In discussing good governance and efficient management, health and safety become quite significant.
In New Zealand, running an organisation involves a comprehensive framework. Values, processes and practices must all come together. To reach a certain level of efficiency, is it not imperative for the CEO, owners, directors and/or boards to utilise their authority to its full extent in making decisions that would be beneficial to the organisation?
Of course, it is also proper for these governing bodies to operate in an ethical manner, complying with laws and regulations to reach the organisation’s goals. When your organisation leaders take an unethical stance towards its people, it may be best to seek out advice from employment lawyers in Wellington. Health and safety, above everything else, are of top priority.
The Importance of Health and Safety
As an important aspect of governance, it is a prerequisite for organisations to allocate risk management functions because ignoring the health and safety of a company’s employees can result in heavy losses and gross inefficiency. No leader wants to have a reputation of irresponsibility.
A positive culture of health and safety begins with the top management. Its importance lies in its overall benefits to the organisation. This includes the following:
- A commendable reputation for espousing a commitment to health and safety. This encourages a positive standing amongst potential employees, clients, suppliers, partners and investors.
- Employees will be participating willingly, given that they trust the organisation.
- Employees will feel the need to be more engaged and productive. This results in fewer absences and attrition rates.
- Lower business costs, such as a reduction in ACC levies, due to an improvement in health and safety performance
- A potential for an increase in profit. The International Social Security Association, for example, provides data citing a return on prevention ratio of 2.2.
Given these benefits, placing the health and safety of an organisation at a high level will more or less be an indicator of good governance and efficient management. Why would you, in the first place, compromise the lives of your people?