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Impact of total quality management on corporate green performance through the mediating role of corporate social responsibility

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  • Level: High school
  • Pages: 8 / Words 2094
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INTRODUCTION

Increasing awareness of customers and regulations of national and international organisations have made it necessary for production firms to counter the issue of increasing air, soil and water pollutions. Environment have become primary concern for everyone and this requires that companies focus on environment friendly practices and activities along with their focus o quality of their product and services. To counter environmental issues Corporate Green Performance have an important contribution. Corporate green practices refers to practices employed by companies that are environment friendly and prime consideration behind activities is to save environment and ensure its sustainability by introducing new and improving old practices and processes.

Summary of the Article

This article focus on practices of manufacturing firms that contribute to increasing air, water and soil pollution. This article recognizes pressure of different stakeholders' on firms to consider impact their operations have on natural environment. This also suggest that firms need to reduce their dependence on fossil resources that damage to environment and should use renewable resources. This article recognizes that customers need firms and organisations to focus on sustainability of environment and their practices for that along with focusing and providing good quality goods and services. To counter environmental issues of environment corporate green practices (CGP) have a great potential. CGP means introducing new practices and improving existing processes so that it does provide quality products as expected by customers and also result in improved environmental performance. CGP results in Green Product, Green Practices and Green Management to mitigate challenges and issues activities of production cause. CGP too link with green innovation that enable firms to deal with environmental challenges through using technologies for production, assimilation and exploitation of product and activities of management which reduce environmental issues. Article also suggest and focus that (TQM) is important factor that can enhance green practices performance. TQM is believed to be a practice which is friendly to environment that attempt to reduce waste and encourage effective use of resources that covers natural resources as well. TQM also enhance capability of individual to innovate and improve existing practices so firm can utilize its resources to its utmost capability. Corporate Social Responsibility (CSR) is another factor that can help organisation to improve their practices for green performance. CSR is an initiative taken by Companies and firms to combine environmental and social concerns with the activities of firms. Companies take initiative to save economic, cultural and social aspect of environment in which they function their practices of business. Concepts of TQM, CSR and CGP are very similar and their roots are also same. Article states that firms which are following quality management and green performance strategies have a good potential to answer to environmental issues. Article states that implementation of green practices and precesses in companies also require technological and financial support since it increases time and cost of production. This study also explain how manufacturing businesses capitalize on their rare resources to achieve objectives of green practices and how corporate social responsibility mediates this relationship. This article also states 6 practices of TQM that are, customer focus, leadership, strategic planning, HRM, process management, and information and analysis. Important focus of this article and study have been placed on bridging the gap of literature on the relationship in TQM, CSR and CGP along with providing insights about management of firms to achieve objectives of green development through CSR and TQM . Theories that have been included in this study for fulfilling stated objectives are TQM, Green performance and green theory, Linking quality of operations with green performance and CSR.

Theory and Framework of the Article

Underpinning theories of this article are Green Theory and Green Performance, this theory states that rate of utilization of resources that are natural by manufacturing industries for production and making money is high. This has caused shortage of natural resources for future generations and important change in natural environment, most importantly global warming. Considering these, organisations like (UNGC) have made it compulsory to follow green practices and practices that are environment friendly. Ecologist have also urged manufacturing businesses across world to merge green practices and CSR practices into their functioning. This not only have a favourable impact on economic condition of organisation but also consider environment aspect. The objective behind of Green Theory is to achieve sustainability of environment at all the level. Roots of green performance have been taken from green theory which represent the link between firms' operations and environment. CGP provides important information about organisational practices and their follow-up with environment regulations. Other theory underpinning this article is Total Quality Management, this theory is about management practices that aims at continuously improving (Majumdar, 2016). TQM attempts to introduce new practices and processes and along with that improvement in existing practices so that company is able to utilize its tools, techniques and resources to utmost capabilities. End goal of total quality management is to enhance customer satisfaction by providing qualitative products with the less consumption of resources. This also contribute in improving economic and financial condition of organisations at it seeks to make the best use of resources (Chen, Lien and Lee, 2019). In this article researcher have used six dimensions of TQM that are leadership, it refers to management at top-level of organisation which sets organisational objectives, goals and how to achieve them. Process management defines clear division of ownership, processes and responsibility. Strategic planning refers to organisational vision and mission and policies to achieve that quality (Aziz and Morita, 2016). Customer focus refers efforts to know about demand of customers and market trends. Analysis and information refers to Knowledge management aspect of TQM and HRM focuses on employee development and their active participation in organisational operations and includes quality responsibility and awareness, empowerment of employees, reward management and performance recognition. Linking Quality with Green Performance, this theory considers input, output and waste of production process. These issues are connected with each other and their level is determined by quality of process. Poor quality products damage reputation of organisation and its performance in terms of finance. Poor quality also cause damage to human efforts and natural resources that result in poor performance in context of environmental (Kim and et.al.,2017). TQM has a great potential to manage human efforts of the organisation and natural resources. Corporate Social Responsibility refers to strategy of organisation that seeks to save , economic and social aspects of the environment in which it operates (Gavronski and et.al., 2018). Significant of CSR is increasing on continuous basis from last decade with it received valuable attention. This practice is wider than CSR and TQM as it includes wider aspect and beneficiaries. Beneficiaries of CSR includes those people who are not directly connected with organisation and are not using its services. Beneficiaries of these are company, stakeholder and society at large. This helps companies to get attention from society and enhance its goodwill and reputation (Tang and et.al., 2018). CSR not only involve environmental aspect in its activities but other aspects like well-being of customers and serving people of the society in all aspects like economically and social.

Results and Conclusion

On the basis of this report it can be said that environment which has become prime concern for everyone and manufacturing industries that significantly contribute in damage that have been caused to environment. This condition and other related factor have generated a need for manufacturing industries to focus on use of natural resources and sustainability of environment. For this various theories and practices have been mentioned in this article that companies can use. Significant consideration is that these practices not only work for environment protection and sustainability but also have a favourable impact on financial performance of the company and its reputation. The practices that companies are required to follow are CSR, TQM and CGP that means Corporate Social Responsibility. Total Quality Management and Corporate Green Performance respectively. This report have focused on fulfilling literature gap on relationship between these three aspects. Corporate Social Responsibility that refers to initiatives taken by companies and their voluntary actions to protect environment and related aspects like culture, economy etc. All the companies now pay special attention to this factor, this contributes in improving image and reputation of the company. CSR can be contributed by TQM which includes best and most efficient utilization of resources that are available to organisation. For this organisation seeks to introduce new practices or improve existing practices so that wastage of resources can be reduced, and they can be used more efficiently. These resources are not only natural resources but human resources as well. To enhance utility of these resources company need to improve its tools and techniques. Both these TQM and CSR integrate and contribute to CGP which is Corporate Green performance. Companies when apply TQM that increase utility of resources and reduces waste of resources enable organisation to perform green practices which are environment friendly. These practices are also contributed by CSR, which claim companies for responsible for environment protection and its sustainability by realizing that their practices are harming and damaging environment. In this manner all these theories and practices that organisations apply are linked with each other. Result of this is that companies can consider to have corporate green performance and for that performance they can apply TQM which will contribute for their green performance which will then link their performance with their responsibility linking it with CSR. CSR is a mandatory and wider practice than TQM and corporate green practices. This report have focused on filling the gap in literature of connection between CSR, TQM and CGP which it has done very successfully and have provided a very influential literature for this.

Contribution of Article

This article aimed at fulfilling the literature gap on connection between CSR, TQM and CGP. This aim has been fulfilled by this research in a very effective manner providing a significant contribution to literature for this topic. Earlier not much content was available for this causing lack of attention and knowledge about their relation with each other. This article has filled that knowledge and managed to receive attention of people towards these issues. There are many companies that are employing these practices in their company and organisation but they are unaware how they can link all these activities together, this article now have clarified that issues. Along with explaining and justifying relationship of TQM, CSR and CGP this article have also provided an more clear understanding of these topics individually. All the factors that are related with individual topic and theories have been identified and clearly explained in this article. In this manner article have also managed to increase awareness about TQM, CSR and CGP. Theory and subject of CGP which is found to be rarer than CSR and TQM have specially focused in this article with its meaning and importance and how companies can implement it in their organisation. One important factor in this article is that it does not only talk about one sided aspect of CSR and TQM about their impact on society but it also considers what impact these practices can make on organisation in form of financial benefits these have for organisation and reputation and goodwill these factors contribute to organisation and also that it helps to increase and improve quality of the organisation. This is an important contribution of this article. This article also states quality of organisational practices with its commitment and responsibility to be green in its practices. Green theory and green performance have also been stated and explained in this theory very effectively that is able to all the ambiguity about this topic and how this is contributed by TQM and then its contribution to CSR. No conflict of interest have been declared by author that states that everyone can get benefit from this knowledge and no one's interest will be affected by this article and knowledge that it provides.

All this are significant contribution that this article have provided. This will specifically understand and applied by companies and manufacturing organisations to enhance their activities and then link them with each other.

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