This blog post is part 1 in a 3-part series
At Cority, we’re always obsessively thinking about where the market is heading and how we can stay ahead of the curve, especially as it relates to customer requirements.
Today, every industry faces ever-rising customer expectations, ever-evolving competition and ever-changing compliance requirements. Beyond risk mitigation and compliance, effective Environment, Health, Safety, and Quality (EHSQ) programs can be a competitive advantage. Harnessing data to gain insight into – and proactively improve – operations can be the difference between market leadership and market irrelevance.
But how does one make EHSQ a competitive advantage?
Through leveraging strategic EHSQ, we see EHSQ programs ascending into the “C-Suite.” Current political winds in the US will not change the longer-term march towards more sustainable corporations in the US or other countries around the world. Regulatory compliance (and the corresponding potential for penalties) is only one reason corporations are putting far greater focus on EHSQ than ever before – the reason is that it’s good for business.
But what is strategic EHSQ, and why does it matter?
Whether it’s reducing emissions, protecting the surrounding community, or ensuring your workers’ overall wellbeing, it has long proven that excellent companies – those that generate the best outcomes for their stakeholders – strive to operate with excellence in these areas. Companies that have exemplary safety, health, and environmental programs outperformed the S&P 500 by 3-5% (Fabius R, Thayer R, Dixon BA, et al 2013). The best companies will not let fewer regulations or risk of penalty let them get sloppy – lax practices cost money, risk brand reputation, and cost billions a year in lost productivity. The best companies make this a competitive advantage and the laggards will struggle to survive in a global economy. As part of this trend, we at Cority believe tangential areas such a GRC and Sustainability will be consolidated to cover three broad areas: worker wellbeing, operational excellence, and compliance.