The Institute of Directors (IOD) says it wishes to avoid ineffective health and safety governance by company directors contributing to workplace catastrophes such as the Pike River Mine and Easy Rider incidents.
The IOD and Work Safe New Zealand are jointly releasing an updated health and safety guide to assist company directors with good governance ahead of legislation changes next month.
According to the IOD, the financial cost of work-related injuries and death is estimated to be more than $3.5 billion a year.
IOD chief executive officer Simon Arcus says Directors particularly need to understand due diligence provisions of the new legislation.
He says examples such as the Pike River Mine case and the Easy Rider catastrophe provide examples of how ineffective governance can contribute to catastrophic results.
“It is the role of the director to provide leadership,” he says.
The Health and Safety Guide: Good Governance for Directors, is an updated guidance by the Institute of Directors (IOD) and Work Safe.
“The Health and Safety Work Act 2015 requires directors to ultimately take responsibility for the health and safety of their business – it’s clear that directors, managers and workers will get the best from the legislation by working together,” says Arcus.
“The principles underpinning safety governance are no different than any other aspect of a governance role. Directors must have the knowledge of, and the commitment to health and safety,” he says.
Contrary to some beliefs, directors are not expected to be experts to meet the expectations of the Act,” says Arcus
“The Guide is part of our Get Ready for April 4 package for New Zealand directors,” he says.
The IoD and New Zealand’s Business Leaders’ Health and Safety Forum will be presenting roadshows across the country to help executives understand what health and safety monitoring and reporting are required, so they can focus on what matters most.
“Directors create expectations and exercise due diligence by holding management to account for meeting them,” says Arcus.
