1. ASQ’s Social Responsibility Initiative Section 1508 Dinner Meeting May 11, 2009 Steve Babb, Past Chair

2. The Quality Triple Bottom Line Societal ISO 26000 Managemen t ISO 9000 Environmen t ISO 14000

3. Social Responsibility (SR) “ Responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior that: Contributes to sustainable development, including health and welfare of society Takes into account the expectations of shareholders Is in compliance with applicable law and consistent with international norms of behavior Is integrated throughout the organization and practices in its relationships” ISO-26000, Draft

4. Why is ASQ Advocating SR? Quality management and improvement tools support the changes, measures, cost savings, and gains proposed in ISO 26000 ASQ is uniquely positioned to provide expertise, education, tools, and resources for a successful and sustainable future “Good quality practices make for socially responsible organizations” ASQ White Paper: “Seeking Sustainable Success: ASQ Integrates Quality and Social Responsibility”, 2009

5. Why is ASQ Advocating SR? 83% or respondents to Quality Progress Quick Poll (March, 2009) agreed that SR and environmental responsibility should be considered a part of quality management ASQ White Paper: “Seeking Sustainable Success: ASQ Integrates Quality and Social Responsibility”, 2009

6. Opinions of Executives and Investors ??? % of investment professionals believe global economic turmoil has increased the importance of governance programs Feb 2009 McKinsey Report

7. Opinions of Executives and Investors 45 % of investment professionals believe global economic turmoil has increased the importance of governance programs Feb 2009 McKinsey Report

8. Opinions of Executives and Investors ??? % of chief financial officers agree that environmental, social, and governance programs create value for shareholders in typical times. Feb 2009 McKinsey Report

9. Opinions of Executives and Investors 66 % of chief financial officers agree that environmental, social, and governance programs create value for shareholders in typical times. Feb 2009 McKinsey Report

10. Opinions of Executives and Investors ??? % of executives believe global economic turmoil has increased the importance of governance programs. Feb 2009 McKinsey Report

11. Opinions of Executives and Investors 66 % of executives believe global economic turmoil has increased the importance of governance programs. Feb 2009 McKinsey Report

13. Living Beyond Our Means MID 80’s: Humans started to exceed nature's ability to regenerate 1999: Demand > 120% 1961: Humans using 70% of the capacity of the global biosphere X X X Source: PNAS

14. Clean Air Act (CAA) Clean Water Act (CWA) SDWA FIFRA RCRA CERCLA SARA TSCA OPA DOT IATA

15. Catastrophes Prompted Government Action Immediate Action Needed Immediate Action Needed Reduce Repeat Incidents Reduce Repeat Incidents Enormous Growth in # Regulations Enormous Growth in # Regulations

16. Enter….Sustainability “…development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Brundtland Report 1987 Brundtland Report 1987 Shareholders are demanding much more on behalf of Stakeholders.

17. ISO-26000 Key Elements in Social Responsibility Organizational Governance Organizational Governance Community Involvement and Development Consumer Issues Fair Operating Practices The Environment Labor Practices Human Rights ISO-26000, Draft

18. Companies Using SR Today Johnson Controls measures supplier sustainability to create green collar jobs, $1.6 billion spent annually Baxter International and GE, among others, now report annual sustainability scorecards. Baxter reports a return of 3:1 on environmental projects Goodwill Industries in SE Wisconsin transformed operations through lean thinking to meet SR objectives More examples every day

19. ASQs Quality Toolbox for SR Develop a network of best practices and practitioners such as www.SRO.orgwww.SRO.org Integrate with existing techniques – Lean, Six Sigma, ISO 9000, ISO 14000, etc. Leverage partnerships Systematic success – e.g. ASQ manages Malcolm Baldrige Understand ISO-26000 and its implications Be credible stewards of the standard Target elements to achieve maximum impact ASQ White Paper: “Seeking Sustainable Success: ASQ Integrates Quality and Social Responsibility”, 2009