As a CEO, I am more conscious than ever of the penalties that I personally can face, and that my business can face, if there is an incident of unlawful behaviour amongst my staff.
The penalties for a breach of health and safety legislation or of equal opportunity laws are higher than ever. I can be personally liable in both the civil and criminal jurisdictions, and the level of compensation for findings of vicarious liability is only increasing. When legal costs, reputational damage and Board and Executive time are factored in, the costs of a claim for businesses are easily tipping over the $1 million mark.
Holding business leaders accountable and paying the price for unlawful behaviour and misconduct in the workplace is an expectation of the community, though a heavy load to carry if you are an Executive. Recent court decisions are an enduring sign that the community will continue to place more responsibility on boards and executives to navigate workplaces towards a ‘safety first’ culture.
Boards and investors are acutely aware of a executives track record in safe workplace management. Personal failure to meet compliance obligations can cause reputational damage and penalties that can cripple a business and those individuals who will be held accountable.
Do you want to learn more about Executive liability?
Join us for these two Executive Forums which will be held in Melbourne and Sydney this October.