NEBOSH International Diploma in Occupational Health & Safety Please be advised that the course material is regularly reviewed and updated on the eLearning platform. SHEilds would like to inform students downloading these printable notes and using these from which to study that we cannot ensure the accuracy subsequent to the date of printing. It is therefore important to access the eLearning environment regularly to ensure we can track tr ack your progress and to ensure you have the most up to date materials. Version 1.3a (05/08/2014)
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Element IA1 : Principles of Health & Safety Management. Learning outcomes. On completion of this element, candidates should be able to: • • •
•
Explain the moral, legal and economic reasons for a health and safety management system. Outline the societal factors which influence health and safety standards and priorities. Explain the principles and content of effective health and safety, quality, environmental, and integrated management systems with reference to recognised models and standards. Outline the roles and responsibi r esponsibilities lities of the health and safety practitioner.
Relevant Standards: •
•
International Labour Standards, Occupational Safety and Health Convention, C155, International Labour Organisation, Geneva, 1981 International Labour Standards, Occupational Safety and Health Recommendation R164, International Labour Organisation, Geneva, 1981
Minimum hours of tuition: Not less than 8 hours. 1.0 Reasons for Managing Health & Safety. There are three reasons that are given for managing health and safety within an organisation. These are in no particular order but equal attention should be given to all three: • • •
Ethical and Moral reasons. Legal reasons. Financial reasons. 1.1 Moral Reasons.
It is fair to say that when people go to work they do not expect to be injured or worse. Every employee expects that in return for the duties they perform they can expect to work in a safe environment environment and return to their families and friends at the end of their shift. It is also fair to say that whether or not you are a risk taker in life you should not be taking t aking risks at work that jeopardise not only your own safety and health but also that of your colleagues. It is for f or these reasons that management has a moral duty to their workforce and others who may use their premises or services (i.e. contractors, visitors, customers etc.) A Duty of Care exists between employer and employee (and those others affected by their t heir actions). What is Duty of Care? Duty of care is the obligation to exercise a level of care towards an individual, that is reasonable - in all circumstances - to avoid injury to that individual or his property. Duty of care is therefore based upon the relationship of the parties, the negligent act or omission and the reasonabl r easonable e foreseeability of loss to that individual. A negligent act is an unintentional but careless act that results in loss. Only a negligent act will be regarded as having breached a duty of care. Liability for breach of a duty of care very much depends on the public policy at the time the case is heard. Differences in the UK Jurisdictions. In Scotland this area of the law is called Delict while in England, Wales and Northern Ireland it is called the law of Tort. Delict and tort differ from the law of contract. Contracts generally specify specify the duties on each of the parties and the remedy if these duties are breached. Upon entering into a contract, the parties obtain specific rights and certain duties. In delict or tort these duties exist through t hrough the nature of the parties' relationship SHEilds Ltd www.sheilds.org www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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Element IA1 : Principles of Health & Safety Management. Learning outcomes. On completion of this element, candidates should be able to: • • •
•
Explain the moral, legal and economic reasons for a health and safety management system. Outline the societal factors which influence health and safety standards and priorities. Explain the principles and content of effective health and safety, quality, environmental, and integrated management systems with reference to recognised models and standards. Outline the roles and responsibi r esponsibilities lities of the health and safety practitioner.
Relevant Standards: •
•
International Labour Standards, Occupational Safety and Health Convention, C155, International Labour Organisation, Geneva, 1981 International Labour Standards, Occupational Safety and Health Recommendation R164, International Labour Organisation, Geneva, 1981
Minimum hours of tuition: Not less than 8 hours. 1.0 Reasons for Managing Health & Safety. There are three reasons that are given for managing health and safety within an organisation. These are in no particular order but equal attention should be given to all three: • • •
Ethical and Moral reasons. Legal reasons. Financial reasons. 1.1 Moral Reasons.
It is fair to say that when people go to work they do not expect to be injured or worse. Every employee expects that in return for the duties they perform they can expect to work in a safe environment environment and return to their families and friends at the end of their shift. It is also fair to say that whether or not you are a risk taker in life you should not be taking t aking risks at work that jeopardise not only your own safety and health but also that of your colleagues. It is for f or these reasons that management has a moral duty to their workforce and others who may use their premises or services (i.e. contractors, visitors, customers etc.) A Duty of Care exists between employer and employee (and those others affected by their t heir actions). What is Duty of Care? Duty of care is the obligation to exercise a level of care towards an individual, that is reasonable - in all circumstances - to avoid injury to that individual or his property. Duty of care is therefore based upon the relationship of the parties, the negligent act or omission and the reasonabl r easonable e foreseeability of loss to that individual. A negligent act is an unintentional but careless act that results in loss. Only a negligent act will be regarded as having breached a duty of care. Liability for breach of a duty of care very much depends on the public policy at the time the case is heard. Differences in the UK Jurisdictions. In Scotland this area of the law is called Delict while in England, Wales and Northern Ireland it is called the law of Tort. Delict and tort differ from the law of contract. Contracts generally specify specify the duties on each of the parties and the remedy if these duties are breached. Upon entering into a contract, the parties obtain specific rights and certain duties. In delict or tort these duties exist through t hrough the nature of the parties' relationship SHEilds Ltd www.sheilds.org www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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1.1 Moral Reasons. regardless of the contractual obligations. In both jurisdictions, delict and tort t ort attempt to strike a balance between the individual's wrongful conduct and compensating the victim for his loss. Much of the law in this area has been developed by the Courts. However, there are now several statutory rules which apply in particular to employment, employment, disability discrimination, health and safety, data protection and occupier's liability to name but a few. The development of the law surrounding duty of care has been similar in the different jurisdictions but there are a number of differences between them, for example, the law of defamation in Scotland in comparison to libel and slander in England, and the law of nuisance. However, many of the general principles and the law of negligence are now more or less the same. Basic Principles. The authority for duty of care is the leading Scottish case of Donoghue v Stevenson 1932 SC (HL) 31. This is often referred to and remembered as 'the one with the snail'. The principles principles laid down by the Court in this case still form the basis for establishing establishing a duty of care under Scottish and English law. An outline of the events surrounding this case is set out below: By an action brought in the Court of Session the appellant, appellant, who was a shop assistant, sought to recover damages from the respondent - who was a manufacturer of aerated waters - for injuries she suffered as a result of consuming part of the contents of a bottle of ginger-beer which had been manufactured by the respondent, and which contained the decomposed remains of a snail. The appellant by her condescendence averred: •
•
•
•
•
That the bottle of ginger-beer was purchased for the appellant by a friend in a cafe, at Paisley, Glasgow, which was occupied by one Minchella. That the bottle was made of dark opaque glass and that the appellant had no reason to suspect that it contained anything but pure ginger-beer. That the said Minchella poured some of the ginger-beer out into a tumbler, and that the t he appellant drank some of the contents of the tumbler. That her friend was then proceeding to pour the remainder of the contents of the bottle into the tumbler when a snail, which was in a state of decomposition, decomposition, floated out of the bottle. That as a result of the nauseating sight of the snail in such circumstances, and in consequence of the impurities in the ginger-beer which she had already consumed, the appellant suffered from shock and severe gastro-enteritis.
The appellant further averred: •
• •
That the ginger-beer was manufactured by the respondent respondent to be sold as a drink to the public (including the appellant). appellant). That it was bottled by the respondent and labelled by him with a label bearing his name; and That the bottles were thereafter sealed with a metal cap by the respondent. respondent.
She further averred that: •
•
•
It was the duty of the respondent to provide a system of working his business which would not allow snails to get into his ginger-beer bottles, That it was also his duty to t o provide an efficient system of inspection of the bottles before the gingerbeer was filled into them, and. That he had failed in both these duties and had so caused the accident.
The general principles for duty of care were highlighted in this case as: Does a duty of care exist? SHEilds Ltd www.sheilds.org www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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1.1 Moral Reasons. This depends on the relationship between the parties, as a duty of care is not owed to the world at large, but only to those who have a sufficiently proximate relationship. The courts have found that there is no liability if the relationship between the parties is too remote. Is there a breach of that duty? Liability will only arise if the action breaches the duty of care and causes a loss or harm to the individual that would have been reasonably foreseeable in all the facts and circumstances of the case. Did the breach cause damage or loss to an individual's person or property? When Donoghue was decided, it was thought that duty of care would only be applicable to physical injury and damage to property; however, this has now been extended, in some circumstances, to where there is only pure economic loss. Another Moral Reason for managing safety is stated by Dr Tony Boyle in his book Health and Safety: Risk Management as "an expectation on the part of society in general that organisations will take reasonable care to ensure that the people and activities they manage do not harm other people or their property ". This expectation has changed over the years with general shifts in the attitude of society to health and safety. What was acceptable twenty years ago in many aspects of life is no longer acceptable today. This is perhaps noticeable in relation to environmental issues which were not even generally discussed twenty years ago. However people in general are now less tolerant of lack of health and safety. It seems likely that, as people's expectations of life in general increase, their expectations for a healthy and safe life also increase. It is therefore a moral responsibility of management to ensure that safe and healthy working environments are provided for their workforce. 1.2 Legal Reasons. Legal. The preventive (by enforcement notices), punitive (through criminal sanctions), and compensatory effects of law. There are many legal reasons why health and safety must be managed in organisations. There are laws in place that instil requirements and guidelines for organisations to follow and with which to comply. Failure to do so can lead to fines, imprisonment and loss of business image within the competitive markets. The Health and Safety Executive (HSE) has enforcement powers given to them under the Health and Safety at work etc. Act 1974. Under section 10 of the Act the Health and Safety Executive (HSE) and the Health and Safety Commission (HSC) were established but as of April 2008, they were merged into a new HSE. HSE. The Health and Safety Executive has Inspectors who have the following powers: • • •
•
• •
An inspector can gain access without a warrant to a workplace at any time. An inspector can employ the police to assist them in the execution of their duties. An inspector can take equipment or materials onto the premises to assist in carrying out investigations. An inspector can carry out investigations and examinations of equipment, machinery etc. as they deem necessary, taking photographs, samples and measurements etc. An inspector can order the removal and testing of equipment or machinery. An inspector can take statements, records and documents etc.
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1.2 Legal Reasons. An Inspector, if they deem it necessary and appropriate, can issue a Prohibition Notice or Improvement Notice when they believe or have reason to believe that a health and safety contravention is being committed. Prohibition Notice. A prohibition notice is issued by the Inspector and prohibits the work described in it, if the inspector is of the opinion that the circumstances present a serious risk of personal injury. The notice is usually to take immediate effect although it can have a deferred time limit. The notice when issued remains in place and effective until steps have been taken to remedy the situation that has brought about its issue. An appeal can be made to an employment tribunal within 21 days but the prohibition notice remains in effect until the appeal has been heard. Improvement Notice. An Improvement Notice is issued by an inspector (when a statutory requirement is not being complied with) and specifies a time period to remedy the contraventions. As with a prohibition notice, an appeal can be made to an employment tribunal within 21 days. In doing so this has the effect of postponing the notice until the tribunal alters the notice or confirms it. Other powers. The HSE can: • • •
Prosecute any person who contravenes a statutory requirement. Prosecute any person who fails to comply with a prohibition notice or improvement notice. Seize and render obsolete any article/substance which is considered to be the source of imminent danger.
Statute Law. Statute law is the written law of the land. It includes Acts of Parliament, Regulations etc. An Act of Parliament is called primary legislation and any regulations made under it are called secondary legislation so for example: • •
Primary Legislation: Health and Safety at Work Act 1974 Secondary Legislation: Management of Health and Safety at Work Regulations 1999, Manual Handling Operations Regulations 1992.
Common Law. This part of the English law is not embodied in legislation. It consists of rules of law based on common custom and usage and on judicial (court) decisions. English common law became the basis of law in the USA and many other English-speaking countries. Common law developed after the Norman Conquest 1066 as the law common to the whole of England, rather than local law. As the court system became established under Henry II in the 12th century, and judges' decisions became recorded in law reports, the doctrine of precedent developed. This means that, in deciding a particular case, the court must have regard to the principles of law laid down in earlier reported cases on the same or similar points, although the law may be extended or varied if the facts of the particular case are sufficiently different. Hence, common law (sometimes called 'case law' or 'judge-made law') keeps the law in harmony with the needs of the community where no legislation is applicable or where the legislation requires interpretation. Civil law. Civil Law is the section of the law that deals with disputes between individuals or organisations. For example, a car crash victim claims damages against the driver for loss or injury sustained in an accident, or one company sues another over a trade dispute. SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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1.2 Legal Reasons. Unlike criminal offences, the Crown Prosecution Service (CPS) does not prosecute a civil offence. Rather than any sentence, custodial or otherwise, the end result is usually financial compensation. Civil Law has developed in a similar way to the way criminal law has, through a mixture of Statutory Law made by Governments, and 'precedent' which is created by earlier cases. Burden of proof. One crucial difference between Civil and Criminal law is that the 'burden of proof' is lower in a civil case. A criminal case must be proved 'beyond reasonable doubt'. A civil case only has to be proved on the 'balance of probabilities,' i.e. it is 'likely' that the defendant is guilty. The OJ Simpson trial in America is a classic example. The criminal trial had not proved 'beyond reasonable doubt' that he had murdered his wife, yet a subsequent civil trial decided that on the 'balance of probabilities' he had. As a result, the victim's family was awarded compensation, but in the criminal case, Simpson was not found guilty of murder, so he was not incarcerated. Civil actions are not always successful though. The family of Stephen Lawrence brought a civil action against those suspected of his murder. Although the 'burden of proof' was lower than in a criminal trial, the men were once again acquitted when crucial identification evidence was ruled to be inadmissible. Since the introduction of the Civil Procedure Rules in 1999, after a review by Lord Woolf, making a claim for compensation under civil law has been made easier and less time consuming. Claims are now handled differently in proportion to their complexity and claim value. To assist in expediting this process, the Personal Injury Protocol was established and made the early exchange of any documentation a priority in order for both sides of the claim to establish their ' position' (either they feel they can successfully defend or admit to some percentage of liability). After a detailed written letter of claim has been received, the defendant's solicitor must acknowledge the letter within 21 days. There is then a period of three months for the exchange of documentation and information so as to progress any investigation. After the investigation, a decision will be made whether to defend the claim or admit liability. 1.3 Financial Reasons. Economic. Direct (insured) and indirect (uninsured) costs associated with incidents and their impact on the organisation. Tried and true approaches to safety have performed exceptionally well. The workplace has never been safer, yet financial margins can be wiped out through compensation claims resulting from unsafe work practices. For any organisation, financial survival can hinge upon a single catastrophic accident or even a series of much smaller ones. Safety professionals will have to create organisational processes with safety seamlessly integrated. Leaders, supported by safety personnel, will use opportunity-risk concepts to achieve competitive advantages in the marketplace. Losses due to injuries exceed £12 billion annually. Worse yet, these are the direct costs - indirect costs are even more impressive despite their elusive nature. For example, consider only the many inclusive costs to defend yourself against a lawsuit or the costs of retraining replacements, increased insurance premiums, production interruptions and poor morale. Accident Costs. You may assume that your liability insurance covers you for the full cost of accidents and claims in your workplace. Research in Ireland has shown that the insured costs of accidents are only the tip of the iceberg when it comes to determining the full cost of an accident. The cost of accidents, both locally and nationally, are made up of elements of the following: •
Direct Costs (Insured).
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1.3 Financial Reasons. • • • • • • • • • • • • • • • • • • • • • •
Death. Hospital, etc. treatment. Permanent disability. Sick pay. Legal costs. Insurance claims. Damage to buildings, vehicles, machinery, etc. Product loses and or damage. Material loses and or damage. Overtime working. Indirect Costs (uninsured). Investigation costs. Fines. Hiring or training replacement staff. Loss of experience and expertise. Lowering of morale. Loss of goodwill. Loss of image. Business interruptions. Product liability. Production delays. Increased premiums. Question 1.
Criminal sanctions are an example of....... Question 2. An example of an indirect uninsured cost of an accident is? Question 3. This part of the English law is not embodied in legislation. It consists of rules of law based on general custom and usage and on judicial (court) decisions. 2.0 Societal Factors Influencing Health & Safety Priorities. Health and Safety does not exist inside a bubble; it affects the lives of people and it is itself affected by different concerns and pressures, amongst which are the economy, both global and national, new developments in technology and industry, innovations in management philosophy and changes in the attitudes of society in general and workers in particular. Changes in societal attitudes can have long-lasting consequences on the field of health and safety. Consider the change in how smoking is viewed - fifty years ago, it was considered a part of everyday life, unremarked upon and in some cases seen as a signifier of sophistication and maturity. Nowadays, smokers are vastly outnumbered by those who view the habit as dirty, coarse and extremely hazardous to health. Legislation has swung against it in a very significant fashion and the places where it can be indulged in are getting fewer by the day. Developments in science, medicine and technology also affect the way in which the health and safety professional carries out their job. Although it has been known for a long time that asbestos was harmful to health, the substance was not banned until a few years ago and cases of illness associated with it are predicted to continue to rise as those who were exposed to it develop fatal conditions. Now, we have legislation in place to protect workers who might come into contact with it. Demographic changes have reshaped the workplace in recent years, and with these changes have come a new set of challenges for the health and safety professional. More women are now involved in the SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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2.0 Societal Factors Influencing Health & Safety Priorities. workplace, in different sectors and at different levels. As well as requiring specific protection, in the case of pregnancy and VDUs, they may also need different sized PPE and tools. They may also bring a perspective to work and to the question of safety that differs considerably from that of the formerly maledominated workplace. With economically precarious times come changed priorities at work; it may be that safety breaches or lax practices are not challenged because workers have a fear of losing their jobs and prefer to keep quiet about something that may well cause injury or death. 2.1 The Economic Climate. It can have escaped nobody's attention that we are going through a very difficult economic phase indeed. Companies are sailing very close to the wind financially and we have seen some very big names go under in the past couple of years. It can be imagined therefore, that when looking for ways to cut costs, management are going to be casting glances towards the easy targets - the departments which cost but are not seen to produce. Unfortunately, those glances are short-sighted if they earmark areas such as training and health and safety for cutbacks. Nevertheless, in desperate situations, many companies take desperate measures and this can mean that in the future, two things will become apparent: Health and Safety professionals are going to f ind their positions mroe precarious and those positions that do exist will be harder to find and more vigorously contested Many companies are going to find themselves without adequate provision when it comes to Health and Safety advice. As well as a reduction in the provision of Health and Safety coverage within businesses, there is also the degree to which government policy will have an effect. Every department of government is feeling the pinch of the austerity package and Health and Safety will not be immune from this. But how will the safety professional be affected? 2.2 Government Policy & Initiatives. Governments formulate policy and initiatives to push through their vision of how society should evolve and develop. The Robens Report which ushered in the Health and Safety at Work Act was requested by the Secretary of State for Employment, Barbara Castle. The major developments in Health and Safety legislation during the 1980s and 1990s, known colloquially as the Six Pack were government's legislative responses to European Directives. Initiatives in other areas can impact on Health and Safety. In 2008, Dame Carol Black authored the report Working for a Healthier Tomorrow, which was jointly published by the Department of Health and the Department of Work and Pensions. This joint publication signified the degree to which the link between work and health was accepted and taken seriously by government. In 2009, the then-Secretary of State for Work and Pensions James Purnelle asked Rita Donaghy to conduct an Inquiry into the underlying causes of fatal accidents in the construction industry as a reponse to the "unacceptable level of fatalities". Her report, One Death is Too Many, was widely acclaimed within the Health and Safety industry. The Young Report. As a result of the change of government in 2010 and the degree of public prejudice against the simplistic portrayal of Health and Safety, fuelled by elements of the press, Lord Young was given the task of conducting a review of health and safety legislation and regulation with a view to reducing its impact on business and streamlining certain aspects of its adminstration. His report was accepted in full by the government and in a publication called Good Health and Safety, SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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2.2 Government Policy & Initiatives. Good for Everyone, released in March 2011, several proposals were outlined. One of these was for a register of Health and Safety consultants, which will be covered later in this module. Another significant proposal was that which concerned H&S inspections. It read as follows: Targeting and reducing inspections. The Government has identified three categorisations of non-major hazard industries: 1. Those sectors which present comparatively high risk and where, in our judgement, proactive inspection remains necessary as part of the overall regulatory approach. 2. Those sectors where there remains comparatively high risk but proactive inspection is not considered a useful component of future interventions; and 3. Those areas where proactive inspection is not justified in terms of outcomes. The categorisations set out above will inevitably change in their composition over time e.g. as an industrial sector improves its health and safety record, or as new industries with new health and safety challenges emerge. However, based on current analysis, the categorisations would result in the f ollowing groupings: 1. Comparatively high risk areas where proactive intervention to be retained. The major areas for inclusion are currently considered to be construction, waste and recycling, and areas of manufacturing which are high risk e.g. molten and base metal manufacture. 2. Areas of concern but where proactive inspection is unlikely to be effective and is not proposed e.g. agriculture, quarries, and health and social care; and 3. Lower risk areas where proactive inspection will no longer take place. These areas include low risk manufacturing (e.g. textiles, clothing, footwear, light engineering, electrical engineering), the transport sector (e.g. air, road haulage and docks), local authority administered education provision, electricity generation and the postal and courier services. HSE will reduce its proactive inspections by one third (around 11,000 inspections per year) through better targeting based on hard evidence of effectiveness based on these categorisations. As now, HSE will work closely with industry bodies to manage and control specific health and safety risks, looking to industry to take the lead so that HSE can concentrate its own interventions on those areas where it has a unique contribution to make. In both areas (i) and (ii), HSE will continue to undertake inspections for enforcement purposes or to follow up complaints when such an intervention appears to be necessary. The basis on which HSE follows up complaints from workers and the public about health and safety and investigates incidents will be unchanged. No industrial areas will be exempted from maintaining good standards of health and safety. Employers who do not take the protection of their employers, or those affected by their work activities, seriously will still face intervention by HSE. Cost recovery for breaches of the law. The Government believes that it is reasonable that businesses that are found to be in serious breach of health and safety law - rather than the taxpayer - should bear the related costs incurred by the regulator in helping them put things right. A cost recovery principle will provide a deterrent to those who would otherwise fail to meet their obligations and a level playing field for those who do. It is proposed that HSE will recover all of the costs of an inspection/investigation at which a serious, material breach in standards is diagnosed and a requirement to rectify is formally made, together with the cost of any follow-up work. Businesses that are in compliance with the law will not be liable for any kind of charge as a result of an HSE inspection and there will be no recovery in relation to purely technical breaches. An appeal system will be operated by HSE in relation to any disputes over cost recovery. The Government also intends to allow HSE to cost-recover from business in relation to services it provides which are a necessary part of the process of land development. SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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2.2 Government Policy & Initiatives.
In consequence HSE will recover its full costs for acting as a statutory consultee for land use planning applications and hazardous substance consents. It is also proposed for HSE to charge where it provides initial advice to large development projects at the request of developers. 2.3 The Globalisation of Business. Globalisation is the growing interdependence between the economies and businesses of different countries. Globalisation has been growing for centuries and in particular since the end of the World War II. It is driven by many factors, but key amongst those that have driven the major increase over the last decade or so are improved communications, cheap travel and transport, deregulation of trade barriers and development within individual economies. The former Department for Trade and Industry (now the Department for Business, Enterprise and Regulatory Reform) considers globalisation to be good for the UK and to benefit developing countries too. However, developments since late 2007 illustrate just how vulnerable economic stability can be. The credit crunch, resulting in a decline in demand for goods and fluctuations in oil prices is threatening the current globalisation model. The current recession could lead in the short term to a rise in economic protectionism, which will delay recovery through a dampening effect on international trade. There are some signs of this, although the G7 ministers and the G20 leaders have pledged to work against protectionism. The continued failure of the Doha Development Round - talks aimed at further reducing trade barriers, is also a factor limiting further progress, particularly for developing countries but with less direct impact on the UK. While it is generally predicted that the recession will eventually ease, in the longer term, the future of globalisation is not so clear. Increasing wage levels in developing economies, coupled with factors such as more stringent environmental and other legislation could mean that it may not always be so attractive to transport goods halfway round the world, especially if the price of oil were to show an upward trend in the future, resulting in increasing transport costs. Relevance to occupational safety and health. Globalisation is not itself a health and safety issue, but it drives many changes that may impinge on health and safety. For example: The current trend away from manufacturing in the UK has been driven by low labour costs and the increasing skills and capability overseas and by cheap transport. Could a reversal bring about a revival in manufacturing in Britain or will skills and capability losses continue? The increase in offshoring of knowledge based jobs, driven by cheap labour and cheaper and improved communications and leading to shifting workplace demographics in the UK and management issues of dispersed workforces. A global economy impacts on our working patterns - the need to be always available to cope with time differences can impinge on work/life balance. The need to deal with other cultures and other languages places additional psychosocial demands on workers. Globalisation affects migration of workers from one country to another. Migrant workers [see next section] can be at higher risk than indigenous workers. Illegal migrants could be at higher risk still. The increasing length of supply chains as goods made overseas pass through complex outsourcing networks make it difficult to monitor the quality, authenticity and traceability, which could lead to health and safety problems resulting from their use, while at the same time making it difficult for HSE to deal direct with manufacturers. The lack of customs checks across the EU could add to difficulties. Foreign direct investment into Britain - the purchase of British companies by overseas owners - may result in the importing of different health and safety cultures. Although bound by UK law in this country, they may not always appreciate the importance attached to health and safety. Major changes in global trade could have significant impacts on the UK economy, driving societal change. Gordon Brown, when Chancellor in 2007, claimed that unskilled Britons would find themselves without jobs SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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2.3 The Globalisation of Business. in ten years as a result of globalisation. UK competitiveness in a global market is one of the uncertainty axes in HSE's Scenarios for the Future of Health and Safety in 2017. 2.4 Migrant Workers. Although there are no precise figures for the number of new migrants in the labour force, the available statistics suggest that their number is growing and that in some regions and in some industrial sectors or occupations, they form a significant section of the workforce. The geographical spread of migrant workers is much wider than even a few years ago. Migrants are no longer found only in large conurbations but increasingly are working in rural areas or in regions that have had little or no previous history of migration, whether temporarily or for settlement. There is no current method of identifying whether there are any specific health and safety risks for migrant workers. Existing Health and Safety Executive (HSE) programmes and recording systems only report a limited number of workplace incidents and there is no systematic way of identifying whether someone is a recent migrant. Consequently it is impossible to document, on the basis of the available statistics, whether migrants are in a higher risk category than local workers. Some workers, not just migrants, are exposed to risks at work, due to the nature of their work. Thus the research does not claim that the risks inherent in a particular type of work of necessity only present themselves in relation to migrant workers. However, what it does reveal is that migrants are more likely to be working in sectors or occupations where there are existing health and safety concerns and that it is their status as new workers that may place them at added risk, due to their: • • • •
•
•
• •
•
Relatively short periods of work in the UK. Limited knowledge of the UK's health and safety system. Different experiences of health and safety regimes in countries of origin. Motivations in coming to the UK, particularly where these are premised on earning as much as possible, in the shortest possible time. Ability to communicate effectively with other workers and with supervisors, particularly in relation to their understanding of risk. Access to limited health and safety training and their difficulties in understanding what is being offered, where proficiency in English is limited. Failure of employers to check on their skills for work and on their language skills. Employment relationships and unclear responsibilities for health and safety, in particular where workers are supplied by recruitment agencies or labour providers or are self-employed; and Lack of knowledge of health and safety rights and how to raise them, including knowledge of the channels through which they can be represented.
Health and safety training. More than a third of the migrants had not received any training in health and safety and for the remaining two-thirds the training that had been offered was generally limited to a short session at induction. But there were some differences by sector, for example those in Public Healthcare had longer periods of induction training and were more likely to be offered ongoing training. Communicating health and safety training where there is no common language presents challenges to employers and some had responded by developing means of conveying information through non-verbal mediums. Migrant workers particularly welcomed visual aids, as they could overcome the limitations that a lack of English presented. However, the greater the range of methods used to communicate, the more successful they were perceived to be by the workers interviewed. Any single method used exclusively was unlikely to deliver a comprehensive message, understood by all workers. The system of health and safety in the workplace. There was a widespread lack of knowledge of basic health and safety procedures, including fire safety. Although most workers had been provided with some protective clothing, this often failed to take account of the fact that workers had difficulty in acclimatising themselves to the different environmental conditions they experienced in the UK, in contrast to their own country. In addition, since many migrant workers had not SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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2.4 Migrant Workers. previously worked in the occupations they were following in the UK, acclimatisation was sometimes a difficulty, particularly where migrants did not possess suitable clothing even though they were working outside or inside but in chill departments. Allocation to the least desirable work also meant that workers were more likely to be working in areas that experienced extremes of temperature. Workers consequently fell ill more frequently and in general believed that their health had suffered as a consequence of the work they were doing. Those working with chemicals in general had little knowledge of what they were composed of and formal training was not necessarily sufficient, especially where technical language was used to explain the nature of the risk. A relatively high proportion (one in four) of migrant workers had either themselves experienced an accident at work or had witnessed accidents involving migrant co-workers. This suggests a higher level of accidents than would be experienced by UK workers. Most of these accidents involved cuts, falls and slips and were sometimes said to have been associated with fatigue, most usually brought about by long working hours. Migrants also said that they would often not report accidents that had occurred, as they were concerned that employers might view them as a risk and dismiss them. In the case of those who were working without documents, a fear of deportation was also given as a reason for not reporting accidents. In some of the sectors surveyed it appears that migrants were under-estimating the risks they faced in the jobs they were doing. Those who were undertaking work which they perceived as below their qualifications or skills, tended to be less conscious of the risks associated with the jobs they were doing and thus took fewer measures to avoid risks. Consequently when considering strategies aimed at reducing health and safety risks it may be important to take account of whether or not the migrant worker is engaged in a sector in which she or he has had previous experience. In some cases, where labour shortages had been experienced in the past, employers reported that the presence of a migrant labour force which could provide stability to the workplace had helped to reduce accident levels and that they had been able to demonstrate this through a decline in their own accident rates. Some employers also pointed to the fact that migrant workers who were better skilled or educated took a more responsible approach to work, which also could prevent accidents. Where accidents had occurred these were said to be in the early period of employment, in particular in relation to young workers. Appropriate health and safety for a transient workforce. The investigation of health and safety incidents is made more difficult where there is little incentive for the migrant worker to remain in the UK and that is more likely to be the case where the incident would require time off work. Since the primary purpose of migration is to earn money, remaining in the UK without being able to work appears to serve no useful purpose to the migrant worker who is generally faced with higher living costs in this country. The migrant workers interviewed rarely had access to occupational sick pay or knowledge of its existence. However, this lack of provision and knowledge potentially is advantageous to employers who are thus less likely to be challenged by compensation claims and importantly are less vulnerable in the event of an HSE inspection, if the worker to whom questions can be put is no longer available. 3.0 Principles & Content of Effective Management Systems. Common Health and Safety Definitions. Definitions of 'hazard', 'risk', and 'danger'. In all aspects of health and safety and its management, there are certain words and phrases which will always be used and referred to. These words and phrases are plentiful and as this course progresses, you will learn their meaning and importance in the world of successful health and safety management. In this section, four key words and phrases will be introduced along with several descriptions.
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3.0 Principles & Content of Effective Management Systems. These are: • • •
Hazard. Risk. Danger. 3.1 Definitions of Hazard.
In health and safety management, there is no one universal definition of what constitutes a hazard. The definition used is a personal choice. Another factor that will help to illustrate what constitutes as a hazard will be the Safety Management System present in the workplace, or that which is intended to be adopted in the organisation. There are several management systems (BS 8800, OHSAS 18001, HSG65) and each has its own advantages and disadvantages, but this will be discussed later. However, for the moment let us introduce the different definitions that are used and the sources from which they come: BS8800. BS8800 defines a hazard as 'a source or a situation with a potential for harm in terms of human injury or ill health, damage to property, damage to the environment, or a combination of these.' OHSAS 18001. OHSAS 18001 defines a hazard as a 'source or situation with a potential for harm in terms of injury or ill health, damage to the workplace, damage to the workplace environment, or a combination of these.' Five Steps To Risk Assessment. The Health and Safety Executive in its Guidance to Risk Assessment leaflet define a hazard as anything that can cause harm (e.g. chemicals, electricity, working from ladders, etc).' The Management of Health and Safety at Work Regulations 1999. In Regulation 3 of the Management of Health and Safety at Work Regulations 1999, a hazard is defined as - 'something with the potential to cause harm (this can include substances or machines, methods of work and other aspects of work organisation)'. So, there are plenty of definitions from which to choose, although, if you read them closely, it can be seen that they all use one key word - 'harm' - within their text. This word is, therefore, key to what is defined as a hazard and how you use hazard in the right context. Harm can have two meanings, which are both important in the world of health and safety management: • •
Physical or other injury or damage (such as ill-health or damage to machinery). To hurt someone or damage something.
Both of these above phrases are not desired when it comes to managing health and safety. 3.2 Definitions of Risk. Let's now move on to defining what constitutes as a risk. Again, using the same sources of information as were used to define hazard (above), the following can be produced: BS8800. BS8800 defines a risk as 'the combination of the likelihood and consequences of a specified hazardous event occurring.' SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.2 Definitions of Risk.
OHSAS 18001. OHSAS 18001 defines a risk as a 'combination of the likelihood and consequence(s) of a specified hazardous event occurring.' Five Steps To Risk Assessment. The Health and Safety Executive in their guidance to risk assessment leaflet define a risk as 'the chance, high or low, that somebody will be harmed by the hazard.' HSG65. The Health and Safety Executive's HSG65 management standard 'Successful Health and Safety Management' defines a risk as 'the likelihood that a specified undesired event will occur due to the realisation of a hazard by, or during, work activities, or by the products and services created by work activities.' The Management of Health and Safety at Work Regulations 1999. In Regulation 3 of the Management of Health and Safety at Work Regulations 1999, a risk is defined as the likelihood of potential harm from that hazard being realised. The extent of the risk will depend on: • • •
The likelihood of that harm occurring. The potential severity of that harm, i.e. of any resultant injury or adverse health effect; and The population which might be affected by the hazard, i.e. the number of people who might be exposed.
So, according to the Management of Health and Safety at Work Regulations' definition, there are three things to take into account when defining risk. The table below is an example of using the definitions outlined above to show how a window cleaner using a ladder would define hazard and risk:
Hazard The Ladders • •
Risk(s)
•
• •
The window cleaner could fall from the ladder. The window cleaner could drop equipment from the ladder onto machinery or equipment below. The window cleaner could drop equipment from the ladder onto persons below. The ladder could fall onto persons below. The ladder could fall onto machinery or equipment below.
For each of the outlined risks, there will be different influences on what affects the likelihood and severity of the risks. For example, the number of people working near the window cleaner, pieces of machinery or equipment in proximity, the ladder being secured to prevent it from moving and becoming unbalanced etc. These and other factors must be taken into account. 3.3 Definitions of Danger. 'Danger' is defined in the dictionary as follows: 1. Authority; jurisdiction; control. SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.3 Definitions of Danger. 2. 3. 4. 5.
Power to harm; subjection or liability to penalty. Exposure to injury, loss, pain, or other evil; peril; risk; insecurity. Difficulty; sparingness. Coyness; disdainful behaviour.
If we further break down the underlined definition, we can see that by saying 'exposure' we are implying a proximity to the hazard or risk. Question 4. The definition of a Hazard is? Question 5. An example of a hazard which represents an immediate danger is? 3.4 Video: Risk Management in the Real World. IOSH President Nattasha Freeman and Immediate Past President Ray Hurst discuss the industry debate on the first day of the IOSH 09 Conference & Exhibition in Liverpool. 'Risk management in the real world: driving societal change' included speakers from IOSH, Association of British Insurers, Royal Mail Assets and the Association of Chief Police Officers. Please wait for the video to buffer before pressing play. Alternatively you can download the video to watch at your convenience. Download Video 3.5 Introduction to Health & Safety Management. It is an excellent management practice for every organisation to have a Safety Management System in place, and an effective system can be of great benefit to your organisation. A Safety Management System can vary greatly in style according to the trade or profession concerned. For some companies, issues such as storage, plant and equipment, hazardous substances, contractor management, and the handling of violence and aggression may be essential features of the safety management system. For others, the main concern is the assessment of workstations and the working environment of people who use computers for prolonged periods of time. Whatever organisation or industry you work for, implementing a Safety Management System is vitally important if you are to successfully manage your health and safety. The three main health and safety management systems which we need to di scuss are: • • •
HSG65. BS8800. OHSAS18001. 3.6 The Benefits of a Formal Health and Safety Management System.
Occupational Health & Safety is a subject that must be addressed by all organisations large and small. The organisation's management system should identify all legislative requirements, and hazards and control the risks of the organisation. Progressive businesses will aim to go beyond compulsory measures and promote continuous improvement SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.6 The Benefits of a Formal Health and Safety Management System. of health and safety matters, in line with the HSE 'Be part of the solution' Strategy 3rd June 2009. Managing the health and safety of an organisation can be approached in an unstructured way or by using a formal approach (i.e. quality standard ISO 9001:2008 or environmental standard ISO 14001 or similar) and it can be integrated into any current system, to reduce the burden of bureaucracy. A formal Health and Safety Management system will provide the following benefits: • • • • •
A system for continually identifying legal and other requirements. A clear management structure delegating authority and responsibility. A clear set of objectives for improvement, with measurable results. A structured approach to risk assessment within the organisation. A planned and documented approach to health and safety.
The monitoring of health and safety management issues, auditing of performance and review of policies and objectives. Time spent on improving an organisation's health and safety could provide a financial return in terms of: • • • •
Reduced accidents and occupational ill-health. Reduced stress and greater productivity. An improvement in underwriting risk. A reduction in the likelihood of paying legal costs and compensation. 3.7 Systematic Occupational Health & Safety Management.
Against a background of increasing globalisation, there is a growing convergence of managerial approaches to risk management. These range from the development of an increasingly internationally respected Australasian standard on Risk Management (Australia and New Zealand Standards Institutes, 1999) to the growth of Corporate Governance guidelines and standards, from pressures on large corporations to meet the challenge for transparency and openness in their reports (Global Reporting Initiative, 2000) to calls from the UK Government for Directors to take more responsibility for the management of health and safety (Health and Safety Executive, 2001). There are four strands in the process by which increasing numbers of the larger organisations in the developed world have been adopting OHMS: • • • •
Active promotion by consultants and governments. An international debate and the adoption of national standards. A trend towards mandatory requirements for OHMS. Spread of OHMS through 'hybrid' regulatory regimes which require self-audit.
Within Europe, the first three strands are the key drivers, while Australasia and the USA have been developing an approach that reduces the regulatory burden (through inspections) for organisations which meet the specified systems and self-audit criteria. From almost all quarters, there is agreement that OHMS is the way to reduce ill-health at work, although such implied claims are not matched by proper evaluation. The 'success' hypothesis posits that ensuring senior management commitment and the integration of health and safety into the day-to-day decisions of organisations will reduce ill-health. The 'paper tiger' hypothesis suggests that many risks are ignored by such systems, which generate a great deal of paperwork and may create obstacles to worker involvement. The 'sham' hypothesis is openly critical of OHMS, seeing it as a pretext to deregulate. At a conference in Finland in October 2001, the ILO launched a new international OHMS (International SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.7 Systematic Occupational Health & Safety Management. Labour Office, 2001). For occupational hygiene practitioners, there is an ongoing debate, crystalised around two key questions: • •
Should we work towards OHSAS 18001 (British Standards Institution, 1999) or. Is HSE's HS(G)65 (Health and Safety Executive, 1997) adequate?
Those with a broader responsibility in the political arena should note that managerial solutions are desirable, but not when they exclude either the workforce or wider society through the regulatory framework. OHMS may offer a significant opportunity to improve the health of the workforce or it may be a smokescreen for deregulation. But then another convergent theme is the growth of Socially Responsible Investment so perhaps whatever the deregulators may wish - OHMS will have to be a servant of organisations genuinely seeking better health and safety outcomes. 3.8 HSG65. HS(G)65 is the Health and Safety Executive's own management system that was first published in 1991. The publication was titled 'Successful Health and Safety Management' and soon after its launch, it became a much-needed document for serious health and safety managers. HS(G)65 was revised in 1997 after the Health and Safety Executive recognised its influence on the health and safety industry. The updated standard is now entitled HSG65 Successful Health and Safety Management (you will note that the updated version dropped the (G) to G, making it easy to distinguish between the old and new versions).
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3.8 HSG65. A written health and safety policy is a legal requirement embodied in the Health and Safety at Work etc. Act 1974. It is also the first stage of the HSG65 management system model. Having a written policy showing commitment to health and safety within the organisation is an important aspect. The policy itself may come in a variety of forms, but essentially should outline the way in which the company is thinking and the direction it wishes to take with regards to its pursuit of a healthy and safe working environment. HSG65 gives more detailed information in its text regarding what should form the basis of the policy statement: Set the direction for the organisation by: • • •
Demonstrating senior management commitment. Setting health and safety in context with other business objectives. Making a commitment to continuous improvement in health and safety performance.
Outline the details of the policy framework, showing how implementation will take place by: •
• • • • • • •
Identifying the director or key senior manager with overall responsibility for formulating and implementing the policy. Having the document signed and dated by the director or chief executive. Explaining the responsibilities of managers and staff. Recognising and encouraging the involvement of employees and safety representatives. Outlining the basis for effective communication. Showing how adequate resources will be allocated. Committing the leaders to planning and regularly reviewing and developing the policy. Securing the competence of all employees and the provision of any necessary specialist advice.
A review period for the policy must be set so that the document can be continually updated and reflect current and best practice as well as any advancement in safety legislation. Organisation. There are four main components that HSG65 identifies as important issues when organising health and safety in an organisation: • • • •
Control. Co-operation. Communication. Competence.
We will now look at these individually: Control: •
•
•
•
Lead by example: demonstrate your commitment and provide clear direction - let everyone know health and safety is important. Identify people responsible for particular health and safety jobs - especially where special expertise is called for e.g. doing risk assessments, driving fork lift trucks etc. Ensure that managers, supervisors and team leaders understand their responsibilities and have time and resources to carry them out. Ensure everyone knows what they must do and how they will be held accountable - set objectives.
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3.8 HSG65. Co-operation: •
• •
Chair your health and safety committee - if you have one. Consult with your staff and their representatives. Involve staff in planning and reviewing performance, writing procedures and solving problems. Co-ordinate and co-operate with those contractors who work on your premises.
Communication: •
• •
Provide information about hazards, risks and preventive measures to employees and contractors working on your premises. Discuss health and safety regularly. Be 'visible' on health and safety.
Competence: • •
•
• •
Assess the skills needed to carry out all tasks safely. Provide the means to ensure that all employees, including your managers, supervisors and temporary staff, are adequately instructed and trained. Ensure that people doing especially dangerous work have the necessary training, experience and other qualities to carry out the work safely. Arrange for access to sound advice and help. Carry out re-structuring or re-organisation to ensure the competence of those taking on new health and safety responsibilities.
Planning. Planning is the key to ensuring that your health and safety efforts really work. Planning for health and safety involves setting objectives, identifying hazards and assessing their risks, implementing standards of performance and developing a positive culture. It is often useful to record your plans in writing. Your planning should provide for: • • • • • • •
Identifying hazards and assessing risks, and deciding how they can be eliminated or controlled. Complying with the health and safety laws that apply to your organisation. Agreeing health and safety targets with managers and supervisors. A purchasing and supply policy which takes health and safety into account. Design of tasks, processes, equipment, products and services and safe systems of work. Procedures to deal with serious and imminent danger. Co-operation with neighbours, and/or subcontractors.
Setting standards against which performance can be measured. Standards help build a positive culture and control risk. They set out what people in your organisation will do to deliver your policy and control risks . They should identify who does what, when and with what result. Three key points about standards are that they must be: • • •
Measurable. Achievable. Realistic.
Statements such as 'staff must be trained' are difficult to measure if you don't know exactly what 'trained' means and who is to do the work. 'All machines must be guarded' is difficult to achieve if there is no measure of adequacy of the guarding. Many industry - based standards exist and you can adopt and set your own, preferably referring to numbers, quantities and levels that are seen to be realistic and can be checked. SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.8 HSG65.
For example: • • • • • •
Completing risk assessments and implementing controls required. Maintaining workshop temperatures within a specified range. Specifying levels of waste or emissions that are acceptable. Specifying methods and frequency for checking guards on machines, levels of training etc. Arranging to consult with staff or their representatives at set intervals. Monitoring performance in particular ways at set times.
Ask yourself: • • •
• •
Do you have a health and safety plan? Is health and safety always considered before any new work is started? Have you identified hazards and assessed risks to your own staff and the public, and set standards for premises, plant, substances, procedures, people and products? Do you have a plan to deal with serious and imminent danger? Are the standards put in place and risks effectively controlled?
Measuring your performance. Just like finance, production or sales, you need to measure your health and safety performance to find out if you are being successful. You need to know: • • •
Where you are. Where you want to be. What is the difference and why?
Active monitoring (before things go wrong) involves regular inspection and checking to ensure that your standards are being implemented and management controls are working. Reactive monitoring (after things go wrong) involves learning from your mistakes, whether they have resulted in injuries, illness, property damage or near-misses. Active monitoring (before things go wrong): Are you achieving the objectives and standards you set yourself and are they effective? Reactive monitoring (after things go wrong): Investigating injuries, cases of illness, property damage and near-misses - identifying in each case why performance was sub-standard. You need to ensure that information from active and reactive monitoring is used to identify situations that create risks, and do something about them. Priority should be given to the greatest risks. Look closely at serious events and those with potential for serious harm. Both require an understanding of the immediate and the underlying causes of events. Investigate and record what happened and find out why. Refer the information to the people with authority to take remedial action, including organisational and policy changes. Ask yourself: • •
• •
Do you know how well you perform in health and safety? How do you know if you are meeting your own objectives and standards for health and safety? Are your controls for risks good enough? How do you know you are complying with the health and safety laws that affect your business? Does your accident investigation get to all the underlying causes - or does it stop when you find the first person that has made a mistake?
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3.8 HSG65. •
Do you have accurate records of injuries, ill-health and accidental loss?
Audit and Review. Monitoring provides the information to let you review activities and decide how to improve performance. Audits, by your own staff or outsiders, complement monitoring activities by looking to see if your policy, organisation and systems are actually achieving the right results. They tell you about the reliability and effectiveness of your systems. Learn from your experiences. Combine the results from measuring performance with information from audits to improve your approach to health and safety management. Review the effectiveness of your health and safety policy, paying particular attention to: • • • •
•
The degree of compliance with health and safety performance standards. Areas where standards are absent or inadequate. Achievement of stated objectives within given time-scales. Injury, illness and incident data - analyses of immediate and underlying causes, trends and common features. These indicators will show you where you need to improve.
Ask yourself: • • • • •
How do you learn from your mistakes and your successes? Do you carry out health and safety audits? What action is taken on audit findings? Do the audits involve staff at all levels? When did you last review your policy and performance? 3.9 BS8800/OHSAS18001.
The Origins of OHSAS 18001. The British Standards Institution was given the task of developing a specification for an occupational health and safety management system that could be integrated into an organisation's overall management system. This resulted in BS 8800:1996 being published, which is a guide to occupational health and safety management systems that can be based on either the environmental standard ISO 14001, or the Health and Safety Executive's Guidance Note HSG65. For many years, there has been demand for a certification scheme for occupational health and safety, which intensified with the publication of BS 8800 in 1996. However, whilst BS 8800 offers guidance on implementing an occupational health & safety management system, it is not and never was intended for certification purposes. The pressure was, therefore, for a certification scheme that could offer independent verification that an organisation has taken all reasonable measures to minimise risks and prevent accidents. The situation prompted many certification bodies to develop their own specifications based on BS 8800. The inevitable irregularities between the specifications made this an undesirable way forward. In response, a committee was formed in November 1998 chaired by the British Standards Institution, and consisted of the major UK certification bodies and other national standard organisations known to be active in health and safety, with the remit of creating a single specification. This resulted in the Occupational Health and Safety Assessment Series (OHSAS) 18001, which unified the existing schemes. Structure of OHSAS 18001.
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3.9 BS8800/OHSAS18001.
OHSAS 18001 contains 6 elements, as detailed below:
1 General requirements. 2 OHS Policy. Planning. • • • •
Hazard identification, risk assesment and risk control. Legal and other requirements. Objectives. OH&S management programme.
3
Implementation and operation. 4 • •
Structure and responsibility, awareness and competence. Consultation and communication.
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3.9 BS8800/OHSAS18001. • • • •
Documentation. Documentation and data control. Operation control. Emergency preparedness and response.
Management review.
6
3.10 What is ISO 9000? ISO 9000 is a generic name given to a family of standards developed to provide a framework around which a quality management system can effectively be implemented. The ISO 9000 family of standards was revised in December 2000. (These pages refer to ISO 9001:2000 series, as opposed to ISO 9000:1994 series - the previous version). ISO 9001:2008, the requirement standard is process based rather than procedure based, however, it still requires at least six procedures as follows: • • • • • •
Document Control. Quality Records. Internal Audits. Non-Conforming Product. Corrective Action. Preventive Action.
And includes the following main sections: • • • • •
Quality Management System. Management Responsibility. Resource Management. Product Realisation. Measurement Analysis and Improvement.
To gain the maximum benefit from ISO 9000:2000 there are a number of steps to take: •
Define why your organisation is in business.
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3.10 What is ISO 9000? • • • • •
Determine the key processes that state 'what' you do. Establish how these processes work within your business. Determine who owns these processes. Agree these processes throughout the organisation. Differences between ISO 9000:1994 and ISO 9001:2000
The ISO 9000:2000 series was created after extensive consultation with users. It is simpler, more flexible for organisations to adopt and embraces the use of Plan-Do-Check-Act principles and Process Management. The single most significant change to ISO 9001 is the movement away from a procedurally-based approach to management (stating how you control your activities) to a process based approach (which is more about what you do). This shift enables organisations to link business objectives with business effectiveness more directly. The ISO 9001:2000 includes the following main sections: 1. Quality Management System - an organisation needs to ensure that it has established what its processes are, how they interact with each other, what resources are required to provide the product and how the processes are measured and improved. When the above has been established then a system for the control of documentation has to be implemented together with the Quality Manual and controls for looking after records. 2. Management Responsibility - the management at the highest level in the organisation will need to be conversant with this important section of the standard. It is their responsibility to set policies, objectives and review the systems, as well as communicating the effectiveness of the systems within the organisation. 3. Resource Management - more emphasis has been placed on the resources the organisation needs to ensure that the customer receives what has been agreed. It covers not only people but also physical resources such as equipment premises, and any support services required. 4. Product Realisation - this section covers the processes that are needed to provide the product/service. These processes cover activities such as taking instruction from the customer, the design and development of products, the purchasing of materials and services and delivery of the products and services. 5. Measurement Analysis and Improvement - carrying out the measurement of the products, customer satisfaction, the management systems and ensuring continual improvement of the systems are vital to the management of the systems. In comparison with the original standard, the revised standard: • • • • • • •
Applies to all product categories, sectors and organisations. Reduces the required amount of documentation. Connects management systems to organisational processes. Is a natural move towards improved organisational performance. Has greater orientation towards continual improvement and customer satisfaction. Is compatible with other management systems such as ISO 14001. Is capable of going beyond ISO 9001:2000 in line with ISO 9004:2000 in order to further improve the performance of the organisation.
Implementing a Quality Management System. Review support literature and software. There is a wide range of quality publications and software tools designed to help you understand, implement and become registered to a quality management system. Assemble a team and agree your strategy. You should begin the entire implementation process by preparing your organisational strategy with top SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.10 What is ISO 9000? management. Responsibility for a QMS lies with Senior Management; therefore it is vital that Senior Management is involved from the beginning of the process. Consider Training. Whether you are the Quality Manager seeking to implement a quality management system or a Senior Manager who would like to increase your general awareness of ISO 9001:2000, there are a range of workshops, seminars and training courses available. Review Consultancy Options. You can receive advice from independent consultants on how best to implement your quality management system. They will have the experience in implementing a QMS and can ensure you avoid costly mistakes. Choose an Assessor. The assessor is the third party who comes and assesses the effectiveness of your quality management system, and issues a certificate if it meets the requirements of the standard. Choosing an assessor can be a complex issue. Factors to consider include industry experience, geographic coverage, price and service level offered. The key is to find the assessor who can best meet your requirements. A good place to start is by contacting the ISO. Develop a Quality manual. A Quality manual is a high-level document that outlines your intention to operate in a quality manner. It outlines why you are in business, what your intentions are, how you are applying the standard and how your business operates. Develop support documentation. This is typically a procedure manual that supports the Quality manual. Quite simply, it outlines what you do to complete a task, describing who does what, in what order and to what standard. Implement your Quality Management System. The key to implementation is communication and training. During the implementation phase, everyone operates to the procedures and collects records that demonstrate you are doing what you say you are doing. Consider a pre-assessment. A pre-assessment by your registrar normally takes place about six weeks into the implementation of the quality system. The purpose of the pre-assessment is to identify areas where you may not be operating to the standard. This allows you to correct any areas of concern you may have before the initial assessment. Gain registration. You should arrange your initial assessment with your registrar. At this point, the registrar will review your QMS and determine whether you should be recommended for registration. Continual assessment. Once you have received registration and been awarded your certificate, you can begin to advertise your success and promote your business. To maintain your registration, all you need to do is continue to use your quality system. This will be periodically checked by your registrar to ensure that your Quality System continues to meet the requirements of the standard. 3.11 TQM - Total Quality Management. Theory. Total Quality Management(TQM) is a business philosophy that seeks to encourage both individual and collective commitment to quality at every stage of the production process from initial design and conception to after-sales service. Many businesses may not use the term TQM anymore but the philosophy is still very much part of most business thinking. It is seen as a way in which a business can add value to its product and to gain SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.11 TQM - Total Quality Management. competitive advantage over its rivals. The former may allow a business to charge a higher price for its product or service whilst the latter can be a key f eature of its marketing programme. TQM requires a change in the way in which businesses operate. If it is to work successfully: • • • •
• •
Management structures have to be more consultative and less hierarchical. Workers have to be empowered to be able to make decisions at all levels of the organisation. Workers have to be trained and involved in the building of the philosophy. Communication links between workers and management and between the business and all aspects of the supply chain must be excellent. Commitment to TQM must be backed by action, which the customer can see, and experience. Commitment to the process must be led by the senior management of the business - paying 'lip service' will invariably end up in failure.
TQM can be addressed in a business in a number of ways. The most common are: •
•
•
•
•
•
A policy of zero defects - any problems in the production process are filtered out before they get anywhere near the customer. Quality chains- each stage of the production process is seen as being a link in the chain right down to the relationship between one worker in the process and another. Quality circles - meetings of those directly involved in the production process to discuss and solve problems and make improvements to that process. Statistical monitoring - the use of data and statistics to monitor and evaluate production processes and quality. Consumer feedback - using market research and focus groups to identify consumer needs and experiences and to build these into the process. Changing production methods- many businesses, where appropriate, have looked at the layout of their production processes - it could be the move to open plan offices, the development of teams or the use of cell production to improve worker commitment to the philosophy.
TQM invariably involves some sort of cost. Re-organising the business in any of the ways above, involves not only capital cost but also the cost of training staff. High quality change management is therefore an essential ingredient of the success of such strategies. Costs can however be saved if the change is successful. The cost of replacing damaged or faulty goods can be high - if the business waits until the end of the process other resources will have been wasted. The improved communication between suppliers and the firm should help to reduce defective components. Other benefits may involve the effect on customer loyalty and repeat purchases, as well as winning over customers from rivals. Image and reputation can take many years to win but only a short time to lose so the stakes for the business are high. To prove that the business has rigorous quality standards, external certification by a respected body is seen as being important. Such external certification could be through the Investors in People programme a recognised standard in the training and professional development of staff in a business - and through such bodies as the ISO. Two certificates are particularly sought-after - ISO 9000 and ISO 14000. The former is concerned with quality management in relation to customer requirements, customer satisfaction, adherence to regulations and the pursuit of continuous improvement. SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.11 TQM - Total Quality Management. The latter is related to the impact of the firm's activities on the environment and the firm's attempts to improve its performance in this respect. Getting certification means that the company can send a message to companies around the world, who recognise this standard - currently, around ninety countries - regarding the quality that they can expect when dealing with the company. The standards for ISO 9000 deal with the following areas: 1. Quality management systems - establishing and monitoring the process whereby product and service quality are maintained. 2. Management responsibility- how the management establish, maintains, monitor and communicate its commitment to the standards. 3. Resource management - how the business provides the resources - both physical and human - to enable the standards to be met and maintained. 4. Product realisation requirements- how businesses establish and monitor quality from concept to final product or service delivery. 5. Measurement, analysis and improvement requirements- how businesses use data to monitor their quality control and how this data is used to improve quality provision. The philosophy of quality managment is still one that drives many businesses as they seek to find ways by which, in an increasingly competitive global market, they can gain some form of competitive advantage or add value to their business. ISO14000 - Introduction After the success of the ISO9000 series of quality standards, the International Standards Organisation has completed and published a comprehensive set of standards for environmental management. This series of standards is designed to cover the whole area of environmental issues for organisations in the global market place.
What are some of the benefits of having an ISO EMS? Some of the most commonly cited benefits of an ISO 14001 EMS are: •
• • •
Improved perception of the key environmental issues by their employees and a better (greener) public image of the organisation. An increase in the efficiency and use of energy and raw materials. Improved ability to achieve compliance with environmental regulations. Dependence on a system rather than just the experience and capabilities of an individual to manage the environmental function of an organisation. 3.12 History of Development.
The ISO 14000 series emerged primarily as a result of the Uruguay round of the GATT negotiations and the Rio Summit on the Environment held in 1992. While GATT concentrates on the need to reduce nontariff barriers to trade, the Rio Summit generated a commitment to protection of the environment across the world. The environmental field has seen a steady growth of national and regional standards. The British Standards Institution has BS 7750, the Canadian Standards Association has environmental management, auditing, eco-labelling and other standards, the European Union has all of these plus the eco-management and audit regulations, and many other countries (e.g. USA, Germany and Japan) have introduced ecolabelling programs. After the rapid acceptance of ISO 9000 and the increase of environmental standards around the world, ISO assessed the need for international environmental management standards. They formed the Strategic Advisory Group on the Environment (SAGE) in 1991, to consider whether such standards could serve to: SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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Promote a common approach to environmental management similar to quality management. Enhance organisations' ability to attain and measure improvements in environmental performance. Facilitate trade and remove trade barriers.
In 1992, SAGE's recommendations created a new committee, TC 207, for international environmental management standards. The committee and its sub-committees include representatives from industry, standards organisations, government and environmental organisations from many countries. The new series of ISO14000 standards are designed to cover: • • • • • •
Environmental management systems. Environmental auditing. Environmental performance evaluation. Environmental labelling. Life-cycle assessment. Environmental aspects in product standards.
Why have these standards? A set of international standards brings a world-wide focus to the environment, encouraging a cleaner, safer, healthier world for us all. The existence of the standards allows organisations to focus environmental efforts against internationally-accepted criteria. At present, many countries and regional groupings are generating their own requirements for environmental issues and these vary between the groups. A single standard will ensure that there are no conflicts between regional interpretations of good environmental practice. The fact that companies may need environmental management certification to compete in the global marketplace could easily overshadow all ethical reasons for environmental management. Within Europe, many organisations gained ISO9000 Registration primarily to meet growing demands from customers. ISO 9000 quality registration has become necessary to do business in many areas of commerce. Similarly, the ISO 14000 management system registration may become the primary requirement for doing business in many regions or industries. To whom do the standards apply? The standards apply to all types and sizes of organisations and are designed to encompass diverse geographical, cultural and social conditions. For ISO14001, except for committing to continual improvement and compliance with applicable legislation and regulations, the standard does not establish absolute requirements for environmental performance. Many organisations engaged in similar activities may have widely different environmental management systems and performance, and may all comply with ISO14001 . To what do the standards apply? This is primarily for the company to decide and to clearly document the extent of coverage. However, limiting coverage to a small area may provide competitors with an ideal marketing opportunity. There does not appear to be a limit to the coverage of the environmental management system in that it can include the organisation's products, services, activities, operations, facilities, transportation, etc. From a slightly different viewpoint, all of the elements in the previous sentence should be considered for environmental impact resulting from current practices, past practices and future practices and should further be reviewed for their impact under normal, abnormal and emergency conditions. What does the ISO 14000 Series cover? The best way to answer this question is to provide a list of the proposed standards: SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.12 History of Development. Standard
Title / Description
14000
Guide to Environmental Management Principles, Systems and Supporting Techniques.
14001
Environmental Management Systems - Specification with Guidance for Use.
14010
Guidelines for Environmental Auditing - General Principles of Environmental Auditing.
14011
Guidelines for Environmental Auditing - Audit Procedures Part 1: Auditing of Environmental Management Systems.
14012
Guidelines for Environmental Auditing - Qualification Criteria for Environmental Auditors.
14013/15
Guidelines for Environmental Auditing - Audit Programmes, Reviews & Assessments.
14020/23
Environmental Labelling.
14024
Environmental Labelling - Practitioner Programmes - Guiding Principles, Practices and Certification Procedures of Multiple Criteria Programmes.
14031/32
Guidelines on Environmental Performance Evaluation.
14040/43
Life Cycle Assessment General Principles and Practices.
14050
Glossary.
14060
Guide for the Inclusion of Environmental Aspects in Product Standards.
General Description of ISO14001. ISO14001 requires an Environmental Policy to be in existence within the organisation, fully supported by senior management and outlining the policies of the company, not only to the staff but to the public. The policy needs to clarify compliance with environmental legislation that may affect the organisation and stress a commitment to continuous improvement. Emphasis has been placed on policy as this provides the direction for the remainder of the management system. Those companies who have witnessed ISO9000 Assessments will know that the policy is frequently discussed during the assessment; many staff are asked if they understand or are aware of the policy and any problems associated with the policy are seldom serious. The environmental policy is different; this provides the initial foundation and direction for the management system and will be more stringently reviewed than a similar ISO9000 policy. The statement must be publicised in non-technical language so that it can be understood by the majority of readers. It should relate to the sites within the organisation encompassed by the Management System, it should provide an overview of the company's activities on the site and a description of those activities. The preparatory review and definition of the organisation's environmental effects is not part of an ISO14001 Assessment; however, examination of these data will provide an external audit with a wealth of information on the methods adopted by the company. The preparatory review itself should be comprehensive in consideration of input processes and output at the site. This review should be designed to identify all relevant environmental aspects that may arise from existence on the site. These may relate to current operations, they may relate to future - perhaps even unplanned - activities, and they will certainly relate to the activities performed on site in the past (i.e. contamination of land). SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.12 History of Development. The initial or preparatory review will also include a wide-ranging consideration of the legislation which may affect the site, whether it is currently being complied with and perhaps even whether copies of the legislation are available. Many of the environmental assessments undertaken already have highlighted that companies are often unaware of ALL of the legislation that affects them and - being unaware - are often not meeting the requirements of that legislation. The company will declare its primary environmental objectives, those that can have most environmental impact. In order to gain most benefit, these will become the primary areas of consideration within the improvement process, and the company's environmental programme. The programme will be the plan to achieve specific goals or targets along the route to a specific goal and describe the means to reach those objectives such that they are real and achievable. The environmental management system provides further detail on the environmental programme. The EMS establishes procedures, work instructions and controls to ensure that implementation of the policy and achievement of the targets can become a reality. Communication is a vital factor, enabling people in the organisation to be aware of their responsibilities, aware of the objectives of the scheme and to contribute to its success. As with ISO9000, the environmental management system requires a planned comprehensive periodic audit of the environmental management system to ensure that it is effective in operation, is meeting specified goals and the system continues to perform in accordance with relevant regulations and standards. The audits are designed to provide additional information in order to exercise effective management of the system, providing information on practices which differ from the current procedures or offer an opportunity for improvement. In addition to audit, there is a requirement for management review of the system to ensure that it is suitable (for the organisation and the objectives) and effective in operation. The management review is the ideal forum to make decisions on how to improve for the future. 3.13 Video: Safety Management Systems. Please wait for the video to buffer before pressing play. Alternatively you can download the video to watch at your convenience. Download Video 3.14 Guidelines on Occupational Safety and Health Management Systems, ILO-OSH, 2001. Adapted from Guidelines on Occupational Safety and Health Management Systems, ILO-OSH, 2001.
Note that the basic parts are very similar to HSG65 and OHSAS 18001 in concept. It is intended that the safety management system should be compatible with - or integrated into - other management systems within the organisation.
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3.14 Guidelines on Occupational Safety and Health Management Systems, ILO-OSH, 2001.
1. Policy. Developed in consultation with workers, this should be signed by a senior member of the organisation. It should commit the organisation to protecting the health and safety of employees, compliance with applicable laws and guidance, consultation with employees and their participation and continuous improvement. The guidance stresses very forcefully the importance of employee consultation and participation in all elements of the safety management system for it to be effective. As such, the ILO-OSH guidelines highly recommend the establishment of a health and safety committee and the recognition of safety representatives. 2. Organising. Whilst the employer retains overall responsibility for H&S, specific roles should be delegated/allocated throughout the organisation. This includes delegation of responsibility, accountability and authority. The structure and processes need to be in place to, amongst other things: •
• • •
Actively promote co-operation and effective two-way communication in order to implement the safety management system. Establish arrangements to identify and control workplace risks. Provide supervision. Provide adequate resources, etc.
Particularly recommended is the appointment of a senior individual for overseeing the development and maintenance of the OSH management system elements as a whole, promoting participation and periodic performance reporting. Competence and training are stressed as key elements needed to implement such a programme. OSH management system documentation (policy, objectives, key roles/responsibilities, significant hazards and methods of prevention/control, procedures, etc.) should be created and maintained. Additionally, records should be kept, e.g. accident data, health surveillance, other monitoring data. 3. Planning and Implementation. This should start with an initial review to understand where the organisation sits currently. It should: • • •
Identify applicable laws, standards, guidelines. Assess H&S risks to the organisation. Determine whether existing (or planned) controls are adequate.
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3.14 Guidelines on Occupational Safety and Health Management Systems, ILO-OSH, 2001. •
Analyse health surveillance data.
This initial review provides the baseline for future continuous improvement. The next stage is the planning, development and implementation of the safety management system (based on the results of initial or subsequent reviews). This should involve the setting of realistic, achievable objectives and the creation of a plan to meet those objectives. It should also involve selecting appropriate measurement criteria which will later be used to see if the objectives have been met and help with the allocation of resources. Preventative and protective measures should be planned and implemented to eliminate and/or control risks to H&S. These should follow the general hierarchy of control: • • • •
Eliminate. Control at source (using engineering and organisational measures). Minimise (safe systems of work, including administrative controls). PPE if risks cannot be adequately controlled by collective measures.
Management of change is also important. Changes may occur internally (new processes, staff, etc.) as well as externally (legal changes, mergers, etc.) and it is important to manage those changes in a systematic way. Risk assessment is a key part of that, as well as ensuring that people are consulted and that any proposed changes are properly communicated to those likely to be affected. Plans should also cover foreseeable emergencies (prevention, preparedness and response aspects), such as fire and first aid. Procurement procedures should make sure that H&S requirements (national and organisational) are an integral part of purchasing and leasing specifications. You should also ensure that the organisation's H&S requirements are applied to contractors (including contractor selection and their work on site - hazard awareness, training, co-ordination and communication, accident reporting, site rules, compliance monitoring, etc.). 4. Evaluation. Procedures need to be in place to monitor, measure and record performance of the H&S system. You should use a mixture of qualitative and quantitative and active and reactive performance measures. You should not just rely on accident rate data. Active monitoring includes things such as inspections, surveillance, compliance with laws, achievement of plans, etc. Reactive monitoring includes reporting and investigation of accidents/ill-health and OSH system failures. Accidents, etc. should be properly investigated to determine the root cause failures in the OHS management system. Investigations should be properly documented and remedial action implemented to prevent recurrence. The organisation should have an audit policy (scope, competency, frequency, methodology, etc.). Audits seek to evaluate the performance of the OHS management system elements (or a sub-set) and should at least cover: • • • • • • • • • • •
Policy. Worker participation. Responsibility/accountability. Competence and training. Documentation. Communication. Planning, development, implementation. Preventative and control measures. Management of change. Emergency preparedness. Procurement.
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3.14 Guidelines on Occupational Safety and Health Management Systems, ILO-OSH, 2001. • • • • • • •
Contracting. Performance monitoring/measurement. Accident investigations. Audits. Management review. Preventative and corrective action. Continuous improvement.
The audit should ultimately make conclusions about the effectiveness of the OHS management system. A management review should evaluate the overall OHS management system and progress towards the organisation's goals. It will, of course, use data from monitoring, measuring and auditing of the system as well as take account of other factors (including organisational changes) that may influence the system in the future. It will establish whether changes are needed to the system (or components). The results need to be recorded and communicated. 5. Action for Improvement. OSH management system performance monitoring, audits and management reviews will necessarily create a list of corrective actions. You must ensure that firstly, you establish the root causes of the problems requiring correction and secondly, that there is a system in place for making sure that actions are carried out (and checks made on their effectiveness). 6. Continual Improvement. The organisation should strive continually to improve. It should compare itself with other similar organisations. 3.14.1 Video: ISO 14000. Please wait for the video to buffer before pressing play. Alternatively you can download the video to watch at your convenience. Download Video 3.15 AS/NZS 4360 Risk Management Standard. The steps involved in managing risk. A. Establish Goals and Context. As outlined in the Risk Management process, the risk assessment is undertaken within the context of your goals. The identification / validation of your goals is therefore a critical first step in the risk management process.
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3.15 AS/NZS 4360 Risk Management Standard.
Effective risk management requires a thorough understanding of the context in which your Department or Agency operates. The analysis of this operating environment enables you to define the parameters within which the risks to your outputs need to be managed. The context sets the scope for the risk management process. The context includes strategic, organisational and risk management considerations. According to the Standard, strategic context defines the relationship between the organisation and its environment. Factors that influence the relationship include financial, operational, competitive, political (public perceptions / image), social, client, cultural and legal. The definition of the relationships is usually communicated through frameworks such as the SWOT (strengths, weaknesses, opportunities and threats) and PEST (Political, Economic, Societal, and Technological). The organisational context provides an understanding of the organisation, its capability and goals, objectives and strategies. • • • •
According to the Standard, organisational context is important because: Risk management occurs within the context of endeavouring to achieve the goals and objectives. Failure to achieve the objectives is one set of risks that need to be managed. The goals and strategies assist to define whether a risk is acceptable or unacceptable.
The risk management context defines that part of the organisation (goals, objectives, or project) to which the risk management process is to be applied. B. Identify risks. Identify the risks most likely to impact on your outputs, together with their sources and impacts. It is important to be rigorous in the identification of sources and impacts as the risk treatment strategies will be directed to sources (preventative) and impacts (reactive). C. Analyse risks. Identify the controls (currently in place) that deal with the identified risks and assess their effectiveness. Based on this assessment, analyse the risks in terms of likelihood and consequence. SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.15 AS/NZS 4360 Risk Management Standard. D. Evaluate risks. This stage of the risk assessment process determines whether the risks are acceptable or unacceptable. This decision is made by the person with the appropriate authority. A risk that is determined as acceptable should be monitored and periodically reviewed to ensure it remains acceptable. A risk deemed unacceptable should be treated (see below). In all cases, the reasons for the assessment should be documented to provide a record of the thinking that led to the decisions. Such documentation will provide a useful context for future risk assessment. E. Determine the treatments for the risks. Treatment strategies will be directed towards: •
• • • •
Avoiding the risk by discontinuing the activity that generates it, (rarely an option when providing services to the public). Reducing the likelihood of the occurrence. Reducing the consequences of the occurrence. Transferring the risk. Retaining the risk.
Potential treatment options are developed according to the selected treatment strategy. The selection of the preferred treatment options takes into account factors such as the costs and effectiveness. The determination of the preferred treatments also includes the documentation of implementation details (e.g. responsibilities, a timetable for implementation and monitoring requirements). The intention of these risk treatments is to reduce the risk level of unacceptable risks to an acceptable level (ie: the target risk level). F. Monitor and report on the effectiveness of risk treatments. The relevant manager is required to monitor the effectiveness of risk treatments and has the responsibility to identify new risks as they arise and treat them accordingly. Managers are also required to report on the progress of risk treatments at regular intervals. The person who has the responsibility for a risk treatment is expected to provide feedback on the progress of the 'project / initiative' as detailed in the 'monitoring' field of the treatment. 3.16 CHASE Audit and Evaluation System. Monitoring, which includes active monitoring by line managers and independent auditing, is now widely accepted as an essential tool in the management of health and safety, environmental issues and other areas of loss, such as quality and security. CHASE began in the 1980s as a set of audit manuals followed by MS-DOS computer versions and is now available in the popular Windows format with the option of using a hand-held device for collecting the data.. Originally designed for health and safety, the CHASE (Complete Health And Safety Evaluation) system is designed around good management practices. In the UK, such a system is described in Successful Health and Safety Management (HSG65) from the HSE and BS 8800 from BSI, or the OHSAS 18001 standard. In terms of BS 8800, CHASE fits into both the Measuring and Auditing aspects of the model, which is shown below, while in OHSAS 18001, CHASE fits in to Checking and Corrective Action.
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3.16 CHASE Audit and Evaluation System.
Key Features: •
•
• • • • •
•
Originally designed for health and safety, CHASE is used for any type of loss control Environmental, Quality, Food Hygiene, etc. CHASE is designed to be flexible so you use it to monitor your performance against your standards - edit or create your own questions to make it specific to your organisation. Create and follow up recommendations and actions plans. Monitor performance over time. Built-in evaluation and audit scheduling. CHASE enables managers to extract useful information from audit and monitoring data. Line managers can perform their own self-assessments, backed up with external verification by independent auditors. CHASE is easy to use and cost-effective. Question 6.
Which of the following are the benefits of a formal Health and Safety Management system? There may be more than 1 correct answer! Question 7. Time spent on improving an organisation's health and safety could provide a financial return in terms of: 3.17 Summary of Key Elements of OHS Management Systems. Common features include: •
•
•
Policy. This is the same for OHSAS, ILO-OSH, HSG65 and BS8800. Organising. This is the same for HSG65, BS8800 and ILO-OSH. For OHSAS, this is part of the "Implementation and Operation" step. Planning and Implementing. This is the same for HSG65, BS8800 and ILO-OSH. For OHSAS, Planning is broken out as a separate step (after Policy) but Implementing is covered under "Implementation and Operation".
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3.17 Summary of Key Elements of OHS Management Systems. •
•
•
Performance Review. HSG65 and BS8800 cover this under "Measuring Performance" and "Reviewing Performance" or "Initial/Periodic Status Review". ILO-OSH covers this under "Evaluation". OHSAS covers this under "Checking and Corrective Action" and "Management Review". Audit. This is part of HSG65, BS8800, ILO-OSH and OHSAS and is usually discussed in the section on reviewing/evaluating performance of the system as a whole. Continuous Improvement. Discussed in HSG65 and BS8800 as a feedback loop resulting from reviewing performance corrective actions being fed back up the system to improve the system as a whole in an iterative process. The implication, therefore, is that improvement is continuous. ILO-OSH mentions this as a separate point, but again it naturally falls out of the management review as part of the "Evaluation" step and the "Action for Improvement" step. OHSAS does not identify this as a separate point (other than in their system flow diagram), but the practical arrangements for continual improvement (e.g. corrective actions, etc.) are discussed throughout the OHSAS document. Through Monitor and Review, the AS/NZS 4360 Risk Management Standard has a continuous improvement step and also it also makes sure that you take account of changes of circumstances to keep your systems up to date. 3.18 Benefits & Limitations of Integration of Management Systems.
Many organisations have adopted the use of internationally recognized management System standards such as ISO 9001, ISO 14001, OHSAS 18001 and others. These systems have in most cases been established and implemented as stand -alone programs. However organisations soon find that they have two, three, or more management systems to maintain, with each one being allocated separate management, administrative and operational resources. Organizations that have more than one formal management system have found that they can benefit significantly by merging all their systems into one 'business management' system, where the quality (QMS), environmental (EMS), occupational health & safety (OH&SMS), and any sector specific management systems are fully harmonized, and work seamlessly in conjunction with the business planning, HR, finance, procurement, administration, operations, audit, management review and other systems. Benefits. The benefits of integration include: Simplified systems, optimized resources and a common framework for continual improvement. There are similarities between the quality, environmental and OHS programs. And although they have different target audiences, their structure and approaches to regulatory compliance and similar. Employees working for an organisation with an integrated management system can perform their jobs using one set of work instructions rather than multiple, sometimes conflicting documents from different management systems. A single training process for new employees minimises contradiction. Areas can be identified where there may be overlapping responsibilities or duplication of effort. Reducing the amount of documentation and providing all relevant information in one place, results in happier employees who are not overwhelmed by multiple cross-references. The following processes are common among quality, environmental and OHS systems and can likely be integrated into one process that meets business needs: • • • •
Document control. Record control. Management review. Employee training.
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3.18 Benefits & Limitations of Integration of Management Systems. • • • • • • • •
Design and development control. Operational controls. Measuring and monitoring device control. Equipment maintenance. Purchasing. Corrective action. Preventive action. Internal audits.
An established framework for continual improvement of quality, environmental and OHS systems. Management not only establishes goals and objectives for quality, environmental and OHS systems, but it also reviews them at regular intervals to ensure progress is being made. Management also identifies opportunities for improvement. A formal corrective and preventive action system identifies ways to improve the system and ensures all actions are verified as being effective before they are closed out. Integrated Management System reviews can help ensure each element develops at the same rate. In contrast, independent systems could develop at different rates, leading to incompatibility. Facilitating better decision making by providing a more complete view of the impact of the quality, environmental and occupational health & safety programs on business performance. Improvement in organisational performance. A formal system that helps identify potential problems, risks or hazards can reduce or eliminate customer complaints, product nonconformities, accidents, illnesses or environmental incidents in the workplace. This can also reduce costs associated with environmental cleanups, workplace injuries, illnesses, fatalities and fines form regulatory compliance organisations. Raising awareness of, and promoting the interaction and interrelation of Quality, Environmental, and Health & Safety systems with the company's operational and business processes which eliminates the idea that quality, environment and safety are separate or nonessential parts of the business. Bringing together expertise in each discipline to address specific issues. This would promote the exchange of fruitful initiatives (e.g. employee and supply chain surveys) and techniques (e.g. risk assessment and problem-solving methodologies) between the disciplines. Also, the specialists when working together are likely to arrive at optimum solutions that take fully into account the needs of each discipline. Limitations. There are also limitations to integration, these include the following: The existing systems may simply work well. A process of integration could threaten the coherence and consistency of current arrangements that have the support of everyone involved. There can be a tendency to develop over documented, bureaucratic processes. This is true f or single management systems and increases for systems intended to meet the requirements of multiple standards. Organizations tend to write lengthy, complex procedures and work instructions that gather dust because they are rarely used. This causes employees to grumble about "the bureaucratic management system that doesn't let us do our business." Time factors. The time during which you are planning and implementing an integrated system is a period of organisational vulnerability. Existing procedures may lapse, or be f ound wanting, at the moment when key personnel are focusing attention on the development of new systems. Auditing all elements of an IMS at the same time requires an audit team competent in all aspects of the system and may be time-consuming and demanding for the auditee. Rivalries of resource allocation may impair the collective operation of an integrated system. If a quality management system already exists, environmental and OHS professionals often resist tacking their requirements onto the existing quality system. Likewise, quality professionals often resist "contaminating" the system with requirements that do not relate to the quality of the product. Limits on degree of integration. ISO 14001:1996 and OHSAS 18001:1999 are highly compatible SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.18 Benefits & Limitations of Integration of Management Systems. and can be readily integrated. However, some Occupational Health and Safety and Environmental Management System requirements do not easily integrate with existing quality systems. For example, aspect identification and significance determination, as well as legal and other requirements, do not readily fit with an existing quality management system, as health and safety and environmental management are underpinned by UK statute, while quality management system requirements are largely determined by customer specification. International recognition. BS EN ISO environment and quality management standards are internationally recognised and certificatable, but the OHSAS 18001 Occupational health and safety management systems - specification, though certificatable, is not internationally recognised. This may distort the coherence of these systems. 3.19 Corporate Responsibility Standards. Recent years have seen increasing demand for companies to operate in an environmentally and socially responsible manner - accompanied by a proliferation of voluntary standards, codes and principles aimed at guiding companies towards the objective of sustainable development. Business appreciates clear rules, but the plethora of standards can be confusing. • • •
So which are most appropriate? Which are most legitimate? And which are likely to have the greatest sustainability impact?
This unit does not give an exhaustive list or appraisal of standards, but rather highlights some of the key considerations that can help a company to identify the most appropriate for its needs. Key considerations are likely to include, but not be limited to, the following questions: • • •
What business objectives need to be met by the standard? How tailored does the standard need to be? Specifically, does the standard need to focus on a particular country, sector or issue?
These considerations are discussed in more detail below and summarised in Table 1. There are, in total, ten major global standards: • • • • • • • • • •
AA1000. Business Principles for Countering Bribery. Global Compact. Global Reporting Initiative. ISO 14001. Millennium Development Goals (MDGs). OECD Guidelines for MNEs. OECD Principles on Corporate Governance. SA8000. UN Norms on the Responsibilities of TNCs and Other Business Enterprises with Regard to Human Rights.
Consideration 1: What business objectives need to be met by the standard? •
•
Is the aim to establish a baseline or reach for the sky? Does the company want to ensure that its activities meet a minimum acceptable benchmark or is the focus on pursuing best practice and setting aspirational goals? Some standards provide a minimum baseline - such as ISO14001 and SA8000 - while others, like the Millennium Development Goals, are longer term, visionary commitments. Are questions of credibility and internal or external assurance & certification relevant?
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3.19 Corporate Responsibility Standards. If the company is primarily interested in strengthening internal processes, then the content of the standard will be the key consideration. If building trust and credibility with stakeholders is a primary motivator, then certification or some form of assurance will also be important, although this can involve considerable effort and cost. In addition, the most broadly credible standards tend to be those that are tried and tested and where a range of stakeholders were involved in the standard's initial development. Consideration 2: How tailored does the standard need to be? •
•
Should it be an externally developed standard or one that is tailored to the company? The company may want to adopt an existing standard developed by a multi-lateral organisation, NGO or other third-party group, such as the Global Reporting Initiative (GRI). Alternatively, it could develop its own company-specific standard or code of conduct, supported by its own assurance process, stakeholder engagement or external review, such as Shell's General Statement of Business Principles or the Gap Code of Vendor Conduct. Should the standard provide a general framework, guide processes or specify actions and impacts against which the company must deliver? Some standards are quite general - such as the UN Global Compact - and can be developed to underlie and inform decision-making. These principles are about framing a spirit and rule of behaviour to help employees resolve particular dilemmas or choices. Other standards like the GRI or ISO 14001 are more specific about actions but focus on processes like reporting or environmental management systems, without being prescriptive about outcomes. A third group require a particular performance or impact. For instance, the OECD Guidelines for MNEs or the draft UN Norms on human rights tend to be more specific on acceptable behaviour.
Consideration 3: Should the standard apply to a specific country, sector or issue? A given company may want to choose a standard that provides more in-depth guidance relating to a particular sector, country and/or issue. Some examples are as follows: •
•
•
Country specific. Certain countries have evolved their own standards or charters for acceptable practice in the corporate sector. For instance, the King Report on Corporate Governance in South Africa is highly esteemed, and Japan has its Nippon Keidanren Charter of Corporate Behaviour. Sector specific. Particular sectors may also have evolved their own codes, such as the Equator Principles in the finance sector. However, some of these are less highly regarded than others. For instance, the chemical industry's Responsible Care initiative is typically perceived as rather minimalist and baseline. Issue specific. Specific codes are also available for specific issue areas, for instance ISO 14001 relates specifically to environmental management systems, SA8000 to labour standards and OECD Principles on Corporate Governance to issues of corporate governance.
Table 1, at the end of this page, aims to capture these headline considerations, likely options and examples of where decisions might lead. Implementation. In reality, most companies will need a portfolio of standards to satisfy a range of objectives - some of which will be subject to external assurance and stakeholder review, and some of which will not. Actual implementation of any particular standard can be challenging, as those that look good on paper may sometimes be less helpful in practice. Some questions to consider on this front might include: SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.19 Corporate Responsibility Standards. 1. How clear - or complex - is the standard? 2. Is it written specifically with business in mind or is significant interpretation required? 3. How much guidance is provided? This may be written directly into the standard, e.g. within the Business Principles for Countering Bribery, or may be in the form of additional primers, guides and case studies, e.g. the Global Compact learning forum.
Consideration.
Options.
Examples.
Establish a baseline.
ISO 14001. SA8000.
Reach for the 1. What business objectives need sky. to be met?
Millennuum Development Goals.
Seek certification or Secure extrernal assurance where available credibility. and / or develop bespoke stakeholder review.
2. Should it be company-specific or not, and provide a general framework or action-oriented guidance?
Companyspecific.
Gap Code of Vendor Conduct Shell Business Principles.
Provide a general framework.
Millennium Development Goals. UN Global Compact.
Guide management processes.
Global Reporting Initiative ISO 14001.
Specify performance
UN Norms on human rights (draft). OECD Guidelines for MNEs.
Country specify.
King Report on Governance in South Africa.
3. Do particular countries, sectors Sector specify. or issues need to be borne in mind? Issue specify.
Equator Principles (for finance). Responsible Care (for chemicals). OECD Principles on Corporate Governance.
3.20 SA8000. An SA8000 certificate proves that your social accountability system has been measured against a best SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.20 SA8000. practice standard and found compliant. Issued by a third party certification body/registrar, the certificate lets customers know they can trust that you have implemented the necessary internal processes to ensure basic human rights for your employees. SA8000 is based on a number of existing international human rights' standards including the United Nation's Universal Declaration of Human Rights and the UN Convention on the Rights of the Child. SA8000 is a comprehensive, global, verifiable standard for auditing and certifying compliance with corporate responsibility. It is applicable to both small and large companies that want to demonstrate to customers and other stakeholders that they care. The heart of the standard is the belief that all workplaces should be managed in such a manner that basic human rights are supported and that management is prepared to accept accountability for this. An international perspective. The standard was initiated by Social Accountability International (SAI). SAI is a non-profit organisation dedicated to the development, implementation and oversight of voluntary verifiable social accountability standards. The SA8000 system is modelled after the established ISO 9001 and ISO 14001 standards for quality and environmental management systems. The standard was developed and field-tested by the non-profit Council on Economic Priorities (CEP), and assisted by an international advisory board including representatives of prominent corporations, human rights organisations, certification professionals, academics and labour. SAI has accredited a few certification bodies/registrars to audit and issue accredited certificates. Incorporating international labour rights. The standard is based on a number of existing international human rights' standards including the United Nation's Universal Declaration of Human Rights and the UN Convention on the Rights of the Child. SA8000 provides transparent, measurable, verifiable standards for certifying the performance of companies in nine essential areas: 1. Child Labour. Prohibits child labour (under age 15 in most cases). Certified companies must also allocate funds for the education of children who might lose jobs as a result of this standard. 2. Forced Labour. Workers cannot be required to surrender their identity papers or pay "deposits" as a condition of employment. 3. Health and Safety. Companies must meet basic standards for a safe and healthy working environment, including drinkable water, restroom facilities, applicable safety equipment, and necessary training. 4. Freedom of Association. Protects the rights of workers to form and join trade unions and to bargain collectively, without fear of reprisals. 5. Discrimination. No discrimination on the basis of race, caste, national origin, religion, disability, gender, sexual orientation, union membership, or political affiliation. 6. Disciplinary Practices. Forbids corporal punishment, mental or physical coercion and verbal abuse of workers. 7. Working Hours. Provides for a maximum 48-hour work week, with a minimum one day off per week, and a cap of 12 hours overtime per week, remunerated at a premium rate. 8. Compensation. Wages paid must meet all minimum legal standards and provide sufficient income for basic needs, with at least some discretionary income. 9. Management. SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.20 SA8000. Defines procedures for effective management implementation and review of SA8000 compliance, from designating responsible personnel to keeping records, addressing concerns and taking corrective actions. 3.21 ISO 26000. ISO, the International Organisation for Standardisation, launched an International Standard providing guidelines for social responsibility (SR). The guidance standard was published in 2010 as ISO 26000 and is voluntary to use. It does not include requirements and is not a certification standard. There is a range of different opinions as to the right approach, ranging from strict legislation at one end to complete freedom at the other. A middle way that promotes respect and responsibility based on known reference documents without stifling creativity and development is the ideal. The standard aims to encourage voluntary commitment to social responsibility and leads to a common guidance on concepts, definitions and methods of evaluation. The need for organisations in both public and private sectors to behave in a socially responsible way is becoming a generalised requirement of society. It is shared by the stakeholder groups that encouraged participating in the WG SR to develop ISO 26000: industry, government, labour, consumers, nongovernmental organisations and others, in addition to geographical and gender-based balance. The ISO Working Group on Social Responsibility (WG SR) were given the task of drafting the International Standard for social responsibility that was published in 2010 as ISO 26000. 3.22 The Influence of the Turnbull Report on Health & Safety Management. Headline requirements. There are four basic requirements within the Report, which can be summarised as follows: 1. 2. 3. 4.
The maintenance of a sound system of internal control. Regular review of the effectiveness of the system of internal control. An annual statement on the effectiveness of the system of internal control. An annual review of the effectiveness of internal audit, or the need for internal audit if there is no such function.
The important thing to remember is that all four requirements are the responsibility of the board of directors. Whilst there is some leeway for delegation of certain aspects to board committees, it is made very clear that those committees must report to the board, which retains overall responsibility. 3.23 Maintaining a Sound System of Internal Control. The board is responsible for setting appropriate policies within which the internal control system will be framed. Such policies should take account of the risks faced by the company, the control of the risks and the cost/benefit of the controls identified. The control system should be embedded and responsive; it should include procedures for reporting failures and weaknesses, together with the corrective action taken. The report stresses that while a sound system will provide reasonable assurance, it will not provide SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.23 Maintaining a Sound System of Internal Control. absolute protection. So, what are the components of a sound system of internal control? According to Turnbull, they include: 1. Control activities. 2. Information and communications. 3. Procedures to monitor ongoing effectiveness. Looking at the components in more practical terms, the following list would provide companies with the basis for a sound system: 1. A board procedures manual. 2. A manual of delegated authorities and mandates. 3. Board and committee terms of reference. 4. An organisation chart. 5. Job descriptions for all staff members. 6. A documented strategic plan. 7. Timely, relevant and reliable management information. 8. A formal briefing process for staff. 9. Procedure manuals for every process. 10. A controls manual. 11. A control certification procedure. 12. An ongoing process for the identification and assessment of risks. For some organisations, each of the above might represent a significant document in its own right, whilst for others, all of the procedural and control matters might be contained within one document. It all depends on the size and complexity of the undertaking. What is important is to recognise that they all become out-of-date very quickly and once they are out-ofdate, they are only good for one thing: providing proof positive that the internal control system is not effective. Clearly, it is essential that each of the above components be monitored in such a way that the board can have confidence in the process. Each component must be regularly reviewed in detail; both for relevance and effectiveness. The responsibility for such reviews must be delegated to a specific member of the management team. It is equally essential that the outcome of each review should be reported to the board and that the directors have the opportunity to discuss each subject fully and obtain the explanations they consider necessary before approving any changes to the system. It would be advisable for the Board Procedures Manual or the Terms of Reference to contain a timetable for dealing with the above reviews, in order to ensure that they are included in the appropriate agendas. 3.24 Regular Review of Effectiveness. You might be forgiven for thinking that this subject has already been covered, given the repeated use of the word 'review', but this is not the case. The reviews referred to above are all concerned with maintaining a sound system, rather than assessing the effectiveness of such a system. First, consider the word regular in the context of board (or board committee) reviews. In large companies, it is likely that boards will meet monthly, but it would surely be too much to expect them to review the effectiveness of the internal control system at each meeting? After all, they do have the business of running the company to worry about.
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3.24 Regular Review of Effectiveness. Whilst it is for the board to define the scope, form and frequency of its reviews, it is management that must provide the necessary reports. Turnbull stresses the need for openness and a balanced assessment of the system and the significant risks faced by the company. It is particularly important the board receives full and frank reports on failings and weaknesses in the system, dealing with the impact of events and indicating remedial action taken. Whenever the board does become aware of a significant failing or weakness, it should establish the cause and ensure that the system, including the monitoring processes included within, is properly re-assessed to take account of the shortcoming. Once a year, the board's review will take the form of an annual assessment, which will form the basis on which it makes its annual statement on internal control in the report and accounts. The board should, during this review, consider the following: 1. Changes in the nature and extent of significant risks facing the company and its ability to respond. 2. The scope and quality of monitoring processes and the work of internal audit. 3. The extent and frequency of reports to the board/committees and the incidence and effect of significant failures/weaknesses. 4. The effectiveness of the processes for public reporting. In order to perform its annual assessment properly, the board will also need to take account of matters arising during the previous reviews. 3.25 The Board's Statement. Now let's move on to the annual statement required of the board in the report and accounts. There is a minimum requirement that the statement should disclose that there is an ongoing process to identify, assess and manage significant risks, which has been in place for the whole of the financial year under review and up to the date of approval of the accounts, that it is regularly reviewed by the board and that it accords with the guidance given in the Turnbull Report. In addition to the above, the board should summarise the way in which it, or its committees, have reviewed the effectiveness of the internal control system and disclose how it has dealt with the internal control aspects of any significant problems disclosed in the annual report and accounts. If the board cannot make any of the statements referred to above, it must state that this is the case and give explanations. Turnbull makes it clear that additional information, which will help readers to understand the internal control and risk management systems, may also be given. Overall, the statement must provide meaningful, high-level information and must not be misleading. 3.26 Internal Audit. Turnbull points out that the listing rules require, in cases where there is no internal audit function and the board has not reviewed the need for one, that this must be disclosed. In such cases, this disclosure needs to be added to those matters referred to in the previous section, dealing with the board's annual statement. The report recognises that not all companies are large, or complex enough to warrant an internal audit function (whether it be provided by an in-house department or outsourced). At the end of the day, the board must be satisfied that there are other monitoring processes providing adequate objective assurance that the internal control system is operating as intended. It is difficult to believe that such assurance could be effectively provided without some form of internal audit SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.26 Internal Audit. presence. So, where there is no internal audit function, the board must assess the need for one annually. In doing this, it should take into account: 1. 2. 3. 4.
Any increase, or the likelihood of an increase, in externally generated risks. Any changes to the internal functioning of the company that have, or are likely to, increase risk. Any adverse trends thrown up by the internal control system. Increased incidence of unexpected occurrences. 3.27 Key Elements of the Turnbull Report.
The disclosure requirements are: • • • •
The governing body acknowledges responsibility for the system of internal control. An ongoing process is in place for identifying, evaluating and managing the significant risks. An annual process is in place for reviewing the effectiveness of the system of internal control. There is a process to deal with the internal control aspects of any significant problems disclosed in the annual report and accounts.
The Turnbull report states that in assessing what constitutes a sound system of internal control, deliberations should include: • • • •
The nature and extent of the risks facing the organisation. The extent and categories of risk which it regards as acceptable. the likelihood of the risks concerned materialising. The organisation's ability to reduce the incidence and impact on the organisation of risks that do materialise.
The report also says that the system of internal control should: • • •
Be embedded in the operation of the organisation and form part of its culture. Be capable of responding quickly to evolving risks. Include procedures for reporting any significant control failings immediately to appropriate levels of management. In the HE sector, this needs extension to the governing body, where appropriate.
Size matters. It is worth pointing out, at the very start, that Turnbull recognises the problems that total compliance might cause to smaller, less complex companies and makes repeated reference to the need for judgement and a cost/benefit type approach by directors when assessing the appropriateness of the internal control system within their company. There is also discussion of the effective management of health and safety, including the appropriate allocation of resources and responsibilities, setting and monitoring performance standards and the establishment of systems for feedback and implementation of corrective action in order to minimise loss. Management Duties. The Health and Safety At Work Act (HASAWA) 1974 says that "it shall be the duty of every employer to ensure, so far as is reasonably practicable, the health, safety and welfare at work of all his employees". More recently, Regulation 4 of the Management of Health and Safety at Work (MHSW) Regulations 1999 lays down that every employer shall make arrangements for the "effective planning, organisation, control, monitoring and review of the preventive and protective measures". Safety management: employer duties and employee rights. A common problem faced by safety representatives is getting management to carry out their legal duties. SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.27 Key Elements of the Turnbull Report. The lack of a sound safety management system leads safety matters to be ignored or dealt with in an unacceptably ad-hoc fashion and allows managers to evade responsibility or explain away health and safety failures. Health and Safety Culture. A positive health and safety culture is important if you are to effectively manage the health and safety of your organisation. In reference to health and safety culture can you relate to the following: •
•
•
•
•
I recognise that the attitudes and decisions of senior managers are critical in setting the priorities of the organisation. My attitudes and those of my senior managers will impact on the styles of behaviour and priorities of those below us in the organisational hierarchy. If I think it is necessary I will organise training for myself or any of my managers so that we all understand this. A manager's role is not simply restricted to directing work and monitoring compliance with rules and regulations. Managers must act as leaders and facilitators: they must encourage suggestions, motivate their staff and engage with the workforce to solve health and safety problems. Senior Management must want to hear what is really happening, not what our managers think we want to hear. We should know where there are problems and where things could go wrong. Our staff must feel able to tell us this. When they do, we must work with them to find a solution. I want my staff to work safely and comply with the rules, but I also want them to show initiative and be proactive in improving health and safety. Employees play an important part in shaping the safety culture of the organisation. To do this I must engage with them and encourage joint involvement of supervisors with employees in safety activities, wherever possible. I make sure that health and safety is not viewed as a separate function, but as an integral part of productivity, competitiveness and profitability and that our health and safety risks are recognised as part of our business risks.
Leading by Example. Again, can you relate to the following key points: •
•
•
•
•
•
Whenever I discuss health and safety I make it clear that an exemplary health and safety performance is our aim and that we value the health and well-being of our workers, contractors, visitors and members of the public. Health and safety is on the agenda of any board or management meeting and the company routinely reports our health and safety performance as part of our commitment to corporate social responsibility. I expect health and safety to be on the agenda of management meetings at all levels in the company. Health and safety performance is an important element of performance reviews. Managers are accountable for the health and safety performance of their departments. They have specific and reasonable responsibilities. I ensure that my managers know we have adequate resources to carry out our work in a healthy and safe manner and that I do not tolerate 'corner cutting' on health and safety standards. I make sure they know that the health and safety policy, the major accident prevention policy or the company safety cases or reports are not just token documents but that I expect them to be implemented. I know we are able to measure our health and safety performance through useful and meaningful indicators. These measures compare our performance both internally over time, and also externally against others working with similar hazards. I set long-term goals for the control of major hazards and health and safety as I do for financial and production goals and have a plan to meet these. Every opportunity for learning is taken and used in our drive for continuous improvement. I meet the workforce regularly and discuss health and safety with them. I encourage staff to raise health and safety concerns and issues. I ensure a specific and timely response to each suggestion made. I know that individuals who raise issues or make suggestions are provided with positive feedback on their contribution and are informed personally of the actions taken as a result of their
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3.27 Key Elements of the Turnbull Report.
•
•
input. I am confident that contracts are awarded to companies who can demonstrate a good health and safety performance and who have a good understanding of the hazards they will encounter while working for us. I meet regularly with the managers of our contractors to review their health and safety performance against our clearly defined expectations and to consider how their activities can impact on our health and safety performance. All incidents and near misses are investigated fully to identify the underlying causes and follow up on the agreed action. While I acknowledge that people make mistakes, I do not accept accident investigation reports that identify 'human error' as the sole cause of an accident.
Systems. For your systems to support your health and safety objectives can you relate to the following points: •
•
•
•
•
•
•
•
•
I demonstrate that I understand where in our activities major accidents and incidents can occur and that suitable engineering/ technical and human controls are in place. This is not at the expense of conventional health and safety issues, but I understand that the control of major hazards is a priority. I am confident members of my staff are competent to carry out the tasks they are required to perform. Our competence management system identifies safety critical roles and tasks and these are routinely reviewed. I know we have developed key performance indicators for major hazards and that process safety performance is monitored and reported against these parameters. Our accident/incident investigation procedure ensures we consider all issues, including human factors. It ensures immediate, as well as underlying management-related causes are identified, without attributing blame, and that corrective action is taken to prevent the incident happening again. I will make sure that arrangements are in place to facilitate communication and enable people to discuss health and safety. I know my managers encourage the staff to be involved in making health and safety decisions wherever possible. Anyone can, when they perceive the need, intervene in the work process to prevent hazardous working and suggest safer methods. They are fully supported by me, their supervisors and line managers in this approach. I know that the technical integrity of my plant and equipment rests on good initial design, feedback from operations, thorough hazard studies, competent risk assessment and high standards of construction. I have systems that deal with all these issues. I know that the technical integrity of my existing plant and equipment rests on good maintenance plans and in carrying out maintenance to the highest standards. My systems reassure me that all these issues are under control and that they are independently audited. I know that many incidents result from poor control of organisational and technical change. I am confident the systems on which I rely are up-to-date and subject to monitoring and review. Our systems give me a comprehensive review of the company's performance, based on all sources of information including accidents, high potential incidents, verification of results and monitoring of the important performance standards. 3.28 Safety Policies.
Your health and safety policy statement is the starting point to managing health and safety in the workplace and sets out how you manage health and safety in your organisation. It is a unique document that shows who does what, and when and how they do it. The policy should be specific to your business, and should be clear about arrangements and organisation for health and safety at work. It should influence all your activities, including the selection of people, equipment and materials, the way work is done and how you design goods and services. SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.28 Safety Policies.
A written statement of the policy and the organisation and arrangements for implementing and monitoring it shows your staff, and anyone else, that hazards have been identified and risks assessed, eliminated or controlled. When you draw up or review your policy, you should discuss it with your employees or their representatives for health and safety. 3.29 The Legal Requirements for a Written Health & Safety Policy. There are two important pieces of legislation to keep in mind when referring to the organisations health and safety policy - The Health and Safety at Work W ork etc. Act 1974 and the Management of Health and Safety at Work Regulations 1999. Health and Safety at Work etc. Act 1974. This is the t he fundamental piece of health and safety legislation. It places general duties on employers, people in control of premises, manufacturers and employees. employees. These general duties form f orm the framework for all subsequent health and safety regulations. regulations. Section 2 Subsection 3 of the 1974 Act requires employers to prepare, and maintain up-to-date, a statement showing the policy on safety and the organisation and arrangements put in place to ensure the general policy is carried out. The employer must ensure that all employees are aware of the policy and any revision made to it. Regulation 5: Health and Safety Arrangements. Regulation 5 of the Management Management of Health and Safety at Work W ork Regulations 1999 makes reference to the need for the establishment establishment and effect of the health and safety policy within the organisation as a document and as an important guide to the risk assessment process. The text below has been taken from the Approved Code of Practice for the regulations: 1. Every employer shall make and give effect to such arrangements as are appropriate, having regard to the nature of his activities and the size of his undertaking, for the effective planning, organisation, organisation, control, monitoring and review of the preventative and protective measures. measures. 2. Where the employer employer employs five or or more employees, employees, he shall record the arrangements arrangements referred to in paragraph (1). PLANNING. Employers should set up an effective health and safety management system to implement their health and safety policy, which is proportionate to the hazards and risks. Adequate planning includes: •
• •
Adopting a systematic approach to the completion of a risk assessment. Risk assessment methods should be used to decide on priorities and to set up objectives for eliminating hazards and reducing risks. This should include a programme with deadlines deadlines for the completion of the risk assessment process, together with suitable deadlines for the design and implementation implementation of the necessary preventative and protective measures. Selecting appropriate methods of risk control to minimise risks. Establishing priorities and developing developing performance standards both for the completion of the risk assessment(s) and the implementation of preventative and protective measures, which at each stage minimises the risk of harm to people.
ORGANISATION.
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3.29 The Legal Requirements for a Written Health & Safety Policy. This includes: •
•
•
Involving employees and their representatives in carrying out risk assessments, deciding on preventative and protective measures and implementing implementing those requirements requirements in the workplace. Establishing effective means of communication and consultation in which a positive approach to health and safety is visible and clear. The employer should have adequate health and safety information and make sure it is communicated to employees and their representatives, so informed decisions can be made about the choice of preventative and protective measures. Effective communication will ensure that employees are provided with sufficient information so that control measures can be implemented effectively. effectively. Securing competence by the provision of adequate information, instruction and training and its evaluation, particularly for those who carry out risk assessments and make decisions about preventative and protective measures.
CONTROL. Establishing control includes: •
•
•
•
Clarifying health and safety responsibilities and ensuring that the activities of everyone are well coordinated. Ensuring everyone with responsibilities understands clearly what they have to do to discharge their responsibilities, responsibilities, and ensure they have the time and resources to discharge them effectively. Setting standards to judge the performance of those with responsibilities and ensure they meet them. It is important to reward good performance as well well as to take action to improve poor performance. Ensuring adequate and appropriate supervision, particularly for those who are learning and who are new to a job.
MONITORING. Employers should measure what they are doing to implement their health and safety policy, to assess how effectively they are controlling risks, and how well they are developing developing a positive health and safety culture. Monitoring includes: •
•
Having a plan and making adequate routine inspections and checks to ensure that preventative and protective measures are in place and effective. Active monitoring reveals how effectively the health and safety management system is functioning f unctioning.. Adequately investigating the immediate and underlying causes of incidents and accidents to ensure that remedial action is taken, t aken, lessons are learnt and long-term objectives are introduced.
REVIEW. Review involves: •
•
Establishing priorities for necessary remedial action that were discovered as a result of monitoring to ensure that suitable action is taken in good time and is completed. Periodically reviewing the whole of the health and safety management system including the elements of planning, organisation, control and monitoring to ensure that the whole system remains effective.
Description of the general components of a health and safety policy document: • •
Statement of intent - overview, safety goals and objectives. Organisation - duties, responsibilities responsibilities and organisational structure in relation to health and safety.
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3.29 The Legal Requirements for a Written Health & Safety Policy. •
Arrangements - systems, procedures, standards, cross-reference to key documents. 3.30 Essential Format & Content of the Policy Statement.
Essentially, a policy statement should consist of three parts, as follow s:s:1. A general statement of intent. This should outline in broad terms the organisation's overall philosophy in relation to the management of health and safety, including reference to the t he broad responsibilities responsibilities of both management and workforce. Basic objectives and general content of statement. Health and safety policy statements should state their main objectives, for example: •
•
•
•
•
•
•
Committing to operating the business in accordance with the Health and Safety at Work Act 1974 and all applicable regulations made under the Act, 'so far as reasonably practicable'. Specify that health and safety are management responsibilities ranking equally with responsibilities for production, sales, costs, and similar matters. Indicate that it is the duty of management to see that everything reasonably practicable practicable is done to prevent personal injury in the processes of production, production, and in the design, construction, and operation of all plant, machinery and equipment, and to maintain a safe and healthy place of work. Indicate that it is the duty of all employees to act responsibly, and to do everything they can to prevent injury to themselves and fellow workers. Although the implementation implementation of policy is a management responsibility, responsibility, it will rely heavily on the co-operation of those t hose who actually produce the goods and take the risks. Identify the main board director or managing board director (or directors) who has prime responsibility responsibility for health and safety, in order to make the commitment of the board precise, and provide points of reference for any manager who is faced with a conflict between the demands of safety and the demands of production. Be dated so as to ensure that it is periodically revised in the light of current conditions, and be signed by the chairman, managing managing director, chief executive, or whoever whoever speaks for f or the organisation at the highest level and with the most authority on all matters of general concern; and Clearly state how and by whom its operation is to be monitored.
2. Organisation (people and their duties). duties). This outlines the chain of command in terms of health and safety management: • • •
Who is responsible to whom and for what? How is the accountability fixed so as to ensure that delegated responsibilities are undertaken? How is the t he policy implementation monitored?
Other organisational features should include: • • • • •
Individual job descriptions having a safety content. Details of specific safety responsibilities. The role and function f unction of safety committee(s). The role and function f unction of safety representatives. A management chart clearly showing the lines of responsibility and accountability in terms of health and safety management. management.
Organisation (people and their duties). duties). Suitable policies will demonstrate, both in written w ritten and diagrammatic form (where appropriate), the SHEilds Ltd www.sheilds.org www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.30 Essential Format & Content of the Policy Statement. following features: 1. The unbroken and logical delegation of duties through line management and supervisors who operate where the hazards arise and the majority of the accidents occur. 2. The identification of key personnel (by name and/or job title) who are accountable to top management for ensuring that detailed arrangements for safe working are drawn up, implemented and maintained. 3. The definition of the roles of both line and functional management. Specific job descriptions should be formulated. 4. The provision of adequate support for line management via relevant functional management such as safety advisers, engineers, medical advisers, designers, hygienists, chemists, ergonomists, etc. 5. The nomination of persons with the competence and authority to measure and monitor safety performance. 6. The responsibilities of all employees. 7. The arrangements for employee representation on health and safety matters (i.e. whether by trade union safety representatives, employee elected safety representatives or by direct consultation with each employee (see joint consultation, safety representatives and safety committees). 8. The involvement of the safety adviser and relevant line/functional management at the planning/design stage. 9. The provision of the means to deal with failures in order to meet job requirements. 10. The fixing of accountability for the management of health and safety in a similar manner to other management functions. 11. The organisation must unambiguously indicate to the individuals exactly what they must do to fulfil their role. Thereafter a failure is a failure to manage effectively. 12. The organisation should make it known - both in terms of time and money - what resources are available for health and safety. The individuals must be certain of the extent to which they are realistically supported by the policy and by the organisation needed to fulfil it. 3. Arrangement (systems and procedures). This part of the policy deals with the practical arrangements by which the policy will be effectively implemented. These include: • • • • • • • • • • • • • • • • • • •
Safety training. Safe systems of work. Environmental control. Safe place of work. Machine/area guarding. Housekeeping. Safe plant and equipment. Noise control. Radiation safety. Dust control. Use of toxic materials. Internal communication/participation. Utilisation of safety committee(s) and safety representatives. Fire safety and prevention. Medical facilities and welfare. Maintenance of records. Accident reporting and investigation. Emergency procedures and. Workplace Monitoring.
Arrangements (systems and procedures). SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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3.30 Essential Format & Content of the Policy Statement. It is vital to establish safe and healthy systems of work designed to counteract the identified risks within a business. The following aspects should be used as a guide when preparing arrangements for health and safety at work: •
•
• • • • • • •
The provision of health and safety performance criteria for articles, and product safety data for substances, prior to purchase. The provision of specific instructions for using machines, for maintaining safety systems, and for the control of health hazards. The development of specific health and safety training for all employees. The undertaking of medical examinations and biological monitoring. The provision of suitable protective equipment. The development and utilisation of permit-to-work systems. The provision of first-aid/emergency procedures, including aspects of fire safety/prevention. The provision of written procedures in respect of contractors and visitors. The formulation of written safe systems of work for use by all levels of management and workforce. 3.31 Example of a BASIC Safety Policy.
General. 1. The Company attaches great importance to health and safety matters and accepts the responsibility to carry out its operations to ensure that, as far as is practicably possible, neither staff, visitors nor customers shall be exposed to risks to their health and safety. All activities at the company's premises shall be carried out with the highest regard for the health and safety of staff, visitors and customers. The Responsibilities of the Company. 2. The Company will make every practical effort to comply with the obligations laid down under the Health and Safety at Work Act 1974. In particular by: •
•
Providing a safe workplace with safe access to and from the premises and a healthy working environment. Providing safe and healthy systems of work by taking all practical steps to ensure that all plant, machinery and equipment is designed, constructed and operated in a safe manner, including the
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3.31 Example of a BASIC Safety Policy.
•
•
• •
provision of appropriate protective equipment and clothing. Providing safe arrangements for the use, handling, storage and transport of articles and substances. Giving instruction, training, supervision and information to enable all employees to carry out their duties in safety and to actively contribute to the safety within the organisation. Providing first aid facilities and training. Consulting staff about arrangements for implementing, promoting and developing health and safety at work.
3. The Company will use its best endeavours to: •
• • • • •
Ensure that this policy is actively complied with and to create a climate in which there is an awareness of the importance of health and safety: Define areas of responsibility for safety where appropriate. Maintain a set of codes of practice and procedures relating to health and safety. Provide the necessary resources with which to pursue this policy. Ensure that any person other than employees and volunteers is protected by this policy. Ensure that employees and other persons affected by this policy are aware of it.
4. The company will encourage employees to examine this policy and take action or seek advice appropriate to their situation. The company will be willing at any resonable time to discuss any aspects of the policy with all or any employees. 5. This policy will from time to time be reviewed and amended as necessary. Employees will be kept informed of any amendments. Employee Responsibilities. 6. All employees have an important part to play in the operation of the Health and Safety Policy. 7. Every employee has a responsibility for ensuring that they: •
• • • • • •
Undertake the work they are required to do taking reasonable care for the health and safety of themselves, their colleagues, visitors, customers, contractors and members of the public. Use protective clothing and equipment when and where necessary. Not interfere with or misuse anything provided in the interests of health and safety. Report any incident to the management which may have led to injury or damage. Give all assistance as required in the investigation of accidents. Become familiar with and conform to this policy and relevant safety instructions at all times. Co-operate with the management in any efforts to comply with the Health and Safety at Work Act 1974.
General Arrangements. 4.0 The Role of the Health & Safety Professional. The Safety Practitioner. This person may have the title of Safety Director, Manager, Officer or Adviser. The safety practitioner's prime duty is to promote health and safety in the workplace. It is important to realise that the safety practitioner does not absorb any of the line management responsibilities for health and safety. A common misunderstanding is that a safety adviser or officer is appointed to manage safety, leaving other managers to get on with their important responsibilities for finance, production, etc. Health and safety is not an optional extra for managers; it is part of their role, of equal importance to their other duties.
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4.0 The Role of the Health & Safety Professional. Duties of Safety Practitioners. Typical duties of safety practitioners are advising management on. The identification of hazards and assessment of risk associated with: • • • •
• • •
• • • • • • •
•
• •
• •
• • • •
•
•
•
•
•
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Injury to, or ill-health of, personnel. Damage to plant, equipment, materials. Fire and explosion. Improvement of existing working by the introduction of safe systems of work and performance standards. Legal requirements affecting safety, health and hygiene and welfare. Provision and use of protective clothing and equipment. Safety and suitability of new and hired plant and equipment; ensuring all appropriate test certificates and technical instructions are obtained. Potential hazards on new processes before work starts, and on the safety organisation required. New methods of safe working arising from current technological development. Changes in legislation. Appropriate fire and rescue procedures. Assisting with the prevention of accidents by raising the safety awareness of other employees. Advising managers on the implementation and monitoring of safety programmes. Regularly inspecting the workplace and work equipment to see that standards are being achieved, and making recommendations for improvements. Investigating all accidents, including dangerous occurrences and near-misses, filling out the relevant forms and notifying appropriate authorities. Assessing new and/or unusual processes for associated risks. Keeping informed as to health and safety legislation, and informing the management of recommendations to ensure compliance. Assistance with the health and safety training of other employees. Monitoring the effectiveness of the company safety policy in respect of the health and safety at work of its employees, members of the public and those affected by the work, including its administration and organisation. The monitoring and assessment of the overall effect of the safety policy. Improving the company's safety performance. Enhancing the company's reputation in accident prevention. Creating within the company a positive safety and health awareness and attitude at all levels of employees, from directors to operatives. Carrying out inspections (in association with the manager or f oreman) to ensure that all regulations are being observed; statutory notices have been posted; only safe systems of working are in operation; mess rooms, washing facilities and other welfare amenities have been provided and are properly maintained. Investigating the causes of any accidents or dangerous occurrences and recommending means of preventing recurrence. Supervising the recording and analysis of information on injuries, ill-health, damage and production losses; assessing accident trends and reviewing overall safety performance. Keeping contact with official and professional bodies, e.g. HSE, EMAS, fire authority, local government authorities, Institution of Occupational Safety and Health, voluntary organisations. Liaison with safety representatives and safety committees, and assisting in management/operative consultations. Fostering within the firm an understanding that injury prevention and damage control are integral parts of business and operational efficiency. Keeping up to date with recommended codes of practice and new safety literature; circulating the relevant information to each level of employee. Liaison with contractors at times of joint responsibilities; checking of safety policies; monitoring and advising as necessary on safety matters related to their operations. Liaison with employer's insurance company(s).
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4.0 The Role of the Health & Safety Professional. •
Assisting management in monitoring the implementation of policy. 4.1 The MHSW Regulations & the Health & Safety Practitioner.
The Management of Health and Safety at Work regulation plays a big part in the role of health and safety specialists in the design, implementation, evaluation and maintenance of health and safety management systems. Regulation 7, in particular, gives direct guidance on health and safety assistance within the organisation. This regulation is set out below.
Regulation 7:Health and Safety Assistance. 1. (1) Every employer shall, subject to paragraphs (6) and (7), appoint one or more competent persons to assist him in undertaking the measures he needs to take to comply with the requirements and prohibitions imposed upon him by the relevant statutory provisions and by the Regulatory Reform (Fire Safety) Order 2005. 2. (2) Where an employer appoints a person in accordance with paragraph (1), he shall make arrangements for ensuring adequate co-operation between them. 3. (3) The employer shall ensure that the number of persons appointed under paragraph (1), the time available for them to fulfil their functions and the means at their disposal are adequate having regard to the size of his undertaking, the risks to which his employees are exposed and the distribution of those risks throughout the undertaking. 4. (4) The employer shall ensure that: o (a) Any person appointed by him in accordance with paragraph (1) who is not in his employment; (i) Is informed of the factors known by him to affect, or suspected by him of affecting, the health and safety of any other person who may be affected by the conduct of his undertaking, and; (ii) Has access to the information referred to in regulation 10, and. (b) Any person appointed by him in accordance with paragraph (1) is given such information o about any person working in his undertaking who is: (i) Employed by him under a fixed term contract of employment, or (ii) Employed in an employment business,as is necessary to enable that person properly to carry out the function specified in that paragraph. 5. (5) A person shall be regarded as competent for the purposes of paragraphs (1) and (8) where he has sufficient training and experience or knowledge and other qualities to enable him properly to assist in undertaking the measures referred to in paragraph (1). 6. (6) Paragraph (1) shall not apply to a self employed employer who is not in partnership with any other person where he has sufficient training and experience or knowledge and other qualities properly to undertake the measures referred to in that paragraph. 7. (7) Paragraph (1) shall not apply to individuals who are employers and are together carrying on business in partnership where at least one of the individuals concerned has sufficient training and experience or knowledge and other qualities. (a) Properly to undertake the measures he needs to take to comply with the requirements o and prohibitions imposed upon him by or under the relevant statutory provisions; and (b) Properly to assist his fellow partners in undertaking the measures they need to take to o comply with the requirements and prohibitions imposed upon them by or under the relevant statutory provisions. 8. (8) Where there is a competent person in the employers' employment, that person shall be appointed for the purposes of paragraph (1) in preference to a competent person not in his employment. In the supporting guidance note in the associated Code of Practice, it goes on further to add that: "Employers are solely responsible for ensuring that those they appoint to assist them with health and safety SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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4.1 The MHSW Regulations & the Health & Safety Practitioner. measures are competent to carry out whatever tasks they are assigned and given adequate information and support." and "Employers must have access to competent help in applying the provisions of health and safety law, including these regulations and in particular in devising and applying protective measures unless they are competent to undertake the measures without assistance. Appointment of competent persons for this purpose should be included among the arrangements recorded under Regulation 4(2)" Thus it is now a legal requirement to the above Regulations that an employer should: • • • •
Appoint someone to be responsible for health and safety. Ensure the competence of the appointed person(s). Ensure he/she has adequate resources to carry out the role properly. Ensure that the details of the person so appointed are made known to all personnel in the organisation.
In many cases, the person so appointed will be the safety adviser. For many companies with fewer than 500 employees it may not be cost-effective to appoint a full-time safety adviser and for them, this role may be combined with other duties. For even smaller companies, it may not be possible even to do this and they will have to have recourse to specialist external consultants. However, whatever arrangement the employer makes, the above Regulations will apply. Competence in the sense that it is used in the Regulations does not necessarily depend on the possession of particular skills or qualifications. Simple situations may require the following: • • •
An understanding of relevant current best practice. An awareness of the limitations of ones own experience and knowledge; and The willingness and ability to supplement existing experience and knowledge, when necessary by obtaining external help and advice.
In giving health and safety assistance to an employer (whether an employee or a consultant) an important aspect of your duty is to design and implement a safety management system. Being judged to be competent is an area for debate but the common train of thought is that competency involves the following key elements: • • •
Experience. Knowledge. Qualifications. 4.2 The Role of the Health & Safety Practitioner in the Consultative Process.
In the HSE publication "Successful Health and Safety Management ", the role and functions of the health and safety adviser are described as follows. Role and Functions of Health and Safety Advisers. Organisations that successfully manage health and safety give health and safety advisers the status and ensure they have the competence to advise management and workers with authority and independence. Subjects on which they advise include: Health and safety policy formulations and development; Structuring and operating all parts of the organisation (including the supporting systems) in order to promote a positive health and safety culture, and to secure the effective implementation of policy; Planning for health and safety, including the setting of realistic short and long-term objectives, deciding priorities and establishing adequate performance standards; Day-to-day implementation and monitoring of policy and plans, including accident and incident SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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4.2 The Role of the Health & Safety Practitioner in the Consultative Process. investigation, reporting and analysis; Reviewing performance and auditing the whole safety management system. To fulfil their functions they have to: •
• •
•
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(a) Maintain adequate information systems on relevant law (civil and criminal) and on guidance and developments in general and safety management practice. (b) Be able to interpret the law and understand how it applies to the organisation. (c) Establish and keep up-to-date organisational and risk control standards relating to both "hardware" (such as the place of work and the plans, substances and equipment in use) and "software" (such as procedures, systems and people) - this task is likely to involve contributions from specialists, e.g. architects, engineers, doctors, and occupational hygienists. (d) Establish and maintain procedures for the reporting, investigating and recording and analysis of accidents and incidents. (e) Establish and maintain adequate and appropriate monitoring and auditing systems. (f) Present themselves and their advice in an independent and effective manner, safeguarding the confidentiality of personal information such as medical records.
Relationships of the Adviser. Within the Organisation. •
•
•
The position of health and safety advisers in the organisation is such that they support the provision of authoritative and independent advice. The post-holder has a direct reporting line to directors on matters of policy, and authority to stop work which is being carried out in contravention of agreed standards and which puts people at risk of injury. Health and safety advisers have responsibility for professional standards and systems, and on a large site or in a group of companies may also have line management responsibility for junior health and safety professionals.
Outside the Organisation. Health and safety advisers are involved in liaison with a wide range of outside bodies and individuals including: local authority environmental health officers and licensing officials; architects and consultants, etc; the fire service; contractors; insurance companies: clients and customers; the Health and Safety Executive; the public; equipment suppliers; HM Coroner or Procurator-Fiscal; the media; the police; general practitioners; hospital staff. You can see that this is a very wide brief and indicates that the safety professional requires a broad and extensive knowledge of health and safety matters in order to fulfil his duties. He is the organisation's first port of call when health and safety problems are encountered, and will give advice on short-term safety solutions to problems, and follow this through with perhaps a recommendation for a change in policy or the introduction of new technology or new/revised safe systems of work. He will also recommend the services of outside expert consultancy where the problem requires scientific, medical or technical advice which is outside his area of expertise. He may also be involved in safety committees, either in a chairing role or simply in an advisory capacity during committee deliberations. It is interesting to note that in October 1997, a discussion document was circulated within health and safety circles concerning the role of the safety professional in the workplace. The term "safety professional" covers such diverse staff as safety advisers, occupational hygienists, doctors, nurses, safety managers, personnel officers, training officers, facilities managers, ergonomists, engineers and radiation protection advisers. The qualifications range from the highly-qualified doctor to the personnel manager who has completed perhaps a non-examination, three-day, basic health and safety SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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4.2 The Role of the Health & Safety Practitioner in the Consultative Process. awareness course. The "professional" safety adviser needs to be a person with a wide range of abilities and a recognised safety qualification at degree level if possible, or at least an IOSH or BSc diploma in occupational safety and health. 4.3 Competence, CPD & the Health & Safety Practitioner. The most obvious way of judging the expertise of a Health and Safety professional is by the qualifications that he or she possesses. Although this is usually a good yardstick by which to judge their competence, it is not always as reliable as it might seem. The time that has elapsed since the qualification was gained should be taken into account becuase it is not always guaranteed that this period was filled with safetyrelevant activities and studies. The qualifcation might be recognised but what about the experience - is that current, or has it failed to keep up to date with developments in the field of Health and Safety? One way to monitor competence and encourage improvement is to utilise a Continuing Professional Development (CPD) system. CPD gives professionals the opportunity to create a structured career path and safeguard their professional status. By using a framework to identify skill gaps - technical or personal and then creating an action plan to refresh or expand their knowledge and experience, Health and Safety professionals can make a real difference to their professional effectiveness. CPD is about skills, knowledge and expertise, and encouraging a process of self-reflection. A professional who takes part in CPD sends out a strong message that they are serious about keeping their skills and experience fresh and fit-forpurpose. CPD works by encouraging the professional to create a framework to identify the gaps in skills and expertise, either technical or personal. Activities are planned that will refresh or expand the knowledge and experience so that the skill gaps can be filled. The CPD profile is then updated and logged with a central monitoring organisation so that the competence of the professional can be checked and verified. CPD activity. Professional training can play a big part in professional development, but there is a wide range of other activities that can be utilised to form a CPD portofolio, including: • • • • • •
Working on one-off internal projects. Managing budgets. Designing training or learning programmes. Voluntary work in the local community using your professional skills. Attending lectures and seminars. Reading widely in the professional journals and magazines to keep up to date with new developments.
CPD is a combination of approaches, ideas and techniques that can assist in managing learning and professional growth. Because of the way in which it is structured, it is a very individual process. A professional has a responsibility to keep their skills and knowledge up to date. CPD helps turn that accountability into a positive opportunity to identify and achieve career objectives. At least once a year, the professional should review their learning over the previous 12 months, and set development objectives for the coming year. Reflecting on the past and planning for the future in this way makes development more methodical and easier to measure. Some people find it helpful to write things down in detail, while others record 'insights and learning points' in their diaries as they go along. This helps them to assess their learning continuously. These records and logs are useful tools for planning and reflection: it would be difficult to review learning and learning needs yearly without regularly recording in some way things that have been experienced. SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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4.3 Competence, CPD & the Health & Safety Practitioner. How CPD benefits an organisation. As organisations shift the responsibility for personal development back to the individual, the ability and insight to manage professional growth is seen as a key strength. CPD helps to maximise staff potential by linking learning to actions and theory to practice. It also helps professionals to set SMART (specific, measurable, achievable, realistic and time-bound) objectives, for training activity to be more closely linked to business needs. It can also help promote staff development. This leads to better staff morale and a motivated workforce helps give a positive image/brand to organisations. It can be linked to the appraisal system by helping employees focus their achievements throughout the year. 4.4 The Meaning of Ethics. The field of ethics (or moral philosophy) involves systematizing, defending, and recommending concepts of right and wrong behavior. Philosophers today usually divide ethical theories into three general subject areas: metaethics, normative ethics, and applied ethics. Metaethics investigates where our ethical principles come from, and what they mean. Are they merely social inventions? Do they involve more than expressions of our individual emotions? Metaethical answers to these questions focus on the issues of universal truths, the will of God, the role of reason in ethical judgments, and the meaning of ethical terms themselves. Normative ethics takes on a more practical task, which is to arrive at moral standards that regulate right and wrong conduct. This may involve articulating the good habits that we should acquire, the duties that we should follow, or the consequences of our behavior on others. Finally, applied ethics involves examining specific controversial issues, such as abortion, infanticide, animal rights, environmental concerns, homosexuality, capital punishment, or nuclear war. By using the conceptual tools of metaethics and normative ethics, discussions in applied ethics try to resolve these controversial issues. The lines of distinction between metaethics, normative ethics, and applied ethics are often blurry. For example, the issue of abortion is an applied ethical topic since it involves a specific type of controversial behavior. But it also depends on more general normative principles, such as the right of self-rule and the right to life, which are litmus tests for determining the morality of that procedure. The issue also rests on metaethical issues such as, "where do rights come from?" and "what kind of beings have rights?" Metaphysics is the study of the kinds of things that exist in the universe. Some things in the universe are made of physical stuff, such as rocks; and perhaps other things are nonphysical in nature, such as thoughts, spirits, and gods. The metaphysical component of metaethics involves discovering specifically whether moral values are eternal truths that exist in a spirit-like realm, or simply human conventions. There are two general directions that discussions of this topic take, one other-worldly and one this-worldly. Proponents of the other-worldly view typically hold that moral values are objective in the sense that they exist in a spirit-like realm beyond subjective human conventions. They also hold that they are absolute, or eternal, in that they never change, and also that they are universal insofar as they apply to all rational creatures around the world and throughout time. The second and more this-worldly approach to the metaphysical status of morality follows in the skeptical philosophical tradition, such as that articulated by Greek philosopher Sextus Empiricus, and denies the objective status of moral values. Technically, skeptics did not reject moral values themselves, but only denied that values exist as spirit-like objects, or as divine commands in the mind of God. Moral values, they argued, are strictly human inventions, a position that has since been called moral relativism. A second area of metaethics involves the psychological basis of our moral judgments and conduct, particularly understanding what motivates us to be moral. We might explore this subject by asking the simple question, "Why be moral?" Even if I am aware of basic moral standards, such as don't kill and don't steal, this does not necessarily mean that I will be psychologically compelled to act on them. Some answers to the question "Why be moral?" are to avoid punishment, to gain praise, to attain happiness, to be dignified, or to fit in with society.
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4.4 The Meaning of Ethics. Normative ethics. Normative ethics involves arriving at moral standards that regulate right and wrong conduct. In a sense, it is a search for an ideal litmus test of proper behavior. The Golden Rule is a classic example of a normative principle: We should do to others what we would want others to do to us. Since I do not want my neighbor to steal my car, then it is wrong for me to steal her car. Since I would want people to feed me if I was starving, then I should help feed starving people. Using this same reasoning, I can theoretically determine whether any possible action is right or wrong. So, based on the Golden Rule, it would also be wrong for me to lie to, harass, victimize, assault, or kill others. The Golden Rule is an example of a normative theory that establishes a single principle against which we judge all actions. Other normative theories focus on a set of foundational principles, or a set of good character traits. The key assumption in normative ethics is that there is only one ultimate criterion of moral conduct, whether it is a single rule or a set of principles. Three strategies will be noted here: (1) virtue theories, (2) duty theories, and (3) consequentialist theories. Virtue Theories. Many philosophers believe that morality consists of following precisely defined rules of conduct, such as "don't kill," or "don't steal." Presumably, I must learn these rules, and then make sure each of my actions live up to the rules. Virtue ethics, however, places less emphasis on learning rules, and instead stresses the importance of developing good habits of character, such as benevolence (see moral character). Duty Theories. Many of us feel that there are clear obligations we have as human beings, such as to care for our children, and to not commit murder. Duty theories base morality on specific, foundational principles of obligation. These theories are sometimes called deontological, from the Greek word deon, or duty, in view of the foundational nature of our duty or obligation. They are also sometimes called nonconsequentialist since these principles are obligatory, irrespective of the consequences that might follow from our actions. For example, it is wrong to not care for our children even if it results in some great benefit, such as f inancial savings. Consequentialist Theories. It is common for us to determine our moral responsibility by weighing the consequences of our actions. According to consequentialism, correct moral conduct is determined solely by a cost-benefit analysis of an action's consequences, Consequentialism: An action is morally right if the consequences of that action are more favourable than unfavourable. Consequentialist normative principles require that we first tally both the good and bad consequences of an action. Second, we then determine whether the total good consequences outweigh the total bad consequences. If the good consequences are greater, then the action is morally proper. If the bad consequences are greater, then the action is morally improper. Consequentialist theories are sometimes called teleological theories, from the Greek word telos, or end, since the end result of the action is the sole determining factor of its morality. Applied Ethics. Applied ethics is the branch of ethics which consists of the analysis of specific, controversial moral issues such as abortion, animal rights, or euthanasia. In recent years applied ethical issues have been subdivided into convenient groups such as medical ethics, business ethics, environmental ethics, and sexual ethics. Generally speaking, two features are necessary for an issue to be considered an "applied ethical issue." First, the issue needs to be controversial in the sense that there are significant groups of people both for and against the issue at hand. The issue of drive-by shooting, for example, is not an applied ethical issue, since everyone agrees that this practice is grossly immoral. By contrast, the issue of gun control would be an applied ethical issue since there are significant groups of people both for and against gun control. The second requirement for in issue to be an applied ethical issue is that it must be a distinctly moral issue. On any given day, the media presents us with an array of sensitive issues such as affirmative action SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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4.4 The Meaning of Ethics. policies, gays in the military, involuntary commitment of the mentally impaired, capitalistic versus socialistic business practices, public versus private health care systems, or energy conservation. Although all of these issues are controversial and have an important impact on society, they are not all moral issues. Some are only issues of social policy. The aim of social policy is to help make a given society run efficiently by devising conventions, such as traffic laws, tax laws, and zoning codes. Moral issues, by contrast, concern more universally obligatory practices, such as our duty to avoid lying, and are not confined to individual societies. Frequently, issues of social policy and morality overlap, as with murder which is both socially prohibited and immoral. However, the two groups of issues are often distinct. For example, many people would argue that sexual promiscuity is immoral, but may not feel that there should be social policies regulating sexual conduct, or laws punishing us for promiscuity. Similarly, some social policies forbid residents in certain neighborhoods from having yard sales. But, so long as the neighbors are not offended, there is nothing immoral in itself about a resident having a yard sale in one of these neighborhoods. Thus, to qualify as an applied ethical issue, the issue must be more than one of mere social policy: it must be morally relevant as well. In theory, resolving particular applied ethical issues should be easy. With the issue of abortion, for example, we would simply determine its morality by consulting our normative principle of choice, such as actutilitarianism. If a given abortion produces greater benefit than disbenefit, then, according to actutilitarianism, it would be morally acceptable to have the abortion. Unfortunately, there are perhaps hundreds of rival normative principles from which to choose, many of which yield opposite conclusions. Thus, the stalemate in normative ethics between conflicting theories prevents us from using a single decisive procedure for determining the morality of a specific issue. The usual solution today to this stalemate is to consult several representative normative principles on a given issue and see where the weight of the evidence lies. Issues in Applied Ethics. As noted, there are many controversial issues discussed by ethicists today, some of which will be briefly mentioned here. Biomedical ethics focuses on a range of issues which arise in clinical settings. Health care workers are in an unusual position of continually dealing with life and death situations. It is not surprising, then, that medical ethics issues are more extreme and diverse than other areas of applied ethics. Prenatal issues arise about the morality of surrogate mothering, genetic manipulation of fetuses, the status of unused frozen embryos, and abortion. Other issues arise about patient rights and physician's responsibilities, such as the confidentiality of the patient's records and the physician's responsibility to tell the truth to dying patients. The AIDS crisis has raised the specific issues of the mandatory screening of all patients for AIDS, and whether physicians can refuse to treat AIDS patients. Additional issues concern medical experimentation on humans, the morality of involuntary commitment, and the rights of the mentally disabled. Finally, end of life issues arise about the morality of suicide, the justifiability of suicide intervention, physician assisted suicide, and euthanasia. The field of business ethics examines moral controversies relating to the social responsibilities of capitalist business practices, the moral status of corporate entities, deceptive advertising, insider trading, basic employee rights, job discrimination, affirmative action, drug testing, and whistle blowing. Issues in environmental ethics often overlaps with business and medical issues. These include the rights of animals, the morality of animal experimentation, preserving endangered species, pollution control, management of environmental resources, whether eco-systems are entitled to direct moral consideration, and our obligation to future generations. Controversial issues of sexual morality include monogamy versus polygamy, sexual relations without love, homosexual relations, and extramarital affairs. Finally, there are issues of social morality which examine capital punishment, nuclear war, gun control, the recreational use of drugs, welfare rights, and racism. 4.5 The Ethical Organisation.
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4.5 The Ethical Organisation. Generally speaking there are four principles for highly ethical organisations: 1. They are at ease interacting with diverse internal and external stakeholder groups. The groundrules of these firms make the good of these stakeholder groups part of the organizations' own good. 2. They are obsessed with fairness. Their groundrules emphasise that the other persons' interests count as much as their own. 3. Responsibility is individual rather than collective, with individuals assuming personal responsibility for actions of the organization. These organisations' ground rules mandate that individuals are responsible to themselves. 4. They see their activities in terms of purpose. This purpose is a way of operating that members of the organization highly value. And purpose ties the organisation to its environment. A high-integrity organisation exhibits characteristics which will probably include the following: 1. 2. 3. 4. 5. 6.
There exists a clear vision and picture of integrity throughout the organization. The vision is owned and embodied by top management, over time. The reward system is aligned with the vision of integrity. Policies and practices of the organization are aligned with the vision; no mixed messages. It is understood that every significant management decision has ethical value dimensions. Everyone is expected to work through conflicting-stakeholder value perspectives. 4.6 Conflicts of Interest.
Conflicts of interest can be defined as any situation in which an individual or corporation (either private or governmental) is in a position to exploit a professional or official capacity in some way for their personal or corporate benefit. Depending upon the law or rules related to a particular organisation, the existence of a conflict of interest may not, in and of itself, be evidence of wrongdoing. In fact, for many professionals, it is virtually impossible to avoid having conflicts of interest from time to time. A conflict of interest can, however, become a legal matter for example when an individual tries (and/or succeeds in) influencing the outcome of a decision, for personal benefit. A director or executive of a corporation will be subject to legal liability if a conflict of interest breaches his Duty of Loyalty. There often is confusion over these two situations. Someone accused of a conflict of interest may deny that a conflict exists because he/she did not act improperly. In fact, a conflict of interest can exist even if there are no improper acts as a result of it. One way to understand this is to use the term "conflict of roles". A person with two roles-an individual who owns stock and is also a government official, for example-may experience situations where those two roles conflict. The conflict can be mitigated-see below-but it still exists. In and of itself, having two roles is not illegal, but the differing roles will certainly provide an incentive for improper acts in some circumstances. An organizational conflict of interest (OCI) may exist in the same way as described above, in the realm of the private sector providing services to the Government, where a corporation provides two types of services to the Government that have conflicting interest or appear objectionable (i.e.: manufacturing parts and then participating on a selection committee comparing parts manufacturers). Corporations may develop simple or complex systems to mitigate the risk or perceived risk of a conflict of interest. These risks are typically evaluated by a governmental office (for example, in a US Government RFP) to determine whether the risks pose a substantial advantage to the private organization over the competition or will decrease the overall competitiveness in the bidding process. Types of conflicts of interests. The following are the most common forms of conflicts of interests: Self-dealing, in which an official who controls an organization causes it to enter into a transaction with the SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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4.6 Conflicts of Interest. official, or with another organization that benefits the official. The official is on both sides of the "deal." Outside employment, in which the interests of one job contradict another. Family interests, in which a spouse, child, or other close relative is employed (or applies for employment) or where goods or services are purchased from such a relative or a firm controlled by a relative. For this reason, many employment applications ask if one is related to a current employee. If this is the case, the relative could then recuse from any hiring decisions. Abuse of this type of conflict of interest is called nepotism. Gifts from friends who also do business with the person receiving the gifts. (Such gifts may include nontangible things of value such as transportation and lodging.)
Other improper acts that are sometimes classified as conflicts of interests are probably better classified elsewhere. Accepting bribes can be classified as corruption; almost everyone in a position of authority, particularly public authority, has the potential for such wrongdoing. Similarly, use of government or corporate property or assets for personal use is fraud, and classifying this as a conflict of interest does not improve the analysis of this problem. Nor should unauthorized distribution of confidential information, in itself, be considered a conflict of interest. For these improper acts, there is no inherent conflict of roles (see above), unless being a (fallible) human being rather than (say) a robot in a position of power or authority is considered to be a conflict. Examples. Self-policing of any group is also a conflict of interest. If any organization, such as a corporation or government bureaucracy, is asked to eliminate unethical behavior within their own group, it may be in their interest in the short run to eliminate the appearance of unethical behavior, rather than the behavior itself, by keeping any ethical breaches hidden, instead of exposing and correcting them. An exception occurs when the ethical breach is already known by the public. In that case, it could be in the group's interest to end the ethical problem to which the public has knowledge, but keep remaining breaches hidden. Insurance companies retain claims adjusters to represent their interest in adjusting claims. It is in the best interest of the insurance companies that the very smallest settlement is reached with its claimants. Based on the adjuster's experience and knowledge of the insurance policy it is very easy for the adjuster to convince an unknowing claimant to settle for less than what they may otherwise be entitled which could be a larger settlement. There is always a very good chance of a conflict of interest to exist when one adjuster tries to represent both sides of a financial transaction such as an insurance claim. This problem is exacerbated when the claimant is told, or believes, the insurance company's claims adjuster is fair and impartial enough to satisfy both theirs and the insurance company's interests. These types of conflicts could be easily be avoided by the use of disclosures. A person working as the equipment purchaser for a company may get a bonus proportionate to the amount he's under budget by year end. However, this becomes an incentive for him to purchase inexpensive, substandard equipment. Therefore, this is counter to the interests of those in his company who must actually use the equipment. Representatives, in general, have different interests than their constituents. Thus, accepting bribes to vote a certain way is in their interest (assuming they don't get caught), while not in their constituents' interest. These actions are sometimes illegal, but often not, as in the case of a politician accepting large amounts of money for a political campaign, and in return, granting the contributor access to political leaders. This is often cited as an argument for direct democracy (the replacement of representatives' votes with referenda). Revolving door (politics), government workers or elected officials quitting public service to work for the companies they used to regulate. Regulators are accused of using inside information for their new employers, or compromising laws and regulations in hopes of securing employment in the private sector. Ways to mitigate conflicts of interests. Removal. The best way to handle conflicts of interests is to avoid them entirely. For example, someone elected to political office might sell all corporate stocks that he/she owns before taking office, and resign from all corporate boards. Or that person could move his/her corporate stocks to a special trust, which would be SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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4.6 Conflicts of Interest. authorized to buy and sell without disclosure to the owner. (This is referred to as a "blind trust".) With such a trust, since the politician does not know in which companies he/she has investments, there should be no temptation to act to their advantage. Disclosure. Commonly, politicians and high-ranking government officials are required to disclose financial information assets such as stock, debts such as loans, and/or corporate positions held, typically annually. Certain professionals are required either by rules related to their professional organization, or by statute, to disclose any actual or potential conflicts of interest. In some instances, the failure to provide full disclosure is a crime. Recusal. Those with a conflict of interest are expected to recuse themselves from (i.e., abstain from) decisions where such a conflict exists. The imperative for recusal varies depending upon the circumstance and profession, either as common sense ethics, codified ethics, or by statute. For example, if the governing board of a government agency is considering hiring a consulting firm for some task, and one firm being considered has, as a partner, a close relative of one of the board's members, then that board member should not vote on which firm is to be selected. In fact, to minimize any conflict, the board member should not participate in any way in the decision, including discussions. Judges are supposed to recuse themselves from cases when personal conflicts of interest may arise. For example, if a judge has participated in a case previously in some other judicial role he/she is not allowed to try that case. Recusal is also expected when one of the lawyers in a case might be a close personal friend, or when the outcome of the case might affect the judge directly, such as whether a car maker is obliged to recall a model that a judge drives. This is required by law under Continental civil law systems and by the Rome Statute, organic law of the International Criminal Court. Codes of ethics. Generally, codes of ethics forbid conflicts of interests. Often, however, the specifics can be controversial. Should therapists, such as psychiatrists, be allowed to have extra-professional relations with patients, or ex-patients? Should a faculty member be allowed to have an extra-professional relationship with a student, and should that depend on whether the student is in a class of, or being advised by, the faculty member? Codes of ethics help to minimize problems with conflicts of interests because they can spell out the extent to which such conflicts should be avoided, and what the parties should do where such conflicts are permitted by a code of ethics (disclosure, recusal, etc.). Thus, professionals cannot claim that they were unaware that their improper behavior was unethical. As importantly, the threat of disciplinary action (for example, a lawyer being disbarred) helps to minimize unacceptable conflicts or improper acts when a conflict is unavoidable. As codes of ethics cannot cover all situations, some governments have established an office of the ethics commissioner. Ethics commissioner should be appointed by the legislature and should report to the legislature. 4.7 Ethical Codes of Conduct. An ethical code is adopted by an organization in an attempt to assist those in the organization called upon to make a decision (usually most, if not all) understand the difference between 'right' and 'wrong' and to apply this understanding to their decision. The ethical code therefore generally implies documents at three levels: •
Code of ethics (corporate or business ethics). A code of ethics often focuses on social issues. It may set out general principles about an organization's beliefs on matters such as mission, quality, privacy or the environment. It may delineate proper procedures to determine whether a violation of the code of ethics has occurred
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4.7 Ethical Codes of Conduct.
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and, if so, what remedies should be imposed. The effectiveness of such codes of ethics depends on the extent to which management supports them with sanctions and rewards. Violations of a private organization's code of ethics usually can subject the violator to the organization's remedies (such as restraint of trade based on moral principles). The code of ethics links to and gives rise to a code of conduct for employees. Code of conduct (employee ethics). A code of conduct is a document designed to influence the behavior of employees. They set out the procedures to be used in specific ethical situations, such as conflicts of interest or the acceptance of gifts, and delineate the procedures to determine whether a violation of the code of ethics occurred and, if so, what remedies should be imposed. The effectiveness of such codes of ethics depends on the extent to which management supports them with sanctions and rewards. Violations of a code of conduct may subject the violator to the organization's remedies which can under particular circumstances result in the termination of employment. Code of practice (professional ethics). A code of practice is adopted by a profession or by a governmental or non-governmental organization to regulate that profession. A code of practice may be styled as a code of professional responsibility, which will discuss difficult issues, difficult decisions that will often need to be made, and provide a clear account of what behavior is considered "ethical" or "correct" or "right" in the circumstances. In a membership context, failure to comply with a code of practice can result in expulsion from the professional organisation. In its 2007 International Good Practice Guidance, Defining and Developing an Effective Code of Conduct for Organizations, the International Federation of Accountants provided the following working definition: "Principles, values, standards, or rules of behavior that guide the decisions, procedures and systems of an organization in a way that (a) contributes to the welfare of its key stakeholders, and (b) respects the rights of all constituents affected by its operations." 4.8 Developing a Code of Ethics.
Developing Codes of Ethics. Note that if your organization is quite large, e.g., includes several large programs or departments, you may want to develop an overall corporate code of ethics and then a separate code to guide each of your programs or departments. Also note that codes should not be developed out of the Human Resource or Legal departments alone, as is too often done. Codes are insufficient if intended only to ensure that policies are legal. All staff must see the ethics program being driven by top management. Note that codes of ethics and codes of conduct may be the same in some organizations, depending on the organization's culture and operations and on the ultimate level of specificity in the code(s). Consider the following guidelines when developing codes of ethics: • •
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Review any values need to adhere to relevant laws and regulations. This ensures your organization is not (or is not near) breaking any of them. (If you are breaking any of them, you may be far better off to report this violation than to try hide the problem. Often, a reported violation generates more leniency than outside detection of an unreported violation, particularly per the new Federal Sentencing Guidelines.) Increase priority on values that will help your organization operate to avoid breaking these laws and to follow necessary regulations. Review which values produce the top three or four traits of a highly ethical and successful product or service in your area, e.g., for accountants: objectivity, confidentiality, accuracy, etc. Identify which values produce behaviors that exhibit these traits. Identify values needed to address current issues in your workplace. Appoint one or two key people to interview key staff to collect descriptions of major issues in the workplace. Collect descriptions of behaviors that produce the issues. Consider which of these issues is ethical in nature, e.g.., issues
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4.8 Developing a Code of Ethics.
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in regard to respect, fairness and honesty. Identify the behaviors needed to resolve these issues. Identify which values would generate those preferred behaviors. There may be values included here that some people would not deem as moral or ethical values, e.g., team-building and promptness, but for managers, these practical values may add more relevance and utility to a code of ethics. Identify any values needed, based on findings during strategic planning. Review information from your SWOT analysis (identifying the organization's strengths, weaknesses, opportunities and threats). What behaviors are needed to build on strengths, shore up weaknesses, take advantage of opportunities and guard against threats? Consider any top ethical values that might be prized by stakeholders. For example, consider expectations of employees, clients/customers, suppliers, funders, members of the local community, etc. Collect from the above steps, the top five to ten ethical values which are high priorities in your organization.
Examples of ethical values might include: • • • • • • •
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Trustworthiness: honesty, integrity, promise-keeping, loyalty. Respect: autonomy, privacy, dignity, courtesy, tolerance, acceptance. Responsibility: accountability, pursuit of excellence. Caring: compassion, consideration, giving, sharing, kindness, loving. Justice and fairness: procedural fairness, impartiality, consistency, equity, equality, due process. Civic virtue and citizenship: law abiding, community service, protection of environment. Compose your code of ethics; attempt to associate with each value, two example behaviors which reflect each value. Critics of codes of ethics assert that they seem vacuous because many only list ethical values and don't clarify these values by associating examples of behaviours. Include wording that indicates all employees are expected to conform to the values stated in the code of ethics. Add wording that indicates where employees can go if they have any questions. Obtain review from key members of the organization. Get input from as many members as possible. Announce and distribute the new code of ethics (unless you are waiting to announce it along with any new codes of conduct and associated policies and procedures). Ensure each employee has a copy and post codes throughout the facility. Update the code at least once a year. As stated several times in this document, the most important aspect of codes is developing them, not the code itself. Continued dialogue and reflection around ethical values produces ethical sensitivity and consensus. Therefore, revisit your codes at least once a year -- preferably two or three times a year. Note that you cannot include values and preferred behaviors for every possible ethical dilemma that might arise.
Your goal is to focus on the top ethical values needed in your organization and to avoid potential ethical dilemmas that seem mostly likely to occur). Consider the following guidelines when developing codes of conduct: •
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Identify key behaviors needed to adhere to the ethical values proclaimed in your code of ethics, including ethical values derived from review of key laws and regulations, ethical behaviors needed in your product or service area, behaviors to address current issues in your workplace, and behaviors needed to reach strategic goals. Include wording that indicates all employees are expected to conform to the behaviors specified in the code of conduct. Add wording that indicates where employees can go if they have any questions. Obtain review from key members of the organization. Be sure your legal department reviews the drafted code of conduct. Announce and distribute the new code of conduct (unless you are waiting to announce it along with
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4.8 Developing a Code of Ethics.
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any associated policies and procedures). Ensure each employee has a copy and post codes in each employee's bay or office. (Note that you cannot include preferred behaviors for every possible ethical dilemma that might arise.) Examples of topics typically addressed by codes of conduct include: Preferred style of dress, Avoiding illegal drugs, Following instructions of superiors, Being reliable and prompt, Maintaining confidentiality, Not accepting personal gifts from stakeholders as a result of company role, Avoiding racial or sexual discrimination, Avoiding conflict of interest, Complying with laws and regulations, Not using organization's property for personal use, Not discriminating against race or age or sexual orientation, and. Reporting illegal or questionable activity.
Go beyond these traditional legalistic expectations in your codes, adhere to what's ethically sensitive in your organization, as well. (Note that, as with codes of ethics, you may be better off to generate your own code of conduct from scratch rather than reviewing examples from other organizations). 4.9 Ethical Dilemmas. Definition of an Ethical Dilemma. Perhaps too often, business ethics is portrayed as a matter of resolving conflicts in which one option appears to be the clear choice. For example, case studies are often presented in which an employee is faced with whether or not to lie, steal, cheat, abuse another, break terms of a contract, etc. However, ethical dilemmas faced by managers are often more real-to-life and highly complex with no clear guidelines, whether in law or often in religion. A significant ethical conflict is often signalled by the presence of a) significant value conflicts among differing interests, b) real alternatives that are equality justifiable, and c) significant consequences on "stakeholders" in the situation. An ethical dilemma exists when one is faced with having to make a choice among these alternatives. Real-to-Life Examples of Complex Ethical Dilemmas. •
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"A customer (or client) asked for a product (or service) from us today. After telling him our price, he said he couldn't afford it. I know he could get it cheaper from a competitor. Should I tell him about the competitor -- or let him go without getting what he needs? What should I do?" "Our company prides itself on its merit-based pay system. One of my employees has done a tremendous job all year, so he deserves strong recognition. However, he's already paid at the top of the salary range for his job grade and our company has too many people in the grade above him, so we can't promote him. What should I do?" "Our company prides itself on hiring minorities. One Asian candidate fully fits the job requirements for our open position. However, we're concerned that our customers won't understand his limited command of the English language. What should I do?" "My top software designer suddenly refused to use our e-mail system. He explained to me that, as a Christian, he could not use a product built by a company that provided benefits to the partners of homosexual employees. He'd basically cut himself off from our team, creating a major obstacle to our product development. What should I do?" "My boss told me that one of my employees is among several others to be laid off soon, and that I'm not to tell my employee yet or he might tell the whole organisation which would soon be in an
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4.9 Ethical Dilemmas.
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uproar. Meanwhile, I heard from my employee that he plans to buy braces for his daughter and a new carpet for his house. What should I do?" "My computer operator told me he'd noticed several personal letters printed from a computer that I was responsible to manage. While we had no specific policies then against personal use of company facilities, I was concerned. I approached the letter writer to discuss the situation. She told me she'd written the letters on her own time to practice using our word processor. What should I do?" "A fellow employee told me that he plans to quit the company in two months and start a new job which has been guaranteed to him. Meanwhile, my boss told me that he wasn't going to give me a new opportunity in our company because he was going to give it to my fellow employee now. What should I do?"
Twelve Questions to Address Ethical Dilemmas. • • • • • • • • • •
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Have you defined the problem accurately? How would you define the problem if you stood on the other side of the fence? How did this situation occur in the first place? To whom and to what do you give your loyalty as a person and as a member of the corporation? What is your intention in making this decision? How does this intention compare with the probable results? Whom could your decision or action injure? Can you discuss the problem with the affected parties before you make your decision? Are you confident that your position will be as valid over a long period of time as it seem now? Could you disclose without qualm your decision or action to your boss, your CEO, the board of directors, your family, society as a whole? What is the symbolic potential of your action if understood? misunderstood? Under what conditions would you allow exceptions to your stand? Question 8.
_____ in particular, gives direct guidance on health and safety assistance within the organisation. 4.10 News Article: Personnel Today. The health and safety profession is about to change - and it's something of which all HR practitioners need to be aware. In November up to 6,000 members of the Institute of Occupational Safety and Health (IOSH) will become chartered safety and health practitioners, bringing the profession on a par with accountants, bankers, architects and, of course, HR professionals. Clearly, chartered status presents new challenges for safety and health practitioners. We have to show genuine, unquestionable commitment to maintain and raise professional standards, and we plan to do that through a new Continuing Professional Development (CPD) system, which will affect most of our members. But the changes also set challenges for many of our colleagues in other professions, particularly those in HR. For us to succeed in achieving our vision of safe and healthy workplaces, we need HR professionals to work with us in partnership. This means that HR professionals need to understand there are different levels of safety and health practitioner for different roles and responsibilities. Furthermore, for any senior safety and health position, you should always look for a chartered safety and health practitioner or a graduate member working towards chartered status. Too often, we see advertisements for senior health and safety positions stating that the applicant "must hold the National Examination Board in Occupational Safety and Health Diploma". The fact is, under our new membership structure, someone holding the NEBOSH diploma will still need to do two years' initial professional development followed by a professional peer interview before they can be awarded chartered status. They must then maintain their CPD for the rest of their active career. With higher standards throughout the profession, we aim to show that safety and health is certainly not a job for well-meaning amateurs. But we need HR professionals to understand the need for competent health and safety advice in the workplace - and from research IOSH carried out with the Chartered Institute of Personnel and Development (CIPD), it is a message with which HR professionals seem to be getting to SHEilds Ltd www.sheilds.org eLearning: www.sheilds-elearning.com #E$%SH &nternational 'iloma 1.*a (0"08014)
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4.10 News Article: Personnel Today. grips. We also need some HR managers to realise the key role they have in promoting health and safety in the boardroom. Safety and health professionals often report to the board or governing body via HR or personnel. There are many issues we need to face together including managing work-related stress and sickness absence. At the national level, the CIPD, the Health and Safety Executive and IOSH have been working on these matters for some time, developing guidance and exploring best practice. But for real change to be achieved, collaboration within the workplace will be the key to success. Gone are the days when it was possible to believe that health and safety could be managed properly with a clipboard and pen. The new breed of safety and health practitioners know how to work with senior decisionmakers to deliver real business benefits. 4.11 Video: Risk Management in Practice. IOSH 09. Steve Fowler from the Institute of Risk Management explains how health and safety practitioners can help businesses get through the recession. Steve chaired one of the conference tracks at IOSH 09 looking at risk management in practice. Please wait for the video to buffer before pressing play. Alternatively you can download the video to watch at your convenience. Download Video Question 9. What type of ethics involves arriving at moral standards that regulate right and wrong conduct. In a sense, it is a search for an ideal litmus test of proper behavior? The Golden Rule is a classic example. Question 10. TQM stands for ________ _________ _________
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Tel: +44(0)148 80!80" ,age: 0
