The importance of top management leadership Dr. Waddah S. Ghanem Senior Director - Sustainability, Operational and Business Excellence Emirates National Oil Company Limited (ENOC) LLC
Development - Proposal New Assurance Standard Relating to ISO 45001:2018 ISO / TC 283 The OS&H Leadership Role of Top Management The Future of Health, Safety and Wellbeing in the Workplace, British Safety Council Conference 5 th February 2019, Dubai, UAE Presented by: Dr Waddah S. Ghanem Al Hashmi MBA, MSc, DipSM, DipEM, FEI, AFIChemE, MIoD
Dr. Waddah S. Ghanem Al Hashmi ISO / TC 283
Bob Arnold ISO / TC 283
ISO / TC 283 Why Top Management Leadership is Important Three examples that influenced the debate about the role of Top Management Leadership
Zeebrugge Ferry Disaster (1987) ISO / TC 283 “From top to bottom the body corporate was infected by the disease of sloppiness”. Mr Justice Sheen 1987 The Zeebrugge Ferry disaster
Clapham Junction (1988) ISO / TC 283 Sir Anthony Hidden Referring to the Board of British Rail said: “A concern for safety which is sincerely held and repeatedly expressed but which is not put into practice is as much protection from danger as no concern at all” .
Texas City Refinery Explosion (2005) ISO / TC 283 “One thing I have often observed is that there is a great gap between what executives believe to be the safety culture of an organization and what it actually is on the ground. Almost every executive believes he or she is conveying a message that safety is number one. But it is not always so in reality”. Carolyn W. Merritt ‐ U.S. Chemical Safety and Hazard Investigation Board, November 2005
Key Changes in ISO 45001 (from the OHSAS 18001) • The Standard is more in line with the more recent structural changes of ISO 9001 and ISO 14001 standards that will help with Integration moving forward; • Focus on the Business Context of a business and management of risks – “aware” The standard is more and “conscious” of the Business. • Section 5.1 which focuses on Top Leadership • Section 5.4 Focus on Consultation and Participation of Workers
The Business Case • Loss prevention - Insurance and other costs • Opportunity losses - Efficiency costs • Potential reputational damage – Erosion of shareholder value & in some jurisdictions: • Prison sentences for Top Managers – Corporate Liability / Corporate Manslaughter / Gross Negligence • High Fines for Individuals and Corporates
Classification of Top Managers Large and Medium Size Organisations: • The Board Collective oversight responsibility - • Non-executives Independent advisory and oversight • Executive Executive action and policy execution
Classification of Top Managers Micro Organisations: • Single Director – Managing Director Combines all three roles, and day to day management
The Shareholder/Board/Executive Relationship
The Role of the Board Action Issue & reissue / revise Business Plans with OH&S included. Oversee implementation by executive team Oversee Performance Planning Taking Monitor OH&S Oversee development of Responsibility performance and OH&S strategy. Provide and Being compare with plan. leadership for Accountable Review effectiveness of implementation controls. Oversee Execution Direct the organisation’s approach toward OH&S culture & ensure worker participation and managers are supported
The Role of the Executive Action Enable resources Support other management roles Ensure policy and objectives are established Planning Oversee Performance Taking Communicate Ensure system achieves Responsibility importance of policy intended outcome and Being Protect workers from Achieve continual Accountable reprisals improvement Ensure consultation Oversee Execution Provide direction and support Develop, lead and promote culture Support OH&S committees
The Initial Model of OSH Governance & Leadership
Impact An ISO Standard for OSH Assurance for Top Management Leadership will help ensure: • Create alignment in the shared vision at the Top Management, Leadership and Governance Level • Further reduced injuries at work • Assist with the effective implementation of ISO 45001 • Bring about financial savings to business and other organisations • Improve overall OS&H performance of organisations
Conclusions An ISO Standard for OS&H Assurance Top Management Leadership will help: • Define OS&H Role of Executive Management Vs Independent Directors • Define the required interaction, relationship and dynamics between Executive Management Vs Independent Directors OS&H Leadership Actions • Provide Assurance to Stakeholders on effective Top Management role implementation The ISO Community was requested to support the development of this critical OS&H assurance standard – We are currently working with various stakeholders
Current & Next Steps To Date we have/are: • Developing a standard for OSH Governance and Leadership Assurance • Started writing a book on “ OH&S Stewardship for Board Directors and Executive Management: A Leadership Guide to the Effective Implementation of the ISO 45001:2018 Standard” • Setting up a Mirror Committee with ESMA:UAE to drive the ISO 45001 Standard as well as the OSH Governance & Leadership Assurance Standard. • In the Process of socialising the ideas further and conducting structured workshops with SMEs in both the UAE and the UK. • Developing surveys and workshops on the same.
Thank You Many thanks to the British Safety Council for arranging for this annual Conference and their Invitation. We are happy to take Questions, if any … .
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