Sustainability risk management (SRM) allows businesses to align their profit and revenue goals with their environmental policies. While this is a newer area of business strategy, the concept of creating a more eco-responsible work environment is not. In fact, according to a recent Deloitte study, the percentage of U.S. businesses that allocated the highest degree of effort and resources to address the worsening climate crisis rose from 39 percent in 2016 to 67 percent in 2018. In addition to reducing their contribution to climate change, businesses should also be aware that eco-responsibility initiatives can also create value, such as saving money, building a better reputation and creating a community of responsible and mindful people. One of the chief drivers in adopting sustainability initiatives is to increase demand for observing global and national regulations. To drive this initiative and ingrain sustainable practices within the workplace, many organizations are adopting the follow business strategies:
Create a Sustainability Policy
Much like a mission statement, many organizations are crafting sustainability policies that outline their goals and commitment to environmental responsibility. The statement should spell out what the company is trying to achieve and the steps they will take to accomplish these goals. These statements can be used to show staff, prospective clients, and long-term partners the company’s stance on environmental issues and use it to inspire action both in the office and at home. Many businesses revisit their sustainability policy to ensure goals are being met and to show a level of transparency and commitment towards environmental practices.
Set Sustainable Goals
The key to setting successful and sustainable goals is to make sure leadership is leading by example. Creating concrete and achievable goals that help your business become more eco-responsible should be done as a team. It’s crucial to the success of these goals that leadership receives proper training on how to implement these goals in everyday practice. To implement the strategies throughout the workplace, managers should set meaningful goals together with their teams to encourage participation and get each team member involved.
Conduct Educational Seminars and Training
Once a sustainability statement and goals are put into place, businesses need to create buy-in for their employees. Educational seminars can help employees understand how to be more eco-responsible and help implement simple tips that can be adopted easily. For example, businesses can provide guidance on what can be recycled and where to recycle it within the workplace. Employers should also consider sending out a survey to gauge overall knowledge on eco-friendly practices, and use the data as a starting place. Incentivizing eco-friendly behavior can also encourage employees to participate in sustainability practices.
Rework Products and Provide Resources
Businesses should consider using products and resources that reflect their mission to lower their environmental impact. For in-house options, employers can provide reusable coffee cups, water bottles, and install water bottle refill stations for employees in order to cut down on the amount of plastic waste. Companies can also utilize cost-effective and eco-responsible options for packaging, opting for recyclable materials.
Later this month as we celebrate Earth Day on April 22nd, we have the opportunity to reflect on our current sustainability practices within the workplace and set the goals we have for the future.
Employers have played a large role in guiding their employees throughout the COVID-19 pandemic since it’s inception in the United States last March. In many ways, employees have looked to employers for guidance on safety regulations and other mandates instilled by the government on both state and federal levels. Now, as the two FDA approved COVID-19 vaccines from Pfizer and Moderna continue to reach U.S. citizens, employers must decide how to handle the vaccine rollout within the workplace.
According to the Equal Employment Opportunity Commission (EEOC), COVID-19 meets the direct threat standard, which means it poses a significant risk of substantial harm to the health or safety of those in the workplace when exposed. Because of this, it has been deemed legal for private companies and employers to require their employees to be vaccinated. However, the EEOC reiterated in its guidelines that each recipient of the vaccine has the option to refuse or accept the vaccine. Although the option to mandate the COVID-19 vaccine for all employees within specific workplaces is viable, there are risks that come with it.
Risks of Requiring Mandatory Inoculation
There are some businesses in high-risk industries that might consider mandating the vaccine for their employees who are more regularly at risk of contacting and transmitting the disease. For example, those working close together manufacturing facilities and prison systems are at higher risk than those working in an office building, where social distancing and mask wearing are more easily achieved.
If employers do proceed with mandating the COVID-19 vaccine, there is a risk of employer liability. Employers should account for anti-discrimination protections as they rollout their vaccination plans. This includes rolling out the program in a non-discriminatory approach, requiring employees with similar roles and duties to be vaccinated. In addition, if employers plan to require only a specific group of employees to be vaccinated, there must be non-discriminatory reasons justifying the difference in exceptions. Employers must also ensure they are sharing factual, reliable information about the vaccine. This includes relying on trusted sources such as the Centers for Disease Control and Prevention to educate employees on the vaccination, how it works, and the expected side effects. Any employer mandating the vaccine must accommodate all employees with an identified disability or sincerely held religious beliefs.
Encouraging Employees to Get the COVID-19 Vaccine
If you opt out of mandating the vaccine, the next best thing is to encourage vaccination. The best thing leaders can do to show the importance of the vaccine is to lead by example and get it themselves. Leaders could do this by sharing a testimonial video or providing verified and factual information about how the vaccine is made and why it works. Pointing to scientific research and reminding employees that the vaccine has gone through rigid screening processes before being approved by the FDA can ease concerns among employees, without putting the organization at risk of liability. Incentives can also provide encouragement to get vaccinated among employees. Cash incentives, paid time off, and other legal incentives that are anti-discriminatory and don’t result in peer pressure are good alternatives to mandating the vaccine.
Considering the Risk
When considering whether or not to mandate the COVID-19 vaccine in the workplace, many employers are seeking guidance from risk management teams, like RiskVersity. For the best guidance on the topic, please contact us.
In March of this year, during the beginning stages of the COVID-19 pandemic, most of the U.S. workforce was setting up their work-from-home offices in the matter of a few days. In fact, by June nearly 40% of the U.S. workforce transitioned to working from home full-time. While these numbers have decreased slightly, only 50% of the February workforce is commuting every day, down from nearly 75% just a few months earlier. This new norm for the workforce shed new light on remote working. As most employees maintained their normal levels of productivity without the need for a central office, which besides salary is one of the largest overhead costs for most employers, the concept of working from home seemed like an efficient way to cut costs and boost employee morale. While working from home certainly has its benefits, it also presents a unique set of challenges and risks to the employer.
Health-Related risks
As the number of people working from home has increased, healthcare providers have also seen a rise in work-related injuries. People were forced to make work-from-home arrangements rapidly, so for many individuals, ergonomics was hardly a factor in their new makeshift offices.
A study published in the International Journal of Environmental Research and Public Health reported that out of 51 participants who worked from home full-time, 41% reported lower back pain while 23% reported neck pain. Back and neck pain are often caused by a lack of movement and holding a fixed posture for a long period of time. Other concerns include eye strain caused by placing a computer monitor either too far or too close to the face. Wrist and carpal tunnel injury is caused by long hours of using the keyboard or mobile phone. In addition, overall physical inactivity can lead to obesity, increased blood pressure, and high cholesterol levels.
While these seem like small issues to deal with as we do our part to decrease the spread of COVID-19, these claims could cause a massive issue for HR departments. Typical company costs for treatment related to neck injuries can be upwards of $21,000 on average, while shoulder injuries average around $15,000. To reduce the risk of these claims, you might consider improving working conditions for your employees. Appropriate office equipment, such as sit-to-stand desks, standing mats, and adjustable monitors can avoid these risks and keep productivity rates high.
Cybersecurity Risks
As more employees work from home, many are using home Wi-Fi and third-party software to connect to Zoom calls and access private work information, which can increase the risk of security breaches. The rate of hacking and phishing scams have increased dramatically as people began working from home full-time. Companies should work with their IT department to provide Virtual Private Networks (VPNs), firewalls, and additional antivirus software for their employees to utilize while working remotely. Employers might also consider consistently revisiting the topic of cybersecurity and encourage employees to change their passwords often, protect confidential information, and limit the number of employees sharing their screens while videoconferencing.
Legal Risks
As companies and employees continue to operate remotely, it’s important employers consistently monitor behavior and asses liability risks. For many employers, most employee interaction occurs online via chatrooms and videoconferencing platforms, which can be more difficult to monitor. In addition, virtual happy hours, in an effort to boost employee morale, can cause unforeseen risks such as inappropriate behavior and overdrinking. Employers should consistently remind employees of company policies and take prompt action when any issues arise.
It’s also important to understand that employers are legally responsible to provide any tools and accommodations for employees with known or perceived disabilities as they work from home. This could include anything from the purchase of specific furniture to adjusting working hours.As most companies have extended their work-from-home policies well into the next year, it’s important to acknowledge the risks that come with it and take precautions to minimize liabilities. RiskVersity has been helping employers implement remote work policies to keep employees safe and efficient while working from home. If you’re interested in learning more about our offerings, please contact us.
Over the past decade, leading companies have been making efforts to increase diversity and inclusion within their organizations. While diversity and inclusion movements first stemmed from social and political changes, we’re now seeing its many benefits within the workplace. In fact, according to a study conducted by McKinsey & Company, “companies in the top quartile for racial and ethnic diversity are 35% more likely to have financial returns above national industry medians.” As organizations create environments that foster inclusivity and diversity in both background and thought, many are seeing improvements in productivity, sales, and employee engagement.
While there are federal laws that protect employees from facing discrimination, it’s often not enough. Together, organizations are creating a blueprint for what diversity and inclusion should look like in the workplace. In order to create an environment that’s inclusive and intentional, organizations must first evaluate their current status when it comes to diversity. There are five levels of diversity and inclusion that allow organizations to identify where they are currently and where they want to work towards in the future.
Levels of Diversity and Inclusion
Level One: At this level, organizations have made no effort to address diversity and inclusion in the workplace. These topics are often absent from conversations, goal-setting activities, and is not present within the company’s strategic plan. At a personal level, top leaders within the company may know what diversity and inclusion matters are, and may know what it’s like to be a member of an underrepresented group. However, for many, these values are not guiding principles in how they make decisions or lead their company.
Level Two: Organizations at this level are focused on diversity and inclusion as a way to remain compliant with laws and environmental pressures. Organizations at level two are often unaware of their blind spots, unconscious biases in the workplace, and are seemingly uninterested in their employees’ experience of diversity and inclusion in their day-to-day experiences.
Level Three: At this level, organizations have already identified where they are with D&I efforts and have begun to take steps to improve their standing. This might include conducting interviews with employees, re-evaluating a strategic plan to include D&I efforts, or rewriting mission and vision statements to become more inclusive.
Level Four: This level is beginning to show results from efforts made in level three. Diversity and inclusion has been implemented within the organization and the company can see improved outcomes in all aspects including employee morale, productivity and creativity. At this level D&I strategy is proactive, practical and fully integrated in day-to-day activities and long-term planning.
Level Five: This top level includes organizations that are thought leaders and demonstrate best practices throughout their industry and beyond. These organizations present ideas that are forward-thinking and connect businesses matters to D&I efforts.
At RiskVersity, we understand that initiating diversity and inclusion efforts can be difficult if you don’t know where to start. That’s where we come in. If you’re organization is ready to take the steps to become more inclusive, please contact us. We’re here to help.
As recent and ongoing events continue to spark conversations around systemic injustice and privilege, the question often arises, what can I be doing better? Diversity and inclusion are not new topics for many organizations. In fact, 83% of global businesses say diversity and inclusion are top priorities for their workplace. However, our current national environment tells us there’s still work to be done.
For many organizations, the focus is on hiring a diverse group of individuals ranging in age, ethnicity, and religion. While this step is essential, many businesses fail to prioritize the importance of inclusion. An inclusive work environment has created a culture where all employees are appreciated, respected, and receive the tools they need to succeed within their role. The challenge with diversity and inclusion is that it takes time to build and can often bring out unrecognized biases that can be painful for many individuals. However, an organization that prioritizes both diversity and inclusion see better retention rates, creativity, and employee engagement.
Strategies to Consider
To move in the right direction, the most successful organizations have taken these steps to create a more inclusive and safe workplace:
Start your education practices from the top
While inclusion practices must be honored at every level within the organization, it needs to start with the highest leaders. When these values are instilled within the individuals leading the company, the standards will be more easily instilled and respected. Businesses might consider starting with a diversity and inclusion training designed for leadership roles and executive teams. Continuous training gives leaders the opportunity to learn about behaviors they might not recognize within their workplace such as unconscious bias and micro-aggressive behaviors.
Form an inclusion committee
It’s tempting for organizations to host a one-day diversity and inclusion training and mark it off their to-do list. However, organizations that are serious about building an inclusive environment need to be held accountable. Inclusion committees or councils that include executive staff, board members, and employees provide an opportunity to evaluate their progress while also holding each other accountable.
Prioritize ongoing training
If organizations want inclusivity to be engrained in their workplace culture, they have to be willing to do the work. While one-day training seminars are helpful, ongoing training keeps conversations alive. Small working groups within each department can be a great way to help advocate for change in small but effective ways.
Minimize fear
When individuals are forced to confront their own privilege and biases, it’s a normal reaction to get defensive. However, to help promote learning and real change, individuals need to feel safe. Collectively sharing experiences and personal goals are a great way to do the work individually while supporting each other as an organization.
Our goal at RiskVersity is to equip organizations and their teams with the tools they need to create successful working environments, foster growth, and reduce risk. If your organization is ready to take the next step in prioritizing diversity and inclusion, please contact us.
As the entire world takes precautions against the spread of COVID-19, many businesses have been forced to close their doors, ultimately causing a significant decline in economic activity and touching nearly every industry. According to some researchers, our current economic situation could worsen, causing a devastating and lengthy recession. The Bureau of Economic Research reports that there have been 11 recessions since the Great Depression in 1945. The aftermath of these recessions have been widely visible in many aspects of the economy including GDP, income, employment, production and retail sales.
Risk managers are responsible for understanding the relationship between many different factors such as the economy and challenges facing the organization, both internally and externally, and how these might work towards or against strategic goals. This responsibility becomes increasingly important during economic recessions and in the midst of economic turndowns, like we’re experiencing in today’s economy. While our current pandemic might seem like uncharted territory, risk management teams are looking to history as a blueprint for what’s to come.
Lessons Learned from Historic Recessions
As risk management teams prepare their businesses and organizations for continued economic decline, many refer back to the 2008 recession, which exposed the ways in which risk management systems failed.
Undervaluing Apparent Risks
Risk managers look for correlations between different risks, which helps them identify the probability of those risks, ultimately allowing them to create a plan to avoid negative outcomes. However, during economic crises, it’s not uncommon to underestimate the probability of these risks or misread their correlative relationship. Researchers suggest that companies constantly evaluate their risk measurement methods, making changes as risks transform and evolve.
Ignoring Probable Risks
Sophisticated risk management teams continuously monitor vulnerabilities. However, as companies make changes to protect themselves from one risk, they unknowingly expose themselves to another.
Failing to Communicate
Oftentimes risk managers aren’t the ones making the final decisions. As seen in the past, many risk management teams did not effectively communicate a company’s vulnerabilities to the decision makers.
Managing Risk
Now is the time to be reviewing or creating a risk management plan for the coming months, if not longer. To error on the side of caution, risk managers must take precautions and act as if the coming recession will be worse than it actually might be. Here are a few ideas many risk managers adopt into their planning strategies:
- Identifying Risks- Using the current economic situation as your guide, identify your vulnerabilities and the most obvious ways your institution might be negatively affected. Inversely, you might consider reflecting on your business’ strengths in light of the economic downturn.
- Prioritize Decision-Making - As the economy changes, you might consider revising internal decision-making processes and procedures. Making decisions quickly and effectively could make the difference between succeeding and failing.
- Maintain Flexibility- Even if you have decision-making processes in place, it’s crucial for these decisions to be implemented swiftly. Making changes in staffing roles, policies, and communication channels can help implement the right decisions quickly.
- Manage Your Costs- There most certainly will be an increased strain on budgets. It’s crucial that businesses account for budget cuts before they happen. This could mean switching service providers or consolidating costs when appropriate.
The role of risk managers is critical during economic uncertainty. Preparing for crisis before it happens will help companies stay confident and successful even during trying times.
The Coronavirus pandemic has had a tremendous impact on our daily lives, especially when it comes to our work environment and business practices. For businesses that will survive the pandemic, work habits and customs are likely to change for the foreseeable future. The reemergence of in-person meetings, international conferences, and busy crowded office spaces is uncertain. As more employees continue to adopt a new normal, the likelihood of falling back into our traditional routines decreases. Risk management teams around the nation are beginning to create new plans for reopening their workplaces, especially as President Trump introduced “Opening Up America Again” guidelines for reopening the American economy on April 16, 2020. Because of the lingering threat on the public’s health, employers are being forced to reassess their business practices and are beginning to create their own guidelines to promote safety and efficiency. Here’s how successful industry leaders are creating their reopening plans:
Employee Health
As employers prepare for reopening, the main point of concern for many of them is how to keep employees safe in the workplace. The Occupational Safety and Health Administration (OSHA) has published guidelines for employers as they prepare their workplaces for employees’ return. These guidelines place heavy importance on cleanliness, suggesting extra precautions to disinfect frequently are taken. Employees returning to work can expect to be screened upon entry, have their temperature taken and asked to wear personal protective equipment, like masks and hand coverings, when frequenting populated areas, such as hallways, restrooms, cafeterias, or in the case of sharing workspaces like a shared office or cubicle.
Because most if not all workplaces will reopen before the complete disappearance of COVID-19, many employers are beginning to inquire about employee testing. Traditionally, medical examinations and inquiries had to be job-related and consistent with business necessity. However, because of the threat COVID-19 poses, the CDC is recommending widespread testing.
Managing Physical Presence
Employees retuning to work shouldn’t expect a full workplace, especially in the beginning of the reopening stages. In fact, many employers will be honoring social distancing at work, asking employees not to gather in groups more than 10 and to keep 6 feet between individuals.
To honor these guidelines, many employers are establishing processes that will rotate which employees work from the office and which ones are to work from home. This will promote social distancing, while also ensuring coverage across roles. However, this process will need to be strategic, especially for those in the healthcare industry, retail and manufacturing to ensure all essential shifts are covered.
Rethinking Workspaces and Promoting Telecommuting
In order to observe social distancing regulations in the workplaces, most businesses will need to reorganize their work spaces. Many employers are doing this by increasing the physical distance between workspaces, installing transparent shields to divide desks, limit the number of people attending in-personal meetings, and maintain a consistent cleaning schedule to promote proper hygiene practices. In addition, many employers are limiting the number of entrances to one and screen employees as they enter.
While many employers will welcome their staff back into the workplace, some might consider prolonging telecommuting instead. Not only will this help employers minimize the number of individuals in a workspace, it will also help keep overhead costs down, which is especially important after many businesses continue to take financial hits.
Update Employment Policies
In light of all the changes being made because of COVID-19 precautions, employers should reassess current employment policies, or at least review them prior to opening. Policies like sick leave, vacation, business travel and paid time off might need to be updated to ensure they fit current needs. If your place of business plans to adjust policies on telecommuting to encourage working from home, make sure these are communicated frequently to employees. In addition, because policies have been changing frequently, employers should keep all COVID-19 policies and procedures in one location, making it easy for employees to access when in question.
Reassess Organization Needs
For most businesses, workplace habits and procedures are changing frequently. Because of this, it’s important for employers to review infrastructure needs, especially when it comes to supplying resources needed for those working from home. This could mean budgets needs to be reassessed to allocate more funds to internal IT departments or outsourcing. Many employers are also concentrating funds on communication channels, like professional video conferencing systems, to make sure internal communications are frequent, efficient, and effective.While returning to work is a glimmer of hope for many, creating reopening plans are essential to every organization’s success. Using these considerations when you begin your plan will help you ease the process of reopening your doors.
New partnership is formed to help navigate your recovery.
Strategies to plan your business recovery and future resilience. Resurgent Collaborative assists organizations in recalibrating their business models and workforces following significant business crises, and in planning for future health- or event-based business disruption.
It’s safe to say the current global pandemic of COVID-19 caught many businesses and organizations by surprise. It seems that just overnight many businesses have had to close their doors, while others are struggling to survive the halt in production and dramatic decrease of consumer demand with an unknown end date. In the midst of a pandemic, it might seem counterintuitive to plan for the next unknown crisis, but now is the time. As we continue to live through our current crisis, planning for the next one now can provide insight we might not be able to recall in the next year or even decade. Whether you’ve closed doors or have adopted a work-from-home setup, it’s important to take the time now to create a crisis plan for the future.
Building a Crisis Plan
Creating a crisis plan before you know what the crisis actually is can be intimidating. However, the underlying concept of the plan should be relevant to every crisis. Whether you’re facing a global pandemic, a public relations failure, or a product error gone wrong, a crisis plan could be the difference between failing and rebounding. As risk managers, we see crises occur often. But, we also see many organizations successfully recover. No matter the industry, no matter the crisis, a good plan relies on these simple steps.
Develop Your Team
Navigating a crisis often requires decisions to be made quickly, but effectively. In order to do this, you need to decide who should be making decisions and who will make the final call. You might consider asking those who are essential to a crisis response effort to be a part of the team. This might require key individuals from various departments and expertise, like cyber security, public relations and marketing, legal, operations and finance. Once you’ve decided who will be key stakeholders on your team, assign roles so your team members can start navigating the crisis as soon as it occurs.
Evaluate Your Response
Not all crises deserve the same response. This is a great opportunity to get with your crisis management team to discuss how you would want to respond to different crisis situations. For example, in the case of a public relations error, such as a poorly stated response that upsets employees or partners, your team should decide who will be the spokesperson and which individuals should first be notified of the crisis. For active shooters or in the case of a fire, determine who the appropriate contact people are and know who will contact them first.
Align Messaging with Legal Advice
Oftentimes legal advice can be executed without taking compassion into consideration, resulting in a strategy that can actually make the situation worse. It’s important to align the two concepts to have a plan that is both legally smart and carries empathy.
Create a Communication Plan
Creating an internal communication plan is crucial. This will ensure that all internal members, such as employees, board members, volunteers, stakeholders, investors, and partners understand what has happened and how it will be handled. Taking a proactive approach will reduce widespread fear, rumors, and relaying inaccurate messaging to outside parties.
Your organization should also create an external communication plan, in case a representative from your organization needs to speak at a press conference or with the media. This step is crucial—make sure to choose a highly skilled spokesperson who has the ability to create thoughtful messaging and effective delivery.
Keep Important Information Safe and Easily Accessible
In the midst of a crisis, your work environment might become chaotic. It’s important to prepare all your documents before you even need them. Here are a few items to consider preparing:
- A comprehensive list of key stakeholders and partners- If a crisis occurs, you will want to alert your stakeholders, investors, and partners immediately. Easy access to these contacts will allow you to contact them quickly, ensuring the information gets delivered from the source.
- Electronic backup of all essential documents- If a crisis involves temporarily shutting down, like we’re seeing today, or if your physical structure is damaged, having electronic backup of all important documents will help you keep operations running smoothly.
Every crisis is unique and deserves an individualized response—risk managers can help with this, especially when creating a crisis plan seems overwhelming. To start, identify crisis scenarios that are most realistic and develop a response that seems appropriate. Even the practice of preparing for a future crisis will help you successfully respond when a crisis does happen.