Banking Royal Commission and corporate culture

Occupational health and safety (OHS) has come late to seeing its operations as part of the organisational culture of Australian businesses. Its realisation started with an assertion of a “safety culture” that operated in parallel with regular business imperatives but often resulted in conflict and usually on the losing side. OHS has matured and become less timid by stating that OHS is an integral part of the operational and policy decision-making.

Some of that business leadership that was admired by OHS and many other professions existed in the banking and finance sector which has received a hammering over the last two years in a Royal Commission. That investigation’s final report was released publicly on 4 February 2019. The report reveals misconduct, disdain, poor regulatory enforcement and a toxic culture, amongst other problems. The OHS profession can learn much from an examination of the report and some of the analysis of that industry sector over the last few years.

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What can we practically do to improve the OHS culture of Australia’s business sector?

This afternoon the Australian Government releases the findings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. This has little to do with occupational health and safety (OHS) directly but it has a lot to do with:

  • organisational culture,
  • business ethics,
  • the social licence to operate,
  • the morality of capitalism, and
  • Trust

OHS needs to operate within all these elements of business operations and all Australian businesses will be watching how the Government and other political parties react to these findings.

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More than warm lettuce needed on Industrial Manslaughter laws

Applying the most effective way to have companies comply with their occupational health and safety (OHS) obligations has been debated in Australia and elsewhere for years.  The issue will arise again in 2019 and in relation Industrial Manslaughter laws as Australian States have elections, or the political climate suits.

There are several elements to the argument put by those in favour of Industrial Manslaughter laws. Workers are still being killed so the deterrence of existing OHS laws has seen to have failed.  Deterrence has been based on financial penalties and workers are still being killed so financial penalties have failed. Jail time is the only option left.

This is a simplistic depiction of the argument, but it is not dissimilar to some of the public arguments. The reality is that deterrence is achieved in two ways – telling the person of the consequences of an action and enforcing those consequences.

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Too big to change

The strong readership of the article on truck driver safety based on the research of Dr Clare George resulted in one reader remind me of Australian research from 2017 that looked at similar issues.

In 2017 Louise Thornthwaite and Sharron O’Neill published “Regulating the work health and safety of Australian road freight transport drivers: summary report“.  The authors wrote:

“Work health and safety (WHS) is a significant issue for the heavy vehicle road freight transport industry. The sector has a history of the highest fatalities and serious injury rates of any industry in Australia. While media focuses on drivers killed in road crashes, these represent only a subset of the hundreds of drivers killed or permanently disabled, and thousands more injured, in and around trucks each and every year.

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HR and Legal have failed to address sexual harassment. Could OHS do better?

2019 is likely to be the year when the deficiencies and advantages of the occupational health and safety (OHS) approach to the prevention and management of the psychological harm produced by work-related sexual harassment will contrast (clash?) with the approach used by the Human Resources (HR) profession.  For many, many years OHS has failed to implement the control measures that the available research and guidance recommended.  For the same length of time, HR has largely focused on addressing the organisational consequences of accusations of sexual harassment displaying a preference for legal action or to move the accuser out of the organisation.

These approaches persist but there is some hope that recognition of each others’ role and purpose can bridge the ideological demarcations.  Australia’s inquiries into work- and non-work-related harassment have the potential to change the way psychological harm is seen, managed and, maybe, prevented.

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Step into the light, be proud, be an institutional value adder

All Australian businesses are experiencing disruption.  Some are embracing this as Change, but not enough. As occupational health and safety (OHS) is an unavoidable part of running a business, it is being similarly disrupted. So what can one do?  I chose to read a short book called “On Disruption”. I purchased it because of the title and I had recently shared the media room at the ALP National Conference with the author, Katherine Murphy.  That the book wasn’t about OHS but about the disruption experienced by journalism, newspaper publishing and mainstream media, didn’t bother me as, being a blogger, it should still be of interest either way.

And it was.  But what was surprising were the parallels between journalism and OHS.  I shouldn’t have been surprised as both are, or claim to be, professions.

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Addressing the invisible causes of visible harm

The trade union movement was instrumental in showing that workplace bullying was a pervasive problem in Australian workplaces.  Many Codes of Practice and guidances for workplace bullying and occupational violence were written shortly after the action by the Australian Council of Trade Unions almost two decades ago.  But, for some reason, although sexual harassment was mentioned in those early documents, it never received the attention in occupational health and safety (OHS) circles that, in hindsight, it should have.

Perhaps a more sustainable and effective strategy would be to focus on the “harassment” rather than the “sexual”, or in

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