What is ‘Corporate Governance of Health and Safety’?
The Corporate Governance of Health and Safety, (HS) can be described as that part of a company’s corporate governance process by which the board, (the controlling mind), seeks to secure adequate direction and oversight of HS. This includes the activity of the board and its supporting committees. Recent research has suggested that HS governance can be further defined as, ‘the relationship between board members and senior executives in the safety leadership of an organisation and provides the structure through which the vision and commitment to safety is set, the means of attaining safety objectives are agreed, the framework for monitoring performance is established; and compliance with legislation is ensured’.
This ‘Thought Starter’ on Governing Safely outlines some of the key questions for a board wishing to the integrate health and safety more effectively into the governance process.
This Governing Safely – Letters to a NED conversation starter may also assist with engaging new directors.
This paper, Corporate Governance of Health and Safety, presents some further thinking on the corporate governance of health and safety and draws on the following sources and references.
Sources and References on Health and Safety Governance
Thinking on the scope and nature of the effective corporate governance of companies is still developing and guidance on good practice is still evolving. The corporate governance of health and safety is best seen within the context of corporate governance. Useful references include:
Governance Regulation
FRC: Publications most relevant to HS governance include:
- The UK Corporate Governance Code;
- Guidance on Risk Management, Internal Control and Related Financial and Business Reporting;
- Guidance on the Strategic Report;
- Guidance on Board Effectiveness;
Most recently the FRC have reported on a project examining how boards can influence company culture entitled, ‘Corporate Culture and the Role of Boards’.
HS Regulators
HSE: the UK HS regulator publication: ‘Leading Health and Safety at Work’ INDG417 provides short guidance for director’s and boards.
WorkSafe, the New Zealand HS regulator publication, ‘Health and Safety Guide: Good Governance for Directors’, (published in collaboration with IOD New Zealand), provides a more detailed examination of HS governance although it refers to the New Zealand context and legislation.
Research
‘Roads to Ruin’ a report by from CASS Business School on behalf of Airmic analyses a number of major events where there have been failures in risk management. The report includes useful insights on the role of boards in effective risk control.
‘A Study of Safety Leadership and Safety Governance for Board Members and Senior Executives’ by Kirstin Ferguson is a PhD thesis on how boards handle safety.
‘Conceptualisation in Preparation for Risk Discourse: A Qualitative Step toward Risk Governance’ a thesis by Michael Lauder explored in depth how boards can ask meaningful questions to improve risk governance.
Others
The Boardroom and Risk – Tomorrows Company
Corporate Governance for Process Safety – OECD
The Six Conversations of the Board – Board Intelligence
Risk Intelligence of leaders – A D Little.
Enhancing Board Oversight – COSO