occupational health and safety in boards - WorkSafe Victoria

OCCUPATIONAL HEALTH 

AND SAFETY IN BOARDS 

July 2006

CONTENTS 

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 

Good health and safety means good business . . . . . . . . . . . . . . . 2 

Roles and responsibilities of boards and their 

members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 

Checklist/Action Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 

Further support and advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 

This publication is protected by copyright. WorkSafe Victoria 

encourages the free transfer, copying and printing of this 

publication if such activities support the purposes and intent 

for which the publication was developed.

INTRODUCTION 

This booklet aims to show the advantages of leadership and 

commitment to occupational health and safety being driven from 

the top level of the organisation and provide guidance on how it 

can be done successfully. 

Good health and safety means good business. Recent corporate 

practice places increasing emphasis on corporate social 

responsibility which has a positive impact on overall business 

performance, leading to social benefits such as public, investor 

and stakeholder trust. 

WorkSafe Victoria is seeking to promote occupational health 

and safety as a key issue in every Victorian boardroom. 

WORKSAFE VICTORIA / OCCUPATIONAL HEALTH AND SAFETY IN BOARDS 1

GOOD HEALTH AND 

SAFETY MEANS 

GOOD BUSINESS 

There are two reasons for board members, company directors, officers and 

executives to take a leadership role in relation to their organisations’ occupational 

health and safety (OHS). 

The first is legal. The Occupational Health and Safety Act 2004 (the Act) has 

increased the focus on officers taking a lead role in health and safety in their 

organisations with new provisions to cover officer liability. If a company 

contravenes a legal provision of the Act and the contravention is attributable 

to an officer’s failure to take reasonable care, that officer is guilty of an offence. 

There may be financial, legal and/or reputational consequences to bear 1 . 

The second is that good occupational health and safety is good business. 

Successful organisations have integrated the concepts of ‘Corporate Social 

Responsibility’ or the Triple Bottom Line for their businesses. This covers 

economic, social (which includes OHS), ethical and environmental concerns as 

well as future sustainability. These organisations see good health and safety 

performance creates a competitive advantage. 

Effective management of health and safety risks has helped to: 

• reduce the potential for people getting injured, ill or killed at work; 

• avoid negative effects on turnover and profitability, such as lost time and 

high workers’ compensation costs; 

• minimise the likelihood of prosecution; 

• maximise productivity and wellbeing of all employees by reducing downtime, 

labour turnover and absenteeism; 

• encourage better relationships with contractors; and 

• improve the organisation’s reputation in the eyes of investors, customers, 

competitors, suppliers and the wider community. 

1 

See boxes 1 and 2 on the following pages for a brief description of relevant provisions of the 

Occupational Health and Safety Act 2004, for board members, officers, etc. 

2 WORKSAFE VICTORIA / OCCUPATIONAL HEALTH AND SAFETY IN BOARDS

GOOD HEALTH AND SAFETY MEANS GOOD BUSINESS 

BOX 1. THE OCCUPATIONAL HEALTH AND SAFETY ACT 2004 – 

IMPLICATIONS FOR SENIOR OFFICERS AND BOARD MEMBERS 

There are new provisions in the Act which are specific to officers of bodies corporate, 

partnerships and unincorporated bodies or associations. Officers are considered those at the 

most senior levels of organisations that are genuinely in a position to influence the direction 

the organisation takes. The definition of an officer in the Corporations Act has been adopted 

for the purposes of the Act. 

An officer is: 

• a director or secretary of a corporation; 

• an office holder or a partner in a partnership, unincorporated body or an association; 

• a person who makes, or participates in making, decisions that affect the whole, or a 

substantial part, of the business; 

• a person who has the capacity to significantly affect the corporation’s financial standing; 

• a person in accordance with whose instructions or wishes the directors of the corporation 

are accustomed to act (unless the person is providing advice in a professional capacity); 

• a receiver, or receiver and manager, of the property of the corporation; 

• an administrator of a corporation; 

• an administrator of a deed of company arrangement executed by the corporation; 

• a liquidator of the corporation; or 

• a trustee or other person administering a compromise or arrangement made between the 

corporation and someone else. 

The Act places the duty on an officer to take reasonable care to ensure that their organisation 

complies with the Act. 

Roles and responsibilities of boards and their members 

Research has demonstrated that good health and safety is material to good 

business performance. Poor OHS can lead to injuries and illnesses, resulting in 

absenteeism, dissatisfaction with working conditions, slowdown in production 

and loss of profits. 

Eliminating work hazards not only reduces injuries and illnesses, but also leads to 

improvements in productivity, profitability and competitiveness of a company. 

The following roles and responsibilities provide examples for board members and 

officers of how health and safety can be included in an organisation’s corporate 

governance to ensure ongoing health and safety success and compliance with 

the Act. Boards should monitor their own decisions and actions and those of their 

organisations on a regular basis 2 . 

2 

Suggestions for a checklist/action plan are provided at the end of this publication. 



1. Leadership 

The board’s role in providing health and safety leadership should be stated formally 

and publicly in a way that demonstrates the leadership is committed to continuous 

improvement in health and safety. For example: 

• endorse an OHS policy in consultation with employees and communicate it to 

the workforce; 

• set health and safety objectives and targets for the organisation; 

• understand the organisation’s OHS performance and monitor it over time; 

• report on the organisation’s OHS performance publicly; 

• employ and/or engage sufficient numbers of suitably qualified and competent 

people to advise on and to implement OHS requirements. 

2. Knowledge 

Members of the board should know what their OHS obligations are and about 

those relating to their organisation, and how they are managed. They should stay 

up-to-date on current issues and be alert to and prepared to act on emerging 

issues. 

• Understand legislative responsibilities, including relevant regulations. 

• Ensure everything done reinforces the messages in the company’s OHS policy. 

BOX 2. THE OCCUPATIONAL HEALTH AND SAFETY ACT 2004 – FAILURE TO COMPLY 

Where an organisation has failed to comply with the Act or regulations, the Act provides that in 

some circumstances the failure can be attributed to an officer not taking reasonable care. If so, 

the officer could be guilty of an offence. This will be determined having regard to: 

• Did the measures, which might reasonably have been taken to avoid the incident, fall 

properly and reasonably within the duties, responsibilities and scope of the officer’s 

functions, including making arrangements for facilitating ongoing training and supervision 

and creating, monitoring and maintaining systems for identifying, assessing and controlling 

hazards and risks to health and safety? 

• Did the officer fail to take obvious steps to prevent the incident? 

• What was the degree of blameworthiness involved in the officer’s behaviour? 

• Has the officer had previous advice or warnings regarding matters leading to the incident 

or should the officer have reasonably known about the advice or warnings? 

• Did the officer knowingly compromise safety for personal gain or for commercial gain of the 

organisation without undue pressure from the organisation to do so? 

• Was the contravention attributable to an act or omission of another person? 

• What could reasonably be expected of the officer bearing in mind all the relevant 

circumstances including the officer’s role, knowledge and the nature and context of the 

relevant activity being conducted by the organisation? 



3. Responsibility 

Appoint a board member and/or executive to champion health and safety. The 

chair/chief executive may take on the role, but at the very least appoint a member 

of senior management to lead health and safety functions and ensure they are 

dealt with. 

• Define, document and communicate to all levels in the organisation their 

specific health and safety responsibilities, authority to act and reporting 

requirements. 

• Hold managers accountable for their health and safety responsibilities. 

4. Decision-making 

Ensure decision-making includes consideration of health and safety implications. 

This will assist in complying with legal obligations as well as avoiding the 

possibility of costly changes later. 

• Consider health and safety at the initial stages of decision-making for the 

introduction of new plant, design of new workplaces, relocation of premises 

and new or changed practices, processes and people. 

• Establish criteria for health and safety standards you expect of your suppliers, 

contractors and other service providers. 

5. Consultation 

Ensure the organisation has procedures and mechanisms in place to consult with 

employees on OHS. 

• Ensure mechanisms are in place to increase ease and effectiveness of 

information sharing. 

• Comply with the legal requirement to consult with employees on OHS matters. 

6. Oversee efficacy of OHS systems and programs 

Monitor the implementation and review of systems for improving OHS. There may 

be a number of systems and programs in place, including: 

• OHS induction and training programs for all employees, managers and 

contractors; 

• risk management system which includes hazard identification, risk assessment 

and control of associated risks; and 

• system for reporting and investigating hazards and incidents and taking followup 

action. 


CHECKLIST/ACTION PLAN 

This checklist/action plan is by no means exhaustive and may be adapted to suit the organisation’s operations. 

ITEM YES NO ACTION WHO WHEN (REVIEW) 

Leadership 

Is there a company OHS policy endorsed 

by the board? 

Is the policy effectively communicated? 

Does the board regularly communicate on 

OHS matters to employees and other 

stakeholders? 

Knowledge 

Do all officers and members of the board 

know their OHS legislative obligations and 

duties? 

Are officers aware of their role when: 

• The risk management process has been 

completed and a request for resources 

is put forward? 

• An incident occurs? 

• A notice has been issued by a health and 

safety representative (HSR) or an 

inspector? 

• An investigation is being conducted? 

Responsibility 

Has a member of the board been given 

overall responsibility for or management 

of OHS? 

Do all managers have health and safety in 

their performance measures? 

Are there competent people to advise 

on OHS? 

Decision-making 

Do recruitment practices include health and 

safety requirements? 

Do design and purchasing procedures 

include health and safety requirements? 

Do board decisions take into account health 

and safety requirements? 

Consultation 

Is there an open and transparent process 

for: 

• Employees to raise OHS issues? 

• employees to be consulted on changes 

to the workplace, practices, processes, 

etc that will affect OHS? 

Is it endorsed by the board? 


CHECKLIST/ACTION PLAN 

ITEM YES NO ACTION WHO WHEN (REVIEW) 

OHS Committee 

Is an officer or a member of the board on 

the OHS Committee? 

Does the board receive regular reports 

and recommendations from the OHS 

Committee? 

OHS program 

Has an OHS program been developed? 

Does the program cover all health and 

safety issues in the workplace? 

Is it endorsed by the board? 

Are regular reports on its progress reported 

to the board? 

Is it effectively communicated? 

Are different components regularly 

monitored and reviewed: 

• Training and induction program? 

• Risk management? 

• Reporting and investigating? 

• Prevention activities? 

Reporting 

Is OHS included in the corporate report? 

Does the report include lead and lag 

indicators? 

Does it include future targets? 


FURTHER SUPPORT 

AND ADVICE 

This information is based on the Occupational Health and Safety Act 2004 and 

should not be considered a legal document or a substitute for the Act. This booklet 

should be read in conjunction with the Act. 

Further information can be obtained at www.worksafe.vic.gov.au including: 

• Summary of the Occupational Health and Safety Act 2004; 

• Information for Senior Officers of Organisations; 

• Information for Employers; and 

• Information for Occupiers and Those Who Manage or Control Workplaces. 


WORKSAFE VICTORIA 

Advisory Service 

222 Exhibition Street 

Melbourne 3000 

GPO Box 4306 

Melbourne, Victoria 3001 

Phone . . . . . . . . . . . . . . 03 9641 1444 

Toll-free . . . . . . . . . . . . . 1800 136 089 

Email . . . . . info@workcover.vic.gov.au 

Head Office 

222 Exhibition Street 

Melbourne 3000 

Phone . . . . . . . . . . . . . . 03 9641 1555 

Toll-free . . . . . . . . . . . . . 1800 136 089 

Publications. . . . . . . . . . 03 9641 1444 

Website . . . www.worksafe.vic.gov.au 

Local Offices 

Ballarat . . . . . . . . . . . . . 03 5338 4444 

Bendigo. . . . . . . . . . . . . 03 5443 8866 

Dandenong . . . . . . . . . . 03 8792 9000 

Geelong. . . . . . . . . . . . . 03 5226 1200 

Melbourne 

(628 Bourke Street). . . . 03 9941 0558 

Mildura . . . . . . . . . . . . . 03 5021 4001 

Mulgrave . . . . . . . . . . . . 03 9565 9444 

Preston . . . . . . . . . . . . . 03 9485 4555 

Shepparton . . . . . . . . . . 03 5831 8260 

Traralgon . . . . . . . . . . . . 03 5174 8900 

Wangaratta . . . . . . . . . . 03 5721 8588 

Warrnambool. . . . . . . . . 03 5564 3200 

VWA1018/01/07.06

occupational health and safety in boards - WorkSafe Victoria

Create successful ePaper yourself

Delete template?

Save as template?