Transcript
Page 1: Managing quality for environmental excellence: Strategies, outcomes, and challenges in Brazilian companies

Environmental Quality Management / DOI 10.1002/tqem / Summer 2009 / 65

© 2009 Wiley Periodicals, Inc.Published online in Wiley InterScience (www.interscience.wiley.com).DOI: 10.1002/tqem.20226

This article high-

lights a study that

looked at how com-

panies located in

Brazil manage their

quality programs

to achieve environ-

mental excellence.

The study focused

on four business organizations that have achieved

certification to ISO 14001, an international envi-

ronmental management standard.

The results of the study show that contribu-

tions from quality management are fundamental

to achieving environmental excellence. Reaching

a high level of environmental performance is only

possible, however, if the company’s culture views

the environment as an organizational value.

About This ArticleThis article begins with some brief background

on the growth of environmental management

among companies in Brazil. It continues with a

review of concepts relating to quality management

and environmental management, along with discus-

sion of how these two themes can be integrated.

The discussion

then moves on to

a study involving

four market-leading

companies in Bra-

zil. It summarizes

findings regarding

how these compa-

nies have used their

quality management systems to achieve environ-

mental excellence, thus creating organizational

competitive advantage. Of particular note is the

significant role that quality management depart-

ments have played in environmental manage-

ment at all four companies studied.

Background: Economic Growth and Environmental Concerns in Brazil

Brazil is known for the wealth of its natural

resources. The country has also achieved rapid

economic growth and development over the past

several years. Given the confluence of these two

factors, companies located in Brazil increasingly

Charbel José Chiappetta Jabbour

Managing Quality for Environmental Excellence: Strategies, Outcomes, and Challenges in Brazilian Companies

Quality management tools

promote improved environmental

performance

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Charbel José Chiappetta Jabbour66 / Summer 2009 / Environmental Quality Management / DOI 10.1002/tqem

of the level of their environmental engagement

and the standards of environmental performance

they have achieved (Aboulnaga, 1998).

The extent of a company’s environmental

engagement can be analyzed through taxono-

mies that describe several levels of maturity and

varying approaches to environmental perfor-

mance. Management researchers (and corporate

managers themselves) can use these classification

systems to understand current environmental

management actions within specific organiza-

tions and to develop enhancements that can help

organizations reach higher levels of environmen-

tal performance in a structured manner.

Several different methods have been proposed

for classifying corporate environmental manage-

ment systems. The study discussed here incorpo-

rated the Jabbour and Santos (2006) approach,

which suggests that company environmental

management systems tend to progress through

three stages:

reactive (in which environmental manage-•

ment is unstructured and is viewed simply as

an additional cost for the company);

preventive (in which the company strives •

for eco-efficiency with regard to the natural-

resource inputs it uses, but does not yet view

environmental questions strategically); and

proactive (in which the company views envi-•

ronmental management as a source of com-

petitive advantage).

Quality Management: Evolution and Key Concepts

Quality management can contribute signifi-

cantly to proactive environmental management

(Lawrence et al., 1998). For this reason, it is useful

to understand how quality management systems

have developed within business organizations.

Today’s quality management systems have

evolved from concepts such as “total quality con-

recognize an obligation to combine traditional

performance goals (such as enhancing revenue,

productivity, and exports) with proactive and high-

quality environmental management initiatives.

Quality Management and Environmental Management: Nexus and Integration

According to authors who have studied both

quality management and environmental man-

agement at corporations, the two fields have

developed through similar evolutionary stages

and use common practices and organizational

structures (Aboulnaga, 1998; Borri & Boccaletti,

1995; Lawrence, Andrews, & France, 1998).

Based on such find-

ings, the study discussed

here assumed that com-

panies would find the

task of managing envi-

ronmental issues easier

to accomplish if they

incorporated environ-

mental concerns into

their company’s existing quality management sys-

tems (see Barbieri, 2004).

The sections that follow offer some background

on environmental management, quality manage-

ment, and the relationship between the two fields.

Environmental Management: Characteristics and Classification of Systems

The study discussed in this article assumed

that corporate environmental management in-

volves planning and organizing the ways in

which the company approaches environmental

concerns, all with the objective of achieving spe-

cific environmental goals. These activities require

engagement by many management areas for opti-

mal results (Jabbour & Santos, 2006).

There are many reasons why companies may

strive to achieve better environmental perfor-

mance. In addition, companies differ in terms

The extent of a company’s environmental engagement can be analyzed through taxonomies that describe several levels of maturity and varying approaches to environmental performance.

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Environmental Quality Management / DOI 10.1002/tqem / Summer 2009 / 67Managing Quality for Environmental Excellence

are the ultimate target of the TQM program. Top

management must support and lead the process.

The implementation process itself should be

headed by a “command group” that is respon-

sible for elaborating plans and alternatives. The

group should keep a record of the organization’s

experiences with respect to quality administra-

tion in order to help the company benefit from

organizational learning. Work groups within the

organization should receive training on quality

management. Ultimately, this will help all em-

ployees of the company achieve the goals of total

quality management (Garvin, 1992).

Integrating Environmental and Quality Management

According to Aboul-

naga (1998), integrat-

ing the environmental

component into total

quality management

can help organizations

continually improve

their performance in the areas of both environ-

mental management and social responsibility. In

addition, it can allow companies to increase pro-

ductivity, generate innovations based on cleaner

technologies, and enhance competitiveness.

The integration of environmental manage-

ment and TQM is sometimes referred to as total

quality environmental management, or TQEM.

In practice, a TQEM approach can develop out

of an environmental management system that

applies the TQM philosophy to environmental

issues.

The TQEM concept was originally developed

by the Global Environmental Management Ini-

tiative (GEMI), a nongovernmental organization

founded in 1990 by a group of multinational

companies (Barbieri, 2004). GEMI’s member com-

panies currently include a number of large corpo-

rations, such as 3M, Kodak, and DuPont.

trol,” which was first discussed by A. V. Feigen-

baum almost 60 years ago (Feigenbaum, 1951).

Total quality control eventually developed into

“total quality management” (TQM).

Total quality management has been widely

publicized by numerous scholars and research-

ers, including W. Edwards Deming, Joseph M.

Juran, Genichi Taguchi, and Philip Bayard Crosby

(Garvin, 1992). The TQM philosophy emphasizes

a number of key concepts (Slack, Chambers, Har-

land, Harrison, & Johnston, 2002), especially:

focusing on the needs and expectations of •

consumers;

including all organizational functions in the •

quality program;

involving all people within the organization, •

and fostering their commitment to quality;

examining all costs in the context of quality;•

guaranteeing quality by adopting best prac-•

tices at the first opportunity; and

developing systems that support continuous •

quality improvement.

TQM can be understood as the logical evolu-

tion of a company’s quality management prac-

tices over time. According to Garvin (1992),

total quality management is an organizational

philosophy that involves the entire company; it

focuses on teamwork and employee empower-

ment as key approaches to work projects. Accord-

ing to Santos (2001), in order for organizations

to collaborate effectively in the formulation of

management strategy, it is fundamentally neces-

sary for quality management to involve all activi-

ties of production management, from marketing

to research and development to provision of

postsales service.

The implementation of TQM demands orga-

nizational effort, along with a focus on “critical

success factors.” The organization needs to set a

strategy for achieving long-term objectives, which

The implementation of TQM demands organizational effort, along with a focus on “critical

success factors.”

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Charbel José Chiappetta Jabbour68 / Summer 2009 / Environmental Quality Management / DOI 10.1002/tqem

ment and environmental management within

the study companies, focusing in particular on

how the use of quality management tools can

enhance environmental management.

Criteria for Company SelectionThe organizations selected for the study had

to meet a number of key criteria. Specifically,

each company had to:

have implemented the ISO 9001 quality man-•

agement system;

have implemented the ISO 14001 environ-•

mental management system;

have implemented the quality management •

system before implementing the environmen-

tal management system;

be a leader in its market; and •

have an excellent environmental management •

system (as evidenced by, for example, receipt

of awards or public and media recognition for

high-level environmental performance).

Companies Chosen for StudyBased on these selection criteria, four compa-

nies were chosen for study:

Company A (from the writing, art, and office •

supplies sector);

Company B (from the automotive sector);•

Company C (from the metal-mechanical sec-•

tor); and

Company D (from the chemical sector).•

Study MethodologyThe methodology used for the study included

completion of semistructured questionnaires by

company representatives. In addition, the author

visited the companies to collect additional data.

The company employees who took part in this

study held the positions of quality manager, envi-

ronmental manager, and industrial manager.

According to Daroit and Nascimento (1998),

TQEM strives to enhance production activities

through total quality methods in order to achieve

improvements in environmental performance.

Within the organizational context, develop-

ment of TQEM is a powerful mechanism for

generating eco-innovations. These innovations

in turn contribute to quality management and,

consequently, to organizational competitiveness.

Eco-innovation allows the organization to re-

duce its consumption of raw materials and other

inputs, thus lowering costs. In addition, such

innovations can help position the company as a

potential supplier in “green product” markets.

Lawrence et al.

(1998) have concluded

that introducing the

environmental com-

ponent into organi-

zational management

through implementa-

tion of an environ-

mental management

system (EMS) is sim-

plified in companies that already have effective

quality management.

Once quality becomes a concern for the orga-

nization’s top management, TQM appears to be

a decisive factor in aligning environmental plan-

ning with overall corporate strategy. In particular,

companies that have achieved certification to ISO

9001 (an international quality management stan-

dard) find it easier to implement environmental

management systems and obtain certification to

ISO 14001.

How Quality Management Can Promote Environmental Excellence: A Study of Four Market-Leading Companies in Brazil

During 2006 and 2007, the author of this ar-

ticle carried out a study of four companies located

in Brazil. The research looked at quality manage-

Once quality becomes a concern for the organization’s top management, TQM appears to be a decisive factor in aligning environmental planning with overall corporate strategy.

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Environmental Quality Management / DOI 10.1002/tqem / Summer 2009 / 69Managing Quality for Environmental Excellence

certification (ISO 14001:1996) and the updated

certification (ISO 14001:2004).

The extent of this role was reflected in a com-

ment by Company C’s quality manager, who

stated, “When top management wanted to obtain

information about ISO 14001:1996, she called

me. . . . The opinion of the quality department

carried a lot of weight since we already had expe-

rience with implementation of ISO 9001.”

Similarly, the quality manager for Com-

pany A stated, “We began speaking about ISO

14001:1996 in meetings with top management.

. . . We led the certification process within the

company.”

In addition to ad-

vocating for ISO 14001

EMS certification, the

quality management

departments at these

companies supplied

the technical person-

nel who helped cre-

ate their organizations’

environmental depart-

ments. At all four companies, the person who

currently heads the environmental department

was formerly employed in quality management.

According to the ISO 14001 system coordina-

tor at Company B, implementation of the com-

pany’s EMS was handled “by an environmental

management system implementation team, and

the more experienced employees of this team

were from the quality department. . . . I was cho-

sen to coordinate system maintenance because I

had already helped with the implementation and

maintenance of ISO 9001.”

n Quality Management Tools Used by the Study Companies Several quality management tools and prac-

tices contributed to ISO 14001 implementation

by the study companies, ultimately helping them

Study FindingsThe following sections briefly summarize

some of the key findings of the four-company

study.

n Moving Toward a Certified ISO 14001 EMS In all four companies studied, adoption of an

ISO 14001 environmental management system

was preceded by intensive negotiations involving

organizational leaders. However, this process was

simplified for Companies A and D, which already

were using a noncertified environmental man-

agement system.

n Certification Time FrameAll four of the companies studied originally

achieved certification to the 1996 version of the

ISO 14001 standard, and later updated to the

2004 version. The certification time frame for the

four companies was:

Company A: ISO 14001/1996 certification in •

2002

ISO 14001/2004 certification in

2005

Company B: ISO 14001/1996 certification in •

1997

ISO 14001/2004 certification in

2004

Company C: ISO 14001/1996 certification in •

2001

ISO 14001/2004 certification in

2006

Company D: ISO 14001/1996 certification in •

2001

ISO 14001/2004 certification in

2005

n Role of Quality Management Departments At all four companies studied, the quality

management departments assumed an active role

during the process of obtaining both the first

At all four companies studied, the quality management departments

assumed an active role during the process of obtaining both the

first certification (ISO 14001:1996) and the updated certification (ISO

14001:2004).

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Charbel José Chiappetta Jabbour70 / Summer 2009 / Environmental Quality Management / DOI 10.1002/tqem

Company D utilized both of these tools, while

Company C did not use either of them. But it is

these more advanced tools that can do the most

to guarantee significant improvements in envi-

ronmental performance.

By contrast, some of the practices adopted

by all four companies (such as benchmarking

and teamwork) could lose their effectiveness if

environmental issues become less important to

management, especially at Companies B and C.

In this context, it is useful to note a comment

made by Company C’s industrial manager, who

said, “As time has passed, we have become more

careless with respect to our environmental per-

formance. . . . Our focus has moved to reducing

costs and we have forgotten that an environmen-

tal culture could help us with this. . . . We have

to make up for lost time.”

As this observation illustrates, maintaining a

high level of environmental performance is pos-

sible only if the company views the environment

as an organizational value.

Concluding RemarksThe study discussed in this article confirms

that quality management is clearly related to

environmental management among companies

in Brazil.

At all four companies studied, the persons

who currently serve as environmental managers

originally worked in quality management. They

were chosen for their environmental manage-

ment roles in large part because of their extensive

experience with ISO 9001 procedures.

achieve environmental excellence. Among the

quality management tools utilized were cause-

and-effect analysis, Pareto analysis, benchmark-

ing, design for environment, a teamwork ap-

proach, and life-cycle analysis (see Lawrence,

Andrews, Ralph, & France, 2002). Exhibit 1

summarizes the key quality management tools

adopted by the four study companies.

Although quality management supported the

implementation of environmental management

systems in all of the companies studied, the adop-

tion of quality tools for environmental purposes

was not homogeneous across all four companies.

Company D, which has made the fullest

use of quality tools in its quest to achieve en-

vironmental excellence, has also obtained the

best outcomes with respect to environmental

management. Significant results achieved by this

company include:

adapting its main suppliers to the environ-•

mental management system;

implementing life-cycle analysis for all its •

products; and

developing and obtaining patents for prod-•

ucts with high levels of environmental per-

formance.

n Challenges to Achieving Environmental ExcellenceIt can be a challenge to fully disseminate the

more sophisticated quality management tools,

such as design for environment and life-cycle

analysis. Among the companies studied, only

Exhibit 1. Quality Tools Supporting Environmental Excellence in the Study Companies

Cause-and-Effect Analysis Pareto Analysis Benchmarking Design for Environment Teamwork Life-Cycle AssessmentCompany A X X X X XCompany B X X X X XCompany C X X X XCompany D X X X X X X

Page 7: Managing quality for environmental excellence: Strategies, outcomes, and challenges in Brazilian companies

Environmental Quality Management / DOI 10.1002/tqem / Summer 2009 / 71Managing Quality for Environmental Excellence

Daroit, D., & Nascimento, L. F. (1998). A busca da qualidade ambiental como incentivo à produção de inovações. In Enanpad, 24, Florianópolis. Anais. Florianópolis, Brazil.

Feigenbaum, A. V. (1951). Quality control: Principles, prac-tice, and administration. New York: McGraw-Hill.

Garvin, D. A. (1992). Gerenciando a qualidade: A visão estra-tégica e competitiva. Rio de Janeiro: Qualitymark.

Jabbour, C. J. C., & Santos, F. C. A. (2006). The evolution of environmental management within organizations: Toward a common taxonomy. Environmental Quality Management, 16(2), 43–59.

Lawrence, E., Andrews, D., Ralph, B., & France, C. (2002). Applying organizational environmental tools and techniques. Corporate Social Responsibility and Environmental Manage-ment, 9(2), 116–125.

Lawrence, L., Andrews, D., & France, C. (1998). Alignment and deployment of environmental strategy through total quality management. The TQM Magazine, 10(4), 238–245.

Santos, F. C. A. (2001). Similaridades dos estágios evolutivos das áreas de gestão. Revista de Administração da Universidade de São Paulo, 36(4), 18–32.

Slack, N., Chambers, S., Harland, C., Harrison, A., & Johnston, R. (2002). Administração da produção. São Paulo: Atlas.

The study company that has achieved the

highest level of environmental excellence (Com-

pany D) is the one that makes the most intensive

use of quality management tools in its pursuit of

enhanced environmental performance.

As this study shows, excellence in environ-

mental management requires an organizational

culture that continuously views the environment

as a corporate value.

ReferencesAboulnaga, I. A. (1998). Integrating quality and environmen-tal management as competitive business strategy for 21st cen-tury. Environmental Management and Health, 9(2), 65–71.

Barbieri, J. C. (2004). Gestão ambiental empresarial. São Paulo: Saraiva.

Borri, F., & Boccaletti, G. (1995). From total quality manage-ment to total quality environmental management. The TQM Magazine, 7(5), 38–42.

Charbel José Chiappetta Jabbour, PhD, is a professor at São Paulo State University (UNESP) at Bauru in the School of Engineering, Production Engineering Department, and at the University of São Paulo (USP) at Ribeirão Preto in the School of Economics, Business Administration and Accounting, Business Administration Department. His current research inter-ests include environmental management and operations strategy. In addition to this journal, his research has been pub-lished in the Journal of Cleaner Production and the International Journal of Environmental Technology and Management.


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