IoD releases updated health and safety guidance

IoD releases updated health and safety guidance to support directors to raise the bar

The Institute of Directors, has released updated guidance with Work Safe New Zealand to support directors ahead of legislation changes next month.

Every week one to two New Zealanders are killed at work, 600 to 900 die prematurely from occupational diseases, while the financial cost of work-related injuries and death is estimated to be more than $3.5 billion a year.

Institute of Directors CEO Simon Arcus says health and safety is a collective responsibility.

“The Health and Safety Work Act 2015 requires directors to ultimately take responsibility for the health and safety of their business – it’s clear that directors, managers and workers will get the best from the legislation by working together.”

Arcus says: “The principles underpinning safety governance are no different than any other aspect of a governance role. Directors must have the knowledge of, and the commitment to health and safety. Contrary to some beliefs, directors are not expected to be experts to meet the expectations of the Act.”

Health and Safety Guide: Good Governance for Directors is an updated guidance by the IoD and Work Safe to support directors. “The Guide is part of our Get Ready for April 4 package for New Zealand directors. The IoD has varied resources briefs, courses and other useful information.”

The IoD and New Zealand’s Business Leaders’ Health and Safety Forum will be presenting roadshows across the country to help directors understand what health and safety monitoring and reporting is required, and how risks in their businesses are being managed so they can focus on what matters most.

Directors particularly need to understand due diligence provisions of the legislation. A positive and robust health and safety culture that begins at the board table spreads throughout the organisation adding significant value, including:

• Enhanced standing among potential workers, customers, suppliers, partners and investors as a result of a good reputation for a commitment to health and safety.
• Workers participate positively in other aspects of the organisation. A good organisational culture spreads wider than health and safety.
• Decreased worker absence and turnover. Engaged workers are more productive workers.
• Reduced business costs, for example, a reduction in ACC levies as a result of improved health and safety performance and outcomes.
• Potentially increased economic returns. A report from the International Social Security association found a return on prevention ratio of 2.22.
Arcus says examples like the Pike River Mine case and the Easy Rider catastrophe provides sobering examples of how ineffective governance can contribute to catastrophic results. “It is the role of the director to provide leadership. Directors create expectations and exercise due diligence by holding management to account for meeting them.”

ENDS

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