BUSINESS ETHICS

Business Ethics

Business ethics in TQM

Introduction

The objective of this research is to introduce and describe a conceptual framework of business ethics in TQ?. In order to highlight the concepts proffered, a case study in the Swedish retail industry was conducted. The data that underpin the case illustration have been collected as part of a larger research project in the Swedish retail industry. This paper draws on and reports the findings from one case of the larger research project that has been used in this instance to inform the role of business ethics in TQ?. The case illustration is based on a qualitative approach. The data were collected through interviews with leading executives in the corporation.

Business ethics in TQM

TQ? gained increased interest among practitioners and scholars during the 1990s. Lagrosen (2001) writes that TQ? has become well established as a system for improving both the performance of companies and the satisfaction of customers. Despite its popularity, the meaning of TQ? is rather ambiguous. Amsden et al. (1996) state that many business people and academicians regard the development and practice of TQ? as an evolutionary process rather than a revolutionary one

Peters (1997a) argues that social responsibility is good capitalism or that good capitalism is socially responsible. Therefore, business ethics is an important ingredient in social responsibility, and in turn a determinant of good capitalism. Bowman and Wittmer (2000) state that organisations exist to improve the quality of people's lives by producing goods and services. Yet while producing these goods and services, managers have to realise the worth of the idea that their purpose is not only to do the right things, but also to do things right. Stainer and Stainer (1995) conclude that ethical behaviour should be an integrative factor within the productivity and quality management process because a better understanding of corporate responsibilities as well as providing a competitive edge may be achieved. Vinten (1998) points out that within TQ? sufficient emphasis has not been placed on ethical considerations.

Business ethics may also be seen as a generic or grounded core value for the other core values in TQ?. Therefore, it may serve as an umbrella to be incorporated and considered in the implementation of TQ?. Townsend and Gebhardt (1997) argue that the way that companies go about their business activities, with particular respect to business ethics, is increasingly important to their customers. Customers in the marketplace are becoming increasingly aware of, and increasingly discriminating against, companies that fail to meet the customers' criteria of ethical business activities and management principles. We would postulate that this concern does not just apply to customers, but to all stakeholders of the company and the society in general.

Business ethics is a core value per se that should affect the techniques and tools used in a company's implementation of TQ?. Business ethics should be aggregated to the list of core values or what Bergman and Klefsjö (1994) labelled as “the cornerstones of TQ?”. If business ethics was added to this selection of core values, it would make ...