post recession leadership in health and safety - sally croft (dac beachcroft) - safety and health...
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How can directors and senior managers stay on the right side of the law?TRANSCRIPT
Post-recession leadership in
health and safety
How can directors and senior managers stay on the right side of the law?
Sally Roff , Partner at DAC Beachcroft
1.Emerging risks2.Consequences3.Opportunity for action
Changing economy and impact on safety
EMERGING RISK 4
RECESSION
Redundancy programmes Re-organisation Cautious recruitment Eagerness of workers to
compensate for lost hours Reduced investment in equipment Increased maintenance backlogs Use of plant beyond normal life
expectancy
Why should directors take action now?
Commercial benefits and competitive advantage of an effective safety culture. Potentially catastrophic consequences for organisations with a poor safety culture. Following an accident, the spotlight is increasingly on the attitude and behaviour of directors towards safety.
Commercial benefits
“To those who tell us we can’t afford health and safety, as professionals we need to let them know they simply can’t afford to be without it”.
IOSH President 2012, Subash Ludhra
Commercial benefits
1. Lower absenteeism2. Lower wage costs3. Reduced maintenance costs4. Increased morale5. Lower staff turnover6. Reduced risk of fines and insurance claims/premiums7. Increased productivity, quality and profitability 8. Happier customers
Potential consequences of poor safety culture
Increases in:1.CM investigations
2.Prosecutions of individuals under s.37– imprisonment
3.Fines following Sellafield and Network Rail – even where no fatality
4.Costs on bottom line
5.All in the context of… less advisory support from HSE and significant costs of investigation via FFI
Corporate Manslaughter – jury questions
1.Is there evidence to show that there were attitudes, policies, systems or accepted practices within the organisation that were likely to have encouraged a failure or to have produced tolerance of safety failings;
2.Has the organisation complied with any health and safety guidance that relates to the alleged breach?
Potential consequences of poor safety culture
For organisations:Human – death/injury, low moraleFinancial – £500k starting point for CM fine, management time, loss of customer confidenceReputational – publicity order, press attention
For individual directors:Liberty - ImprisonmentFinancial – Fine/management timeReputational - Risk of disqualificationStress
"In the middle of difficulty lies opportunity." Albert Einstein
How do your decisions and behaviours influence safety culture?
Are employees/contractors genuinely encouraged to look for risks and speak up, or merely to get on with the job?
How do your decisions and behaviours influence safety culture?
Do directors unwittingly set priorities and targets which, by implication, take precedence over the management of hazards and risks?
How do your decisions and behaviours influence safety culture?
When directors visit sites and work locations to look at safety, are they alert to the really serious dangers or do you concentrate on superficial compliance (e.g. housekeeping and PPE)?
How do your decisions and behaviours influence safety culture?
What do directors do, in the way that performance is rewarded, to promote a culture of health and safety? Is performance merely paid lip service or genuinely rewarded and valued?
How do your decisions and behaviours influence safety culture?
How do directors exercise their governance of health and safety and do they have the appropriate skills to manage this? What forums and processes are in place?
AND IF AN ACCIDENT HAPPENS…
Be ready for the inspector's call
Make sure your organisation has effective Directors’ and Officers’ insurance cover
“The Golden Hour”…..
BECOME PART OF THE SOLUTION
DAC Beachcroft/Lloydmasters Thought Leadership Project 2014
How can directors and senior managers achieve and maintain an effective safety, health and environment culture through times of change?
SHP Health Expo 2014