Corporate Social Responsibility (CSR) as an expression originated into public practice during the 60s and early 70s. This was when various global companies were set up in the field of business (Abuhejleh & Yehia, 2014). At the time of conceptualization of CSR, value addition to the society including the essential operational strategies attracted the companies’ attention. CSR has been defined differently in different fields. According to Kumar and Bala (2011), CSR is a connotation that is complicated to establish as it intersects with other notions, for instance; sustainable business; environmental accountability; corporate citizenship; social and environmental responsibility; and triple bottom line. It is significantly related to corporate and national environment (Kumar & Bala, 2011). Corporate Social Responsibility can be defined as the proposition that companies are responsible for the maximization of profit and also recognition of the needs of its stakeholders and regions they serve and/or operate.
Currently, over 80% of CSR related successes of most companies are published on the companies’ websites with other companies having codes of ethics and publish social and environmental guidelines literature. Moreover, there has been a steep rise in ISO 14001 certifications and a significant increase in the number of writers on Global Reporting Initiative (Neergaard & Pedersen, 2012). This is an indication that CSR is here to stay with the only challenge being regarding how it is going to survive. The challenge involves the means of incorporating economic, social, and environmental outcomes with the irregular patterns of decision making inherent in organizations (Abuhejleh & Yehia, 2014). Consequently, the management of different corporations is seeking tools to address the challenged aforementioned and the Business Excellence approach is considered among the tools to deal with the challenge (Abuhejleh & Yehia, 2014). The European Foundation for Quality Management (EFQM) is one of the Business Excellence approach methods that motivate firms in the development of better quality in management.
Overview of the EFQM Excellence Model
The European Foundation for Quality Management for not-for-profit organizations was first issued in 1992 and has been reshaped and remodeled several times since its inception. For instance when CSR was for the first time presented in the model in 1992 and substituted public responsibility. This is as illustrated in the figure below – figure 1 (Neergaard & Pedersen, 2012). In 2004 and by the increased awareness of the need for economic and social performance that is sustainable, the EFQM framework for CSR was initiated. The publication at the time indicated that the framework for CSR inherent in the new model is new and integrated employing the foundation of the Excellent Model (Neergaard & Pedersen, 2012). This allows firms to possess an approach to CSR that is integrated.
Figure 1: Fundamental Concepts of CSR in EFQM
Source: (Omnex, 2010).
This model is a framework for understanding and managing complexities involved in CSR. It is considered to be pragmatic and practical as it was developed by among the to organizations to maintain continuous improvement (EFQM, 2012).The EFQM Model is made of the components that are integrated. These include the fundamental concepts of excellence that provide definitions to the principles that form the basis for the achievement of excellence that is sustainable for organizations. These concepts are the basis for defining the organizational culture for an excellent firm and act as the universal for the top managers (EFQM, 2012). They comprise of first value addition for consumers, future sustainability creation, developing organizational capability, harnessing innovation and creativity, visionary, integral, and inspirational leadership, agile management, efficient and effective use of talent to maximize success, and sustenance of outstanding results.
Figure 2: Fundamental Concepts of Excellence
Source: (Van Rijswijk, 2012)
Second is the criteria and this provides the framework for assisting organizations in converting the fundamental concepts described above and RADAR thinking into practice. It provides an understanding of the causal relationship between the organization and its activities, enablers, and achievements (EFQM, 2012). For sustained success, strong leadership and a clear direction in terms of strategy are required. Hence, continuous development and improvement of the people is essential and partnerships and processes for delivering value-added goods and/services to consumers in pertinent (EFQM, 2012). The expected results of any organization will be achieved with the implementation of the appropriate strategies.
Under the criteria, there is the enabler criterion that comprises of five (5) enablers. These are placed on the left side of the model as illustrated in figure 3 below and include first leadership that is leaders that act as role models, flexible, have foresight, and shape the success of the organization (EFQM, 2012). The second strategy that is the implementation of the organization’s mission and vision through the development and deployment of strategies (EFQM, 2012). Third people that are attaching value to people through the creation of a culture of mutual benefits in achieving both personal and organizational goals (EFQM, 2012). Fourth partnerships and resources that are good organizational plans and the management of partnerships to gain the support of strategy and policies for the organization’s operation (EFQM, 2012). Finally, processes, products, and services that is developing and improving processes to meet the needs of the stakeholders (EFQM, 2012). There is also the results criterion located on the rights side of the model and comprises of the consumer, people, society, and people results.
Finally, there is the RADAR which is the tool that drives the improvement of the organization in all areas in a systematic manner. It is an assessment framework that is dynamic and powerful for management providing an approach to questioning organizational performance that is structured (EFQM, 2012). This model is applicable to any organization irrespective of the size, sector it is placed, or level of maturity. It also has no specific prescription and factors in various conceptual frameworks (EFQM, 2012). The model is also a universal language that enables the sharing of knowledge and experience within and outside the boundaries of the organization.
Figure 3: The Criteria
Source: (EFQM, 2012).
Figure 4: The RADAR
Source: (EFQM, 2012).
Corporate Social Responsibility in Healthcare Sector in the U.A.E
The healthcare sector in the UAE is a leader when it comes to CSR. This is because its main stakeholders are the government, society, and private sector. Moreover, the means of profit generation within the healthcare sector is tied to the lives of the public as it addresses complications on their health more effectively, efficiently, and often compared to other organizations (Abuhejleh & Yehia, 2014). Engagement in the healthcare business demands the continuous consideration of state-of-the-art approaches to CSR beginning with the businesses’ stakeholders (Abuhejleh & Yehia, 2014). According to Lee (2005), before serving the needs of its stakeholders, the healthcare sector’s corporations should take into consideration to key principles.
First, profit acquisition should be done in a liable way through by communication to the Human Resource, marketing, finance, and supply chain including other departments of divisions in the organization (Lee, 2005). Second, just like any other form of business industry, the healthcare industry needs to place emphasis on the definite parts that they contribute to the society and relate it to their business operations (Lee, 2005). However, this does not imply that they should have a direct link to the products and/or services and this is the point of difference between healthcare businesses and other businesses. Never the less, there should be a conspicuous influence and the corporations in the health sector should comprehend this fact (Abuhejleh & Yehia, 2014). Consequently, through the conduct of business and generation of profits, businesses in the health sector can at the same time positively contribute and impact to the society in a variety of ways a difficult but possible task. Once these two areas are integrated as part of a strategy, corporates in healthcare receive recognition via the community instead of being perceived as only profit seeking.
EFQM Excellence Model in the Healthcare Sector (Tawam Hospital in U.A.E)
The U.A.E’s healthcare sector is traditionally known for developing approaches and models of excellence to assists in the assessment of the work quality through the achievement of high-efficiency levels and effective operations. The region’s health sector and Tawam hospital in this regard are popularly known for its methods of inspection, professional standards, and accreditation at the international level including the processes for certification (Abuhejleh & Yehia, 2014). The EFQM is among the models of excellence used not only in the hospital but the entire region. The model’s approach provides a basic structure and is considered to be a generic and broader framework on compared to the traditional approaches used in the healthcare system (Abuhejleh & Yehia, 2014). Due to the fact that it is generic, it has no definite healthcare criteria, professional legislations, and regulations and standards. Moreover, it is not limited to only the clinical elements of healthcare organizations such the accreditation systems used in Europe such as that of the Joint Commission for Accreditation of Healthcare Organizations (JCI) (Abuhejleh & Yehia, 2014). However, the EFQM model, in general, uses the modified structured healthcare services concept that improves certain healthcare guidelines backed up by the Ministry of Health (MoH) in the entire U.A.E. that is including Tawam Hospital. It differentiates procedures, structures, and quality of results obtained during healthcare provision (Abuhejleh & Yehia, 2014). The procedures, structures, and the results are as per the acceptable EFQM framework discussed earlier.
In addition, the government including the hospital under discussion is working with other partners to provide the needed assistance to the community in Abu Dhabi and the entire U.A.E. Moreover, to promote and implement innovative best practices in excellence approaches and apply them to continuous improvement. The exclusive nature of the Sheikh Khalifa Excellence Award (SKEA) program of sustainable excellence to be in line with the international best practice and the adoption of this model is encouraged to enable individuals and the hospital, to enhance their performance, competition, and achievement of world class stature. The applicants are from all departments of the hospital. Rewards are presented for excellence, and this improves the organizational culture of quality between the staff, community, and other hospitals.
Abuhejleh, A., & Yehia, S. (2014, December). EFQM Framework for Corporate Social Responsibility in Healthcare Sector in the U.A.E. International Journal of Business Quantitative Economics and Applied Management Research, 1(7), 47-67.
EFQM. (2012). An Overview of the EFQM Model of Excellence. Brussels: EFQM.
Kumar, D. A., & Bala, V. (2011). Corporate Social Responsibility: Existing Practices vs CSR Framework. Global Journals of Management and Business Research, 11(9), 50-56.
Lee, S. (2005). Implementing Corporate Social Responsibility in Healthcare Sector. China Europe International Business School. China Europe International Business School.
Neergaard, P., & Pedersen, E. R. (2012). The Business Excellence Model for CSR Implementation? Nang Yan Business Journal, 54-59.
Omnex. (2010). EFQM Excellence Model Fundamental Concepts of Excellence. Retrieved October 15, 2016, from Omnex Web site: http://www.omnex.com/sustainability/efqm.html
Van Rijswijk, J. (2012, November 7). Update EFQM Excellence Model. Retrieved October 15, 2016, from improve4all Web site: http://www.improve4all.com/blog/update-efqm-excellence-model/