1. “SAFETY AND CORPORATE CRIMINAL ACCOUNTABILITY IN SCOTLAND : DIRECTORS’ RESPONSIBILITIES ” CCA CONFERENCE 23 OCTOBER 2003 GLASGOW NEAL STONE POLICY GROUP HEALTH AND SAFETY EXECUTIVE

2. Coverage of presentation Recap Action point 11 of RHS Measures to take RHS Action point 11 forward; Outline HSE research on “Health and Safety responsibilities of company directors and management board members” – published 16 July 2003 - see www.hse.gov.uk/research/rrhtm/rr135.htm Way ahead and timescale.

3. RHS Action point 11 – part 1 “The Health and Safety Commission will develop a code of practice on Directors’ responsibilities for health and safety, in conjunction with stakeholders. It is intended that the code of practice will, in particular, stipulate that organisations should appoint an individual Director for health and safety, or responsible person of similar status (for example in organisations where there is no board of directors.”

4. RHS Action point 11 – part 1 “The Health and Safety Commission will also advise Ministers on how the law would need to be changed to make these responsibilities statutory so that directors and responsible persons of similar status are clear about what is expected of them in their management of health and safety. It is the intention of Ministers, when Parliamentary time allows, to introduce legislation on these responsibilities.”

5. HSC’s position “that health and safety leadership in all organisations needs to come from the board of directors or equivalent top level management board. We (HSC) have a key role in providing advice and guidance to directors and senior managers to help them ensure that their organisation is effective in managing health and safety risks.”

6. HSC guidance, Directors’ responsibilities for health and safety “Health and safety is a boardroom issue. Good health and safety reflects strong leadership from the top and that is what we want to see. The company whose chairperson or chief executive is the champion of health and safety sends the kind of message which delivers good performance on the ground. …… We will be monitoring very closely the impact this guidance has on improving corporate responsibility for the control of health and safety risks.”

7. HSC call for research HSC called on HSE to, “commission research to identify the extent to which companies and other organisations currently operate in accordance with the guidance, and to explore the impact of the guidance in improving the situation.”

8. HSE research – 1 www.hse.gov.uk/research/rrhtm/rr135.htm Composition of organisations surveyed in 2003 : FTSE350 companies29 Large companies (250)243 Large public sector 133 Large voluntary sector31

9. HSE research - 2 The survey was designed to : establish the number of large employers who have appointed a board level director profile of board level health and safety management arrangements and involvement understand factors influencing design of board level arrangements examine the extent to which boards of organisations surveyed consult their workforce establish the level of awareness of the HSC guidance

10. HSE research - 3 66% in 2003 reported h&s directed at board level compared to 58% in 2001 70% of top 350 companies and 55% of public bodies surveyed in 2003 reported that h&s directed at board level – largely unchanged 69% of large firms reported h&s directed at board level – up from 59% in 2001 82% of respondents in 2003 reported that they have a board level person responsible for health and safety in 2003 survey 80% had heard of HSC guidance compared to 75% in 2001

11. HSE research - 4 Top reasons given for board level direction (2003) are : board level direction is best practice power and control is at board level corporate direction is needed new legislation/health and safety law

12. HSE research - 5 Top reasons given by respondents for not having board level direction (2003) are : health and safety is an operational matter employer has policy of delegation operations are too diverse to act corporately health and safety not an issue for directors

13. HSE research - 6 Significant factors influencing arrangements: increased importance of h&s high risk operations HSC guidance concern about occupational health performance h&s seen as significant business risk corporate governance requirement fear of prosecution risk of being sued increased h&s regulation directors’ fear of prosecution

14. HSE research - 7 Benefits of board level involvement: strong leadership demonstrates commitment helps improve h&s performance ensure other directors carry out their h&s role and responsibilities improved risk management

15. HSE research - 8 Research surveyed board’s discharge of health & safety responsibilities including: formulating policy setting targets reviewing incidents receiving reports on performance considering reports and plans to review board level arrangements

16. RHS Action points 2 and 13 on public reporting of h&s performance Research report published 16 July 2003 Accessible via the HSE web site Studies h&s public reporting of top companies and a sample of public bodies Reveals increase in numbers of organisations reporting over recent years Why the increase ?

17. Way forward on corporate responsibility and accountability on occupational health and safety HSC considered progress on measures already in place and options for further work on 14/10/2003 : Effectiveness of voluntary approach on directors’ responsibilities and advice to Ministers; Effectiveness of HSC guidance using findings of research including : case studies showing business benefits of good h&s; h&s management and performance index; Revitalise challenge to medium and large organisations to report publicly on their h&s performance; Develop a communications strategy covering guidance and publicity.