Tag: Corporate responsibility

Does corporate leadership equate to political leadership?

Can a country be run in a similar way to running a business?  Does corporate leadership equate to political leadership?  It would be possible to find examples in support of both these questions and as much evidence to counter them but the contextual difference is important to note when considering leadership in general.

A crucial difference in the two sectors is that the corporate executive or CEO must operate to the satisfaction of the shareholders, regardless of the humanistic and social veneer applied.  A politician or a Prime Minister must serve for the benefit of the people, regardless of the political views held as this social obligation originates with the public office.  Politicians have wriggle room not afforded to CEOs because not all the citizens subscribe to the same values.  In the corporate world there is a clearly visible commitment to capitalism, a clarity not possible in the political world.

At the moment in England, it seems that the newly elected coalition government is starting to prepare for a social capitalism – capitalism with a human edge.  The path to economic restabilisation will be difficult and, according to the newspapers on 8 June 2010, the government is set to call on the services of the former CEO of BP, Lord John Browne.

Browne has graced the pages of the SafetyAtWorkBlog twice previously and not in flattering terms.  One writer said Browne:

“…. was admired by his peers but not as much as he was by himself….” [who] “…As CEO … surrounded himself with sycophants and yes-men enshrouded in a cloud of corporate hubris.”

Continue reading “Does corporate leadership equate to political leadership?”

A wicked OHS problem in more ways than one

A new survey on CEO attitudes to safety has been released by Peter Wagner & Associates entitled “Safety – A Wicked Problem, Leading CEOs discuss their views on OHS transformation“.

There is some interesting information in report but Wagner is being generous in the report’s title.  There are some CEOs who seem knowledgeable on safety management who may be “leading”, but there is at least one participant who would not know safety from clay. Continue reading “A wicked OHS problem in more ways than one”

“We will trust but we will verify” – upcoming lessons from the Gulf of Mexico

The mass media is full of reports on legal action being taken on behalf of shareholders in BP over the continuing oil spill from the former Deepwater oil rig in the Gulf of Mexico.

An Australian video report was broadcast on 25 May 2010 and a composite article has appeared in The Australian on 26 May 2010 as well as elsewhere. Many outlets are mentioning the law suit (Southeastern Pennsylvania Transportation Authority and Robert Freedman v Anthony B Hayward et al, Court of Chancery for the state of Delaware, No. 5511) but no details of the suit are publicly available at the moment.

Although safety is mentioned as one of the bases for the suit, it is likely that environmental impact will get prominence over occupational safety and that impact on stock value will be of the most concern.   The shareholder outrage mentioned in some of the articles seems to focus mostly on the financial impact on BP share value rather than any moral outrage on environmental impact or dead and injured workers.

BP CEO Anthony Hayward has acknowledged the substantial  “reputational risk” but his comments are almost always reported surrounded by financial bad news.   Continue reading ““We will trust but we will verify” – upcoming lessons from the Gulf of Mexico”

BP, safety culture and integrity management

Tom von Aschwege has provided SafetyAtWorkBlog with a long article that was intended as a comment on recent articles concerning the safety culture of BP.  The comment deserved to be an article in order to provide more prominence to von Aschwege’s views.  Links, where appropriate, have been added and format has been tweaked.

“I came by Ross Macfarlane’s article totally by accident. I regret to say that I completely agree with him, because I have made some of the same, or very similar observations. I too am an ex-BP employee, and I too have a strong sense of dismay at what is occurring in the Gulf of Mexico.

Prior to retiring from BP in 2009, I worked in Integrity Management roles for 6 years in the BP deepwater Gulf of Mexico (GoM) organization.  In those 6 years we put massive amounts of time and effort into improving Integrity Management (IM) processes and practices for GoM operations – even more so after the 2005 Texas City accident, Thunder Horse listing incident, and Alaska pipeline failure.   I am thoroughly convinced that BP has done more and accomplished more in this area overall than any other GoM operator.   Yet somehow these things still happen in BP operations, and I wonder how that can be.   How can BP be so unlucky, and other GoM operators, with far fewer technical resources and knowledge, not have this happen to them? Continue reading “BP, safety culture and integrity management”

Leadership starts with the truth

Guest contributor Jim Ward writes:

Interested observers of past OHS failures would do well to pay close attention to the insights of former BP employee Ross Macfarlane in the SafetyAtWorkBlog –  A personal insight into BP and the corporate approach to safety.

His erudite observations of some of the underlying issues surrounding BP’s succession of calamities during the noughties and the company’s subsequent struggle to come to grips with the implications for its brand, culture, ethics and self perception are rare.

They are the sort of insights not usually captured during a formal root cause analysis of an OHS disaster.  Irrespective of who is found to be right and who is wrong some things just don’t help when it comes to trying to achieve a safe workplace.  But, Macfarlane’s insights do.

Macfarlane’s apt description of the “Cult of Lord Browne” is given further weight by the erstwhile CEO’s own account of his life and times as the head of the oil giant in his memoir Beyond Business.

In my view Browne is a narcissist.  In his book he portrays himself as

“a visionary leader who transformed a lacklustre organisation into one of the world’s biggest, most successful and admired companies”.

My take on it is that he was admired by his peers but not as much as he was by himself. Continue reading “Leadership starts with the truth”

A personal insight into BP and the corporate approach to safety

Ross Macfarlane is a regular reader of SafetyAtWorkBlog and an active safety professional in Australia.  Below he provides his perspective on BP’s approach to safety as an ex-employee [links added]:

As an ex-BP employee I am again feeling a strong sense of dismay at what is occurring in the Gulf of Mexico.  The fact that BP appears to be deliberately distancing itself from Deepwater is a further shift from the radical openness policy that prevailed up until the Texas City disaster in 2005.

Prior to Texas City, BP was in the thrall of its charismatic CEO (then Sir John, now Lord Browne,) but since then, it seems to me, it struggles with its identity and its corporate culture.  In 2000, when I became a part of BP with Castrol, I was struck by what I saw as a “Cult of Lord Browne” – Continue reading “A personal insight into BP and the corporate approach to safety”

Where’s the Sarbanes-Oxley for workplace safety?

In 2002, after several corporate collapses, the United States government signed in the Sarbanes-Oxley Act which was intended to establish business practices on accounting and auditing among other aims.  The Western world watched the introduction of this legislation and echoed many of the requirements in their own legislation and corporate oversight agencies.

It is likely in the wake of the global financial crisis that the United States (and Europe to a lesser extent) is entering another wave of corporate regulation or interference, depending on one’s politics.

These laws introduced substantial change to the management of businesses, the disclosure of information and the role of corporate executives.  When will this type of change include occupational safety and health?

Firstly, the United States’ safety professionals and regulators need to accept that their system of OHS legislation and enforcement is not “world’s best practice”.  There are major deficiencies in high-risk organisations and a misunderstanding of safety obligations at the shopfloor level.  These problems exist partly because of the structure and population of the country itself and also because there is so much baggage in its legal system that new perspectives in law are difficult to imagine.

A significant change in OHS law outside the United States is the issue of personal accountability for safety-related decisions.  There are few who complain about the jailing of CEOs and executives for the loss of money (their own and that of others) but there is a real barrier to jailing those same people when their management decisions led to a loss of life. Continue reading “Where’s the Sarbanes-Oxley for workplace safety?”

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