leadership – the business case for health & safety
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LEADERSHIP – THE BUSINESS CASE FOR HEALTH & SAFETY. XVIII World Congress on Safety and Health at Work May 29 – July 2, 2008 Seoul, Korea. Maureen Shaw, President and CEO Industrial Accident Prevention Association (IAPA) July 1, 2008. Leadership – The Business Case for Health & Safety. - PowerPoint PPT PresentationTRANSCRIPT
LEADERSHIP –
THE BUSINESS CASE FOR HEALTH & SAFETY
LEADERSHIP –
THE BUSINESS CASE FOR HEALTH & SAFETY
XVIII World Congress on Safety and Health at Work
May 29 – July 2, 2008
Seoul, Korea
XVIII World Congress on Safety and Health at Work
May 29 – July 2, 2008
Seoul, Korea
Maureen Shaw, President and CEOIndustrial Accident Prevention Association (IAPA)July 1, 2008
Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
We know that health, safety,
and environmental programming
is a corporate economic imperative.
Increasingly, so does the business community.
Leadership – The Business Case for Health & Safety
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Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
IAPA Vision
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A world where risks are controlled
because everyone believes suffering and loss are morally, socially, and
economically unacceptable.
Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
Why Do Businesses Invest?
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Global– The ILO estimates annual global losses
in gross domestic product (GDP) due to workplace illness, injury, and death at $1.25 trillion (US$1,250,000 million), or
4% of annual global GDP
Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
Why Do Businesses Invest? (cont’d)
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Canada– Absence due to employee illness and disability costs Canadian companies CDN$16 billion annually
– Lost productivity due to mental illness costs Canadian companies CDN$11 billion annually
Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
Signs that the business community is recognizing health, safety, and the environment (HSE) as a business imperative:– CEOs are taking on HSE as a measure of their own
performance– Businesses are publishing their HSE results– Financial analysts are watching– Investors are acting– The media are reporting– Regulatory penalties and civil awards are growing
Health, Safety, and Environment – A Business Imperative
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Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
Health and Safety Continuum of Business Advantage
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Satisfied to do the minimumrequired to
comply with law/regulation
See HSW excellence as a
business advantage
Want to build and sustain their HSW program
• Adherence to laws/regulations
• Avoid penalties/fines
• Reduce premiums
• Decrease injury costs
• Lower injury rates
• Increase share price
• Preserve or increase brand value
Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
South Africa
Anglo American offers free antiretroviral treatment to HIV+ employees at an annual cost per employee that exceeds annual income of most black workers
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Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
Canada
DaimlerChrysler plant introduces a program to improve employees’ cardiovascular health:– Half lose an average of 16 lbs (7 kilos)
– 1/3 smokers stop
– Overall risk of heart diseases goes from medium to low
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Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
The bottom line.
What is the Connection?
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Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
Bottom Line Results
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Anglo American– Cost of treatments are more than offset by:
• Lower absenteeism
• Reduced health care
• Greater retention of skilled employees
• Improved Productivity
Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
Bottom Line Results (cont’d)
DaimlerChryslerIf this program were expanded to all Canadian plants, the company would save CDN$2M over a 10 year period
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Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
Financial Returns
Over 60% of CFOs recently surveyed by Liberty Mutual said that each $1 invested in injury prevention generated returns of $2 or more
The US OSHA asserts that companies implementing effective safety and health programs can reduce injury and illness rates by 20% or more, and generate a return of $4 to $6 for every $1
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Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
Alcan : EHS First program IAPA Safety Groups Sears Roebuck
Stories from the Business Community
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Alcan
In 2005, Alcan’s environment, health, and safety management system – EHS FIRST – delivered US$43 million in benefits, mostly from safety.
IAPA Leadership
ForumApril 2007
Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
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Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
IAPA Safety Group
IAPA brings participating companies together, facilitates exchanges of expertise and ideas, and offers one-on-one assistance as needed
Membership has increased by 528% since its formation – from 121 firms in 2004 to 760 firms in 2008
In 2006, there were 548 companies involved. They achieved a 32.67% reduction in lost-time injury rates and more than CDN$3M in a collective rebate
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Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
“Since joining IAPA’s Safety Group, our incident and accident rates have dropped tremendously and our return-to-work program has been a great success.”
Egan and Team Board
IAPA Safety Group (cont’d)
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Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
The Service Profit Chain
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Employee Satisfaction
(+ 5%)
The Bottom Line
(+ 0.5%)
Customer Loyalty
(+ 1.3%)
Source: Harvard Business Review, Jan/Feb, 1998
ManagerAccountability
4% improvement in 1997
= $200 Million
Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
Additional Gains
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Greater productivity and reliability New competencies Enhanced organization capacity Better employee relations More public trust
Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
Creating the Right Culture Setting your own standards and
expectations Establishing an HSE management system Integrate HSE into operations Train employees Integrate HSE into supply chain
management Look beyond financial returns
Common Success Factors
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Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
A 2007 survey of top executives around the world found that 9 out of 10 respondents are incorporating environmental, social and governance issues into their firm’s core strategy more than they were five years ago.
Call to Action
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One voice is a single person. Many voices are a movement. One voice is a single person. Many voices are a movement.
Leadership – The Business Case for Health & SafetyXVIII World Congress on Safety and Health at WorkSeoul, Korea - July 1, 2008Maureen Shaw, President and CEO, IAPA
Thank You
For a copy of this presentation, speaking notes and/or the paper on “The Business
Case for Health and Safety” Go to:
www.iapa.ca
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