October 1, 2003

1. October 1 – 2, 2003 Pacific Coliseum. P.N.E., Vancouver B.C. The Road to Business Excellence October 1, 2003 Ms. Maureen Shaw, President & CEO Industrial Accident Prevention Association (IAPA) Telephone: 1-800-406-IAPA (4272) www.iapa.ca

2. Industrial Accident Prevention Association Formed 86 years ago by industrial leaders with the Canadian Manufacturers Association, we have evolved as a non-governmental, not-for-profit corporation to 225 professional staff with the following integrated menu of offerings: • Consulting Services(High Impact Solutions, Integrated Management System that imbed workplace organizational health & quality) • Technical Services(Ergonomists, Engineers, Occupational Hygienists) • Training/Educational Services(Public, Custom In-house, Specialized, Internet, CD-Rom) • Products(more than 100 products) • Partnerships and alliances locally, nationally and internationally(e.g.: Canadian Manufacturers and Exporters, Centre Patronal de Santé et Sécurité du Travail du Quebec, Canadian Foundry Assoc., Hong Kong Council, ILO, ISSA, WHO, PAHO, DGSST-Mexico, Radiation Safety Institute) • Community-based programs through a network of 900 industry volunteers

3. Vision "A World where risks are controlled because everyone believes suffering and loss are morally, socially and economically unacceptable." Mission To improve the quality of life in workplaces and communities we serve by being an internationally recognized leader in providing effective programs, products and services for the prevention of injury and illness.

4. Values Care and respect for people Trust and integrity Continuous Improvement and Innovation Openness to ideas Leading by example Recognition Life/work balance

5. Exploring the Relationship between Health & Safety and Business Excellence • In the ‘Quality’ universe, a ‘Defect’ is a product or service that does not meet the customers’ requirements. • In the ‘Health and Safety’ universe, a ‘Defect’ results in injury, sickness or death of a worker.

6. Exploring the Relationship between Health & Safety and Quality Defects BOTH: • Can be prevented • Require a systematic approach integrated into the management system • Focus on continuous improvement in the workplace is a process not a program • Use similar (or the same) analytical and problem solving tools • Both are intertwined

7. “It seems that we would rather look for after-the-fact solutions to the difficult problems we face than prevent our problems from becoming so difficult in the first place” Dr. Thomas Homer-Dixon, The Ingenuity Gap

8. QUOTE FROM GUELPH HYDRO INC. “As CEO I want to be sure that employees go home each night to family and friends the same way they come to work in the morning. Safe operations contribute to the bottom line. Excellence in health and safety performance leads to improved productivity and lower costs. Time is not lost to injury, investigation processes and all the follow-up that results from an accident. I also believe that an organization that has a high level of health and safety awareness and performance is also an organization that is known for quality in its end products and customer service. That link is a positive contributor to the company’s profit margin ” Mr. J. A. MacKenzie, p.Eng. President and CEO

9. Exploring the Relationship between Health & Safety and Business Excellence No Surprise: High ‘Quality’ companies also have excellent health and safety records For example: Companies such as Dofasco & Dupont that focus on one or the other end up achieving both!

10. Companies Such as Dofasco, have broadened their prevention efforts beyond traditional workplace safety concerns, to include health and lifestyle issues. These include promotion and support programs for employee fitness, weight control, nutrition, smoking cessation, stress management etc. This focus on “wellness” has produced tangible results for Dofasco. In five years there has been: 54% reduction in lost time injuries, a $6 million reduction in workers compensation costs, and a 57% reduction in absenteeism.“Our product is steel our strength is people” Bronco Jazvac, VP Manufacturing

11. Exploring the Relationship between Health & Safety and Business Excellence

12. ONTARIO BRITISH COLUMBIA Workforce (Stats Canada) 6 million 2 million Total Loss Time Injuries 87,000 61,500 3.2 Average LTI Rate (All Sectors) 2.1 per 200,000 hrs. (1 yr) per 200,000 hrs. (1 yr) Total Direct Costs 1.9 billion 930 million Indirect Costs 7.6 billion 3.7 billion HEALTH & SAFETY COSTS 2002 Note: Emotional and Social losses are incalculable

13. HEALTH & SAFETY COSTS • Many indirect costs such as lost production, productivity and product quality(not included in figures) – this represents four times the direct costs or close to $12 billion • The average LTI in Ontario costs over $59,000 • Emotional and social losses are incalculable Source: Business Results Through Health & Safety – Canadian Manufacturers and Exporters/Workplace Safety and Insurance Board

14. BILL C-45 On June 12, 2003, the Honourable Martin Cauchon, Minister of Justice and Attorney General of Canada, introduced Bill C-45. It received its Second Reading in the House of Commons on September 12, 2003 Bill C-45 is an act to bring corporate responsibility to the criminal code. Health and safety is integrated into the over arching responsibility of organizations • Modernize the Code definitions • Codify rules for attributing criminal liability to organizations • Establish a legal duty to ensure the safety of workers and the public • Set out factors for a court to consider when sentencing an organization • Provide optional conditions of probation that a court can impose on an organization • The fine for a “summary conviction” has been increased from $25,000 to $100,000. Specific to Health and Safety:

15. Exploring the Relationship between Health & Safety and Business Excellence QUOTE FROM A BALDRIDGE WINNER “Management realized that the most important assets at the company were the employees. The decision was made to prioritize safety – the most important concern of the associates – as the first and most important measurement category, followed by internal customer satisfaction, quality and business performance. Since that time, accidents have decreased by 72%; lost time due to accidents has decreased by 85%; and lost work days have gone down by 87%. Customer satisfaction ratings are at 95% and growing, profits are up, and workers’ compensation costs have dropped from $92,000 to $13,000.” “How a Baldridge winner manages safety” By S.L. Smith

16. Exploring the Relationship between Health & Safety and Business Excellence IAPA’s Integrated Management System • Focus is on prevention not on after-the-fact fixes • Integration into the management system • ‘a way of doing business’ • CIMS: Continuous Improvement Management System • Emphasis on business results • use many of the diagnostic, statistical and problem solving tools associated with ‘Quality’ programs

17. IAPA SAFETY, HEALTH and ENVIRONMENT MANAGING MODEL Business Excellence In Controlling Losses to People Equipment, Property, Processes, Materials, Product and Environment. Good Corporate Citizen and Community Acceptance Outcomes Compliance to: Legislation, Systems, Standards & Procedural Requirements Positive Behaviours Best Practice Utilizations Mitigation Of Contributing Causes Preventive Strategies Integrated with the Organization’s Business Process INTEGRATED MANAGEMENT SYSTEM CONTINUAL IMPROVEMENT MANAGEMENT SYSTEM: Managing Process Built on Values • VISION • COLLABORATIVE CARING CULTURE • S.H. & E. FUNDAMENTAL VALUES, PRINCIPLES AND BELIEFS • MISSION • BUSINESS STRATEGY

19. Benefits A Management System that provides for: • A single integrated approach that meets and / or exceeds the management system requirements of recognized international standards of safety, health and environment • Incorporates the characteristics & attributes of highly successful organizations to enable successful implementation

20. Benefits A Management System that provides for: • The identification of organizational and operational risks • Managing the identified risks • Managing change • Building internal capacity towards self-reliance • Improving and enhancing internal operations • A regular cycle of client self-reflection and evaluation • Flexible (different levels of program development in the core elements and the four disciplines) • Serves as an implementation model

21. One Companies experience: • Over $300 million in capital improvements • Improved community relations • Improved safety statistics • Reduced emissions by 80% and counting • Improved reliability and safety of plant • Received numerous awards from the business community (local, provincial, national) since 1999

22. Improvements 2001 to 2002 • Recordable Frequency reduced by 35% • Lost Time Accident Frequency reduced by 44% • Lost Time Severity reduced by 60.4% • Dept. of Labor Directives reduced by 78% • Stop Work Orders reduced by 75% • Not stopping there!!

23. Corporate Social Responsibility is not the latest bullet or business fad, it not a philanthropic idea. It is an International Imperative for both business and the countries we are operating in.

24. International Labour Organization Reports: Estimated Global Occupational Losses • More than 5,000 people die every day because of the work they do for a living • 2 million global work related fatalities every year (estimated for year 2000)* • 250 million accidents per year worldwide • 160 million diseases are caused by people’s jobs • World economic losses are equal to 4% of world’s GNP *Source: ILO report, www.ilo.org/safework 2002)

25. Corporate Social Responsibility in a globalized industrial world is about making the business investment and the community promise sustainable for the company and for the communities we operate in, its people and environment. It demands: • LEADERSHIP • INTEGRITY • RESPECT • RELATIONSHIPS • IT’S ABOUT RESPONSIBLE CITIZENSHIP

26. Share Our Vision - “A World where risks are controlled because everyone believes suffering and loss are morally, socially and economically unacceptable.” Jennifer Quintal – Age 9 IAPA 207 Queens Quay West, Suite 550,Toronto, Ontario M5J 2Y3 Tel: (416) 506-8888 Fax: (416) 506-8880 www.iapa.on.ca