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Post-recession leadership in
health and safety
How can directors and senior managers
stay on the right side of the law?
Sally Roff , Partner at DAC Beachcroft
1.Emerging risks
2.Consequences
3.Opportunity for action
Changing economy and impact on safety
EMERGING RISK 4
RECESSION
 Redundancy programmes
 Re-organisation
 Cautious recruitment
 Eagerness of workers to
compensate for lost hours
 Reduced investment in equipment
 Increased maintenance backlogs
 Use of plant beyond normal life
expectancy
Why should directors take action now?
Commercial benefits and competitive advantage of an
effective safety culture.
Potentially catastrophic consequences for
organisations with a poor safety culture.
Following an accident, the spotlight is increasingly on
the attitude and behaviour of directors towards safety.
Commercial benefits
“To those who tell us we can’t afford health
and safety, as professionals we need to let
them know they simply can’t afford to be
without it”.
IOSH President 2012, Subash Ludhra
Commercial benefits
1. Lower absenteeism
2. Lower wage costs
3. Reduced maintenance costs
4. Increased morale
5. Lower staff turnover
6. Reduced risk of fines and insurance claims/premiums
7. Increased productivity, quality and profitability
8. Happier customers
Potential consequences of poor safety culture
Increases in:
1.CM investigations
2.Prosecutions of individuals under s.37–
imprisonment
3.Fines following Sellafield and Network Rail – even where no
fatality
4.Costs on bottom line
5.All in the context of… less advisory support from HSE and
significant costs of investigation via FFI
Corporate Manslaughter – jury questions
1.Is there evidence to show that there were attitudes,
policies, systems or accepted practices within the
organisation that were likely to have encouraged a failure
or to have produced tolerance of safety failings;
2.Has the organisation complied with any health and
safety guidance that relates to the alleged breach?
Post recession leadership in health and safety - Sally Croft (DAC Beachcroft) - Safety and Health Expo 2014
Potential consequences of poor safety culture
For organisations:
Human – death/injury, low morale
Financial – £500k starting point for CM fine,
management time, loss of customer confidence
Reputational – publicity order, press attention
For individual directors:
Liberty - Imprisonment
Financial – Fine/management time
Reputational - Risk of disqualification
Stress
"In the middle of difficulty lies
opportunity."
Albert Einstein
Post recession leadership in health and safety - Sally Croft (DAC Beachcroft) - Safety and Health Expo 2014
How do your decisions and behaviours
influence safety culture?
Are employees/contractors
genuinely encouraged to
look for risks and speak up,
or merely to get on with the
job?
How do your decisions and behaviours
influence safety culture?
Do directors unwittingly set
priorities and targets which, by
implication, take precedence
over the management of
hazards and risks?
How do your decisions and behaviours
influence safety culture?
When directors visit sites and work
locations to look at safety, are they alert
to the really serious dangers or do you
concentrate on superficial compliance
(e.g. housekeeping and PPE)?
How do your decisions and behaviours
influence safety culture?
What do directors do, in the way
that performance is rewarded, to
promote a culture of health and
safety? Is performance merely
paid lip service or genuinely
rewarded and valued?
How do your decisions and behaviours
influence safety culture?
How do directors exercise their
governance of health and safety
and do they have the appropriate
skills to manage this? What
forums and processes are in
place?  
AND IF AN ACCIDENT
HAPPENS…
Be ready for the inspector's call
Make sure your organisation has
effective Directors’ and Officers’
insurance cover
“The Golden Hour”…..
BECOME PART OF THE SOLUTION
DAC Beachcroft/Lloydmasters
Thought Leadership Project
2014
How can directors and senior
managers achieve and
maintain an effective safety,
health and environment
culture through times of
change?
Sally Roff, Partner, DAC Beachcroft
E-mail: sroff@dacbeachcroft.com
Tel: 07921 890829
SHP Health Expo 2014

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Post recession leadership in health and safety - Sally Croft (DAC Beachcroft) - Safety and Health Expo 2014

  • 1. Post-recession leadership in health and safety How can directors and senior managers stay on the right side of the law? Sally Roff , Partner at DAC Beachcroft
  • 3. Changing economy and impact on safety
  • 5.  Redundancy programmes  Re-organisation  Cautious recruitment  Eagerness of workers to compensate for lost hours  Reduced investment in equipment  Increased maintenance backlogs  Use of plant beyond normal life expectancy
  • 6. Why should directors take action now? Commercial benefits and competitive advantage of an effective safety culture. Potentially catastrophic consequences for organisations with a poor safety culture. Following an accident, the spotlight is increasingly on the attitude and behaviour of directors towards safety.
  • 7. Commercial benefits “To those who tell us we can’t afford health and safety, as professionals we need to let them know they simply can’t afford to be without it”. IOSH President 2012, Subash Ludhra
  • 8. Commercial benefits 1. Lower absenteeism 2. Lower wage costs 3. Reduced maintenance costs 4. Increased morale 5. Lower staff turnover 6. Reduced risk of fines and insurance claims/premiums 7. Increased productivity, quality and profitability 8. Happier customers
  • 9. Potential consequences of poor safety culture Increases in: 1.CM investigations 2.Prosecutions of individuals under s.37– imprisonment 3.Fines following Sellafield and Network Rail – even where no fatality 4.Costs on bottom line 5.All in the context of… less advisory support from HSE and significant costs of investigation via FFI
  • 10. Corporate Manslaughter – jury questions 1.Is there evidence to show that there were attitudes, policies, systems or accepted practices within the organisation that were likely to have encouraged a failure or to have produced tolerance of safety failings; 2.Has the organisation complied with any health and safety guidance that relates to the alleged breach?
  • 12. Potential consequences of poor safety culture For organisations: Human – death/injury, low morale Financial – £500k starting point for CM fine, management time, loss of customer confidence Reputational – publicity order, press attention For individual directors: Liberty - Imprisonment Financial – Fine/management time Reputational - Risk of disqualification Stress
  • 13. "In the middle of difficulty lies opportunity." Albert Einstein
  • 15. How do your decisions and behaviours influence safety culture? Are employees/contractors genuinely encouraged to look for risks and speak up, or merely to get on with the job?
  • 16. How do your decisions and behaviours influence safety culture? Do directors unwittingly set priorities and targets which, by implication, take precedence over the management of hazards and risks?
  • 17. How do your decisions and behaviours influence safety culture? When directors visit sites and work locations to look at safety, are they alert to the really serious dangers or do you concentrate on superficial compliance (e.g. housekeeping and PPE)?
  • 18. How do your decisions and behaviours influence safety culture? What do directors do, in the way that performance is rewarded, to promote a culture of health and safety? Is performance merely paid lip service or genuinely rewarded and valued?
  • 19. How do your decisions and behaviours influence safety culture? How do directors exercise their governance of health and safety and do they have the appropriate skills to manage this? What forums and processes are in place?  
  • 20. AND IF AN ACCIDENT HAPPENS…
  • 21. Be ready for the inspector's call
  • 22. Make sure your organisation has effective Directors’ and Officers’ insurance cover
  • 24. BECOME PART OF THE SOLUTION DAC Beachcroft/Lloydmasters Thought Leadership Project 2014 How can directors and senior managers achieve and maintain an effective safety, health and environment culture through times of change?
  • 25. Sally Roff, Partner, DAC Beachcroft E-mail: sroff@dacbeachcroft.com Tel: 07921 890829