The importance of top management leadership Dr. Waddah S. Ghanem - - PowerPoint PPT Presentation

The importance of top management leadership

• Dr. Waddah S. Ghanem

Senior Director - Sustainability, Operational and Business Excellence Emirates National Oil Company Limited (ENOC) LLC

ISO / TC 283

Development - Proposal New Assurance Standard Relating to ISO 45001:2018

The OS&H Leadership Role of Top Management

The Future of Health, Safety and Wellbeing in the Workplace, British Safety Council Conference 5th February 2019, Dubai, UAE Presented by: Dr Waddah S. Ghanem Al Hashmi

MBA, MSc, DipSM, DipEM, FEI, AFIChemE, MIoD

ISO / TC 283

• Dr. Waddah S. Ghanem Al Hashmi

ISO / TC 283

Bob Arnold

ISO / TC 283

Why Top Management Leadership is Important

Three examples that influenced the debate about the role

• f Top Management Leadership

ISO / TC 283

Zeebrugge Ferry Disaster (1987)

“From top to bottom the body corporate was infected by the disease of sloppiness”.

Mr Justice Sheen 1987 The Zeebrugge Ferry disaster

ISO / TC 283

Clapham Junction (1988)

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”.

ISO / TC 283

Texas City Refinery Explosion (2005)

“One thing I have often

• bserved is that there is a great

gap between what executives believe to be the safety culture

• f 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

• ne.

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 – The standard is more “aware” and “conscious” of the Business.

• Section

5.1 which focuses

• n

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

Action Issue & reissue / revise Business Plans with OH&S included. Oversee implementation by executive team Planning Oversee development of OH&S strategy. Provide leadership for implementation Oversee Execution Direct the organisation’s approach toward OH&S culture & ensure worker participation and managers are supported Oversee Performance Monitor OH&S performance and compare with plan. Review effectiveness of controls. Taking Responsibility and Being Accountable

The Role of the Board

Action Enable resources Support other management roles Ensure policy and

• bjectives are

established Planning Communicate importance of policy Protect workers from reprisals Ensure consultation Oversee Execution Provide direction and support Develop, lead and promote culture Support OH&S committees Oversee Performance Ensure system achieves intended outcome Achieve continual improvement Taking Responsibility and Being Accountable

The Role of the Executive

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

• ther
• rganisations
• 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

• n

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

• f

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….