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indicators at your company, it’s yet another reason to be concerned.
How Common Is Management Commitment?
Unfortunately, the truth is that strong management commitment when it comes to EHS support is relatively rare.
It’s much more common at large companies, much less prevalent at medium sized businesses and even less so at small businesses. The answer also depends on industry, with manufacturing, construction and energy being at the top of the list for strong management commitment, largely due to overall risk exposure, value and visibility issues.
When trying to understand the underlying drivers and motivations for establishing and maintaining strong management commitment you have to take company size into account.
Large Businesses
Let’s begin by discussing drivers at large companies where management commitment is often strong and prevalent. Primary motivations include:
■ Protection from harm. Large organizations understand that their employees are their greatest asset and that they have a fundamental duty to protect them from potential work-related harm. The same goes for protecting their local communities and the environment.
■ Exposure and Risk. Large organizations typically have major exposures in all areas of EHS, and therefore have little choice but to give strong support to programs which function to reduce their overall risk profile. The bigger the company, the more complex their operations.
■ Culture. Large companies clearly understand the value proposition behind EHS programs. As a result, their company culture reflects this by instilling values within the organization from top to bottom.
■ Education. Most senior executives at large companies are college and/ or management educated, which often includes training and curriculum on the importance of managing safety compliance and risk management.
Small to Medium Sized Businesses
For the purposes of this discussion, we’ll combine small and medium sized businesses. Here are common drivers:
■ Response to a specific negative event resulting from a lack of EHS compliance efforts. Unfortunately, management commitment only arises in reaction to a negative event which ends up causing serious financial or even emotional distress for the business and/or leadership. This is probably the number one driver for smaller companies.
■ Increased Workers Compensation premiums. High injury rates can result in up to three times higher premiums which can be devastating to a company.
The core value proposition or goal behind any EHS program should be to protect the company’s employees, local community and the environment from potential harm. Whereas large companies often understand this obligation, smaller companies often don’t. I’m not suggesting that smaller companies don’t care about these issues, but in my experience, most don’t fully recognize and respect the life and death risks that their operations
pose to their employees, etc. Many of these business executives often don’t really believe that it could ever happen to them. This lack of respect, awareness and understanding is arguably the biggest reason that management commitment is so rare and unsustainable at smaller companies.
If management commitment is lacking at your company, I strongly recommend that your company leadership seek resources to help educate and build awareness surrounding EHS regulations and laws, as well as the many benefits that companies can achieve by committing to implement and support their EHS programs.
Russell Carr founded Berg Compliance Solutions, LLC after struggling for years trying to manage EHS issues with three small contracting businesses he used to own and operate, and seeing other small companies suffer similar struggles and pay the price.
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