Advancing Good Practices in H&S at the Corporate Level

1. Advancing Good Practices in H&S at the Corporate Level EU – US 4th OSH Conference September 14-16, 2005

2. EU Perspectives: Paper Neal Stone UK HSE • Used as introductory thought starters • Gaps in “excellence industry and daily reality of management” • Agenda for good practices session will focus on real life examples • Much existing guidance and research • Management practices alone not sufficient for outstanding safety performance – must engage and involve workers

3. Perspectives Paper (cont.) • Core elements: • Top level leadership • Information sharing • Active involvement of workforce • Effective management systems • Effective performance monitoring • Integration of safety and social responsibility • Applies to public and voluntary sectors in addition to companies • Perspectives highlighted examples of excellent research based on hard evidence of good practice

4. Advancing Good Practices: Opening Remarks – Frank White • We know how to achieve zero incidents – ID, manage and control risks • Many guidelines, documents provide guidance; ILO, OHSAS 18001, ANSI Z10 • Big challenge in management system approach is achieving continuous improvement

5. Octel Corp Case Study • Richard Shone: VP SHE • 1998: poor safety & reputation with declining main product (TEL) • Overloaded on SHE initiatives • First hesitant steps • Line management ownership • New SHE policy • Belief “if you can’t manage safety, you can’t manage anything else”

6. Octel • Good start, but…..many issues had to be worked in parallel: • Policy / standards audit • Basis of safety programme • Workforce engagement • Competency training • Stakeholder involvement • Communication – top down / bottom up • Reporting systems

7. Octel Benefits • Zero lost time accidents • No significant incidents • 40% reduction in production costs • Absenteeism reduced 10 % to 2.5% • Improved community trust / reputation • Corporate culture has changed…… • Expanding business in 21 countries • Culture change came from within

8. Discussion Framework • Questions of good practice “whats” vs. “why” and motivation • What are drivers for and against good practice? • Struggle going on profits vs. SHE practice • Should shareholder value take a broader view than just near term economics • H&S principles may create tension with outside drivers and economics • Must link with trade unions and have relevance for small and medium enterprise • Goal is influencing leader behavior & changing paradigm

9. Discussion Framework • How can the outside world make it easier for companies to change • Worker involvement, competency / training are key to safety performance • Need to link and integrate with other functions • H&S management /culture change needs to come from within • Message needs to come from other leaders – become public leaders to help change norms

10. Good H&S Practice goes hand-in-hand with Leadership and Culture Change Motivator First Early Keep Business External Continual Steps Steps Walkin’ System Focus Improvement Changes

11. Motivators • Most important driver may be industry itself : • Industry leaders hear from peers • industry associations raising the bar • Big companies can push small companies (e.g. ISO 9000 and14000) • Contractor relationship/contracts • regional trade unions also play important role • Awareness • outreach

12. Motivators • Government can assist • Simplify regulation • Useful tools like control banding • Consultation / outreach • Establish public debate with social partners • Inspect the bad guys until they become good guys • Companies are willing to help other companies • need network forum and support for such a structure • Insurance companies / worker’s comp can be motivators • Economic value • Funds pooled for training

13. Motivators • Using one simple measure of injury rate may drive some to use simplistic approach • E.g. liability • Motivator can be good or bad • Need a viable metric / norms but none accepted universally • Lack of empirical data

14. First Steps…… • It begins with leadership • Commitment – signed charter / policy • Analyze issues and risk • Set measurable goals • Public acknowledgement that status quo not satisfactory – what management is now striving for • Foundation and commitment for continuous improvement

15. First Steps…. • Commitment from every level of organization • Measurable accountability • Effective communication to entire workforce • Build foundation of trust • Define training needs • Change paradigm to a culture of prevention • Find solutions for prevention

16. Early Steps…. • Engage workforce / worker representatives • Resource allocation to implement policy • Roles and responsibilities defined • Empowerment / engagement of all employees and worker representatives • Accountability • Champions for change • Training (competency, OHS, management system) • Measure progress to goals • Find pockets of excellence – internal benchmark • Integration of H&S into existing business processes • Continue to build trust

17. Keep Walking….. • Systematically and regularly monitor / audit with involvement of workers • What works? What doesn’t work? What needs to be improved or changed? • Address new issues, hazards, new members of workforce • Engage / liaison with relevant external stakeholders • Share success stories • Demonstrate business value • Build system capability • Top management: on-going visible leadership of H&S process

18. Keep Walking….. • Integrate contractor / supplier issues • External Benchmarking • Formal and candid employee feedback • E.g. perception surveys • Continue to build trust • Recognize / encourage positive performance • Invest in H&S good practices as necessary

19. Business System Changes • Technical hardware systems • Management systems • Train managers and employees in new system See next slide

20. Accident Rate Technology Management Systems Human Factors Time Accident Plateau

21. Externalize • Use political and peer influence • Contractor and supplier arrangements • Take H&S leadership public leadership role • Cross country consistency of H&S good practice • H&S is a means of demonstrating social responsibility

22. Continual Improvement • Emulate quality processes for • Formal review • ID gaps in system • ID opportunities for improvement • Compare performance to benchmark • Involve employees / employee representatives • Benchmark to industry leaders • Reinforce culture of prevention and improvement of working environment

23. Making it Happen……. • Engage leaders • Transparency of performance data for general public • Develop assessment tool / methodology to help organizations assess where they are • Provide support and opportunities for networking and collaboration • Establish expectations for good performance • Integrate H&S within other risk management issues / functions / concepts

24. Good H&S Practice goes hand-in-hand with Leadership and Culture Change Motivator First Early Keep Business External Continual Steps Steps Walkin’ System Focus Improvement Changes Organization Level National Level Continued Joint EU-US OSH Efforts Engage Data Assessment Networking Expectations Integrate Leaders Trans. Tool