CSR Issue Position Paper Workplace Wellness

1. CSR Issue Position PaperWorkplace Wellness David Beller P. Yang-Yang Chen Daniel Mandel

2. Table of Contents Overview Current Status Implementation – Leading practices

3. Overview

4. Workplace Wellness • A variety of measures to proactively encourage improved health outcomes, including education, services and incentives • Companies are expanding their concept of health to include a broader sense of mental wellness with increasing focused on the prevention of health problems

5. Six dimensions of Wellness ?

6. The Business Case • Reduced medical costs and disability costs. Reduced costs of employee healthcare benefits and avoided disability payments. • Reduced Absenteeism. Studies show that programs can reduced missed days. • Enhanced Productivity. Healthier workers are more productive. • Enhanced Recruitment and Retention. Provide an incentive to remain with the current employer, and keep morale high.

7. The Business Case • COSTS • Reduced medical and disability costs • Reduced Absenteeism • Enhanced Productivity • CSR • Fair employee treatment • Reputation • Surveys • RECRUITING / RETENTION • Attract Talent • Keep morale high • Incentive to remain with the current employer • Increased Loyalty

8. Key Drivers • Increased healthcare costs The cost of health benefits rising 10-15% per year. • Expanded definitions of health Including emotional and physical health with influences at home and work. • Expanded healthcare options The mainstreaming of alternative medicine.

9. Key Drivers (cont) • Globalization and employee diversity. Increased diversity of employees' ages, races, religions, and cultures, with a growing range of health and wellness issues. • Increased focus on prevention. Proven effectiveness of preventive programs. • Importance of weight management. Extensive social, personal and economic costs of obesity and overweight

10. Key Drivers (cont) • Incentives designed to promote health. Emergence of economic incentives as a tool to encourage behavior change. • Focus on mental health. The awareness about the scope and seriousness of mental health issues is growing. • Changing issues in disability More companies are recognizing the need to accommodate employees undergoing treatment or recovering from disease and illness.

11. Examples • SERVICES • Screening programs • Exercise Opportunities • Counseling and Consultation • Alternative health plans • EDUCATION / PROMOTION • Health education • Encourage healthy diets • Promote healthy-baby practices • Resource library with books and articles on self-help topics • Economic Incentives-- sharing of costs savings from health coverage Source: Business for Social Responsibility, Health and Wellness Issues Brief

12. Current Status

13. Influences for Workplace Wellness • Both regulation-driven and internally driven • Foreign regulations • United Kingdom: The Management of Health and Safety at Work Regulations 1999 and Workplace (Health, Safety and Welfare) Regulations 1992 • Australia: 1997 Workplace Health and Safety Regulation • Canada: Workplace Safety and Health Regulation 2007 Bidding on government contracts may require a workwell evaluation

14. Status of U.S. Regulations • The U.S. has made less progress than other countries. U.S. governmental regulation has centered around safety rather than general workplace wellness. For example, OSH and EPA regulations relate to workplace safety (mostly in the construction industry).

15. Public and Nonprofit Involvement The lack of U.S. regulation has not stopped many public and nonprofit organizations from becoming involved in advancing the issue: California Task Force on Youth and Workplace Wellness • Launched by the State Legislature in 2002 • Mission: Promote physical fitness and nutritional health in CA’s schools and workplaces • Goals include targets regarding the reduction of obesity rates Center for Disease Control’s Worksite Wellness Initiative • Designed as a resource for program planners in state and federal government • Features a lactation support program, garden market, wellness committees, and discussion boards State Government Efforts • Mississippi Department of Health’s “What is Workplace Wellness” • Massachusetts Department of Public Health’s Wellness at Work Program

16. Who’s designing the health promotion programs? • Many large corporations have the necessary capacity and resources to provide workplace wellness programs for their employees • However, smaller firms may lack the resources or expertise to do so • Leading to a growing need to increase the availability of disease prevention and health promotion programs. UC Irvine’s Health Promotion Center seeks to develop 5 health promotion programs targeted for CA small and medium-sized businesses employing between 2 to 500 workers.

17. Growing Consultancy Business • As firms go off site for their wellness training needs, consultancies are starting to make a profitable business out of helping companies implement workplace health programs. • Consultants’ services center around assistance with assessment, implementation, and evaluation of wellness program • In addition, these firms also provide lecture series, training, handbooks • Nonprofits can also serve as a great resource for providing examples of good programs.

18. What does a model wellness program look like? It’s important to take an integrative approach to employee wellness. Any comprehensive workplace wellness program ideally consists of three key components: • Prevention • Recognition • Assistance • And may require creating a more comprehensive program which includes: • Employee lifestyle change • Clinical prevention services for employees and their dependents • Ergonomics • Occupational safety • Organizational climate/social support • Worksite violence prevention • Compliance with occupational safety and health regulations

19. Steps for increasing the success of a workplace wellness program

20. According to the "Healthy People 2010" Report, produced by a consortium of health officials from federal, state, and local governments joined with community groups, academics, and others: • By 2010, 75% of U.S. employers will offer a comprehensive employee health promotion program that includes the following elements: • Health education: skills development and lifestyle behavior changes along with information dissemination and awareness building, preferably tailored to employees’ interests and needs. • Supportive social and physical environments: includes an organization’s expectations regarding healthy behaviors and implementation of policies that promote health and reduce risk of disease. • Integration of the worksite program in an organization’s structure. • Linkage to related programs, such as employee assistance programs and programs to help employees balance work and family. • Screening programs, ideally linked to medical care to ensure follow-up and appropriate treatment as necessary. • Follow-up interventions: used for supporting individual behavior change. • An evaluation and improvement process to help enhance the program’s effectiveness and efficiency.

21. Workplace Wellness Awards Who’s recognizing corporations’ efforts to incorporate workplace wellness? • C. Everett Koop National Health Award • Awarded annually by the Health Project 2010 • Recognizes employee programs that reduce healthcare costs by encouraging healthy behavior • Recent corporate award winners include Citigroup, FedEx, Johnson & Johnson, Northeast Utilities, and Union Pacific Railroad • Corporate Health and Productivity Management Awards • Awarded annually by the Institute for Health and Productivity Management • Recognizes employers’ leadership in demonstrating improved relationships between health and productivity through intervention initiatives, cultural and environmental changes, and measurement of outcomes • Past winners include DaimlerChrysler, IBM, and Motorola • Secretary’s Innovations in Prevention Awards—U.S. Department of Health and Human Services • Series launched by the Secretary of Health and Human Services in 2003 • Recognize businesses and organizations that are leading efforts to promote healthy lifestyles in their communities • Past award recipients include Johnson & Johnson and Union Pacific Railroad • Wellness Councils of America Well Workplace Awards • Three levels of awards given annually: gold, silver, and bronze • Recognizes companies meeting WELCOA’s criteria for a healthy workplace • Recent award winners include Anheuser-Busch, Fujitsu, Merrill Lynch, and Motorola.

22. Implementation Leading Practices

23. COMPANY EXAMPLES

24. Industry: Technology Revenues: $10.6 billion Employees: +9,000 ? Google • EXERCISE • On site gym • Swimming spa • Subsidized exercise classes • On site massage (low co-payment) • FOOD - NUTRITION • Free gourmet food • Says co-founder Sergey Brin: "The cafés have always been pretty healthy, but the snacks are not, and the efforts to fix that have been remarkably challenging.” • HEALTH CARE • For employee and family • On-site physician and dental care • Maternity and Paternity leave • OTHER • Child Care Center • Source: www.google.com/intl/en/about.html

25. Industry: Food Revenues: ~$100 million Employees: approx. 200 Clif Bar • Wellness program addresses employee’s physical, emotional, even spiritual needs • EXERCISE • On site gym (20 fitness classes per week during working hours) • On site yoga and dance studio • Personal trainers • 97% participation rate – 2.5 hrs per week (2003) • FOOD - NUTRITION • Free salads 2-3 days a week • Caterer cooks dinners and deliver to workplace • HEALT CARE • Health screens • Subsidized Massages • Source: Raising the Bar: Integrity and Passion in Life and Business

26. Industry: Pharmaceutical Revenues: $6.86 billion Employees: 23,000+ Novo Nordisk • NovoSund: Program that looks at how an employee can adopt or maintain a healthy lifestyle • Leisure centers: At low cost for employees • Works to ensure that employees can maintain a natural balance between work and leisure time • Nutrition policy: currently being developed by a cross-organizational working group. Room for cultural variation and ensure equal access to a selection of healthy food throughout the company • Promotion of various sports events • Pilot study to investigate the nature of stress and how to deal with it proactively. • Completed a study of health checks and personal health advice among 1000 employees: • ‘The employees who have health checks and receive personal health advice improve their health significantly. The largest health improvement was measured in the fitness test.” • Source: www.novanordisk.com

27. More examples… • MICROSOFT • Weight management benefit (employees already get free medical coverage). Company picks up 80% of the tab--up to $6,000--for a comprehensive, clinical weight-loss program. • Benefit includes up to a year's worth of sessions with a personal trainer, behavioral and nutritional counseling, support groups, and medical supervision. • 61,100 pounds have vanished from the bodies of 2,152 employees since 2002. • Cecily Hall, Microsoft's director of U.S. benefits, says the company has already realized a one-to-one return on investment since the program began in 2002. "These people are coming off of prescription drugs, they're seeing their primary care physician less, and not having as much hospitalization." • Source: “More Micro, Less Soft”, Nov. 2006, Business Week

28. More examples (con’t) • JOHNSON AND JOHNSON • Programs • Smoking cessation, employee assistance, health profiles, alcohol and drug and abuse, and on-site fitness facilities and personal trainers at many locations • 90 percent of eligible employees participate in the company’s Health Risk Assessments, which entitles them to credits of US$500 worth of health benefits. • Benefits • The program reduces its overall healthcare costs by US$9-10 million a year. • Source: “Health and Wellness Issues Brief,” Business for Social Responsibility

29. More examples (con’t) • MOTOROLA • All new programs funded under the program must be business value-added, demonstrate a return on investment and have national application • Global long-term wellness strategy that includes the company’s Health Advantage Plan (HAP) medical plan, which supports proactive patient/physician partnerships, screenings and positive lifestyle choices (100% coverage) • Approximately 75 percent of eligible employees choose to participate in HAP instead of Motorola’s basic HMO and indemnity plans. To remain eligible for HAP, employees must complete a health screening once every two years • Programs are implemented by Motorola’s Wellness Shared Service managed by a team of 35 full-time and 18 part-time employees • Source: “Health and Wellness Issues Brief,” Business for Social Responsibility

30. Position Position • Workplace wellness efforts are a promising form of corporate social responsibility– serving the double bottom line by producing monetary value for corporations as well as social values for employees and others. • U.S. companies have been slow to implement workplace wellness programs. • By studying best practices and tapping into the research of nonprofits and relevant organizations, companies can design programs which fit their business models.

31. Risks • Nanny corporations • Privacy Issues • Going too broad: sacrifice other HR services • Self-esteem and stigmatization • Limits diversity of employees

32. Resources • Business for Social Responsibility, Health and Wellness Issues Brief (https://www.bsr.org/CSRResources/IssueBriefDetail.cfm?DocumentID=50304) • The Institute for Health and Productivity Management (www.ihpm.org) • Healthy People 2010 objectives (www.healthypeople.gov/) • http://www.wellnesstaskforce.org/