it should implement preventive actions to avoid future nonconformities.
- Records: are the highest detail document which is providing evidence of what the company
is doing regarding what the company is doing in its Environmental Management System
requirements. It provides evidence conformity regarding EMS requirements and legal
aspects.
- Internal audit: organization should plan and realize annually a internal audit.
5. Management review: Management should review at least once a year if th system is meeting the
requirements or not. If it is not it should provide the resources to make able the organization to
comply the EMS.

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Motivations:
Motivations can be classified into internal and external motivations.
External:
- Worldwide acceptance: international recognition.
- External pressure: market, society, clients.
- Image: improves because stakeholders realize that the company has a commitment with
environment. It is perceived as positive.
- In some public contests, having the ISO 14001 or other environmental management
system implemented is giving them extra points in the contests. Extra points in order to
receipt some prize.
Internal: organizations that have an environment concern which want to implement a
management system and have enough experience implementing and managing other
standards (ISO 9001).
- Environmental concern (social responsibility).
- Competitiveness (sector).
- Step further than ISO 9001.
Benefits:
+ Elimination or at least minimization of environmental impacts
+ Organizational improvement (efficiency)
+ Employees concerned about their job importance
+ Knowledge of all legislation
+ Improvement of internal communication and information
+ Greater control of operation
+ Indicates possible contamination sources
+ Contextualizes the relationship of the company with the environment
Difficulties:
- Failures: because normally top management commitment is very important, and if the
company is not committed and doesnt have enough resources, then it will fail.
- Inflexibility.
- Lack of training: if employees are not well trained, it will fail.
Evolution of ISO 14001 certificates:

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The growth is positive and it is growing faster than ISO 9001.

Certification intensity:

In some areas, ISO 14001 is in the growth stage, and in others it is in the saturation phase, but in
others is starting the decline phase. As it is growing faster, the evolution is also faster. Probably the
ISO 14001 will reach very fast the saturation point.

Internalization: make the actions become a routine. If implementation is superficial the

internalization wont be as good as if the implementation is deeper. And if the implementation is
deeper, then the implementation will be better.
Decertification: has been started in some countries. The relationship between internalization
and decertified. If a company decertifies does not mean that it is not committed with the
environment, but the company prefers to invest money in other practices.
Competitive disadvantage: it can be measured in some regions of the world that have started
the growth stage. In others that the evolution is more mature it is more difficult to find the
competitive disadvantage.
6 common dimensions of ISO 14001:
1. Geographical scope: International.
2. Standardizing body: ISO.
3. Certifiable: YES.
4. Organizational scope: Entire organization or only in one process. If the organizational scope is
the process, it cannot be applied in the entire organization. But if it is implementable in the
entire organization, then it can be implementable in a specific process.
5. Sector: Generic (all sectors).
6. Content: standard that provides the requirements to implement, maintain, document and
improve an Environmental Management System. The same for the ISO 9001, but the function
specific is not quality, it is environmental aspects.

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2.2.3. EMAS (Eco-Management and Audit Scheme)

Communitys desire to promote the voluntary participation of companies in the improvement of
their environmental performance, providing information to society within and outside the
community.
EMAS more demanding and more implemented than the ISO 14001.
It is created by the European Union.
All the organizations that want to implement EMAS, they need mandatory to have ISO 14001
implemented and certificated.
Versions:
1. EMAS I (1993): Antecedent British EMSs BS 7750. Only for industrial companies
2. EMAS II (2001): All kinds of companies; Requirements for compliance in ISO 14001: 1996
3. EMAS III (2009): Voluntary participation of organizations in a community EMS and audit
Requirements for compliance in ISO 14001: 2004s plus other additional aspects
Objectives:
1) Establishing a community environmental Management System and audit, allowing the voluntary
participation of organizations within and outside the Community.
2) Promoting continual improvements of organizations environmental behaviors through the
establishment and application of:
- Environmental Management Systems.
- Systematic, objective and periodic evaluation of how these systems are functioning,
- information diffusion on environmental behavior.
- Open dialog with the public and other stakeholders.
- Active involvement of an organizations personnel, as well as adequate training.
Key elements:
Performance: annually update objectives/policies to evaluate.
Credibility: we have on one side the certification of the ISO 14001 (third party evaluation), on the
other side we have the verification of the environmental statement which is evaluated and
verified by a third party evaluation (usually done by an institution).
Transparency: information is public.
EMAS III requirements
- Compliance with ISO 14001: 2004 requirements.
- Compliance with legal requirements: complying with legal law and then with environmental
requirements.
- Mandatory use of environmental behavior indicators:
Basic: energy consumption, waste, raw materials consumptions
Sector-specific: determined depending on the sector of the company. Here the organization
can design its own indicators.

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Agents in the system:

- Company.
- Auditors.
- Environmental verifiers.
- Verifiers certification body.
- Competent institution.

In the ISO 14001 we are implementing continuous improvement because of the PDCA model.

Procedure to implement EMAS:

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Benefits and costs of EMAS:

Key benefits:
Enhanced environmental and financial performance through a systematic framework.
Enhanced risk and opportunity management.
Enhanced credibility , transparency and reputation > Providing reputation
Enhanced employee empowerment and motivation.
Related benefits:
Exact knowledge of the situation.
Enhanced efficiency.
Legal compliance security.
Control and monitoring of emissions (reduction of negative incidents).
Continual improvement mechanisms and program.
Minimum impact of products and processes.
Image.
Improved stakeholder relationships.
Costs:
Fixed costs: independently of production (ex: paying fee for the evaluation and for the
EMAS).
External costs: hiring the consultant for the implementation
Internal costs: training, allocation resources
Relationship among all EM aspects:

Standardization
British Standard Institution and ISO 14000 (which is based on the English Standard) are those
companies that want only to certify.
The companies that are really interested in environmental aspects apply the EMAS and the LCA.
Wants to innovate and go beyond these tools Eco-Efficiency (trying to produce a product or a
service with minimal environmental impact that satisfies all the stakeholders) and Radical
Innovation.

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3. ENVIRONMENT AS A PART OF SOCIAL

RESPONSIBILITY
3.1. DEFINITION OF SOCIAL RESPONSIBILITY
Corporate Social Responsibility (CSR) is a way for companies to conduct business that is
characterized by considering impacts in all aspects of their activities in relation to their:
Customers.
Employees.
Shareholders.
Local communities.
The environment and society in general.
Corporate Social Responsibility is like a philosophy and a way of acting.
This involves the enforceability of national and international law in:
Social,
Occupational,
Environmental and human rights, and
Any other voluntary action a company wants to take to improve the quality of life of:
Its employees.
The communities in which it operates.
Society as a whole.
Organization needs to comply first with law, and the implement some managerial practices which
satisfies the other stakeholders.
It is always affecting all the organization although we have some tools specified only in a process.
Satisfy customers and
implement TQM.

Providing the right

practices of labour.

Implement
environmental
practices

Trying to give them the

investment that they have
done.

Look at the different benefits that we

can provide and have.

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Assurance the legal compliance and apply other volunteer activities in order to go beyond this legal
compliance and satisfy all stakeholders.
EFQM can be also used as a base for the explanation of the entire subject.
Dimensions that European Union is defining to measure the social corporate responsibility:
- Market place: suppliers and clients environment.
- Community: local society, related stakeholders.
- Environment:
- Workplace: related with the corporation and its workers.

Most popular:

Economic

Environment
Social

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3.1. THE 5 CORPORATE SOCIAL RESPONSABILITY (CSR) PRINCIPLES

The five corporate social responsibility (CSR) principles are:
1. Compliance with legislation: affects all the organization and subsidiaries.
2. Global: is the target, affects all the areas of the organization.
3. Ethical commitment: the aim of CSR.
4. Impacts: how this social responsibility impacts in economic, environment and social.
5. Orientation: satisfy all the stakeholders.

3.2. WHY IS CORPORATE SOCIAL RESPONSABILITY (CSR) IMPORTANT?

1. Globalization and its effects: at the beginning was created to reduce the gap between rich
and poor. But this globalization is make the gap bigger. Some companies have more power
than government (example: Eurovegas in Spain) and then, they can make change the
legislation due to their power.
2. Increased power of companies to the detriment of States:
3. Foreign direct investment:
4. Offshoring: locating in other countries the company in order to save money. Although now
are coming back companies.
5. Privatization of basic services: some services are like water, collecting dirty, cleaning the
streets are being privatized for companies who manage these services and these problems
affects the society.

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3.3. CORPORATE SOCIAL RESPONSABILITY (CSR) FIELDS

Corporate Social Responsibility affects various areas of business management. Activities
developed within the framework of CSR must be linked to the core activity of the company, having
a degree of permanence and involve a commitment from top management.
Areas in which Corporate Social Responsibility acts:
- Human rights.
- Labor rights.
- Environment.
- Consumer protection.
- Health.
- Fighting corruption.
- Other areas of Corporate Social Responsibility.

3.4. CORPORATE SOCIAL RESPONSIBILITY TOOLS

3.4.1. CODES OF CONDUCT

The ISO 10000 family is for quality management systems and specifically for customer satisfaction.
ISO 10001 is code of conduct.
ISO 10002 managing complaints within the organization.
ISO 10003 when the complaints cannot be managed inside the organization, then we need to
manage it outside the organization.
ISO 10004 measuring and monitoring customer satisfaction.
The code of conduct is a corporate social responsibility tool and a quality management tool.
3.4.2. GUIDES
ISO 26000: 2010. Guideline for Social Responsibility.
The aim is to encourage an organization to carry out activities that go beyond legal compliance,
while recognizing that legal compliance is essential for any organization and an essential part of
their social responsibility.

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Main aspects:
Governance structure
Human rights
Labor activities
Environment
Best operational practices
Customer service
Relationship with the community and development
3.4.2. PRINCIPLES OF THE STANDARD
UN Global Compact.
Its aim is to gain the voluntary commitment of organizations to social responsibility, though the
implementation of then principles based on:
- Human rights.
- Labor.
- The environment.
- Anti-corruption.

3.4.3. CORPORATE GOVERNANCE REPORTS

OLIVENCIA REPORT: Is based on the Cadbury Report produced in the UK, sets out twentythree recommendations for the self-regulation of boards of companies listed on organized
markets, not imperatively required by legislative reforms in the Companies Act and related
regulations, but through the voluntary assumption by these companies of its basic principles.
(CNMV)
ALDAMA REPORT: Transparency and security are the two characteristics of financial markets
that the Aldama Commission seeks to promote through a report on the criteria and guidelines
that should apply to companies. The report endorses the Winter Reports recommendations for
companies to disclose their ownership and governance structure. (elpais.com)

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CONTHE CODE: To advise the National Securities Market Commission (CNMV) on the
harmonization and updating of the recommendations of the Olivencia and Aldama Reports on
the governance of listed companies and to make recommendations on precise additional steps.
(Mapfre)
3.4.4. MSs AND CERTIFICATIONS
SA8000: Its objective is to improve working conditions worldwide and to evaluate the social
responsibility of suppliers and retailers. The development of this standard drew on companies,
certification bodies, non-governmental organizations (NGOs), unions and academia. SA8000
expands industry and business codes to create a common language for measuring social
compliance. Those seeking to comply with SA8000 have adopted policies and procedures that
protect the fundamental human rights of employees.
Areas of focus:
- Child labor, forced and compulsory labor.
- Health and safety.
- Freedom of association.
- Right to collective bargaining.
- Discrimination.
- Disciplinary practices.
- Working hours.
- Remuneration.
3.4.5. GENERATION OF INFORMATION SYSTEMS
GRI (Global Reporting Initiative) (globalreporting.org).
Is a non-profit organization that promotes economic,
environmental and social sustainability. GRI provides all
companies and organizations with a comprehensive sustainability
reporting framework that is widely used around the world. Transparent sustainability reporting is
at the core of GRIs vision and mission. Reports can be used for the following purposes, among
others:
- Benchmarking and assessing sustainability performance with respect to laws, norms,
codes, performance standards, and voluntary initiatives.
- Demonstrating how the organization influences and is influenced by expectations about
sustainable development.
- Comparing performance within an organization and between different organizations over
time.
3.4.6. INFORMATION AUDIT AND ASSURANCE SYSTEMS
AA1000: It addresses issues affecting governance, business models and organizational
strategy, as well as providing operational guidance on sustainability assurance and stakeholder
engagement. It offers a comprehensive warranty organization to account for an organizations
management, results and reporting on sustainability issues by evaluating the organizations
adherence to the principles of sustainability and providing reliable information of associated
performance.
Principles:
- The Foundation Principle of Inclusivity.
- The Principle of Materiality.

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- The Principle of Responsiveness.

UNIT SUMMARY

- Definition and evolution of EM: concepts and environmental concern.

- EM tools and models:
Basic tools
ISO 14001:
Structure of the norm.
Motivations.
Benefits.
Evolution.
Certification intensity.
Diffusion.
Internalization.
EMAS III.
- Environment as a part of SR: definition, dimensions, tools

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UNIT 5: INTEGRATION OF
MANAGEMENT SYSTEMS
1. DEFINITION OF MANAGEMENT SYSTEMS
INTEGRATION
When an organization has multiple management systems implemented, it has to do a choice:
- Managing the systems individually.
- Managing integrated all the systems.

FSMS: Full Safety Management System

CSRMS Corporate Social Responsibility
OHSMS
EMS: Environmental Management System
QMS: Quality Management System
Others

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1.1. DEFINITION OF THE INTEGRATION PROCESS

This process wants to satisfy all stakeholders.
The management system is the result of all the process integration.

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2. ASPECTS OF THE INTEGRATION OF

MANAGEMENT SYSTEMS PROCESS
2.1. INTEGRATION PROCESS STRATEGIES
We are talking about implementation, NOT integration.
Integration process strategies: is the implementation order or sequence of Management
Systems.
Determines the integrated model system Influences the level of the Integrated Management
System.
Most common order:
1. QMS: Quality Management System.
2. EMS: Environmental Management System.
3. Other (OHSMS).
Can be done simultaneously or separated.
Three options when the companies had only two management systems:
1) Implement Quality Management System and later Environmental Management System
(the great majority uses this implementation).
2) Implement Environmental Management System and later Quality Management System.
3) Implement both simultaneously: Quality Management System and Environmental
Management System. Simultaneously means implementing the systems at the same time but
not integrating at the same period. For example, a company have decided to implement ISO
9001 and ISO 14001. These companies achieve more level of integration in a easily way.
It is important to take into account the minimum number that the organization needs to have in
order to integrate is two management systems, there is not a maximum.
As more numbers of management systems the company has, more difficult will be to integrate the
management systems.
Integration of management systems does not depend on the certifiability (they could be certified
or only implemented, it does not matter). The only condition is that they are management systems
and used within the company.

2.2. INTEGRATION PROCESS METHODOLOGIES

Methodologies: Methods or models applied to realize the process. How the organization is going
to pass from the separated management model to arrive an a completely integration.
There is not common model like an ISO or model saying what exactly to do.
But we find some proposals by certification bodies and academia.
No ISO standard (a manual), each organization has its own methodology.
National standards
The companies usually start with these most common models, and then it goes as its own:
Process map (ISO 9001): if the Quality Management System is the first model implemented.
PDCA (ISO 14001 among others): if the Environmental Management System is the first model
implemented.

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Common elements.
Own model of the organization.
2.2.1. CERTIFICATION BODIES
AS/NZS 4581: 1999 Management system integration - Guidance to business, government and
community organizations.

UNE 66177: 2005 Management systems. Guideline for the integration of management systems.
Implement the PDCA model in order to improve the integration of the management systems.
It is proposing how to improve the integrated management system.
Created by Spanish people.

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PAS 99: 2006 Specification of common management system requirements as a framework for
integration.
First common requirements of the management system, then the common requirements of the
management systems in order to achieve the total integration.
Created in England.

ISO: has created a manual with some tips for implementation.

Integration should be done by the management system. So, the integrated management system is
a part of the companys management system.
We only have one manual for all the management systems. Because we only care about the
integrated management system.

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2.2.2. AUTHORS
It is a seven-step approach similar to the implementation process of a management system.

2.2.3. INTEGRATION MANAGEMENT MODELS (Karapetrovic, 2005)

Karapetrovic: most important author in this topic.
Initial model: in which the Management Systems form the framework of IMS (could be, e.g.,
process map or the PDCA if we have ISO 9001 or ISO 14001). The integrated model of one
management system will be the model of the integration management system.
Combined model: in which joined the MSs models that are part of the IMS in a single model. It
will be a combination, for example, of process map or PDCA if we want to integrate ISO 9001
and ISO 14001.
Complacent model: accommodates existing and future MSs. Organization creates its own
model, in order to accept all the models provided by the different management systems
2.2.4. IMS IMPLEMENTATION PROCESS (Asif et al. 2009)
In order to achieve
business
excellence,
organization
needs to integrate.
So, according to
this academia, to
implement the
EFQM model we
need to integrate
the management
systems (but
some say the
opposite).
The aim of the EFQM and the IMS is satisfy all stakeholders.

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2.3. LEVELS OF THE INTEGRATED SYSTEM

The most common different levels of the integrated system is:
No integration: all systems are managed as independent and treated as individual.
Alignment: more than no integration.
Partial integration: some elements are separated but others are common (integrated). For
example: the manuals and the audit are integrated, but then environmental monitoring is
separated and the product realization is done in its own.
Full integration or total integration: all the elements of all the management systems are
integrated. So the organization only manages on management system.
There is a tendency to full integration.
A company can be fully integrated despite auditing (internal and external) each system separately,
it does not depend on the audits, the important thing is that the systems act as one.

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2.4. AUDIT SYSTEMS INTEGRATION

Internal and external. Integration level similar to MSs.
Five analyzed elements:
Team: who is performing the auditor (team or auditor), if the team is the same for all
management systems, the team is full integrated.
Time: if all the audits are done at the same time, the time is full integrated. But if theyre done
at different moment of time for all the norms, it is not integrated.
Plan: must be unique for all the systems in order to be integrated.
Report: if the final audit provides a report for each management system the report is not
integrated. But if we have only one report for all the management systems of the company,
then the report is integrated.
Results: if the results propose different solutions (corrective actions) for the management
system it is not integrated.
We find a greater integration level in internal audits than in external audits.
Relationship between the Management Systems integration level and internal audits.
No clear relationship between the Management Systems integration level and external audits
(depends on the external auditors).
ISO 19001 > related with auditing all management systems jointly although they are not
integrated. It was the first step through integration.
So, normally the companies first integrate internal audits and then, they follow the integration in
other parts.
There is a strong relationship between internal audit and integration of management systems.
External audits will depend on the certification body, if the third party auditor has enough
experience to perform an integrated audit.

2.5. BENEFITS AND DIFFICULTIES IN THE INTEGRATION PROCESS

There are more benefits than difficulties. Normally, benefits are more internal than external
The greater benefit will be improvement of efficiency because it implies in the reduction of costs.
Benefits:
Greater flexibility and opportunities to include other systems.
Avoiding duplication of effort.
Making greater use of the synergies among standards.
Audits are integrated and auditors are multi- functional.
Reducing the amount of documentation. Normally is the start of the integration.
Optimizing resources.
Two most important difficulties for implementing total integration:
- Lack of top management commitment.
- Lack of resources.

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Those organizations that have less experience managing different management systems, they has
normally less level of implementation.

3. FUTURE OF THE INTEGRATION

Based on three different approaches:
- Ascension: the organization decides to increase the
satisfaction of a particular stakeholders. For example, an
organization implements ISO 9001, and decided to
implement the EFQM model
- Augmentation: the organization decides to develop a
more in-depth understanding in some specific issues or
in a part of a management system. Example: if the
organization has the ISO 9001, it is common to
implement an augmentation approach by implementing
the ISO 10001 in order to go more in deep in the
customer satisfaction.
- Assimilation: the highest level is integration of different
practices into the integrated management system.

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UNIT SUMMARY
- Definition of MSs integration.
- Aspects of MSs integration:
Strategy.
Methodology.
Levels.
Audits.
Benefits and difficulties.
- Future of MSs integration

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