Varen Power Supply Ltd (VPSL) is a power distribution company based in Nagaland. There have been frequent reports of accidents and injuries to Company's employees, in the course of their work. It was noted that the Compa
CS Professional · Environmental, Social and Governance (ESG) Principles and Practice · PYQS · December 2024
Varen Power Supply Ltd (VPSL) is a power distribution company based in Nagaland. There have been frequent reports of accidents and injuries to Company's employees, in the course of their work. It was noted that the Company does not have any policy or guidelines for safety and health concerns of its employees considering the nature of industry in which it operates. This has led to several negative media reports, which have impacted the image of the Company and also resulted in huge fines by regulators. The Company Secretary appointed recently, informed the management that there is a growing recognition that employees are an integral part of an organization's stakeholders list and protecting their rights is an essential element of Corporate Governance. Health and Safety should be a key component of every company's Corporate Governance framework and implementation of 'Occupational Health and Safety Standards' of employees is very important. In this background, explain the benefits which accrue to business organizations on implementation of Occupational Health and Safety Standards for employees.
Answer & Explanation:
The implementation of occupational health and safety standards helps organizations to: Reduce Workplace Incidents: Organizations will experience fewer unpleasant surprises if they address hazards in their operations. Employers can discover possibilities to improve safety and productivity by recognizing possible dangers and avoid workplace incidents. Reduces Absenteeism and Staff Turnover: By managing Health and Safety hazards in the workplace more effectively, managers can better protect employees, which lower absenteeism and staff turnover rates. Increases Productivity: Productivity suffers whenever a worker is hurt and unable to work again. Hiring and training a successor takes time away. Additionally, one might need to temporarily halt operations if any equipment was destroyed in the event. Creates a Proper Health and Safety Culture: This guarantees that top-level management or safety management people bear accountability and ownership. The occupational health and safety of employees is continuously enhanced over time by having senior leadership involved and a clearly articulated approach for detecting danger. Enhances Reputation: The Company will be viewed as a top-tier industry player and gain international recognition if it adopts the most modern occupational health and safety standards. It will assist to distinguish the company from its rivals. Improve Staff Morale: Instead of quality management of the employed workplace systems and equipment, the emphasis needs to be largely on the physical and mental health of the personnel. It is critical to understand this component since it raises employee morale, which has a big influence on attrition and retention rates. Reduce the cost of Insurance Premiums: By implementing proper safety measures, an organization can establish a foundation for attracting lower insurance premiums by demonstrating that it is taking great precautions to manage and safeguard its people.
Topics: Environmental, Social, and Governance (ESG)
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