Protecting the Brand

Each year brings major news stories that illustrate the terrible consequences of inadequate safety, risk management, and governance practices. 2012 is proving to be no different with a cruise ship catastrophe, mere weeks into the year. Almost immediately, criticism was rampant related to the practices of the captain and crew in the minutes following the event.

But this is not the first time -– nor will it be the last –- where events such as this shape opinions of consumers, erode trust, and potentially put companies out of business. In 2011, there was the ongoing crisis at TEPCO's Fukushima Nuclear Power Plant. Although precipitated by an earthquake and tsunami, TEPCO has been criticized for not heeding earlier warnings and better preparing for such an event. Lack of transparency as the crisis unfolded and a history of governance shortcomings, including a previous scandal over falsifying safety records, have helped make the environmental disaster one of Japan's worst business disasters. TEPCO posted a $15 billion net loss for its recent fiscal year, its stock hit all-time lows, its president resigned in shame, and its future remains uncertain. Analysts predict that compensation liabilities alone could top $100 billion.

In the United States, last year saw the worst mining accident in decades: 29 miners killed at Massey Energy's Upper Big Branch coal mine. In addition to the immeasurable impact of those fatalities on families and the local community, the impact on Massey led to its CEO resigning and the company being bought by a competitor. An independent report released in May 2011 concluded that Massey "operated its mines in a profoundly reckless manner," noting among other things that there were 515 citations for safety violations at Upper Big Branch in the year prior to the disaster.

Another big story in 2010 was BP's Deepwater Horizon oil rig explosion, which killed 11 workers, caused enormous environmental and economic damage in the Gulf Coast region, and cost the company billions of dollars in cleanup, litigation, and related expenses. Here again, the company and its subcontractors have been taken to task for poor safety and risk management decisions that contributed to the disaster. As with TEPCO and Massey, the damage to brand reputation was amplified by a history of safety violations and lack of good governance. To cite just one example, the company had racked up more than 700 safety violations at its Texas City, Texas refinery before an explosion there killed 15 workers in 2005.

An incident doesn't have to command 24/7 media attention like these examples to be disastrous for your company. Nor do catastrophes occur only to companies that flout regulations and fail to prioritize workforce safety and health. One small mistake, oversight, or unforeseen hazard can bring calamity even to companies with very strong safety and health programs.

The lesson here is that when it comes to workforce health and safety, every organization can and should strive always to "do more." That's why safety and health leaders in every industry have adapted the "continuous improvement" mindset, "zero defect" goals, and proven tools and processes from the field of quality management.

With the Costa Concordia accident, what were the leading indicators that precipitated this event? How many opportunities "to act" were presented for leaders to step in and "fix" the problem before this catastrophic event occurred? Only time will tell, after months of investigation, if we will ever be able to put the speculation to bed regarding this incident on the coast of Italy.

Posted by Todd Hohn on Jun 25, 2012


Product Showcase

  • Kestrel 5400 Heat Stress Tracker WBGT Monitoring for Workplace Safety

    Ensure safety with the Kestrel® 5400 Heat Stress Tracker, the go-to choice for safety professionals and endorsed by the Heat Safety & Performance Coalition. This robust, waterless WBGT meter is ideal for both indoor and outdoor environments, offering advanced monitoring and data logging essential for OSHA compliance. It features pre-programmed ACGIH guidelines and alert settings to quickly signal critical conditions. Integrated with the cloud-based Ambient Weather Network, the 5400 allows managers to view, track, and log job site conditions remotely, ensuring constant awareness of potential hazards. Its capability for real-time mobile alerts and remote data access promotes proactive safety management and workplace protection, solidifying its role as a crucial tool in industrial hygiene. Read More

  • Safety Knives

    The Safety Knife Company has developed a quality range of safety knives for all industries. Designed so that fingers cannot get to the blades, these knives will safely cut through cardboard, tape, strapping, shrink or plastic wrap or a variety of other packing materials. Because these knives have no exposed blades and only cut cardboard deep, they will not only protect employees against lacerations but they will also save product. The Metal Detectable versions have revolutionary metal detectable polypropylene knife bodies specifically for the food and pharmaceutical industries. This material can be detected and rejected by typical detection machines and is X-ray visible. Read More

  • Matrix's OmniPro Vision AI Collision Avoidance System

    OmniPro Vision AI is a state-of-the-art collision avoidance system that features NIOSH award-winning Visual Artificial Intelligence (AI) technology. This highly accurate, powerful system identifies and alerts on pedestrians, vehicles and specified objects, ensuring safer facilities, mining operations and industrial sites. With its web-based cloud application, OmniPro Vision AI also logs and analyzes a wide range of data related to zone breach notifications. Operating without needing personal wearable devices or tags, OmniPro has visual and audible zone breach alerts for both operators and pedestrians. Read More

Featured

Artificial Intelligence

Webinars