Corporate responsibility – Page 17

Executive resigns over work-related suicides

According to various media reports, a senior executive of France Telecome has resigned due to the mismanagement of the organisational restructure of the company which has been happening for almost two years and that, some say, has led to suicides.

One report says:

“France Telecom’s deputy chief executive Louis-Piere Wenes had faced calls to resign from employees who say management policies are responsible for the firm’s so called “spiral of death”.”

A UK newspaper includes a quote from M. Wenes:

“Despite the hard edge of the technological and economic fight, especially in our business, nothing can justify men and women putting an end to their lives. Today, like before, I cannot accept it.”

France Telecome’s media statement reads:

“Louis-Pierre Wenes, the current Deputy CEO in charge of Operations in France, has asked Didier Lombard, Chairman and CEO of France Telecom, to relieve him of his responsibilities. Didier Lombard has accepted this request and thanks Louis-Pierre for all that he has accomplished since December 2002 and for the significant contribution that he has made to the turnaround and the performance of the Group.

As of today, Stephane Richard is appointed Deputy CEO in charge of Operations in France.”

UPDATE: 7 October 2009

Additional information and links available HERE

Safety Leadership push in Queensland

Expect quite a few OHS statements coming from Australian politicians as the country approaches Safe Work Australia Week in late October 2009.

On 16 September 2009, the Queensland Attorney-General and Minister for Industrial Relations, Cameron Dick, sought support for a

“…groundbreaking new program to reduce workplace deaths and injuries.”

Groundbreaking? Not sure. Perhaps for Queensland.

According to his media statement the “Zero Harm at Work ” program “aims to reduce the shocking number of deaths and injuries in Queensland workplaces.” Dick goes on to say

“Ensuring safety in the workplace is one of the most important challenges facing industry in Queensland… Every year around 100 Queenslanders are killed at work and 30,000 people suffer serious injuries or work related diseases. The cost to our State of these tragic deaths and injuries is more than $5 billion a year. And worst of all, mums, dads, husbands, wives and children are left mourning the family member that never came home from work.”

Dick hits the right targets in the media statement but does safety leadership, particularly these types of programs, stop incidents from occurring in the workplaces?

Or is the effect of these programs to have senior executives feel that they are reducing injuries because they are talking about safety?

SafetyAtWorkBlog has long believed that safety awareness does not necessarily equal the reduction of workplace injury and illness. “Zero Harm” cannot be achieved without financial cost and it is unclear whether industry is willing to invest the amount of money required to genuinely achieve this aim.

But then if “zero harm” is only a goal, an aspiration, then it doesn’t matter if it is not achieved “at least we tried”. (Or the total cynic would say “at least the voters saw that we tried”)

There are sure to be more such statements and launches in the next six weeks. SafetyAtWorkBlog will be looking for evidence not aspirations.

Kevin Jones

Injuries cost business 6% of their profit

At The Safety Conference in Sydney in October 2009, Dr Ian Woods, a senior research analyst for AMP Capital Investors, will advise Australian employers that the cost of workplace injuries on their businesses could be around 6% of their profit.

According to a media release in support of the conference

Dr Woods signals three occupational health and safety costs of concern to investors: workers’ compensation premiums, indirect costs, and the costs of alleviating workplace incidents.

“The indirect and unbillable costs associated with workplace injuries are like an iceberg,” he says. “They represent a huge percentage of the total cost that’s impossible to assess until you run into trouble.”

“The disruption to production caused by workplace injuries cost Australian businesses an estimated $490 million in 2000-01. The extra administration cost another $360 million. Incidents can also trigger loss of goodwill, strikes, recruitment issues and dozens of other immeasurable costs. The United Kingdom’s Health and Safety Executive indicated that the cost of uninsured losses is 10 times the business cost of insurance premiums paid for the same period.

“An injury with $1,000 in direct claims costs will also bring about $5,000 of indirect costs. Assuming a 5% profit margin, that equates to $100,000 of turnover. This simple return on investment (ROI) illustrates how valuable preventive measures are to financial bottom lines.

“Still, there is more to investing than just the economic case for improving OH&S performance. As well as the economic costs, inequality of benefits, costs and suffering are key issues.”

Some of the concepts sound familiar. Around the turn of the century there was increasing interest in corporate social responsibility and ethical investments and OHS was mentioned regularly as a corporate element that investors would seriously consider.

A good example of the feeling at the time can be seen in a 2002 interview for SafetyAtWork magazine, Paul Gilding of ECOS Corporation* talked about workplace safety. He was asked about linking workplace safety with sustainable business.

PG: This is a real fascination for us. We first came across workplace safety as a major issue for one of our clients, DuPont, where safety culture is so embedded in their business that you can’t walk into their offices without picking it up. We realised that, as sustainability experts, we had hardly ever come across that issue. The people who talk about sustainability also talk about corporate social responsibility, human rights in developing countries, climate change, biotechnology, ethics, every issue you could think of but they very rarely, except in a token way, talk about workplace safety.

We first thought why should this be a sustainability issue and then we thought why wouldn’t it be? We’re talking about the way corporations behave, the effect they have on society, the effect they have on the community they work in, yet we’re not talking about the fact that they are killing and hurting their own people. This is a surprising omission when it is so fundamental to sustainability.

This perspective has transformed into the widespread advocacy of “safety culture”.

Around 2001 Westpac Banking Corporation was developing an OHS index that measured the share performance of the top 100 companies. Interest in this has faded over the last ten years to such an extent that it is difficult to locate any reference to it. However, the Westpac index was discussed at many OHS conferences at that time and gained overseas attention as shown in these comments by the former Director of EU-OSHA, Hans-Horst Konkolewsky to Safety At Work magazine in 2001. [Full interview is available]

Q: One of Australia’s major banks, Westpac, is establishing an OHS index that shows relations between this index, the All Ordinaries share index and a company’s share performance. Have you seen this sort of thing in the European region?

HHK: We haven’t seen it explicitly. This bank has taken the lead. I saw on my way to Australia that there seems to be an F4 investment initiative to assess companies’ performance but more broadly with environmental performance, social performance, child labour issues, but also safety and health.

This is one of the many ways we can improve awareness and create a preventive culture starting through the investment area. In Europe, we have had quite a number of different approaches where companies have issued social statements or accounts where they have informed about their employees’ satisfaction with their work, working conditions, customer satisfaction with servicing, their relationship to the society, activities related to employment problems and so on. There are a number of examples that point in the same direction.

I must say that I believe that this can be a rather strong movement if investors and customers, through their demands and market mechanisms, can improve safety and health.

A more detailed report that places OHS strongly within the CSR discipline is a 2002 report, now available through an Australian Government website, called “A capital idea -Realising value from environmental and social performance“.

Dr Wood’s presentation will build on these reports and the work of overseas OHS organisations in trying to provide a cost estimate for workplace injuries. Let’s hope that there are specifics and that there is enough audience enthusiasm to generate a sustainable interest.

Kevin Jones

* cannot verify that this report is still available online

Fatigue, impairment and industrial relations

Many of the employees in the health sector in Australia have recently been negotiating new employment conditions. It is rare for the workplace hazards of fatigue and impairment to be given such prominence in industrial relations negotiations.

A major cause of fatigue is the lack of adequate resources for relieving staff. This issue has been identified for doctors, ambulance officers and firefighters over the last 12 months.

Many important OHS issues are identified in a recent ABC Radio interview with Dr David Fraenkel, the Treasurer of Salaried Doctors Queensland (SDQ). Dr Fraenkel mentions the following issues, amongst others:

Queensland Health‘s duty of care to the public
Queensland Health’s duty of care to its employees
“wrong site surgery” due to judgement impaired by fatigue

Dr Fraenkel also shows the institutional pressures on individual doctors to not discuss the implications of fatigue. He mentions that there is a code of conduct that impedes the discussion of issues by health care professionals.

He admits that should a young doctor leave their station to relieve their fatigue they would most likely be “called to account” for their action and their career may be jeopardised for what OHS professionals would admit is an individual taking responsibility for looking after their own safety and health.

Salaried Doctors Queensland has established a website in support of its campaign which includes some factsheets. The print media also picked up on the SDQ media statements.

Kevin Jones

The importance of handling professional complaints professionally

Any member of any profession can be subject to the complaints process of that profession’s governing body. A complaints procedure is an essential element of any organisation. In fact, one could argue that the professionalism and maturity of an organisation can be judged by how that organisation investigates and handles a complaint.

Not only must a complaint be handled professionally, it must be seen to be handled professionally.

Regardless of whether a complaint is valid or baseless, it is essential to have

Clear guidelines on how to make a complaint and the consequences of lodging a complaint;
Defined complaints handling procedures;
Complaints procedures that have been tested through desktop exercises and simulations;
An independent assessor/mediator;
An understanding that of natural justice;
An independent appeals process; and
The commitment to support, in practice, the professional ideals espoused.

Many executives, particularly of volunteer organisations whose good intentions are often not supported by the necessary administrative procedures, resources or skills, run the risk of exacerbating both frivolous and valid complaints.

As can be seen by some of the articles in SafetyAtWorkBlog, from James Hardie Industries to restorative justice to handling aggressive customers, people expect a certain dignity and accountability in their professional dealings. A major element of safety management, and basic professionalism, is the ability to apologise when mistakes have been made. For only through an acknowledgement of mistakes can the integrity of a process be (re)established.

Australia’s Prime Minister, Kevin Rudd, has shown the power of the apology when he acknowledged in 2008 the injustices done to Australia’s indigenous population. It took courage to apologise for actions done long ago by someone else. The ability to apologise shows a maturity and professionalism that is still lacking from many Australian organisations, voluntary and corporate.

Kevin Jones

The importance of independent advice at Board level

The recent court decision by Judge Gzell on the previous directors of James Hardie Industries generated considerable media attention in Australia for many reasons; a primary reason is that the company is perceived as making its profits at the cost of its employees’ health. The social and corporate cost of inadequate workplace and product safety management is now clear to everyone, even public policy makers.

Another area of attention has come from how Judge Gzell’s decision has affected the operation of company boards and the roles of directors. This is hugely important to the big end of town but the rules apply to boards big and small. In August 2009 Regnan (Governance Engagement & Research Pty Ltd) identified three major points from Gzell’s decision; the third is the one that is most broadly relevant.

“Non‐Executive Directors – Today more than ever, investors need competent directors from diverse backgrounds, and this case highlights the critical role non‐executive directors play in overseeing and interrogating company management. While the facts of the James Hardie case are very specific and do not create additional responsibilities for directors, it does underscore the value at risk when non‐executives fail to perform their role and highlights the role of independent directors to satisfy themselves through the taking of advice wholly independent of management.” [my emphasis]

The need for independent advice is regularly identified as an important element of effective risk management for all industry and professional sectors. A board of “yes-men” can do a disservice to an organisation in a very short time.

The OHS professional often seeks a “devil’s advocate” role at senior management level yet to achieve that level of influence one often has to “sell one’s soul to the devil”. It may be possible to be an independent director who holds strong OHS opinions but one would never achieve such a position unless one could demonstrate business acumen, and business acumen often requires the dilution of principles.

The environmental movement has shown one pathway to corporate influence but it is hard to identify an environmental advocate who has achieved corporate influence while maintaining a grass-roots credibility. Similarly, at some point in the OHS professional’s career it is necessary to choose between the ideology from which progression has come and the career progression that requires a reinterpretation of that ideology into the corporate mould.

Is it possible to represent core OHS principles at board level without “joining the darkside”?

Kevin Jones

Challenges for US labor unions and lessons for all businesses

Doug Henwood releases regular podcasts of his radio broadcasting and occasionally there is content that provides an interesting perspective on occupational health and safety, as does the 3CR program, Stick Together. On August 1 2009 Henwood interviewed journalist, Steve Early, author of “Embedded With Organized Labor”. The podcast is available online. The Early interview clicks in at the 38 minute mark.

(A video interview with Steve Early is also available)

Early talks about how difficult the United States union movement has found it to maintain the enthusiastic momentum from 15 years ago. He says that several industrial relations programs have slowed due to a lack of support from the grass roots or perhaps the exclusion of this sector in the initial planning of the programs.

As with many policy issues in the early period of the Obama government, a lot of interest is being placed on labour relations. The government has begun discussions with labour leaders but these leaders face the challenge of gaining the government’s attention during the miasma of policy changes and President Obama has clearly stated to labour leaders, according to Early, that health care is his primary policy area at the moment. The last month has shown the level of the challenge on health care policy.

Steve Early echoes the thoughts of Tom Bramble, an Australian academic analyst of unions, when he advocates an increased role for the rank-and-file union members. It is in this sector that the passionate values of industrial relations and trade unionism are felt the strongest, often because it has avoided the political baggage that comes with the upper levels of the union movement.

Early reiterates that the best asset for change is an organisation’s membership. He agrees that there is often a class-divide between the rank-and-file members and union management. In many large organisations, senior executives are being encouraged to gain a better understanding of their organisations by jumping across the structure to (re)experience the lot of the membership.

Early says that the union movement in the 1930s resolved this by a major reconstruction of unions. Corporations and conservative organizations are loathe to deconstruct in order to rebuild because, primarily, the executives get too comfortable. Executives who genuinely understand their organisation, particularly those organisations that are member-based, can rebuild and remain true.

Kevin Jones

Tag: Corporate responsibility

Executive resigns over work-related suicides

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Safety Leadership push in Queensland

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Injuries cost business 6% of their profit

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Fatigue, impairment and industrial relations

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The importance of handling professional complaints professionally

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The importance of independent advice at Board level

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Challenges for US labor unions and lessons for all businesses

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