mr. marc de greef

Corporate Social Responsibilityand Workers’ Health

Las Palmas, 5 May 2010Santa Cruz de Tenerife, 6 May 2010

Prof. Marc De GreefExecutive director

Agenda

1. Work health promotion in a changing socio-economic environment

2. CSR: a sound basis for WHP3. WHP and CSR: 2 sides of the same

coin?4. Conclusions

www.prevent.be Investing in Human Capital

www.prevent.be

Work health promotion in a changing socio-economic environment

1

Come gather ’round peopleWherever you roamAnd admit that the watersAround you have grownAnd accept it that soonYou’ll be drenched to the bone.If your time to you is worth savin’Then you better start swimmin’ or you’ll sinklike a stoneFor the times they are a-changin’.

www.prevent.be Investing in Human Capital

Bob Dylan, 1964

The times they are a-changin’

A new business reality

Continuous Economic Pressure: cutting costs & increasing profits

Need for Flexible People and Flexible Businesses Continuous Technological innovation Increasing complexity of legal framework Changing Work Force: ageing, multi-cultural

structure Importance of: Quality of life, Safe and Healthy

workplaces, Environmental awareness…

www.prevent.be Investing in Human Capital

The economic and financial crisis

www.prevent.be Investing in Human Capital

Source: EU-Agency for Safety and Health at Work

Health problems

Each year in the EU, 350 million working days are lost due to work-related health problems

35% of workers consider that their health is negatively affected by their work

The costs of workplace-related illnesses in Europe are estimated to be between 2.6% and 3.8% of Gross Domestic Product (GDP)

Mental disorders

Every second person in the EU has been affected by mental disorders at some point in his/her life

The two most common mental disorders among people aged 18 to 65 in the EU are depression and anxiety

The total annual cost for the year 2004 was estimated at € 240 billion in Europe

The majority of these costs (55%) are not covered by the insurance system

Cardiovascular disorders

CVD are the main cause of death in the European Union

They account for 42% – over 1.9 million – of all deaths each year in the EU.

Approximately 24% of all deaths in the working-age population – 225.000 – are attributable to CVD

In the EU, the total cost for CVD was estimated to be € 169 billion a year

Source: WHO

www.prevent.be Investing in Human Capital

A major challenge

What about the work life balance?

www.prevent.be Investing in Human Capital

Optimistic or pessimistic?

www.prevent.be Investing in Human Capital

A pessimist is one who makes difficulties of his opportunities;

An optimist is one who makes opportunities of his difficulties.

Source: Reginald Mansell

Optimistic vs pessimistic vision

www.prevent.be Investing in Human Capital

Our optimism needs a sound basis

www.prevent.be Investing in Human Capital

www.prevent.be 2CSR: a sound basis for WHP?

What is CSR?

CSR is the integration of social and ecological concerns on a voluntary basis

into business operations, Into the interactions with stakeholders

CSR focuses at a systematic incorporation of economic, environmental and social considerations in the decision making process on company level

CSR links directly to company excellence via excellent performance delivered to customers, shareholders, employees and external stakeholders

Key elements of CSR

CSR is a process, not a condition CSR is based on a voluntary engagement of

companies: it is not a legal requirement It goes beyond legal obligations

CSR has 3 dimensions: social, environment, economics (3 p’s: people, planet, profit)

CSR relates to the way in which activities of the company are carried out: the management policy

CSR focuses on consultation and dialogue

Drivers for CSR

New business opportunities (markets, image) Better control of business risks New ethical considerations Competitive advantage through increased

motivation of employees and a positive effect on productivity

External pressure form stakeholders, NGO’s and media

Social dimension of CSR

Internal social responsibility with regard to employees

Health and safety Human resource management Working conditions Adaptation to change

External social responsibility with regard to society

Local communities Suppliers and consumers NGO’s Business partners

New stakeholders change the context

www.prevent.be Investing in Human Capital

Civil Society-NGO’s-Civilians/consumers-Health insurance companies

Companies-Social partners-Managers-Workers-Suppliers

Government-Policy makers-Inspections

Media

New roles

Employers are also entrepreneurs, consumers and civilians

Workers are also consumers, civilans and sometimes neighbours of their own company

Safety and health professionals: may also represent theid company in external

stakeholder dialogues are all too often referring to legal obligations instead of

sound business Work Health Promotion is a more comprehensive

concept

www.prevent.be 3WHP and CSR: 2 sides of the same coin?

Accidents and diseases account for negative: Human consequences Legal consequences Economic and financial consequences

WHP (and OSH) account for Job satisfaction Positive company image Elimination of avoidable costs and focus on

productivity and performance

Impact on company performance

www.prevent.be Investing in Human Capital

Competitiviness versus Accidents

www.prevent.be Investing in Human Capital

Source: ILO Safe Work – World Economic Forum

Rules for business success

1. Vision

2. Skills

3. Will

4. Sustainability

5. Productivity

www.prevent.be Investing in Human Capital

Source: EANPC

Productivity: a holistic approach

www.prevent.be Investing in Human Capital

www.prevent.be Investing in Human Capital

OSH and performance

Source: Mossink, J., De Greef, M., 2002

Organisational characteristics

www.prevent.be Investing in Human Capital

Individual characteristics

www.prevent.be Investing in Human Capital

Individual needs

www.prevent.be Investing in Human Capital

WHP and company performance

Workplace health promotion programme

Individual outcomes less accidents, diseases improved health status

better quality of life more job satisfaction

Organisational outcomesless costs (absenteeism, accidents, diseases)

improved company image, position in the labour market, customer satisfaction

less turnover, better job retentionhigher productivity

WHP programme

Individual outcomes less accidents, diseases improved health status

better quality of life more job satisfaction

Company

goals

Better:working conditionssocial climateorganisational process

healthy attitudesimproved motivationmore commitmenthealthier lifestyle

Company performance

Source: Making the case for workplace health promotion, De Greef, M., Van den Broek, K., 2004 www.prevent.be Investing in Human Capital

Creating a health promoting working environment

Working conditions (physical, psychosocial & mental aspects)Work organisation

Promoting healthy lifestyle

Behavioural aspectsPersonal ResourcesHereditary endowmentPersonal Health Practices Working environment

Health of employees

Company Performance

A comprehensive approach as partof CSR

www.prevent.be Investing in Human Capital

4Conclusions

www.prevent.be

Conclusions

CSR is a challenging develpment, linked with business excellence

CSR always includes Safety and Health at Work CSR is closely linked with WHP CSR often focusses on new aspects of business and

on voluntary approaches CSR initiatives change the context of safety and

health at work Today, OSH initiatives seldom refer explicitly to CSR

WHP stimulates investments in human capital and contributes toSustainable business excellenceLong-term shareholder valueCorporate social responsibility

WHP is an asset for an innovative, competitive knowledge based company

www.prevent.be Investing in Human Capital

WHP is integral part of CSR

The line it is drawnThe curse it is castThe slow one nowWill later be fastAs the present nowWill later be pastThe order is rapidly fadin’.And the first one now will later be lastFor the times they are a-changin’

www.prevent.be Investing in Human Capital

Bob Dylan, 1964

Need for sustainability …

Thank you for your attention!

Prof. Marc De Greefmarc.degreef@prevent.be