NEED FOR TRANSFORMATION OF CORPORATE GOVERNANCE
I did a small analysis of some of the top organizations in manufacturing as well as service sector that publish sustainability reports and are considered to be most ethical. The reason was that while we have all the awards (both personal and corporate), compliance levels remain low and also we still are one of the top in terms of industrial accidents. I have removed the names of companies, the duration, etc. However, it is based on real reports. I think after political elections are over, we need to have a major transformation within our own companies. EHS fellows need to stand up and improve the data integrity.
The top management also needs to realize how quickly and easily the information is available in public domain as this entire analysis just took me three hours. Hence, there is a major threat to use of names and brands to go for a toss. All these are listed companies and any of these issues can have major repercussions for businesses of the organizations. Hence, EHS professionals have an opportunity to protect business that they should capitalize on and improve the overall governance and management systems of the organization.
Please refer to the Sustainability Report of Company A for year Y-Z. It declares data related to “Industrial Injury Lost Days (incl. personal transport)”. Neither in this section nor anywhere else, it published the information where one of its female employees met with a fatal accident while going to office as per a Newspaper report that is dated during the same reporting period.
Please refer to the Sustainability Report of Company B for year Y-Z. It declares, “XXX minor incidents and one fatality has been recorded in construction sites in fiscal Y-Z”. However, there is no disclosure regarding this or any further detail in the report.
This fatality does not find a reference in the Annual Report and annexed information like Corporate Governance Reports or Risk Management Report.
Please refer to the Sustainability Report of Company C for year Y-Z. It declares, “Wellness and Safety” as a Key Concern of Employees. However, there is no performance measure in the entire report of the same. In the same report, while mapping Material Topic and GRI Topic, “Safety” has been excluded and only “Wellness” is included. In Management Report again, “Safety” is missing. Also for Wellness, there are no performance indicators present. While on this page, it mentions, “The requirements regarding the human capital enhancement are proactively analysed and actualised”, in the section of Employee Engagement it states, “An employee wellness initiative which witnessed participation of more than DEF employees”. There is lack of information to affirm that it was proactively analysed and actualised.
While the company D reiterates commitment to “Safety” in its Annual Report of period Y-Z, it does not find any reference in its Sustainability Report of period Y-Z. However, there is no data in the annual report to support its commitment to “Safety”, no leading and lagging indicators.
While the company E on its web-site reports on fatality in two consecutive calendar years, this information is not “fairly” represented in Annual Report of Y-Z that garbs it under Total Recordable Frequency Rate (TRFR).