The Corporate Manslaughter and Corporate Homicide Act 2007 will come into force on 6 April 2008, and businesses are being warned to make sure they have appropriate health & safety policies and procedures in place, and that regular training and audits are undertaken.
For the first time, companies and organisations can be found guilty of corporate manslaughter as a result of serious management failures, which result in a gross breach of a duty of care. Prosecutions will be of the corporate body and not individuals, but the liability of directors, board members or other individuals under health and safety law or general criminal law, will be unaffected. Both the corporate body itself, as well as individuals, can still be prosecuted for separate health and safety offences.
Most responsible managers would agree that prevention is preferable to such penalties on conviction as significant publicity and a fine. International Standards experts, IMSM, are advising clients that proving that a comprehensive policy- with continuous improvement elements- is in place can reduce the risk. IMSM’s Managing Director, Michael Bright, explains, “By working to an international standard such as BS OHSAS 18001, businesses can ensure they have reviewed their procedures, evaluated risks, and recognized their duty of care. We already know that workplaces which establish safety and health management systems reduce their injury and illness costs by 20 to 40 percent. With skill shortages, insurance costs, increase in prosecutions under this and other legislation, and the need to demonstrate corporate social responsibility (CSR), it is essential to have a policy and a set of standards, clearly laid down for all to see.”
A good Health & Safety policy will be designed to support the corporate objectives, regardless of the size of the company, and be fully supported at all levels. This will include setting a range of standards, based on careful risk assessment, implementing management systems and allocating clear responsibilities, effectively maintain those standards and securing continuous improvement. The principles apply to all sectors, from manufacturing to services, where issues like the correct use of chemicals, unclear instructions, or prolonged standing at work, can all have an impact on health and safety.
By conforming to BS OHSAS 18001, a business can build in preventative measures to protect both employees and management. In a world competing for good managers, this makes your business a more attractive choice when recruiting. BS OHSAS 18001 works on the same principle as the ISO standards, ISO9001:2000 (Quality management) and ISO14001 (environment). It follows the successful Plan- Do-Check-Act model. If a business already has ISO9001:2000 in place, achieving BS OHSAS 18001 becomes much simpler, and existing systems are incorporated.
Insurers will want to assess the measures you've put in place to minimize the risks of an incident or fatality occurring. This may involve an audit of your premises. If they aren't happy with your approach to health, safety and the environment, your premiums will go up. Insurance companies recognize the Standard as a means of reducing risk, and hence premiums.
Where production or service needs to be continuous, the costs of disruptions and delays in processing, or unplanned downtime, can make the difference between profit and loss. Good health & safety planning enables you to reduce, and even eliminate the likelihood of minor or major incidents. Long term disability is distressing for the employee, and can amount to another heavy cost for the employer. Being able to demonstrate that a policy and systems were in place significantly reduces the likelihood of such events, and provides a framework to prove that the “duty of care” has been observed.
Reputation is one of a business’s most valuable assets, and in competitive markets, prospective customers prefer to do business with companies which have a good health & safety reputation. It’s not just the immediate customers; the whole supply chain requires proof that a business is taking its responsibilities seriously. In an equal market, conforming to independent health & safety standards can be perceived as a valuable differentiating measure.
Michael Bright concludes, “The process does not have to be arduous. Using the BS OHSAS 18001 framework will save time and money, building on the organisation’s existing health & safety systems. This legislation is a 21st century prompt to businesses that it is time to put their houses in order, and take responsibility for their actions.”
For more information, contact IMSM on 01666 826065
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