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Centre for Corporate Accountability Conference: Corporate Manslaughter, Directors’ Duties and Safety Enforcement Hamilton House, London 19 November 2007 Michael Large Vice Chairman of the Board Institute of Directors (IoD) www.iod.com/hsguide LEGAL CHANGE OR VOLUNTARY GUIDANCE?

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Page 1: Centre for Corporate Accountability Conference: Corporate Manslaughter, Directors’ Duties and Safety Enforcement Hamilton House, London 19 November 2007

Centre for Corporate Accountability Conference:Corporate Manslaughter, Directors’ Duties and Safety EnforcementHamilton House, London19 November 2007

Michael LargeVice Chairman of the Board

Institute of Directors (IoD) www.iod.com/hsguide

LEGAL CHANGE

OR

VOLUNTARY GUIDANCE?

Page 2: Centre for Corporate Accountability Conference: Corporate Manslaughter, Directors’ Duties and Safety Enforcement Hamilton House, London 19 November 2007

Centre for Corporate Accountability Conference:Corporate Manslaughter, Directors’ Duties and Safety EnforcementHamilton House, London19 November 2007

IoD: Professional association: about 53 000 individual members

Over 75% are in small or medium-sized enterprises, including health & safety and voluntary sectors … and many others

Services to its members ... public policy

Page 3: Centre for Corporate Accountability Conference: Corporate Manslaughter, Directors’ Duties and Safety Enforcement Hamilton House, London 19 November 2007

Centre for Corporate Accountability Conference:Corporate Manslaughter, Directors’ Duties and Safety EnforcementHamilton House, London19 November 2007

IoD WORK ON HEALTH AND SAFETY

Advice and information to IoD members Policy and other seminars Director training Dialogue with regulators [e.g. Health and

Safety Commission (HSC) and Health and Safety Executive (HSE)]

Responses to public policy consultations Contacts with other organisations

Page 4: Centre for Corporate Accountability Conference: Corporate Manslaughter, Directors’ Duties and Safety Enforcement Hamilton House, London 19 November 2007

Centre for Corporate Accountability Conference:Corporate Manslaughter, Directors’ Duties and Safety EnforcementHamilton House, London19 November 2007

BOARDS AND HEALTH AND SAFETY: Standards of performance Engaging directors’ attention Integration into their business Perceptions and problems Encouraging leadership Making good guidance Corporate manslaughter and corporate homicide

Page 5: Centre for Corporate Accountability Conference: Corporate Manslaughter, Directors’ Duties and Safety Enforcement Hamilton House, London 19 November 2007

Centre for Corporate Accountability Conference:Corporate Manslaughter, Directors’ Duties and Safety EnforcementHamilton House, London19 November 2007

HEALTH AND SAFETY:

Stick or carrot? HSC guidance Other guidance and legal documents Health and safety statistics Overseas comparisons

Page 6: Centre for Corporate Accountability Conference: Corporate Manslaughter, Directors’ Duties and Safety Enforcement Hamilton House, London 19 November 2007

Centre for Corporate Accountability Conference:Corporate Manslaughter, Directors’ Duties and Safety EnforcementHamilton House, London19 November 2007

IoD STATEMENTS (ON CORPORATE MANSLAUGHTER AND CORPORATE

HOMICIDE):

“We fully accept the need for tightening the law on this issue.

“It is not in business’s interest to be seen to behave recklessly, and to be getting away with it.

“We are happy to support these proposals which are a step in the right direction.”

IoD, May 2000, quoted in “Tightening the law on involuntary manslaughter: proposals for

reform”, News Release, Home Office, London, 23/05/2000

Page 7: Centre for Corporate Accountability Conference: Corporate Manslaughter, Directors’ Duties and Safety Enforcement Hamilton House, London 19 November 2007

Centre for Corporate Accountability Conference:Corporate Manslaughter, Directors’ Duties and Safety EnforcementHamilton House, London19 November 2007

DIRECTORS AND HEALTH & SAFETY:Statistics from an IoD member survey, July-August 2002 (381 respondents):

36% of all boards had considered the existing HSC guidance (53% in those with 250+ employees, 30% in the rest)

58% had a health and safety report at least quarterly (38% at each meeting)

54% usually discussed the report at each meeting

62% thought suppliers’ practices important

52% thought customers’ practices important

Page 8: Centre for Corporate Accountability Conference: Corporate Manslaughter, Directors’ Duties and Safety Enforcement Hamilton House, London 19 November 2007

Centre for Corporate Accountability Conference:Corporate Manslaughter, Directors’ Duties and Safety EnforcementHamilton House, London19 November 2007

REVISION OF HSC GUIDANCE:IoD and HSE steering group drawn from: Large enterprise Small enterprise Local government National Health Service (NHS) Voluntary sector Trades unions Legal profession Health and safety profession

Page 9: Centre for Corporate Accountability Conference: Corporate Manslaughter, Directors’ Duties and Safety Enforcement Hamilton House, London 19 November 2007

Centre for Corporate Accountability Conference:Corporate Manslaughter, Directors’ Duties and Safety EnforcementHamilton House, London19 November 2007

REVISION OF HSC GUIDANCE:

IoD and HSE Steering Group membership (and nominating body):

Dr Peter Doyle (Confederation of British Industry) Eva Garland (National Council for Voluntary Organisations) Dr Rowland B. Hopkinson (formerly NHS Confederation) Bud Hudspith (Trades Union Congress) Richard Jones (Institution of Occupational Safety and Health) Paul Lankester (Local Government Association) Michael Large (Institute of Directors) - CHAIRMAN Mike Welham (Federation of Small Businesses) Professor Frank Wright (University of Warwick)

Secretariat and administration: HSE and IoD

Page 10: Centre for Corporate Accountability Conference: Corporate Manslaughter, Directors’ Duties and Safety Enforcement Hamilton House, London 19 November 2007

Centre for Corporate Accountability Conference:Corporate Manslaughter, Directors’ Duties and Safety EnforcementHamilton House, London19 November 2007

MAIN ELEMENTS OF THINKING (1): Needed to attract attention of reader Essential principles, not a textbook Case studies Links to extra help and resources Have an eye to legal and other developments

Page 11: Centre for Corporate Accountability Conference: Corporate Manslaughter, Directors’ Duties and Safety Enforcement Hamilton House, London 19 November 2007

Centre for Corporate Accountability Conference:Corporate Manslaughter, Directors’ Duties and Safety EnforcementHamilton House, London19 November 2007

MAIN ELEMENTS OF THINKING (2):Based on the intention to: Maintain good health and safety performance Improve health and safety performance Encourage directors to consider health and

safety at board level

Page 12: Centre for Corporate Accountability Conference: Corporate Manslaughter, Directors’ Duties and Safety Enforcement Hamilton House, London 19 November 2007

Centre for Corporate Accountability Conference:Corporate Manslaughter, Directors’ Duties and Safety EnforcementHamilton House, London19 November 2007

THEMES OF CONTENTS: Essential principles Actions:

1. Plan 2. Deliver 3. Monitor 4. Review

Page 13: Centre for Corporate Accountability Conference: Corporate Manslaughter, Directors’ Duties and Safety Enforcement Hamilton House, London 19 November 2007

Centre for Corporate Accountability Conference:Corporate Manslaughter, Directors’ Duties and Safety EnforcementHamilton House, London19 November 2007

OUR TASK (1):

Two Steering Group meetings (September and October 2006) IoD seminar on the project (October 2006) Further three Steering Group meetings before issue of draft Draft produced Consulted upon in May and June 2007

Page 14: Centre for Corporate Accountability Conference: Corporate Manslaughter, Directors’ Duties and Safety Enforcement Hamilton House, London 19 November 2007

Centre for Corporate Accountability Conference:Corporate Manslaughter, Directors’ Duties and Safety EnforcementHamilton House, London19 November 2007

OUR TASK (2): Steering Group considered consultation

responses (July 2007) HSC consideration (4 September 2007)

Launch of revised Guidance in London and Belfast on 29 October 2007

Dissemination … and use

Page 15: Centre for Corporate Accountability Conference: Corporate Manslaughter, Directors’ Duties and Safety Enforcement Hamilton House, London 19 November 2007

Centre for Corporate Accountability Conference:Corporate Manslaughter, Directors’ Duties and Safety EnforcementHamilton House, London19 November 2007

www.iod.com/hsguide

www.hse.gov.uk/leadership

www.hseni.gov.uk