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Corporate culture on show from ASIC at the Governance Institute

20160731_211159On 22 July 2016, the Governance Institute of Australia conducted a seminar at which John Price (pictured right), a Commissioner with the Australian Securities and Investments Commission (ASIC) discussed Board and Organisational Culture.  The issue of culture has been an important discussion point with ASIC and Australian businesses recently and this discussion included consideration of the role of occupational health and safety (OHS).

Although the seminar was not a speech, the discussion paralleled many of the points that Price made in this May 2016 speech.   The speech is a useful insight into how an Australian corporate regulator sees culture and it is not very different from how the OHS profession sees it.  Price references the Criminal Code that

“…defines corporate culture as including an organisation’s attitudes, policies, rules, course of conduct and practices.”

He also said that

“Culture matters to ASIC because poor culture can be a driver of poor conduct.”

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“We are the safest” – No, only half right

Governments around the world love to be able to claim their State or Country as the safest in the world, when they can.  Australia has been plagued by such claims between various States but a report released on July 6 2016 shows that such claims are only half the story.

The Institute for Safety, Compensation and Recovery Research (ISCRR) released its report about “Work-related injury and illness in Australia, 2004 to 2014“. The report makes this extraordinary finding:

“Across Australia, there are twice as many estimated work-related injuries as there are accepted workers compensation claims. This indicates that many injuries do not progress into the nations workers compensation systems” (page 2)

This statement seems to indicate that political statements made on the basis of workers’ compensation data, the major rationale for most of the “we are the safest” statements, are only half right!

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When culture has an agenda

The topic of culture is a critical consideration in the improvement of occupational health and safety (OHS). Each company should be aiming for a an active and healthy workplace and safety culture but the term “culture” continues to be difficult to define and poorly understood by the community.

SafetyAtWorkBlog has written about the culture discussion as it relates to

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Culture – piss or get off the pot.

Andrew Hopkins has described organisational culture as “the way we as an organisation do things around here”.  The sociology of this statement is sound and the occupational health and safety (OHS) context seems to be an accepted element of safety management.  But for OHS professionals to continue to advocate the importance of a safety culture it is necessary for them to be aware of how culture is being interpreted and applied elsewhere. The Australian Labor Party recently stated that the Australian banking system needs a Royal Commission because, as Senator Sam Dastyari stated:

“We’ve seen scandal after scandal. We’ve seen failure after failure and we’ve seen a banking sector and a culture develop where effectively these matters are constantly being ignored”.

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Stress advice that builds on what came before

In occupational health and safety (OHS), as in most things, it is possible to learn more from what is not said than what is said. Recently WorkSafe Victoria released a guidebook for employers on “Preventing and managing work-related stress”. Given the current community focus on stress, health and wellness, discussion of this document’s release has been quite muted. Part of the reason is that, in some ways, the guidebook does not fit with the contemporary health and wellness push.

WorkSafe has been publishing guidance on workplace stress and its subset, workplace bullying, for well over 20 years. It’s Stresswise publication  has been a de facto reference on the hazard and the workplace bullying changes initiated by the ACTU and implemented by WorkSafe Victoria, emerged from. ACTU surveys of its members specifically on workplace stress.

Part of the significance of investigating workplace stress is that the major causes are institutional, that is, the way businesses are managed rather than with the individual’s capacity to cope. It is here that the WorkSafe guidebook conflicts with the common approaches of the wellness advocates.

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