““SAFETY AND CORPORATE CRIMINAL SAFETY AND CORPORATE CRIMINAL ACCOUNTABILITY IN SCOTLAND : ACCOUNTABILITY IN SCOTLAND :

DIRECTORS’ RESPONSIBILITIES ”DIRECTORS’ RESPONSIBILITIES ” CCA CONFERENCE CCA CONFERENCE 23 OCTOBER 200323 OCTOBER 2003

GLASGOWGLASGOW

NEAL STONEPOLICY GROUP

HEALTH AND SAFETY EXECUTIVE

Coverage of presentationCoverage of presentation

Recap Action point 11 of RHS Measures to take RHS Action point 11 forward; Outline HSE research on “Health and Safety

responsibilities of company directors and management board members” – published 16 July 2003 - see www.hse.gov.uk/research/rrhtm/rr135.htm

Way ahead and timescale.

RHS Action point 11 – part 1RHS Action point 11 – part 1

“The Health and Safety Commission will develop a code of practice on Directors’ responsibilities for health and safety, in conjunction with stakeholders. It is intended that the code of practice will, in particular, stipulate that organisations should appoint an individual Director for health and safety, or responsible person of similar status (for example in organisations where there is no board of directors.”

RHS Action point 11 – part 1RHS Action point 11 – part 1

“The Health and Safety Commission will also advise Ministers on how the law would need to be changed to make these responsibilities statutory so that directors and responsible persons of similar status are clear about what is expected of them in their management of health and safety. It is the intention of Ministers, when Parliamentary time allows, to introduce legislation on these responsibilities.”

HSC’s positionHSC’s position

“that health and safety leadership in all organisations needs to come from the board of directors or equivalent top level management board. We (HSC) have a key role in providing advice and guidance to directors and senior managers to help them ensure that their organisation is effective in managing health and safety risks.”

HSC guidance, HSC guidance, Directors’ Directors’

responsibilities for health and safetyresponsibilities for health and safety “Health and safety is a boardroom issue. Good

health and safety reflects strong leadership from the top and that is what we want to see. The company whose chairperson or chief executive is the champion of health and safety sends the kind of message which delivers good performance on the ground. …… We will be monitoring very closely the impact this guidance has on improving corporate responsibility for the control of health and safety risks.”

HSC call for researchHSC call for research

HSC called on HSE to,

“commission research to identify the extent to which companies and other organisations currently operate in accordance with the guidance, and to explore the impact of the guidance in improving the situation.”

HSE research – 1HSE research – 1www.hse.gov.uk/research/rrhtm/www.hse.gov.uk/research/rrhtm/

rr135.htmrr135.htmComposition of organisations surveyed in

2003 : FTSE350 companies 29 Large companies (250) 243 Large public sector 133 Large voluntary sector 31

HSE research - 2HSE research - 2

The survey was designed to : establish the number of large employers who

have appointed a board level director profile of board level health and safety

management arrangements and involvement understand factors influencing design of board

level arrangements examine the extent to which boards of

organisations surveyed consult their workforce establish the level of awareness of the HSC

guidance

HSE research - 3HSE research - 3

66% in 2003 reported h&s directed at board level compared to 58% in 2001

70% of top 350 companies and 55% of public bodies surveyed in 2003 reported that h&s directed at board level – largely unchanged

69% of large firms reported h&s directed at board level – up from 59% in 2001

82% of respondents in 2003 reported that they have a board level person responsible for health and safety

in 2003 survey 80% had heard of HSC guidance compared to 75% in 2001

HSE research - 4HSE research - 4

Top reasons given for board level direction (2003) are :

board level direction is best practice power and control is at board level corporate direction is needed new legislation/health and safety

law

HSE research - 5HSE research - 5

Top reasons given by respondents for not having board level direction (2003) are :

  health and safety is an operational matter employer has policy of delegation operations are too diverse to act corporately health and safety not an issue for directors

HSE research - 6HSE research - 6

Significant factors influencing arrangements: increased importance of h&s high risk operations HSC guidance concern about occupational health performance h&s seen as significant business risk corporate governance requirement fear of prosecution risk of being sued increased h&s regulation directors’ fear of prosecution

HSE research - 7HSE research - 7

Benefits of board level involvement:  strong leadership demonstrates commitment helps improve h&s performance ensure other directors carry out their h&s role

and responsibilities improved risk management

HSE research - 8HSE research - 8

Research surveyed board’s discharge of health & safety responsibilities including:

formulating policy setting targets reviewing incidents receiving reports on performance

considering reports and plans to review board level arrangements

RHS RHS Action points 2 and 13 on Action points 2 and 13 on public reporting of h&s public reporting of h&s

performanceperformance Research report published 16 July 2003 Accessible via the HSE web site Studies h&s public reporting of top

companies and a sample of public bodies Reveals increase in numbers of

organisations reporting over recent years Why the increase ?

Way forward on corporate responsibility Way forward on corporate responsibility and accountability on occupational health and accountability on occupational health

and safetyand safetyHSC considered progress on measures already in place

and options for further work on 14/10/2003 : Effectiveness of voluntary approach on directors’

responsibilities and advice to Ministers; Effectiveness of HSC guidance using findings of

research including : case studies showing business benefits of good h&s; h&s management and performance index;

Revitalise challenge to medium and large organisations to report publicly on their h&s performance;

Develop a communications strategy covering guidance and publicity.