Integrating corporate social responsibility and quality management into the TDABC costing system: a case study in the assembly industry
ISSN: 1747-1117
Article publication date: 17 February 2022
Issue publication date: 26 January 2023
Abstract
Purpose
This paper aims to show the potential of time-driven activity-based costing (TDABC) to value and integrate corporate social responsibility (CSR) and quality management (QM) processes in the assembly industry. It provides valuable insights about operational processes, sub-process and activities within assembly companies by using TDABC’s time equations with more accurate costs for the decision-making process.
Design/methodology/approach
The current paper proposes a new methodology framework with four QM and CSR implementation levels and several costing scenarios through the TDABC system. The valuation was built based on the activities of essential referents in each subject, such as ISO, Ethos Institute and electrostatic discharge control programs. To this end, a case study in the assembly industry processes was conducted with data from a TV assembler.
Findings
The results highlight that TDABC can be extended to perform a cost analysis with QM and CSR processes. The environmental management and occupational safety and health administration processes were considered part of CSR to do so. Consequently, managers can simulate the cost and impact of incorporating CSR and QM in assembly processes and thus decide the implementation degree and its corresponding planning according to the needs and available resources. In this particular case, the company increases a maximum of 12% of its resources to be socially responsible and manage its products’ quality.
Originality/value
Although theoretical models on CSR have been developed, the current study provides a practical framework based on TDABC scenarios that enterprises can easily implement to support and evaluate QM and CSR processes.
Keywords
Acknowledgements
The authors gratefully acknowledge the contributions and feedback provided by the enterprises utilized as case studies and the IMAGINE Project team. This study is part of the research project “Modelo de gestión basado en variables de Calidad y Responsabilidad Social Empresarial para la optimización de procesos de Ensamblaje”, supported by the Research Department of the University of Cuenca (DIUC).
Citation
Vedernikova, O., Morocho, V., Sigcha, E., Segarra-Tapia, L. and Siguenza-Guzman, L. (2023), "Integrating corporate social responsibility and quality management into the TDABC costing system: a case study in the assembly industry", Social Responsibility Journal, Vol. 19 No. 2, pp. 264-285. https://doi.org/10.1108/SRJ-11-2020-0455
Publisher
:Emerald Publishing Limited
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