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For many CEOs, health and safety is still seen as a burden: something to be complied with . . . grudgingly. It is "time consuming", "costly", "boring" and "only to be taken seriously when something goes wrong". However, the number of CEOs who would say that health and safety is not important is, thankfully, falling. Most employers know the value of their staff - they know that employees are their most important resource and that keeping them safe and healthy makes good business sense. And they can also imagine the cost to their businesses, through lost production, damaged reputation and customer confidence, of a serious accident.
Accidents and ill health are estimated to cost UK businesses between £3.9 and £7.8 billion per year, which is money that could be better spent or saved elsewhere in an organisation. That is why IOSH believes that a good health and safety culture is not just a "nice to have" but a "must have".
But many businesses still have not made the connection between accidents and commercial loss. They have not understood that poor health and safety performance can be the difference between being competitive and being uncompetitive.
Ultimately, businesses that are good at health and safety will be more efficient and better run. On a day-to-day basis that means if a company keeps the shop floor tidy, there will be fewer accidents, meaning there will be better stock control and employees spending less time searching for things. Good practice in one area leads to positive results in another.
CEOs need to be aware of the new Corporate Manslaughter law, which has had its first reading and is laying before Parliament for its second reading in October, as I write.
IOSH strongly favours the new law. Currently, only small firms are likely to be successfully prosecuted for causing death due to gross health and safety breaches. This is because the law requires "a controlling mind", or a traceable individual, to have been responsible. Existing legislation fails to hold large companies to account. The new corporate manslaughter law will tackle that small minority of organisations that would otherwise disregard the health and safety of their staff and the public.
Alongside this new law, we believe CEOs and directors need more guidance about their health and safety responsibilities. An Approved Code of Practice (ACoP) on directors' duties would help achieve this, and there are currently moves to review the existing guidance and its status in law.
Two other changes that are coming in soon are the smoking ban in public places and the Regulatory Reform (Fire Safety) Order. The smoking ban has already been implemented in Scotland, with Northern Ireland following suit in April 2007 and England and Wales in the summer of 2007.
A total ban on smoking in the workplace, although desirable for some, can bring problems. That is why it is important to consult with both smokers and non-smokers in your workplace.1
The Regulatory Reform (Fire Safety) Order comes into force in October 2006. This will change current fire safety laws, putting a greater emphasis on fire prevention in workplaces. As part of this, fire certificates are to be abolished.
The amended law will require employers to carry out a fire risk assessment, paying particular attention to those at special risk, such as the disabled and those with special needs.
The new rules will be enforced by the local fire and rescue service authority, which will carry out regular inspections, with top priority being given to those premises presenting most risk to the community.
Health in the workplace is also a major issue with the Government's proposed welfare reforms. To reduce the numbers on incapacity benefit by one million, with many coming back into work, employers are going to need to be more flexible.
CEOs should take the lead here. The benefits to business of rehabilitating key staff far outweigh long-term sick leave, and losing people to the perceived "scrap heap" of incapacity benefit. But it is important to treat each individual and situation differently.
For many people, going back to work is the best kind of recovery after sickness or injury: it allows them to regain a sense of fulfilment, rediscover social and working relationships, develop their skills and, of course, it ensures greater financial security.
For some organisations, it is not the big legislative changes that cause the most difficulty. Quite often, it is simply complying with the basics.
That is why it is important for CEOs to gain an understanding of health and safety. IOSH has produced a training course, Directing safely, aimed at senior managers to help them understand their health and safety responsibilities and to better understand the consequences of getting health and safety wrong.
The course also emphasises the need to consult with employees on health and safety issues, as well as equipping managers and directors to identify accident causes and prevent them.2
IOSH has also recently published a book that aims to explain directors' health, safety and environmental responsibilities. Written by David Eves CB and The Rt Hon John Gummer MP, "Questioning performance: the director's essential guide to health, safety and the environment" aims to build a bridge between directors and safety experts, allowing directors to ask the right questions, understand the answers and make the best decisions about their risks.3
How a company performs on health and safety is often attributable to the commitment
of the CEO and their senior managers. In other words, if you do not care about health
and safety, how can you expect your staff to? As a CEO, you have to take the lead.
But only by gaining a better understanding of health and safety can this truly begin
to happen.
Rob Strange became Chief Executive of the Institution of Occupational Safety and Health (IOSH) on 1 January 2001. He joined the Institution in August 1997 as Deputy Chief Executive with specific responsibility for developing the range of commercial health and safety training courses and products, as well as for the secretariat, IT, HR and financial functions, before becoming CE (designate) in February 2000. He became a Trustee of IOSH in November 2005, and is also a Trustee of the Royal Society for the Prevention of Accidents (RoSPA).
Mr Strange is a Fellow of the Chartered Institute of Bankers and also a Chartered Director. He has also been made an Honorary Fellow of IOSH, in recognition of his contribution to occupational safety and health and the granting to IOSH of a Royal Charter.