Showing posts with label safety. Show all posts
Showing posts with label safety. Show all posts

Saturday, September 17, 2011

Road Safety is a Sustainability Issue

I was driving home from my Friday morning shopping yesterday, listening to the radio. The news told of a 25 year old girl who, at 0715 am, was crossing a busy road on a pedestrian crossing and was struck by a jeep, thrown around 20 meters and killed instantly by an oncoming car. Doesn't that make you angry? Senseless loss of life because some driver was too rushed or too careless too distracted to notice a young woman in front of his windscreen. Some young girl whose family is now burdened with a tragedy that will change them forever. A young girl who had yet to make her mark on the world. Who knows how she could have touched our lives?

This young girl is not alone. She is joined by over a million people who lose their lives every year on the world's roads. Around 50 million others are, arguably, the lucky ones, that is, those who are injured in road traffic accidents but hold onto their lives. However, many of these injuries leave them permanently disabled or cause them to lose their ability to work, communicate, support their family, smile, laugh or dance. 

Road Safety is a business issue. Road Safety is a Sustainability issue. Road Safety is an Issue. Period.

More people lose their lives in traffic accidents each year, many just like the senseless murder of a 25 year old above, completely avoidable, than those affected by other disasters which make major headlines. 1,836 people died in Hurricane Katrina . 3,000 people died in the September 11 attacks. Up to 21,000 people died or are unaccounted for after the 2011 Japan earthquake.  316,000 people died in the Haiti Earthquake of 2010. 1,300,000 people die every year in road traffic accidents. This figure is taken from the Global Status of Road Safety report published by the World Health Organization in 2009. The number is possibly higher, by now, in 2011. If current trends continue, road crashes are predicted to become the fifth leading cause of death by 2030. A 2006 paper calls road traffic accidents: The Neglected Epidemic.

I recently published an article on CSRwire.com entitled "Are CSR Managers complicit in 1.3 million deaths per year?" In this article, I make the case for road safety as a corporate responsibility and sustainability issue. Here's why:

It is the responsibility of companies to ensure the safety of their employees. In terms of road safety, this refers both to employees who are professional drivers for a company, employees who drive a company car or their own car to and from work and employees who are pedestrians. It is the responsibility of companies to ensure that all its employees both understand and act in a way which is safe for themselves and all other road users.

It is the responsibility of companies to do no harm in society. Employees, whether drivers or pedestrians, can cause road accidents. These accidents impact on society resulting in a tragic consequences for individuals, families and sometimes entire communities. Employers must take responsibility to do everything reasonably possible to ensure that their employees, on the job or off, are not creating unnecessary and costly damage to society through unsafe behavior on the road.

Equally, to what extent do cellphone companies share responsibility for the new phenomenon of distracted driving due to cell-phone use in cars? A WHO report published in 2011 addresses the growing risk to drivers and the public of increasing use of cellular phones while driving (both hand-held and hands-free). Are cellular companies part of the problem or should they be part of the solution? A quick look at the Vodafone 2010 Materiality Matrix shows that cellphone use while driving is not on the materiality radar.

However, 12 of Vodafone's 21 employee or contractor deaths in fatal work accidents in 2010/2011 were due to road traffic accidents. In addition, 16 members of the public died as a result of road traffic incidents involving either Vodafone’s or contractors’ vehicles or drivers. There is no reference to whether distracted driving due to cellphone use may have contributed to the deaths of these 28 people, but if I were Vodafone's CSR or HR Manager, I would be pulling out all stops to find out.

It makes eonomic sense for companies to invest in road safety. The overal economic burden of road traffic accidents is estimated at over $500 billion per year. Just think how this amount of money could be deployed to alleviate poverty, support sustainable development or improve the lives of people (who in turn become managers, employees, consumers and suppliers of businesses). But if that sounds a little too indirect, think of the fact that it costs three times as much as someone's annual salary to replace them, or the fact that loss of key employees could lead to loss of business continuity and loss of sales, or the fact that insurance premiums are higher when accident rates are higher, or the fact that significant amounts of management time are expended on dealing with the aftermaths of road traffic accidents affecting employees. Why would a business choose to ignore these costs? Wouldn't an investment in instilling a road safety culture be the more sensible (and moral) option?

Environmental damage due to road traffic accidents is significant. Crashes lead to greater pollution through fuel spills, release of different toxic chemicals into the air and may also affect local road infrastructures and biodiversity. Often, trucks carrying hazardous or harmful chemicals can cause significant environmental destruction. For example, earlier this month, a tank wagon carrying silicon tetrachloride, a strong acid, broke down on the 316 national highway in Gansu province China. The chemical leaked from the vehicle, producing large amounts of white mist after it reacted with rain. The diffused emissions damaged power supply equipment on the nearby line that runs parallel to the highway.

In addition, as a result of accidents, whole cars or parts require replacement which generates additional use of resources. Not to mention the additional resources used in ambulances, police, hospital care and so on. Has anyone calculated the environmental impact of road accidents? I believe that improving road safety would also be a great contribution to environmental stewardship.
 
Not paying attention to road safety of employees is, I believe, a liability for companies and an abrogation of responsibility. It could even be viewed as complicity in the perpetuation of high numbers of accidents and deaths. Like the Vodafone example above, very few companies refer to road safety in their Sustainability Reports and it is almost never listed as a material issue for the business to address.

A positive example to follow is Elbit Systems, a global defense electronics manufacturer. In Elbit Systems' 2010 Sustainability Report, the company describes its actions to embed a road safety culture. This includes participation in a government-led scheme to reduce road accidents with an ongoing Drive Differently at Work campaign. As part of this program, employees undergo road safety and awareness courses and each company vehicle carries a sticker with a hotline number that other motorists can use to complain about Elbit drivers. Recently, Elbit started installing “Green Boxes” in company cars. Like an airplane’s “black box,” this device tracks the driver’s speed, acceleration, zigzagging, brake usage etc., enabling managers to scrutinize employee driving practices for preventive training and also post-accident analysis. In a pilot program, Elbit installed "Green Boxes" in 100 company vehicles and found that the technology quickly proved its worth. Elbit has also installed a high-tech driving simulator, at great expense, for road safety training, similar to flight simulator training for pilots. Simulator training is both fun and highly effective, having been proven to reduce accident rates by up to 45 percent.


This approach by Elbit is a serious demonstration of the responsibility the company accepts for the thousands of its employees who drive company cars as well as the actions of those employees which may affect pedestrians.

In a recent chat with Darrel Rowledge, who has been working in the area of Road Accident Prevention for over 12 years, he told me that research shows that the most significant cause of accidents are "unexpected dangers", the things that happen while you are driving that you are unprepared for - people walking out into the road, rural collisions with wildlife, lost loads, fog, smoke and other unexpected events which cause accidents of varying degrees of severity. Dr Rowledge has devised a collaborative system which communicates advance warning to drivers - simulations using this system have proven to be effective in preventing collisions. 

However, technology alone will not suffice. Road Safety is the result of comprehensive attention to safety factors such as the state of roads, signage, speed regulations, vehicle safety features, car maintenance and more, requiring concerted efforts by all stakeholders including governments, car and parts manufacturers, companies and people. When it all comes down to it, however, it's the individual behind the wheel that makes the split-second decision between safety and disaster. A study by Barbara Charbotel in France showed that "road crashes during the course of work are the primary cause of occupational fatalities in most industrialized countries. They represent 20–25 percent of fatal work accidents in the United States  and 30 percent in Canada , and they are associated with significant human and economic costs. In France, nearly 40 percent of fatal work accidents are road crashes."  In the light of this, surely the time has come for CSR and Human Resources Managers in companies to ensure that they are doing everything they can to contribute to a safer world while protecting their business interests. I say it is their responsibility to do so.  

Finally, if you want to hear more about safety in general and road safety in particular, join me in a webinar  (29th September) and download a free ebook on the subject (including an article by me).

Whether you are commuting to or from work, driving around with your family or simply taking the car to the nearest ice-cream parlor, safe driving!

Disclosure: Elbit Systems is my client and I worked on the company's 2010 Sustainability Report.

elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of CSR for HR: A necessary partnership for advancing responsible business practices Contact me via www.twitter.com/elainecohen  on Twitter or via my business website www.b-yond.biz/en  (BeyondBusiness, an inspired CSR consulting and Sustainability Reporting firm)

Saturday, August 6, 2011

Ground turkey: off the sustainability menu

Cargill, salmonella, turkeys, one person dead, 77 reported sick, 36 million pounds of ground turkey meat recalled. If you are in the US, you can't have missed this story. One of the largest food product recalls in US history. The practice of adding antibiotics to animal feed is common in the US to maintain animal health and help animals grow more quickly and therefore become more productive. However, the claims are that antibiotic use eventually leads to animal resistance to the drugs and this can cause contamination which is passed on to humans. Also, consumption of antibiotic flavored meat and poultry can over time cause human resistance to certain antibiotic strains. The food safety issue is a complex one and this story shows highlights one of the most basic areas corporate responsibility for livestock food manufacturers. Antibiotic use in animal feed has been banned for use in Europe for some time. In the US, in June 2010, the FDA published draft guidance intended to help reduce the development of resistance to medically important antimicrobial drugs used in food-producing animals, but the practice is still widespread. The recommendation is that antibiotics should be administered to animals only to assure animal health and only under veterinarian supervision.

I had the opportunity to learn more about this issue during the past year while working with Fenton Communications to prepare a very interesting sustainabiilty report. The talented Fenton team led by Susan McPherson handled all the great design work and my role was researching and writing the report. I am referring to the 2010 Sustainability Report for Novus International, a privately-owned US-based global company and a world leader in animal nutrition and health, specializing in the development and manufacture of food additives and supplements for livestock.

Novus International has been around for twenty years with a vision of helping to feed the world affordable, wholesome food and achieve a higher quality of life. Novus products are truly innovative and support global sustainability needs to help deliver more, safe food to the increasing global population on track to reach 9 billion in 2050. The report is called Innovation with Integrity, and has is structured around some of the core, critical sustainability questions that Novus people ask themselves every day, for example:
  
  • How does Novus innovation increase global food availability?
  • How does Novus innovation contribute to improved nutrition?
  • How do we increase food capabilities for future generations through science and education?
  • What role does integrity play in running our business?
  • How do we inspire our employees to excellence with integrity?
  • How do we make a contribution to the global economy?
  • What are the priority sustainability issues for our stakeholders?
  • How do we collaborate with customers to meet their needs?
  • How do we make quality a top priority at Novus?
  • How do we ensure a sustainable supply chain?
  • How do we respect animal well-being?
  • How do we contribute to the sustainability of our communities?
  • How do we work to protect the environment?
Novus's Animal Health Programs and scientifically-developed products utilize dietary antioxidants and combinations of gut environment modifiers to naturally support beneficial bacteria, defeat harmful bacteria like salmonella and enhance digestion and absorption without reliance on antibiotics. Novus feed additives give livestock producers a choice to significantly reduce the amount of antibiotics used in livestock production and therefore reduce food safety risks.

Not only this, many Novus products increase the bioavailability of food that is fed to animals, therefore reducing the amount of feed necessary to maintain healthy and productive poultry and livestock. This has major environmental benefits as lower volumes of feed are required and lower volumes of waste are generated. Finally, all of this has a positive economic impact, helping farmers to reduce costs while increasing productivity. Novus works closely with thousands of customers in 100 countries to apply locally-relevant solutions for safe, healthy and cost-effective livestock food production. In emerging markets, this can enable small farmers to develop economic independence and a secure livelihood for themselves and their families, often raising the economic standards in entire villages and regions. 

The move away from broadscale use of antibiotics in farming just seems to make sense. Would you want to live on a permanent diet of antibiotics if you weren't actually sick? Why would you want your food to come from animals that have consumed vast quantities of antibiotics every day of their lives? Novus offers alternatives to this and and many other sustainability-critical questions relating to meat, poultry and fish production and consumption. And, as a highly engaged and responsive business, I am sure they would appreciate your feedback on their third Sustainability Report (GRI checked at Application Level B). 

On a personal note, I have to say it was a pleasure and a privilege working with the delightful Susan McPherson and Fenton and Novus on the production of this report. I personally interviewed a wide range of Novus people from the CEO, through to the entire Executive Leadership Team as well as Novus people throughout the world from China to India to Belgium to Spain to USA to Africa and more. In each conversation, I did not fail to be impressed with the sense of mission that each and every one displayed and their strong commitment to making the world a place in which food is safer, more available and affordable and offering higher nutritional benefits. Also, Chief Sustainability Officer, Joyce Cacho, PhD, drove the process to ensure absolute rigor in application of the GRI framework, which as any reporter knows, is not always the easy option. Keenly innovative, highly conscious of social and environmental issues, aligned behind an imperative of integrity, systematic, responsive and clear on priorities, I was left convinced that Novus International is a business which is run on embedded sustainability principles and practices.

Now, I wonder how many antibiotics my daily dose of ice-cream contains.... 



elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of CSR for HR: A necessary partnership for advancing responsible business practices  Contact me via www.twitter.com/elainecohen  on Twitter or via my business website www.b-yond.biz/en  (BeyondBusiness, an inspired CSR consulting and Sustainability Reporting firm)

Wednesday, June 29, 2011

57 issues and still counting: Ford's materiality

This is the third in the Reporting Materiality series. Number One was about Delhaize. Number Two was about Vodafone. This is Number Three and it's about FORD. You may have heard of Ford. It's a little automobile manufacturer making around 2 million vehicles per year worth around $130 billion in sales and employing over 164,000 people at 73 plants, 41 distribution centers and warehouses, 57 engineering research & development facilities and 106 sales offices worldwide. Small, right? But with BIG impacts.

The Ford Motor Company Sustainability Report 2010/2011 is long and detailed. It is presented online and offers a print-page download of 486 pages. I opted for the online version!

Ford's Materiality Matrix is clickingly spectacular. 

When you click on each box, you get a drop-down list of all the issues categorized in one of the nine sections. In total, 57 material issues were identified, of which 34 are of high-impact or high-concern or both.  Sounds like Ford's Director of Sustainable Business Initiatives is gonna need a LOT of ice cream!  But actually, he should feel relieved that there are only 57 issues as Ford started out with a list of more than 500. The description of how Ford developed their materiality analysis, both in terms of identifying the issues and prioritizing them is detailed and demonstrates good process and included feedback from a Ceres-convened stakeholder group review.

The 14 top issues in the very purple top-right box include:
  • Four issues relating to climate change
  • One issue relating to public policy
  • One issue relating to water
  • Two issues relating to Ford financial health
  • One issue relating Ford future competitiveness
  • One issue relating to vehicle safety
  • Four issues relating to supply chain sustainability
While this might seem like a very through deep dive into material issues, presented interactively, the downside is that you cannot discern the relative importance of issues within a given box in the matrix. Are these 14 high impact, high concern issues all of exactly equal importance to Ford and to Ford stakeholders?

As Ford didn't volunteer this information, I picked three issues of my own to focus on.  I skipped over supply chain issues which, though important, are don't strike me as materially groundbreaking (though addressing carbon and water issues in supply chain relationships is a new high-level issue this year which is a good thing) and while water is an ultrasonic issue of growing importance, I didn't feel it's where Ford is likely to gain materiality traction. The key take-out for Gina Marie Cheeseman in her post on Triple Pundit was Ford's focus on climate change and vehicle emissions reduction.

Anyway, I picked Ford Future Competitiveness : sustainable mobility, defined as "Ford’s approach to increasing challenges of urban mobility, congestion, urbanization and mega-cities, as well as rural mobility and economic opportunity"  which is connected to electrification strategy and developing more and better electric vehicles. Ford says this is simply an issue of adding up the numbers. Here are some of those numbers: 
  • There are now more than 6.9 billion people in the world. By 2050, there will be 9 billion, 75 percent of whom will live in urban areas.
  • By 2015, it is projected that at least 35 mega-cities will have a population of more than 10 million.
  • The number of automobiles globally is expected to grow from about 800 million today to between 2 and 4 billion by 2050.
  • During 2010 alone, the car market in China expanded by 30 percent, while the market in India grew by more than 35 percent
Guess that's a nice market any self-respecting car maker wouldn't want to miss out on. The competitive edge for Ford will be to compete in a way which satisfies global demand for more vehicles and more environmentally efficient options. I would think this has to be the top issue for Ford over the next 15-20 years and an opportunity to create Sustainable Shared Value. (But that's just my opinion)

I also think the Public Policy question of  "Regulation of vehicle emissions globally, state-by-state regulation in U.S.; increasing stringency and inconsistency of regulation; challenges left by lack of U.S. federal climate legislation" is crucial for Ford sustainability. Ford lays out the climate change policy landscape quite thoroughly and it is clear that this could have major effects on their operations  (and costs) and change the way Ford can serve consumers and appease regulators.

Finally, I select vehicle safety. Despite the fact that someone said "there are no safe vehicles, only safe drivers", I liked Ford's definition " Active and passive safety; pedestrian safety; customer interest in and demand for safe vehicles; increasing regulation generally with focus on active safety; challenge of evolving in-vehicle technology". This goes beyond making motor cars and looks at the whole scope of impacts of people driving cars in our communities. Road accidents are responsible for over 1.2 million deaths per year and up to 50 million injuries. The economic, business, social and environmental burden of road accidents is tremendous and the causes varied. It is in Ford's interest to do what they can to make driving a safer experience as this reflects positively on Ford in terms of reputation, protects communities and environmental damage and also make economic sense. Ford's driver-assisted technologies could be important in helping Ford gain competitive ground while managing the business, social and environmental risks associated with road safety. Again, Ford shares relevant contextual data and discuss in detail issues such as distracted driving with a very interesting case study. 

While Ford's materiality matrix does not quite meet the need in terms of understanding the relative importance of a high number of material issues (many companies identify less than 14 issues in total, while Ford have 14 issues in their top box alone), I don't think we can fault Ford in providing a comprehensive level of narrative which both educates and enlightens about the issues of the day. The only problem is that, to read all the narrative covering 57 issues would take far longer than it would to do anything about it.

This was post Number Three on Materiality. But watch this space. We're not done yet! Any guesses on who's up next?

PS: In writing this series I was reminded by Dave Meyer of a great series of posts the he wrote on his blog Valuestreaming about Materiality in the Supply Chain. This is a great series located here.


elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of CSR for HR: A necessary partnership for advancing responsible business practices Contact me via www.twitter.com/elainecohen  on Twitter or via my business website www.b-yond.biz/en  (BeyondBusiness, an inspired CSR consulting and Sustainability Reporting firm)

Sunday, April 4, 2010

What still went wrong

One of the common criticisms levelled at CSR Reporting is the focus on good news. Few Companies rise to the challenge of presenting a  balanced report which provides stakeholders with a full picture, including aspects of their sustainability performance which cannot be described as entirely positive. So imagine how refreshing it was to find one company who actually includes a page in their report entitled "What still went wrong". Can you guess who ? I doubt it.

The What Still Went Wrong Company is Royal DSM N.V. and their Sustainability Report for 2009 includes a rather painful page (number 66) of mini-disasters in the field of Safety, Environment and Health. We are treated to stories about an operator whose finger tip was sliced off when he was replacing a gear wheel on a production machine, one who burnt his ankle when he stepped into an open duct with hot condensate, another who was bitten by a venomous snake which is the source of venom proteins for use in treatment of cardiovascular disease, and some poor guy who had an electric cabinet weighing 1600 kg fall on this "torso region". We hear about  near misses such as when a fork lift truck fell of a dock, and a worker who fell through a roof and saved himself by hanging by his elbows at a height of 8 meters (elbows?)  DSM tell us about environmental blips such as the runaway reaction in a storage tank which released decomposition products of chloroacetaldehyde, and yeast broth emissions through a chimney which contaminated the surrounding neighbourhood.

DSM, a Life Science company, employs nearly 23,000 people and has what appears to be a positive and improving safety record, with clear processes in place to prevent and manage safety incidents and near-misses.  What Still Went Wrong does not include any fatalities. And yet, having your finger chopped off during routing maintenance, or breaking your collarbone (yes, that too) are not the sort of things you expect to have to deal with when you pack up your lunch box for another day on the job. The safety of employees is one of the most important aspects of corporate responsibility. But you knew that. So does DSM.

So why include these horror tales in their CSR report? First, being responsible is being transparent. Good news or bad, if it is material, it needs to be told. Even a lost finger tip impacts the quality of a person's life. Second, DSM is boldly going where almost no other Companies fear to tread. By highlighting these incidents. DSM is demonstrating that they are not perfect, in the same way that no Company who issues a Sustainability Report is perfect. Every Company has safety incidents, some far worse. Some simply record numbers of fatalities as a statistic with no further commentary. Most Companies avoid mentioning negative issues, in order to create the impression that they are perfect, when we all know that this cannot be. In this resepct, DSM shows leadership by highlighting issues of which it may not be particularly proud, but in doing so makes a public statement of commitment to do whatever in the Company's control to prevent recurrence. In this way, their reporting contributes to enhanced levels of trust in  the Company.

Whilst I am not advocating that all Sustainability Reports should contain a detailed hospital checklist of broken bones, near-fatal slips and falls, cracked skulls, animal bites and ingested poisons, I do applaud Royal DSM for bringing us down to earth and demonstrating that even with the best of safety practices, people are people, machines are machines, and things happen. Facing up to this reality, responsibly,  is the one of the Golden Principles of CSR. 

elaine cohen is the CEO of Beyond Business, a leading social and environmental consulting and reporting fitm. Visit our website at www.b-yond.biz/en
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