As a C-level officer of a high-risk company, you’ll want to prioritize both the safety and well-being of your employees – and the profitability of your company.
The key to securing both is avoiding losses, and one way to achieve that is by building a strong safety culture.
To create a solid organizational culture, it's crucial to ensure that safety policies and procedures are used to both identify and address potential issues. A culture-based safety strategy will also demonstrate a commitment to safety towards employees, investors and customers alike, and can be used to track the success of safety initiatives.
But the benefits of proper documentation go beyond just demonstrating your commitment to safety. An effective safety culture can also lead to avoiding unnecessary expenses in terms of insurance premiums, legal fees, fines, and lost productivity, as well as increased employee morale and retention.
Explore how we help you document safety culture improvements
The Expensive Habit of Turning a Blind Eye to Risk
We often see that the costs of small incidents are hidden in budgets across the organization. The costs of major incidents, however, are often assumed to be covered by insurance and therefore not included in annual budgets. As if they're irrelevant as soon as operations are back to normal.
But incidents and accidents can have long-term financial consequences that's difficult to predict the outcome of. Insurance does not cover loss of reputation and future business opportunities. The financial burden of major accidents may therefore very well exceed insurance claim payouts – sometimes on a such a scale that there's no coming back from it.
Revenue is extremely sensitive to safety, and many companies have gone bankrupt because of their damaged reputation in the aftermath of a major accident. Safety breaches can be a barrier for more business and even a legitimate reason for clients to terminate their contracts.
By systematically developing your organizational culture, you can improve your safety efforts and reduce the likelihood of accidents and incidents, leading to even greater cost savings and increased profitability for your company.
The Knowledge and Value of HOP is Increasing
One approach that can be helpful while building a strong safety culture is the implementation of HOP (Human and Organizational Performance) principles. HOP focuses on the understanding that most accidents and incidents are the result of organizational factors, rather than just individual mistakes.
By addressing these underlying factors and implementing systems and processes to support human performance, you can create a safer work environment and reduce the likelihood of accidents and incidents.
Prospective investors and customers also want to know that they are doing business with a company that values safety. By demonstrating your commitment to safety through documentation improvements in organizational culture and the implementation of HOP principles, you can increase trust and confidence in your company, leading to increased business and revenue.
In today's competitive market, it is important to differentiate your company from the competition. A strong safety culture is a great way to do so.
Prove Your Commitment to ESG
In addition to its financial benefits, a strong safety culture is also important for ESG considerations, which is also an attractive parameter for investors, customers and cost of capital expenditures (CAPEX). ESG refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company.
A strong safety culture demonstrates a commitment to the safety and well-being of employees and the community, as well as a responsible approach to environmental considerations. This can have a positive impact on your company's reputation and in turn, reduce CAPEX through prioritizing ESG factors.
Overall, building a strong safety culture is crucial for driving profitability in the maritime industry. By making safety a top priority and utilizing the tools and resources available, you can create a safer work environment, reduce the likelihood of accidents and incidents, increase trust and confidence in your business, and drive profitability.
Documented efforts through HOP and ESG considerations are effective measures to get both investors and customers on board.
Let’s dive deeper into the specifics of what they might look for in a serious commercial partnership.
Five Deeds of a Modern Maritime Company
There are several factors that investors and customers of maritime industry companies may value and prioritize, including:
Investors and customers want to know that the company they are doing business with values the safety of its employees and the public. A strong safety culture and proper documentation of safety protocols and procedures can demonstrate this commitment and increase trust and confidence in the company.
Investors and customers want to know that the company they are doing business with is reliable and can deliver on its commitments. This includes reliability in terms of safety, delivery times, and the quality of products and services.
Many investors and customers prioritize companies that have a strong commitment to sustainability and the environment. This includes a focus on reducing waste and emissions, as well as implementing practices that minimize the company's impact on the environment and the risk of environmental disasters.
Investors and customers may value companies that are innovative and able to adapt to changing market conditions. This could include the development of new products or services or the implementation of new technologies to improve efficiency and reduce costs.
The reputation of a company can be a major factor for both investors and customers. Companies with a positive reputation are more likely to attract investors and customers and can command higher prices for their products and services.
Enable yourself to document efforts in these five elements, and you can be sure to keep your competition at bay. But investors and customers shouldn’t be your only concern when sustaining a profitable business.
Stay Ahead of Regulations
In addition to attracting investors and customers, as well as securing the safety and well-being of your employees, an outright focus on a strong safety culture helps you stay within regulations. The safety and reliability of maritime industries are recognized by governments and regulatory bodies around the world. Their common ground is that they all hold safety standards high.
Whether it is based on the idea of protecting the environment, preventing accidents, training employees or handling hazardous material, they can all benefit from the same medicine: Enhanced organizational culture.
At SAYFR, we are happy to provide you with advice and tools to ensure compliance with regulations does not interfere with your business operations. Choose a strategic partner for improving your overall culture, with a rig and software to prove and measure your work.
Want to learn more about our solution for a safer world? Contact us today