The business case for health and safety - HSC unveils new case studies

HSC press release C005:04 - 4 February 2004

The Health & Safety Commission (HSC) today unveiled a series of case studies setting out the business case for good health and safety management. They demonstrate business and social benefits of health and safety improvements in a variety of organisations, including FTSE 100 and FTSE listed companies, global businesses and public bodies.

Each study describes an initiative or programme and its benefits, in both health and safety
and business terms. Examples include: around £11m savings through reduced sickness absence; 40 per cent reduction in reportable injuries; health insurance spend down £200,000 a year; 50 per cent reduction in civil claims; improved productivity and public image. One company estimated that in financial terms, the benefits of a new rehabilitation scheme - e.g. average absence after injury reduced from 26 days to 4 - outweighed costs by 12:1.

The 19 case studies, compiled by risk management consultants Greenstreet Berman Ltd, span a wide range of industry sectors and public service including aerospace, chemical, construction, food, health service, engineering, manufacturing, pharmaceutical and utilities. Featured organisations include AstraZeneca, Chep UK, GlaxoSmithKline, Inland Revenue, MFI plc, Rolls-Royce plc, Severn Trent Water and Transco.

The studies were launched today at an HSC conference for investors and others promoting corporate social responsibility (CSR). The conference aimed to raise awareness of the studies and their potential contribution to improving occupational health and safety, for example in helping investors get to grips with how well businesses they invest in manage health and safety and to influence the behaviour of those businesses.

The conference also introduced an ongoing project to develop a health and safety performance index. This is intended to assist external stakeholders assess how well organisations manage risks and responsibilities towards workers and the public. Internally, it can be used as an indicator of performance and, over time, progress in health and safety management. The index is designed for use by UK organisations with over 250 employees. A version for SMEs is currently under development, as is an electronic version, which was demonstrated today.

Development of both the case studies and performance index was prompted by research commissioned from Claros Consulting. Recommendations in their report, 'Health and safety indicators for institutional investors', published in March 2002, led HSC to call on the Health & Safety Executive (HSE) to develop these tools, both of which were specific requests from investors and other key stakeholders to assist them influence and persuade businesses and other organisations to improve their health and safety performance.

HSC is soon to launch its new 'Strategy for Workplace Health and Safety in Great Britain to 2010 and beyond'. The strategy is designed to promote HSC's vision of health and safety as a cornerstone of a civilised society and with that to achieve a record of workplace health and safety that leads the world.

HSC Chair Bill Callaghan said: "We believe that these case studies have a vital role to play in taking forward this agenda. There are powerful messages coming out of many of them - namely that managing health and safety cannot be viewed in isolation from managing the business overall. The studies highlight the vital contribution that good communications, sound training and development and meaningful worker involvement all make.

"While there is sound evidence of increasing corporate responsibility and accountability for health and safety across the public, private and voluntary sectors we have much more to do. We want health and safety on the board agenda of all organisations. That is not the case at the moment. There are clear signs many organisations are practising greater responsibility and accountability, but there remain those who are resistant and who have yet to be convinced, even when faced with the high cost of occupational ill-health, including for example days lost through stress."

Notes to editors

1. The case studies will be accessible via the HSE website.

2. The 19 companies/organisations featured in the case studies are: Associated Octel Company Ltd; AstraZeneca; Barts and The London NHS Trust; Birse Rail; British Polythene Industries plc (BPI); Chep UK; Edmund Nuttall Ltd; GlaxoSmithKline; Huntsman Petrochemicals; Ibstock Brick Ltd; Inland Revenue & the Public and Commercial Services Union (PCS); MFI plc; Port of London Authority; St Regis Paper Company; Rolls-Royce plc; Royal Mail Group plc Vehicle Services; Severn Trent Water; Transco; and Uniq plc.

3. There is an increasing expectation that employers take responsibility for health and safety seriously as a component of wider social responsibility. Alongside this is a growing demand for greater transparency and accountability over workplace health and safety. In recognition of this, the Corporate Health and Safety Performance Index (CHaSPI) sponsored by HSE is being developed for large corporate and public sector organisations with over 250 employees. CHaSPI is designed to give a measure of an organisation's health and safety performance. It combines measures of outcomes (e.g. accident rates) and management processes, to reflect overall performance.

4. Today's conference is aimed at publicising and developing awareness of the case studies and performance index. Another event for employers, insurers and trade unions will be held on Thursday 12 February. Guest speakers at today's conference were:

Emma Howard Boyd, Head of Socially Responsible Investment for Jupiter International Group, a subsidiary of Commerzbank of Germany, and Chair of the UK Social Investment Forum (UKSIF).

Helen Wildsmith, Executive Director of the UKSIF - the UK's membership network for socially responsible investment (SRI). UKSIF's primary purpose is to promote and encourage the development and positive impact of SRI amongst UK-based investors. The Forum was launched in 1991 to bring together the different strands of SRI nationally and to act as a focus and voice for the industry.

Sara Marsden and Joscelyne Shaw, Research Officers with strategic risk management consultants Greenstreet Berman Ltd. The company provides specialist advice, consultancy services and training support and markets its services to industries, regulators and government departments. It focuses on five areas: human factors; stakeholders & risk communication; health, safety and environment policy & regulation; corporate risk & crisis management; and CSR.

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