The Model of Corporate Ethics in Total Quality Management (TQM)

Total quality management is the approach to continuous quality improvement of products and services through the participation of all levels. Despite the fact that the basic ethics and corporate ethics are the most important factors, they are influencing total quality management performance. Unfortunately, most of the literature of total quality management are ignored them. The present paper aims to investigate the role of corporate ethics ​​to improve the performance of total quality management and eliminate gaps between expectations and perceptions in employees and managers. This research is practical and the method of this research is descriptive- correlation. The populations of the research are the personnel of Investment Company of National Development group (232 staffs) and the sample size based on Cochran formula is 145 staffs witch selected by random sampling. Path analysis and structural equation modeling are used for testing the research model. Research model that includes the nine hypotheses were confirmed and all research hypotheses were confirmed. Based on significant coefficients of the model were determined that taking into account ethical considerations has a positive impact on all three dimensions of TQM and also these three dimensions have a positive impact on the outcomes of corporate ethics. The results show that the fundamental values ​​of TQM must first be created on the ethical principles of corporate ethics principles until the methods and tools used in the implementation of total quality management improved and leading to coordination of expectations and perceptions between managers and employees and eliminate the ethical problem gap.