Managing the Human Factor

1. �Managing the Human Factor� Alan McGregor Director Du Pont de Nemours (Belgium) Helsinki, 7 April 2003

2. What is DuPont? DuPont is a science company, delivering science-based solutions. Founded in 1802 in the United States to manufacture gunpowder, the company has since evolved into a global presence, operating in 65 countries with over 80,000 employees and annual revenues of over $27 billion. DuPont researchers and engineers have produced revolutionary solutions and products that make a difference in people's lives in food and nutrition; health care; apparel; home and construction; electronics; and transportation.

3. Well-known DuPont brands

4. DuPont�s Core Values These relate to: 1) Respect for Safety and the Environment 2) Respect for ethical behavior 3) Respect for employees - treating all with dignity and respect

5. What differentiates Dupont�s approach to Safety? 1) Management Commitment 2) Recognition that you have to work continuously to sustain the Safety Culture 3) The audit process 4) Recognition that good safety results are essential for good Business results

6. Company Policy The underlying philosophy of today�s corporate safety and health effort is the same as that with which our Company began: our most valuable resource is our human resource: as such, it must be protected. The philosophy is supported by a written policy which states that: Each department or site is responsible for developing and implementing plans and programmes to ensure compliance with this policy. This requires a safety and health programme which operates according to consistent and comprehensive principles

7. Examples of management commitment �We will adhere to the highest standards for the Safe Operation of our facilities and the protection of our Environment, our Employees, our Customers and people of the Communities in which we do Business.� �We will strengthen our Businesses by making Safety, Health and the Environment an integral part of all Business Activities.� �We believe that all injuries and occupational illnesses, as well as Safety and Environmental incidents are preventable, and our goal for all of them is zero. �Compliance with this Commitment and applicable laws is the responsibility of every employee and contractor acting on our behalf and a condition of their employment or contract."

8. How is DuPont�s Management Commitment manifested ? Every DuPont meeting, whether chaired by the CEO, or led by a senior manager in management reviews, or shift turnovers - always starts with Safety Operations Managers who do not successfully manage Safety do not achieve promotion Every DuPont Business talks Safety metrics first - at global, regional or local meetings Managers have direct line responsibility for Safety and have to report on strategy and plans to correct poor performance There are strong rituals to support Safety excellence including recognition and awards

9. How is the Safety Culture Sustained? 1) Regular interactive Safety meetings, with employees with relevant and appropriate content, in order to: a) create personal safety awareness in all employees b) create value for the benefits of Safety excellence c) create value for the Safety process and systems that we use d) create an ethos of �professionalism� regarding the achievement of zero injuries

10. How is the Safety Culture Sustained? continued 2) Senior Managers chair all Safety committees to demonstrate ownership 3) Managers at all levels are expected to participate in audit processes 4) Safety Milestones are recognised and rewarded 5) Continuous improvement in terms of statistical safety performance is demanded, in team and individual critical operating tasks 6) Willful failure to follow Safety procedures results in disciplinary action 7) Management ensures all incidents are fully investigated with recommendations generated to prevent recurrence

11. THE AUDIT PROCESS 1. Setting the standards 2. Communicating the standards to personnel 3. Auditing for compliance 4. Correcting deficiencies promptly

12. Linking Business Performance to Safety Mechelen (Belgium) Site LWC rate = 0 in 20 years Average Belgium Industry LWC rate = 913 in 20 years Average Cost of an LWC = $ 40,000 Savings at Mechelen over 20 years = $40,000 x 913 = $ 36,520,000

13. The Evolving Safety Culture Injury Frequency