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This is the authors final peer reviewed (post print) version of the
item published as:

Svensson, Goran and Wood, Greg 2005, Corporate ethics in TQM:
management versus employee expectations and perceptions, The TQM
magazine, vol. 17, no. 2, pp. 137-149.

Available from Deakin Research Online:

http://hdl.handle.net/10536/DRO/DU:30008789


Reproduced with the kind permission of the copyright owner.



Copyright : 2005, Emerald Group Publishing

CorporateethicsinTQM:managementversusemployee
expectationsandperceptions
GranSvensson,SchoolofBusinessandEngineering,HalmstadUniversity,Halmstad,
Sweden
GregWood,BowaterSchoolofManagementandMarketing,DeakinUniversity,
Warrnambool,Australia
Abstract
PurposeTheobjectiveofthisresearchistodevelopanddescribeaconceptualframework
ofcorporateethicsintotalqualitymanagement(TQM).

Design/methodology/approachTheresearchisbasedonasummarisedindepthand
longitudinalcaseillustration.Thesummarisedcasedescribescorporateethicsinanintra
corporaterelationship.

FindingsTQMrequireshumanresourcesandfailingtocareforthemwillaffectaccordingly
thesuccessofTQM.Thecasedescriptionillustratestheevolutionofmanagementversus
employeeexpectationsandperceptionsofcorporateethics.Ithasanemphasisonthe
humanresourcesofacompanythatstrivestowardsTQM.Asthequalityofcorporateethics
decreasestheoutcomeofTQMisalsoaffected(i.e.directlyorindirectly).Thecaseis
initialisedinanatmosphereofmanagementandemployeeoptimismandpositivismof
corporateethics,whichisarequisitefrombothpartiesinordertoensureprosperousTQM.
Thesuccessivechangetowardspessimismandnegativismofcorporateethicsintheintra
corporaterelationshipconcludestheindepthcasedescription.

Researchlimitations/implicationsFourparametersofcorporateethicsareusedto
incorporatecorporateethicsintoTQM,namelymanagementversusemployeeexpectations
andperceptions.Internalcorporatequalitymanagementshouldalwaysberegardedas
dependentupontheachievedequilibriumbetweenmanagementandemployee
perceptions.Itisalsodependentuponthederivedequilibriumbetweenmanagementand
employeepreviousexpectations.

PracticalimplicationsAnimportantinsightofthisresearchisthatTQMrequiresthe
continuousattentiontothemanagementversusemployeeexpectationsandperceptions
inherentincorporateethicsofinternalbusinessoperations.Furthermore,corporateethics
iscomplementarytobusinessethics.

Originality/valueThecasedescriptionhasshownthatTQMmayberunningwelland
accomplishingthehardgoals.However,TQMisnotonlyaboutfigures,profitsandcosts.Itis
alsoabusinessapproachthatshouldpenetrateallactivitiesinsideandoutsidethatare
relatedtothecompany,includingthesoftissues.
Topicandlimitations
Totalqualitymanagement(TQM)hasaninternalfocusonacorporation'sbusiness
operations.Additionally,ithasanexternalfocus.Araretopicexaminedinthesecontextsof
TQMisethics.Inthefirstplace,thecorevaluesofTQMshouldbebuiltuponethical
fundamentals.Inthesecondplace,techniquesandtoolsusedintheimplementationof
TQMshouldalsoconsidertheseethicalfundamentals.Aninternalapproachofethicsin
TQMstressestheissueofcorporateethicsinintraorganisationalbusinessoperations,while
anexternalapproachofethicsinTQMstressestheissueofbusinessethicsininter
organisationalbusinessoperations.
Ethics,businessethicsandcorporateethicsaredependentuponreigningvaluesinthe
societal,business,andorganisationalenvironments.Reigningvalues,norms,andbeliefs
constructcurrentethics.Therefore,ethicsmightbeseenasanonthespotaccountthat
reflectsthesocietyingeneral.Businessethicsconsidersthegapbetweenthecorporation's
ethicalbehaviourandthemarketplace'sperceptionofthecorporation'sethicsinits
businessoperations.Corporateethics,ontheotherhand,hasaninternalemphasis.In
particular,corporateethicsconsidersthegapbetweenthemanagement'sethicalbehaviour
andtheemployeesperceptionofthemanagement'sethicalbehaviourinbusiness
operations.Wedonotconfinebusinessoperationstojustthemarketplace,buttothe
internalbehaviourtowardsemployeesofthecorporationbythecorporation.
Thereisacloserelationshipbetweenbusinessethicsandcorporateethics.Businessethics
appliesanoutsideinperspectiveofthecorporation'sbusinessoperations,whilecorporate
ethicshasaninsideoutperspective.Anoutsideinperspectivemeansthattheoutcomeof
thecorporation'sethicalbehaviourisdeterminedbyexternalsourcesinthemarketplace,
suchascustomers,suppliers,competitors,thegeneralpublicandotherpublics.Aninside
outperspectivemeansthatmanagement'sethicalbehaviourisdeterminedbyinternal
sourceswithinthecorporation,suchastheemployees.Despitethefactthatcorevaluesare
crucialintheimplementationofTQM,ethicalframeworksarerarelydiscussedinthefield.
SvenssonandWood(2004b)discusstheimportanceofbusinessethicsinTQMthrougha
caseillustration.Still,thereisalackofdiscussionofcorporateethicsinTQM.Therefore,the
objectiveofthisresearchistodevelopanddescribeaconceptualframeworkofcorporate
ethicsinTQM.Also,theideaofthisresearchistoexplorecorporateethicsinTQMthrough
anindepthandlongitudinalcaseillustration.
BaseduponWood's(2002)partnershipmodelofcorporateethics,thisresearchislimitedto
acorporation'scommitmenttoanethicalcultureandthecorporation'scommitmenttoand
fromstaffandshareholders.ItisalsorestrictedtothevaluesofTQMasaprimarysource,
whiletechniquesandtoolsareseenasasecondarysourceofderivation.Thevaluesshould
underpintheuseoftechniquesandtoolsinordertoachievesuccessfulTQMina
corporation'sbusinessoperations.
TQM
TQMgainedincreasedinterestamongpractitionersandscholarsduringthe1990s.Lagrosen
(2001)writesthatTQMhasbecomewellestablishedasasystemforimprovingboththe
performanceofcorporationsandthesatisfactionofcustomers.Despiteitspopularity,the
meaningofTQMisratherambiguous.Amsdenetal.(1996)statethatmanybusinesspeople
andacademiciansregardthedevelopmentandpracticeofTQMasanevolutionaryprocess
ratherthanarevolutionaryone.Itisalsoconsideredtobeeitherabuzzword(e.g.Hackman
andWageman,1995;Harari,1993;Binney,1992)orsomethingtoreachforinorderto
enhancecorporatecompetitivenessandprofitabilityinthebusinessenvironment(e.g.
GhobadianandGallear,1996;Becker,1993).Asetofcorevalues,suchascustomerfocus,
managementcommitment,processfocus,continuousimprovements,andfactbased
decisions,unitesthedescriptionsofTQM(e.g.BergmanandKlefsj,1994;Hellsten,1997;
HellstenandKlefsj,2000;Lagrosen,2002).
HellstenandKlefsj(2000)provideaframeworkofTQMconsistingofthreecomponents,
namelycorevalues,techniques,andtools.Othersimilarwordingisusedtodescribethese
phenomena.Thesewordsincludebutarenotrestrictedtoprinciples,procedures,andtools
(e.g.SheaandGobeli,1995).OtherauthorshaveidentifieddifferentcorevaluesinTQM
(e.g.BergmanandKlefsj,1994;Hellsten,1997;HellstenandKlefsj,2000;Lagrosen,2002).
Hellsten(1997)concludesthatthereareanumberofcommoncorevaluesinmost
descriptionsofTQM.Thesevaluesconsistofafocusoncustomers,management
commitment,everybody'scommitment,focusonprocesses,continuousimprovements,and
factbaseddecisions.
TQMrequirescrossfunctionalthinking,planning,anddoing(Schonberger,1995).An
importantcorevalueneglectedinmostdescriptionsofTQMisethicsinthesocietyin
general,andbusinessethicsinthemarketplaceinparticular(SvenssonandWood,2004b;
Vinten,1998;Peters,1997a).Furthermore,corporateethicsisalsoneglectedinmost
descriptionsofTQM,whichisthetopicofthisresearch.Representingthesoftandhard
sidesofmanagement,ethicsandqualityarecrucialaspectsofanorganisation(Bowmanand
Wittmer,2000).TheimplementationofTQMwouldbenefitfromaconsciousconsideration
ofethicsinmanagementpractice(Peters,1997b).StainerandStainer(1995)arguethat
management'sethicalbehaviourismouldedbyfivemainfactors,namelythebusiness
situationitself,thetasktobeperformed,thegroupofpeers,leadershipstyle,andpast
experience.SvenssonandWood(2003)showthatthedynamicsofbusinessethicsisa
functionoftimeandculture.Businessethicsperformanceisaffectedbyevolutionaryand
contextualissues(SvenssonandWood,2004a).Likewise,corporateethicsisinfluencedby
thesamefunctionsandissues.WecontendthatTQMandtheperformanceofTQMarealso
dependentuponthesefunctionsandissues.Forexample,Lagrosen(2002)exploresand
describestheinfluenceofcultureonthewayqualitymanagementispractised,and
concludesthatsomedifferencesinfocushavebeenfoundinhisinternationalstudy.
CorporateethicsinTQM
Peters(1997a)arguesthatsocialresponsibilityisgoodcapitalismorthatgoodcapitalismis
sociallyresponsible.Therefore,corporateethicsisanimportantingredientinsocial
responsibility,andinturnadeterminantofgoodcapitalism.Inandofitself,beingethical
requiresonetoembraceabeliefinincorporatingsocialresponsibilityintoone'scorporate
thinkingandplanning.BowmanandWittmer(2000)statethatorganisationsexistto
improvethequalityofpeople'slivesbyproducinggoodsandservices.Yet,whilstproducing
thesegoodsandservices,managershavetorealisetheworthoftheideathattheirpurpose
isnotonlytodotherightthings,butalsotodothingsright.StainerandStainer(1995)
concludethatethicalbehaviourshouldbeanintegrativefactorwithintheproductivityand
qualitymanagementprocessbecauseabetterunderstandingofcorporateresponsibilities
aswellasprovidingacompetitiveedgemaybeachieved.Vinten(1998)pointsoutthat
withinTQMsufficientemphasishasnotbeenplacedonethicalconsiderations.
Corporateethics,besidesbusinessethics(SvenssonandWood,2004b),mayalsobeseenas
agenericorgroundedcorevaluefortheothercorevaluesinTQM.Therefore,itmayserve
asanumbrellatobeincorporatedandconsideredintheinternalimplementationofTQM.
TownsendandGebhardt(1997)arguethatthewaythatcorporationsgoabouttheir
businessoperations,withparticularrespecttoethicalconcerns,isincreasinglyimportantto
theircustomers.Customersinthemarketplacearebecomingincreasinglyawareof,and
increasinglydiscriminatingagainst,corporationsthatfailtomeetthecustomerscriteriaof
ethicalconsiderationinbusinessoperations.Wewouldpostulatethatthisconcerndoesnot
justapplytocustomers,buttoallstakeholdersofthecorporationandthesocietyin
general.
Corporateethicsisacorevaluepersethatshouldunderpinacorporation'sbusinessethics
andshouldaffectthetechniquesandtoolsusedinacorporation'simplementationofTQM.
Corporateethics(i.e.besidesbusinessethics)shouldbeaggregatedtothelistofcorevalues
orwhatBergmanandKlefsj(1994)labelledasthecornerstonesofTQM.Ifcorporate
ethicswasaddedtothisselectionofcorevalues,itwouldmakeafruitfulandcrucial
contributiontotheconceptofTQM.Corporateethicsshouldbeconsideredasapartofthe
internalprocessofTQMandnotbeseenasextraneoustoit.Therefore,thetopicof
corporateethicsinTQMisanimportantissuetodiscussandforwhichtodevelopageneric
conceptualframework.
EthicsinTQMisaffectedbycontextualissues(SvenssonandWood,2004b),sincethe
managementsystemandbusinessenvironmentcertainlywillaffectwhatareethical
businessoperationsinthemarketplace.StainerandStainer(1995)writethatthereis
undoubtedlyacloserelationshipbetweenproductivity,qualityandethics.Cultureisa
genericcontextualissueofbusinessethicsinthesociety(SvenssonandWood,2003).
Generally,theactors,theactivitiesandtheresourcesinthemarketplaceformanother
groupofcontextualissues(e.g.HkanssonandSnehota,1995;Hkansson,1987).In
particular,thebusinessenvironment,thebusinessatmosphereandtheinteractionof
businessesareallinfluentialcontextualissuesonacorporatelevelofethicsperformance
(Hkansson,1982).Someoftheseinfluencesarefromsocietyandtheindustryinwhichthe
corporationoperates,thecorporationmoresandthenormsandbehaviourofindividuals
withinthecorporation.TheimpactofcontextualissuesofcorporateethicsinTQMismore
orlessimplicitorexplicitinamanagerialsetting.Studiesoninternationalandnationallevels
havebeenperformedconsideringdifferentcontextualissuesinethics(e.g.Fisheretal.,
2001;Seitz,2001;PeppasandPeppas,2000;Singhapakdietal.,1999;FernandezFernandez,
1999).
EthicsinTQMisalsosurroundedbyevolutionaryissues(SvenssonandWood,2004a).Time
isagenericcontextualissueofbusinessethicsinsociety(SvenssonandWood,2003).
Anotheroneischange.Changeistheonlyconstant.Thecontextualissuessuchasthe
actors,theactivitiesandtheresourcesinthemarketplaceareinfluencedbythe
evolutionaryissues.Furthermore,thebusinessenvironment,thebusinessatmosphereand
theinteractionofbusinessesarealsoaffectedonacorporatelevel.Theevolutionof
contextualissuesinTQMcertainlywillaffecttheimpactinthemarketplaceofthecore
valuesonone'sbusinessoperations.Theimpactofevolutionaryissuesonbusinessethicsin
TQMismoreorlessimplicitorexplicitinamanagerialsetting(e.g.KilcullenandKooistra,
1999;GiacaloneandKnouse,1997;Yamaji,1997;McDonaldandZepp,1989).Agrowing
numberofcorporationsaredevotingattentiontoevolutionaryissuesinethics,suchastime
andculture,andtheimpactsthatthesetwodimensionsmayhaveonthecorporation.These
corporationsaretryingtomovethemselvestowardsanethicalbusinessphilosophyinthe
expectationthatethicalbehaviourbytheiremployeeswillresult.
Commentary
Intheframeofreferencewehavesuggestedthemanagerialimportanceofconsideringthe
impactofethicsoncorevaluesinTQM,sinceethicsoriginatesfromreigningvaluesinthe
society,marketplace,andcorporation.Ethicsmaythereforebeseenasacrucialcorevalue
perseinTQM.Theworldwidebusinessenvironmentischangingtowardsastrongerfocus
onethics.Asthisenvironmentchanges,thenasaconsequenceonecanassumethatits
memberswillexpectandevendemandmoreethicalbehaviourfromitsbusinessleaders
andtheircorporations.TonotrecognisethisprogressionofcorevaluesinTQMcanbea
fatalomissionfromboththecorporation'sphilosophyandthecorporation'ssubsequent
applicationofthecorevaluesofTQMinthemarketplace.
Ethicshastobeconsideredinternallyandexternallyintheethicalauditforitplacesthe
corporation'svaluesysteminitsculturalandsocietalcontext.Thisideaneedstobe
exploredfurther.Wecontendthatthereasonsforthemalpracticethatwecontinuetosee
inthecorporateworldarecentredupontheselfindulgent,introspectiveandmyopic
perspectivesofcorporationsthatarenotabletotransformtheirthoughtstoconsiderall
possibleperceptionsandramificationsoftheiractions:thoughtsthataretransfixedon
corporateand/orpersonalselfinteresttotheexclusionofotherpossibleoptions.
CorporateethicsinTQM:aconceptualframeworkofcorevalues
ThissectionintroducesaconceptualframeworkofcorporateethicsinTQM.Theframework
fitsintothegenericmanagementsystemofTQMasdiscussedbyHellstenandKlefsj(2000)
thatconsistsofthreecomponents:corevalues,techniques,andtools(seeFigure1).Italso
describesmanagementversusemployeeexpectationsandperceptionsofthecorevaluesin
TQM(seeFigures2and3).
TheframeworkmayfacilitateforcorporationsameansbywhichtheycanimplementTQM
andatthesametimeincludeaconsiderationofcorporateethics.Theimplementation
processoriginatesfromtheidentificationofcorevaluesthatshouldcharacterisethe
corporation'scorporateethics.Thereafter,thecorporationhastodistinguishappropriate
techniquestouseandunderpinthecorporation'scorevaluesofcorporateethics.Finally,
adequatetoolshavetobeselectedtocontributetothetechniques.Corporateethicsshould
influencethecorevaluesofacorporation'sinternalmanagementsystem,thatinturn
influencesthetechniquesandtoolsused.Consequently,corporateethicsshouldpenetrate
thevalues,thetechniquesandthetoolsinTQMandTQMasawholequalitymanagement
system(Figure1).
TheprincipalparametersofcorporateethicsinTQMaremanagementexpectationand
perceptionversusemployeeexpectationandperception.Thereshouldbeamatchbetween
managementexpectationandperceptionofcorporateethics.Likewise,thereshould
preferablybecongruencebetweenemployeeexpectationandperception.Ideally,there
shouldbeaharmonybetweenmanagementandemployeeexpectationsandperceptions.
ThegapdualismmodelinTQMcreatesatypologythatconsistsofanddescribesdifferent
situationsofcorporateethics(seeFigure3).Itdescribesfourpotentialgapsbetweenthe
expectationsandperceptionsofmanagementandemployee.Eachgapislabelledasa
dualismsituation,whichmeansthateachsituationmaybeinterpretedfromeitherthe
perspectiveofmanagementand/ortheemployee.ThetwodottedlinesinFigure3illustrate
theidealsituationswherethereiscongruencebetweeneitherexpectationsorperceptions
ofmanagementandemployee.Aperfectmatchisdesirable,althoughitisratherunrealistic
inareallifesituation.Therefore,thefoursituationsillustratedinthegapdualismmodel
haveacademicandmanagerialinterests.Thefourdualismsituationsofcorporateethicsin
TQMarecharacterisedasfollows:
1. Themanagementexpectationofcorporateethicsismorefavourable(i.e.
managementoptimism)thantheemployeeexpectationofcorporateethics(i.e.
employeepessimism).
2. Theemployeeexpectationofcorporateethicsismorefavourable(i.e.employee
optimism)thanthemanagementexpectationofcorporateethics(i.e.management
pessimism).
3. Theemployeeperceptionofcorporateethicsismorefavourable(i.e.employee
positivism)thanthemanagementperceptionofcorporateethics(i.e.management
negativism).
4. Themanagementperceptionofcorporateethicsismorefavourable(i.e.
managementpositivism)thantheemployeeperceptionofcorporateethics(i.e.
employeenegativism).
Accordingly,allofthedualismsituationsmaybetroublesomeorcauseadilemmainthe
implementationofTQM.Therefore,thereisaneedtomaintaininternalharmonybetween
managementandemployeeexpectationsandperceptions.Besides,corporateethicsisthe
fundamentofthecorporation'sbusinessethics.Thecorporation'sinherentethicalvaluesin
thebusinessoperationsaresoonerorlaterreflectedinongoingrelationshipsinthe
marketplace.Itmaybenotreadilyevidentormaybeevenconcealedforsometime,butin
thelongrunothersinthebusinessenvironmentmaywellrevealit.Theserevelationswill
surelybetothedetrimentofthecorporation.Thismeansthatthevalues,techniquesand
toolsofTQMshouldstrivetoaccomplishharmonybetweentheintraorganisational
approachofcorporateethicsandtheinterorganisationalapproachofbusinessethicsinthe
marketplace.Inaddition,thecorporation'sbusinessethicsinthemarketplaceshouldbein
harmonywiththesocietalethicsingeneral.
Summarisedcasedescriptionofcorporateethics:managementversusemployee
expectationsandperceptions
Thesummarisedcaseinthissectiondescribescorporateethicsinanintracorporate
relationship.TQMrequireshumanresourcesandfailingtocareforthemwillaffect
accordinglythesuccessofTQM.Thecasedescriptionillustratestheevolutionof
managementversusemployeeexpectationsandperceptionsofcorporateethics.Ithasan
emphasisonthehumanresourcesofacompanythatstrivetowardsTQM.Asthequalityof
corporateethicsdecreasestheoutcomeofTQMisalsoaffected(i.e.directlyorindirectly).
Thecaseisinitialisedinanatmosphereofmanagementandemployeeoptimismand
positivismofcorporateethics,whichisarequisitefrombothpartiesinordertoensure
prosperousTQM.Thesuccessivechangetowardspessimismandnegativismofcorporate
ethicsintheintracorporaterelationshipconcludestheindepthcasedescription.
Thecasedescriptionisbaseduponareallifesituationfocusingonthedeterminantsof
managementversusemployeeexpectationsandperceptionsinanintracorporatecontext.
Theillustrationcontainsdelicateandsensitiveinformation.Forthisreason,thenames,the
locationsandthedateshavebeenchangedinordertosecureanonymityandconfidentiality
inthecasedescription.Nevertheless,thesequenceofhappeningsnarratedsummarisesand
reflectsthetimespanofthecaseathand.Theyillustratethesuccessiveevolutionof
managementandemployeefromoptimismofexpectationsandpositivismofperceptions
towardspessimismofexpectationsandnegativismofperceptions.Thisisanunfortunate
evolutioninTQM.
Managementversusemployee:fromoptimismofexpectationsandpositivismof
perceptions
Robertwasanengineerworkingforalargeandmultifacetedengineeringcompanythat
lookedtoexpanditsbusinessintotheSouthPacific.Thecompanywaslookingtoexpandits
operationstocaterforworkthatwasbecomingavailabletoit.Thecompanyneededto
appointaregionalmanager.Someonewhocouldleadthisnewventureandbuildthe
businessforthecompany.Itwasapositionofimportancetothecompany'sbusiness
operationsintheregion.
RoberthadbeensummonedfromhisfieldjobinMelbournetomeetwiththeGeneral
Managerofhisdivision.Hehadnoideaofwhatwastotranspire.Hewasusheredintoa
superior'sofficeandmadetofeelverywelcome.Georgewasnotthesortofpersonto
mincewordsortobeataroundthebush.Hecamestraighttothepoint.Heexplainedthe
ventureintheSouthPacificandaskedRobertifhewantedtotakethejob.Robertwasat
firstsurprised,thenasrealitysunkinhismoodmovedtooneofelationandheightened
expectation.Whatagreatopportunity.Hewasonly32yearsoldandthismovewould
enhancenotonlyhisownpersonalskills,buthiscareerinthecompany.Thesuperiorwas
optimisticaboutengagingRobertforthisassignmentbaseduponhispreviouspositive
achievementswithinthecompany.Robertdiscussedthesituationwithhiswifeandthey
cametotheconclusiontoaccepttheoffer.
Robertandhiswife,Karen,setoffontheirgreatadventureabroad.Bothhadpositive
expectationsaboutthissuddenchangeintheirlives.TheassignmentwouldrequireRobert
totravelandhewouldbeawayabouttwoweeksineveryfour.Karenlookedforwardtoa
lifeofsomeleisure,buthopedtomaintainheraccountingskillswhilstawaitingother
developmentswiththeirplans.Asthemonthsrolledonshewasfeelingirritableand
becominganxiousovertheirinabilitytoconceiveachild.Heroptimisticexpectationsstarted
tobelesspositive.Robertwasawayfrequently,Karenwasirritableandagitatedandmissing
herwork.Shehadnotmademanyfriendsandfeltisolated.KarenaskedRobertifshecould
returntoAustraliatovisitherfamily.Robertwasnotaninsensitivemanandhereadily
agreed.KarenreturnedtoAustraliaandRobertimmersedhimselfinhisbusiness.
Managementversusemployee:towardspessimismofexpectationsandnegativismof
perceptions
Asthedaysturnedintoweeks,Robertstartedtosensethatsomethingwaswrong.His
previouspositiveexpectationtothiscareermovebegantobepessimistic.Karenwas
becominglesscommunicativeandbecomingquitewithdrawn.Robertlearntfromafamily
friendthatshehadstartedworkparttime,backatheroldcompanyandthatshewasreally
enjoyingit.Hespoketoherandtheconversationwasmuddled.Hisnegativeperception
becameobvious.Herealisedthattherewerealotofunresolvedproblemsbetweenthem.
Problemsofwhichhehadnotreallybeenawarebutwhichnowhadcometothesurface.It
wasevidenttohimthatwithoutsomedrasticactionhemaybeleftwithhiscareerandnot
muchelse.
HeimmediatelyrangGeorgeanddiscussedthesituationwithhim.Thistimethetopicof
discussionwasnothandledinanoptimisticway.Onthecontrary,hegaveRobertan
ultimatumthathewouldhavetomakeadecisionbetweenhiswifeandhiscareer.Robert
wasdumbfounded.Inafitofangst,heresignedonthespotandtoldGeorgewhathe
thoughtofhim.GeorgecautionedhimthatifhelefttoreturntoAustraliathatthecompany
wouldtakelegalactionagainsthimtorecoveritscosts.Robertwasmortified.Hewashurt,
confusedandfeltabjectlyletdown.Howcouldthissituationhavecometothis?His
expectationshadgonefrompositivetonegativeandhisoptimismabouthislifeandcareer
wascastasunder.Whatcouldhedo?
UnbeknownsttoRobert,hisoldbossinMelbournehadspokentothecompanyCEO,about
Robert'ssituation.TheCEOwasamazedthatithadcometothissituationandherang
Robertimmediately.Robertwasecstaticasitwastheonlyrayofhopeinwhatwasturning
abouttobeagloomypassageinhislife.TheCEOsaidthatthecompanywouldbringhim
backtoMelbournetocontinuehiscareer.Thecompanydidnotwanttolosehim.However,
hewasnotsosurethatKarenwouldfeelthesame.Unfortunately,forRobertshewasnotas
acceptingasthecompanyhadbeenandtheybecameestranged.Robertwasextremely
disconcertedbywherehefoundhimself.Hisexpectations,hisperceptionsandnowreality
allhadcollidedandimploded.However,hewasconsoledtosomedegreebytherealisation
thathestillhadhisjob.
WhenhereturnedtoAustraliahewasreturnedtohisolddivision,butwasassignedto
projectsofamuchlessersignificancethanthosethathehadpreviouslymanaged.Whilsthe
wasnottechnicallydemoted,itwasobvioustoallthathewasnotasseniorashehadonce
been.Robertdecidedthathewouldjusthavetowaithistimeandreestablishhimself
again.Surely,thecompanywouldn'tholdthisagainsthimforever.
Attheendofthefirstyearsincehisreturn,Robertwasworkingreallywell.Hehad
establishedarapportwithhislinemanagersandevenGeorgewasacknowledginghim
again.Hewasbeingassignedlargerprojectstomanageandhiscareerwasappearingtobe
movingforward.Roberthowever,waslookingformorechallenges.Hehadalwayshada
skillintheprocurementareaofthebusinessandwouldhavelikedtoestablishaniche
there.HispreviousbossinMelbournewastheheadoftheprocurementdivisionandheand
RoberthadworkedtogetheracoupleofyearsbeforeRobertwenttotheSouthPacific.
RobertranghimandGeofftoldhimthatthedeputy'spositionwascomingavailableand
Robertshouldkeepitinmindandkeeponthelookoutfortheadvertisement.Robertwas
excitedbytheprospect.
AnumberofweekspassedandRoberthadheardorseennothing.Onemorninghewas
readinghislocalnewspaperwhenajobadvertisementintheexecutivesectioncaughthis
eye.Itreadextremelysimilartothejobonofferathiscompany.Theadvertisementhad
beenplacedbyhiscompany'sexecutiverecruitmentagency.Robertwentintoworkand
rangGeoff.Hewasunavailablesohewentontohislinesupervisor,Max,whosaidthathe
wouldmakesomeinquiriesforhim.AfewhourslaterMaxreturnedtotellRobertthatit
wasnotthejobthathethoughtthatitwas.Robertfeltapprehensiveaboutthemessage,
butinallgoodfaithacceptedit.
TwomonthslaterRobertranintoGeoff.Geoffwasaloofwithhim.Thiswasunusual,asthey
hadalwaysgotonwell.HeseemedtowanttoleaveRobertassoonashecould.Robert
askedhimabouttheposition,towhichGeoffangrilyretortedthatitwasabitlatenowto
inquire,whenRoberthadalreadyturneditdown.Robertwasaghast.Hehadbeenmadeno
suchoffer.GeoffwastakenabackatRobert'sreactionandthetwobegantotalkearnestly.
HerevealedtoRobertthathehadaskedHRforRoberttofilltheroleandtheyhad
respondedthatRoberthadbeenaskedandhehaddeclined.Bothmenwereastounded.
Robertrealisedthathehadbeenengineeredoutofhisnextpossiblecareermove.He
returnedtohisoffice,tenderedhisresignation,clearedouthisdeskandleftthebuilding.
Thecompanythathehadjoinedadecadeago,nowwasnotthesamecompany.Roberthad
beenbadlymisledandhefeltuncomfortableandbetrayed.Hehadnotdeservedthistype
oftreatmentforhismanyyearsofservice.Hisperceptionoftheindividualsmanagingthe
companywasextremelynegative.Howdisillusionedhefelt!
Thecompanylostanentrepreneurthatwouldhavecontributedtothecontinuous
implementationofTQM.Inaddition,otherindividualsinthecompanymayhaveseenor
heardaboutRobert'scaseandrealisedthatthecompany'sTQMeffortsmaynotapplyto
thehumanresources(i.e.softside).
Lessonslearnedandconcludingthoughts
ThecasedescriptionhastaughtusthatTQMmayberunningwellandaccomplishingthe
hardgoals.However,TQMisnotonlyaboutfigures,profitsandcosts.Itisalsoabusiness
approachthatshouldpenetrateallactivitiesinsideandoutsiderelatedtothecompany,
includingthesoftones.Atanygivenpointintime,allcorporationsfacethedilemmaof
readingthemoodofthemarketplaceandsociety.Theyalsofacethedilemmatointerpret
themoodwithintheircorporationsamongtheemployees.Environmentalscanninginthe
marketplaceandinsocietyispractisedthroughouttheworldasameansofensuringthat
oneisintouchwiththemoodsandeventsgoingonaroundyou.Thisisanobviouspartof
TQM.Thecasedescriptionshowsthatthisoughttobedoneinternallyamongthe
employeestoo.ThereisahumandeterminantofTQMthathastobeseriouslyconsidered.
Employeesareacorporation'smostvaluableasset.Theyaretheoneswhomakeand
implementTQMprocessesthataffectallotherassets.Withouttheemployeesoptimism
andpositivismTQMwillbelesssuccessful.Acompany'sinvestmentsinitsemployeesisan
investmentinthebusinessandaninvestmentintheperformanceofthatbusinessinthe
marketplace.Likewise,pessimismandnegativismsuffocatetheintellectualspiritualityand
endeavoursofemployeesandmaketheTQMimplementationhardertoperform.
Tomisreadthecurrentinternalenvironmentisacriticalcorporateerror,thatinitselfleaves
thecorporationopentothevagariesoftheemployees.Inextension,theoutcomeofTQM
maybeseverelyaffectedaspessimismandnegativismreign.Withtheirproductsand
brandsinmindmanycorporationstrytoleadthemarketandtuneintothemoodsofsociety
inordertoobtainacompetitiveadvantage.Ifonesuggestedthatacorporation's
managementbehaviourshouldbereactivetothemarketplaceandtotheiremployees,and
notproactiveinthemarketplaceandtotheiremployees,onewouldbeseenasrecalcitrant.
Corporationsneedtotakethesameproactiveresponsetotheirethicalvaluesastheydoto
theirproductpositioning.Corporateethicscannotorshouldnotbeanafterthoughtina
corporation'splanningandimplementationofTQM.
Inthisarticle,aconceptualframeworkofcorporateethicsinTQMhasbeenproposedanda
briefcasedescriptionaffectingacompany'sTQMhasbeenusedtoleadthereadertoa
numberofconclusionsthatmightbedrawn.Firstofall,corporateethicsshouldbeseenas
anintraorganizationalvalueofimportanceinTQM.Thehumanissues(softside)ofbusiness
operationsshouldbeanobviouspartofTQM,notjusttheoperationalissues(hardside).
Second,theimportanceofcontinuouslyconsideringthegapofethicalperformance,i.e.the
matchormismatchbetweenmanagementandtheemployeeperspectivescannotbe
overstated.TQMrequireshumanresourcesandacompanyneedsto,andshouldstriveto,
maintainoptimismandpositivismamongstitsemployees.Otherwise,theultimateoutcome
willbeaffectednegatively.Third,theconsequencesofinternalethicalweaknessesin
managementbehaviorinTQMmaybecomethreatstothecorporationinthemarketplace.
Likewise,thelackofinternalstrengthsinTQMmaycausethelossofexternalopportunities.
Employeepessimismandnegativismmaybedisastroustoacompany'sTQMandeven
threatenthesurvivalofthecompany.Finally,corporateethicsperserestonanethical
valueground,thatisbaseduponthecontentionthatcorporationsneedtobemindfulofthe
roleofinternalandexternalbusinessoperationsandrelationshipsintheireverydayTQM.
Theyneedtobeevervigilantandcautious,asitshouldnotonlybethemarketplacethat
theyarewaryofdisenfranchising,buttheveryemployeesthattheysendintothat
marketplace.CorporateethicsshouldbeanexplicitcorevalueofTQM.
Aconsiderationofone'scorporateethicsinTQMcannotbeleftuntilamajorcrisisarises,
foralackofpreparationbothphilosophicallyandpracticallywillleavethecorporation
undulyexposed.Thedesireofcorporationstoprotectthemselvesfirstandthentoexamine
theimpactsonemployeesorotherstakeholdersinitselfleadstoreactiveethicalbehaviour
ratherthanproactiveethicalbehaviour.Theverylitigationandpoorpublicrelations
experiencefearedbycorporationsinvariablycomestofruitionasdisgruntledstaffcantake
thatnextsteptoembarrassthecorporationpubliclyandsuchactionscancauseTQMtofail.
Aswehaveattemptedtoshowinourcasedescriptioninthisarticle,corporationsandtheir
managementbehaviourtowardsemployeeswhoareactuallyalliesandnotfoesinthe
battlesinthemarketplacecansufferimmeasurablyfromthesepoor,selfcentreddecisions:
decisionswhicharetakeninareactivemannerwithoutdueconsiderationoftheprevailing
circumstancesandtheimpactsonusall.Inextension,thesetypesofdecisionsandactions
makeinvestmentsinTQMappeartobeinvain.
Contributions,limitationsandsuggestionsforfutureresearch
Oneofthetheoreticalcontributionsofthisresearchistheconceptualframeworkof
corporateethicsinTQM.Itmayalsobeusedinmanagementpracticetoanalyseand
describecorporateethicsinTQM,whichisapracticalcontribution.Inmanagementpractice,
thisputsattentionontheimportanceoftheinternalconsiderationsofethicsinTQM.In
addition,thisresearchhascontributedmethodologicallytoacasedescriptionofcorporate
ethicsinanintracorporaterelationship,whichhasnotbeenpinpointedsufficientlyin
previousTQMandethicsresearch.
Thefactthattheresearchwasbaseduponasinglecasedescriptionimpliesthatthe
empiricalfindingsofthisresearchmightnotbegeneralisedbeyondthecaseathand.
Nevertheless,thetheoreticalandpracticalcontributionsofthisresearchserveasa
fundamentandastructureforfurtherresearchintocorporateethicsinTQM.Asuggestion
forfurtherresearchisthereforetoexploretheimpactofcorporateethicsinintracorporate
relationships.Accordingly,itshouldbefurtherexploredindifferentrelationships,business
operations,andindustriesinvolvedintheimplementationofTQM.

Figure1CorporateethicsinTQM

Figure2PrincipalparametersofcorporateethicsinTQM

Figure3ThegapdualismmodelofcorporateethicsinTQM
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