Evidence shows that organisations who invest in health and safety culture have a competitive advantage.
A study published in the Journal of Occupational and Environmental Medicine looked at the financial growth of public companies that scored highly in the Corporate Health Achievement Award (CHAA) nominations. The CHAA awards recognise the healthiest, safest companies and organisations in North America and aim to raise awareness of best practices in workplace health and safety programs.1
As part of their application for the awards, organisations presented trend data showing a reduction of health risk, health-cost savings, or other impact on the business as a result of their safety, wellness, and health programs as well as their leadership and management culture.
Using this data, researchers took the top 17 performing companies and created stock market investment scenario, analysing the period spanning 2001 to 2014, using a hypothetical investment of $10,000.
Companies who did well in health and safety performance achieved a 333% return, compared to the stock market (S&P 500 index) return of 105% during the same period.
Even in the lowest-performing scenario, the CHAA companies achieved a 204% return, compared to an S&P return of 105% during the same period.
This research may have also identified an association between companies that focus on health and safety and companies that manage other aspects of their business equally well.
The modelling suggests that organisation that invested significantly in health and safety programs can outperform other companies in the marketplace.
Tracking the Market Performance of Companies That Integrate a Culture of Health and Safety: An Assessment of Corporate Health Achievement Award Applicants. Journal of Occupational and Environmental Medicine. January 2016 – Volume 58 – Issue 1 – p 3–8 doi: 10.1097/JOM.0000000000000638.
Ready to transform your safety culture?
Learn More About Our Foundational Behavioral Safety Program
Focusing on shifting individual attitudes and mindsets regarding how safety is viewed in the workplace, this program also teaches new skills and knowledge to embed behaviour change at an individual and organisational level.
Find out more and download the course outline below or call us on 1300 453 555.
More from our blog
Ready to launch your 2019 WHS career in Queensland? If you’re working in Queensland’s construction industry, you could be eligible for a funded place in our highly rated nationally recognised WHS programs.
Aussie tradies are almost twice as likely to take good care of their tools as their bodies with 79 per cent of tradies taking good care of their tools compared to just 47 per cent who took good care of themselves.
What does the successful Thai cave rescue mission teach us about leadership? Plenty.