The Royal Commission on the Pike River Coal mine tragedy which led to the elaboration of the Health and Safety at Work Act (HSWA) 2015 and the creation of WorkSafe New Zealand stated:
"The board and directors are best placed to ensure that the company effectively manages health and safety [...]"
Therefore, the responsibility to have the policy to develop an Occupational Health and Safety Management System (OHSMS) resides in the senior management of the organisation.
Indeed, the Institute of Directors in New Zealand (2013) reiterates that statement as a principle of good governance of the organisation.
Table of contents
1. Introduction
2. The key aspects of AS/NZS 4804:
2.1 Principle One: Commitment and policy
2.2 Principle Two: Planning
2.3 Principle three: Implementation
2.4 Principle Four: Measurement and evaluation
2.5 Principle Five: Review and improvement
3. The benefits to the client for their OHSMS
3.1 Improved health and safety performance
3.2 Reduced cost
3.3 Improved staff relations and morale
3.4 Improved reputation
3.5 Lower insurance premiums
3.6 Easier access to finance
3.7 Increased regulatory compliance
3.8 Improved confidence
3.9 Corporate and social responsibility
4. How does an audit utilising AS/NZS 4801:2001 impact on the organisation, when aligned with AS/NZS 4804:2001?
5. Conclusion
References
1. Introduction
The Royal Commission on the Pike River Coal mine tragedy which led to the elaboration of the Health and Safety at Work Act (HSWA) 2015 and the creation of WorkSafe New Zealand stated:
The board and directors are best placed to ensure that the company effectively manages health and safety. They should provide the necessary leadership and are responsible for the major decisions that must influence health and safety: the strategic direction, securing and allocating resources and ensuring the company has appropriate people, systems and equipment (Institute of Directors in New Zealand, 2013).
Therefore, the responsibility to have the policy to develop an Occupational Health and Safety Management System (OHSMS) resides in the senior management of the organisation.
Indeed, the Institute of Directors in New Zealand (2013) reiterates that statement as a principle of good governance of the organisation.
Besides, it also cites AS/NZS 4801:2001: Occupational Health and Safety Management Systems; Specification with guidance for use and AS/NZS 4804:2001: Occupational health and safety management system; General guidelines on principles, systems and supporting techniques as useful resources to establish an efficient OHSMS.
2. The key aspects of AS/NZS 4804:2001
The OHSMS incorporates the principles of continual improvement as part of the overall management system of the organisation (“Figure 1”).
Abbildung in dieser Leseprobe nicht enthalten
2.1 Principle One: Commitment and policy
The commitment of the senior management to the goal of the OHS is manifested in the company policy and is continually reiterated by the things that management pay attention to and measure (Safety Institute of Australia, 2012) .
Therefore the OHSMS is developed as a means to achieve the goals set out in the policy.
2.2 Principle Two: Planning
An organisation should plan to fulfil its OHS policy, objectives and targets by gathering information about the outer and inner contexts and defining the system boundary. It implies the allocation of resources and describes how the organisation will judge its performance.
2.3 Principle three: Implementation
This is the effective systematic approach that the organisation implements to manage most of its operational risks which must be controlled as part of the system implementation.
2.4 Principle Four: Measurement and evaluation
An organisation should measure, monitor and evaluate its OHS performance, and take preventive and corrective action which provides the data for the governance review.
Indeed, this is the function of an OHSMS that describes what is recorded and reported and how performance is disclosed to the upper management.
2.5 Principle Five: Review and improvement
An organisation should regularly review and continually improve its OHSMS, to improve its OHS performance for the OHSMS to mature at the same pace as the organisation and to be integrated into all business decisions.
Therefore, the OHSMS is best viewed as an organising framework able to provide effective direction in response to changing internal and external factors.
Nonetheless, it is an important component of corporate governance to ensure that the OHSMS meet the requirements of the organisation policy.
3. The benefits to the client for their OHSMS
3.1 Improved health and safety performance
Adopting AS/NZS 4804:2001standard makes OHS management strategies much more effective by establishing a precise systemic protocol.
Indeed, all workers have a clear understanding of how to report an incident, respond to an issue, or work through a problem.
With an OHSMS, the Person Conducting Business or Undertaking (PCBU) has a clear overview of every of its OHS-related activity that happens and how it was responded to and what further actions were taken.
3.2 Reduced cost
Without OHSMS, correcting mistakes and problems might be very expensive for the organisation. For example, the cost of hiring temporary staff to replace injured employee and compensation claims can increase insurance premiums.
If the PCBU monitors hazards through a protocol, it reduces the likelihood of incidents and accidents from occurring and minimises the financial consequences for the organisation.
With fewer events to investigate, OHSMS also reduce the cost of investigating the accident and save time.
In the long run, OHSMS ameliorates the business efficiency of the organisation.
Finally, it improves productivity as workers feel the management takes OHS seriously by engaging them with their work (Garnicaa & Carsire Barriga, 2018).
3.3 Improved staff relations and morale
Organisations without OHSMS may see employees engaging in unsafe behaviour and therefore employee may put their safety or others at risk.
When a company invests in an OHSMS, employees gain confidence while at work. Thus productivity and morale improve, employee retention rates increase.
3.4 Improved reputation
A serious health-related event could become public and cause irreparable harm to the reputation of the company.
When it comes to branding and gaining sharemarket, stakeholders are unlikely to trust companies that do not care about the wellbeing of their employees.
Furthermore, having an OHSMS do not only improve the confidence of the workforce toward its employer but also boost the public image of the company and ease the recruitment and the retention of the staff. In other words, the biggest asset of an organisation is its people and it should be protected.
3.5 Lower insurance premiums
The cost of running an efficient OHSMS is offset by significant savings in insurances premiums and, for organisations part of the Accident Compensation Corporation (ACC) Accredited Employer Programme (AEP), to reduce their levies.
3.6 Easier access to finance
Having an efficient OHSMS is a sign of good governance and is attractive for future investors and institutional lenders. There is strong evidence that banks and investors will be more willing to finance businesses that can show they are well managed.
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- Citation du texte
- Damien Hiquet (Auteur), 2020, AS/NZS 4804:2001. The Aspects and the Principles, Munich, GRIN Verlag, https://www.grin.com/document/1151294
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