Far from just another cost, occupational health and safety is now considered ‘sexy’ by investors, according to a senior research analyst for AMP Capital Investors, Dr Ian Woods.
“From an investors’ perspective, we actively consider OH&S performance in our investment decisions, as we believe it is a good measure of management quality in many high-risk industries,” Woods said ahead of his speech at The Safety Conference in October.
Woods says investors cannot afford to ignore the cost of workplace injury carried by Australian employers — an average 6% of profit.
“High workers’ compensation and medical costs as a result of poor OH&S performance can reduce a company’s ability to compete. Investors should be aware of the financial risks OH&S issues carry for profit-making companies.”
NSW president of the Safety Institute of Australia (SIA), which will present The Safety Conference, Karen Wolfe, says the added interest in risk management aroused by the global financial crisis offers a turning point for occupational health and safety.
“Occupational health and safety is no longer an ugly duckling tangled in red tape, procedures and compliance costs,” Wolfe said.
“A good OHS strategy is now recognised as smart risk management of those most valuable and vulnerable assets: people and reputations.”
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