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

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

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

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

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”

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Accident Plateau Management Systems Technology Human Factors Accident Rate Time

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

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

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

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 Engage Data Assessment Networking Expectations Integrate Leaders Trans. Tool Organization Level National Level Continued Joint EU-US OSH Efforts