Employer of Choice - Sydney TAFE eLearning Moodle

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Employer of Choice – Staff Perspectives
Dr Rob Gill
Public Relations and Communications, Faculty of Higher Education
Swinburne University of Technology
Melba Avenue, Lilydale, Victoria 3140, Australia
Telephone +61 3 9215 7325
Email: rgill@swin.edu.au
Abstract
“Employer of Choice” (EOC) is an evolving principle for Australian business. EOC reflects
the value and importance organisations place on their key stakeholders - their staff. This
paper aims to define employer of choice for Australian business conditions, demonstrate the
link between EOC and “Corporate Social Responsibility” (CSR), expand on the valuable
contribution staff add to organisational “Reputation and Risk Management”, and illustrate
how “Information and Communication Technology” (ICT) can provide the ideal platform for
educating a large office-based staff about their organisation’s EOC program.
Increasing numbers of Australian organisations are paying greater attention to motivating
and effectively utilising the skills of their employees. The current climate of buoyant
employment in Australia enables employees and job-seekers to look beyond monetary
incentive in employment to include aligning work culture with their individual beliefs on
corporate, environment and social responsibility. Many organisations are working hard to
acquire EOC status, as EOC programs are one way of addressing employee requirements.
This paper suggests “Computer Assisted Learning” (CAL), which embraces the
constructivists’ principles of adult learning, enables individually-tailored education for large
office-based staff on their organisation’s EOC programs, enhancing opportunities to reflect
an organisation’s brand and desirable culture.
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Introduction
This paper aims to define Employer of Choice (EOC) for Australian business conditions,
demonstrate the link between EOC and Corporate Social Responsibility (CSR), expand on the
valuable contribution staff add to organisational Reputation and Risk Management, and
illustrate how Information and Communication Technology (ICT) can provide the ideal
platform for educating a large office-based staff about their organisation’s EOC program.
Central to this paper is the belief that CSR is not only an ethical obligation for organisations,
but fundamental for business sustainability, and directly relates to employee engagement and
opportunities, which are critical to the reputation and success of an organisation. The paper
examines how employee education, in keeping with Contructivism theory, on their
organisation’s EOC program can positively contribute to this success.
Herman & Gioia (2004) have observed that Employer of Choice (EOC) has gained popularity
since the year 2000, representing a whole new design of corporate culture and human capital
management. Their observation is supported by research which demonstrates that gaining
EOC status is an emerging and critical part of successful businesses in terms of external
reputation and employee satisfaction (see, for example, EPA Victoria, 2005; Kahler, 2005;
Fracaro, 2005; Hewitt, 2003; Human Resources, 2005; IBM, 2005; PriceWaterhouseCoopers,
2002).
In Australia, workers are demanding enhanced employee opportunities, Corporate Social
Responsibility (CSR) and environmental awareness from their employers (IBM, 2005;
PriceWaterhouseCoopers, 2002; Suggett and Goodsir, 2002). Such demands are influenced by
a range of factors, for example: (a) global business trends regarding accountable and
transparent behaviour towards employees, (b) Australian government legislation and
regulation, and (c) a workforce with the capacity to exercise greater choice in employment.
Increasingly, organisations have to find meaningful ways of responding to such employee
demands along with remaining “ahead of the pack” in terms of human capital management as
a means of becoming and retaining EOC status. Education about an organisation’s EOC
program is seen as vital for retaining staff, attracting quality job applicants and enhancing a
business’s reputation (Hewitt, 2003).
Information and Communication Technology (ICT) is the most accessible and available
vehicle for communicating with external and internal stakeholders of large organisations
(Harrison, 2007; Euneson, 2005), and can be effectively used as a means of educating staff
about their organisation’s employee benefits and ‘good’ employer practices (Reiser, 2001a;
Reynoldson & Vibert, 2006). However, for ICT to be helpful in this education process,
consideration must be given to pedagogical design in keeping with Constructivism (learning
through activity that builds on prior knowledge) and adult learning principles, as well as the
objectives of the EOC program. This paper focuses on teasing out the parameters of EOC
within the Australian context and outlining how ICT can be used to educate staff about their
organisation’s EOC program.
Defining EOC
In Australia, the term “Employer of Choice” has typically been associated with recruitment
and strategies to attract and retain staff (Herman & Gioia, 2004; Leary-Joyce, 2004; Drucker,
1999). More recently, EOC has been viewed as best practice for employment conditions,
including: employee opportunities, sustainable culture, public reputation and desirable
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qualities like facilities and support networks that make organisations attractive employers
(PriceWaterhouseCoopers, 2002; Hewitt 2003; Hull & Read, 2003).
In order to obtain a holistic definition of employer of choice for the uniformity of Australian
business, this paper investigated contemporary research, studies, and surveys and awards
related to the employer of choice theme, and government legislation and regulation related to
employee management (see appendix one).
Primary issues common to global surveys and international studies (listed in appendix one)
relating to good human capital practices and corporate responsibility include: effective people
policies for leadership and management, external relationships, occupational health and
safety, learning opportunities, community involvement and environmental conscience.
Forums for public communication relating to employer of choice already established are
performance awards, ratings and citations. The criteria for these awards were investigated to
establish common criteria used to assess successful employer of choice programs (see
appendix two).
In light of global and national surveys, recent research and industry awards, employer of
choice strategies need to focus on the following criteria: leadership and inter-relationships,
safety, wellbeing, staff development, opportunity, inclusion, community involvement, and
sustainable practice.
Compliance for government and industry regulation regarding employee conditions is
building, with the Australian government reviewing and implementing legislation regarding
employer obligations to employees and corporate responsibility. This is supported by a
number of associated industry requirements (see appendix three).
This (appendix three) legislation and regulation reaffirms Australian employer responsibilities
to employee safety, equal opportunities, freedom from discrimination, environmental
responsibility, social responsibility and good governance.
Superannuation
One particular issue for Australian workers not given due consideration in the researched
studies and awards regarding EOC criteria is concern for financial planning and wealth
protection regarding Australia’s unique superannuation and retirement planning structures
legislated by the Federal Government. The Superannuation Guarantee Act 1992 and the
introduction of “Choice of Super” legislation which commenced on 1 July 2005 ensure that
retirement saving through superannuation currently applies to more than 90 per cent of the
Australian workforce (Rainmaker Information, 2003/4, p. 7). Making an informed choice on
superannuation to ensure financial security and wealth protection requires a degree of fiscal
sophistication. Employers have a legislated responsibility to equip employees with accurate
knowledge so they may make informed decisions regarding their retirement savings and
financial protection (Bailey, 2005, p. 14; Simioni, 2005: 5; Wilkinson, 2005, p. 20-22).
Superannuation, due to compulsory employer contributions, is directly associated with
employee opportunities.
EOC criteria for Australian Business
The central pivot on which good workplaces are founded are quality working relationships
underpinned by workplace leadership and clear values, along with having a voice and being
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safe (Hull & Read, 2003, p. 3). Common themes to emerge from the above research
emphasised good human capital management for Australian organisations to be based on:
strong leadership and governance, opportunity for future development, financial and job
security, sustainable business practices, work-life balance, safety and acceptance of diversity.
“Today’s employees want their companies to possess a strong sense of social responsibility.
They insist upon ethical business practices, financial stability, community leadership, fair
treatment and a healthy working environment,” (Herman & Gioia, 2000).
The Link between CSR and EOC
Employer of choice and corporate social responsibility are intertwined. EOC can be viewed
from two perspectives: the employer’s perspective, i.e. CSR strategies safeguarding effective
operations for a business, and the employee’s perspective, i.e. CSR strategies securing an
employee’s commitment to the business. EOC encompasses the internal policies and practices
that ensure the organisation’s culture is corporately responsible for its operations and the
resulting effects on all stakeholders, including customers, shareholders, government and the
organisation’s primary asset - employees (Abbott, 2003; Fels, 2003).
As many academics and industry experts have researched CSR for Australian conditions this
paper doesn’t seek to define CSR. However, CSR has recently been identified as modern
business meeting obligations from increasingly demanding ethical, environmental, legal,
commercial and public standards, as defined by wider society (Crane et al. 2007). The
fundamental idea behind CSR is that business has an obligation to work for social betterment
(Haugland Smith & Nystad, 2006, p. 4). A commonly accepted understanding of CSR
practice can be drawn from the five pillars of CSR strategy, which include: business ethics,
employee relations, human rights, community investment and environmental sustainability
(ExperienceCSR, 2003). How these five pillars are applied internally make up the foundation
of a solid corporately responsible organisation. The internal management of these strategies is
an organisation’s employer of choice program.
Business ethics theorist Peter French (1984) argued that recognising the business as a moral
agent is the concept of internal decision making being drawn from identifiable and collective
identities associated with the organisation, as opposed to individual ethics governing decision
making. In a sense, an organisation’s decision making is made on the grounds of remaining
commercially sustainable and remaining ethically engaged with the community. Haugland
Smith and Nystad (2006) explain CSR in terms of the ethical perspective – companies accept
social and environmental responsibility as an ethical obligation to create a good society, and
in terms of an instrumental perspective – focusing on achieving economic objectives through
social activities. The intrinsic value of the ethical motive and the economic value of the
instrumental motive are mutually linked and beneficial to the organisation.
Globalisation, corporate governance, accountability and citizenship are becoming part of
mainstream policy and management as companies search for ways to understand the
boundaries of their non-market accountabilities and responsibilities, and to engage with those
stakeholders that matter to their business (Suggett & Goodsir, 2002, p. 8). Many Australian
companies produce CSR/sustainability reports, post internet statements and/or circulate press
releases to indicate their practices, policies and procedures relating to social responsibility,
sustainability and employer of choice practices (Suggett & Goodsir, 2002). The Australian
Government has taken a number of important steps to encourage the production of
sustainability reports, through releasing publications, developing external programs with
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industry organisations, and by holding roundtable discussions (Department of Environment
and Heritage, 2004, p. 1).
The focus on transparency and accountability through external reporting has encouraged
organisations to review their internal management policies and practices. It has also forced
companies to develop human capital strategies, applied through employer of choice programs,
in order to support their corporate responsibility agenda (Bramner and Pavelin, 2004, p. 704).
Business Reputation
An organisation’s reputation is an important asset that needs to be protected. Reputation is
based on ethical, financial and environmental perception of performance in relation to
external goals (Birch, 2003, p.11). Fombrun and Shanley’s seminal model (1990, p. 235)
hypothesises that corporate reputations represent the public cumulative judgements of
organisations over time, which in turn effect the organisation’s relative success in fulfilling
expectations of multiple stakeholders.
Business reputation extends beyond financial performance for shareholders (Fombrun, 2005)
and incorporates all stakeholders, including employees, government, community and
consumers/clients (Suggett & Goodsir, 2002; GRI, 2002). Australian companies recognise the
importance of business reputation and how it can be protected by providing a solid foundation
in EOC policy and practice when addressing human capital issues. Internal employer of
choice programs can deliver intangible benefits of brand enhancement and better staff morale,
fortifying corporate responsibility and strengthening business reputation externally (Bright,
2005). A strong reputation as an EOC business can have a profoundly positive effect on
stakeholder opinion (GRI, 2002, p. 2).
The past few years have seen more global campaigns for open and accountable behaviour
from organisations, resulting in increased government regulations. At the same time, Australia
is experiencing falling unemployment rates and employee burnout. All these are driving the
need for improved education and communication with regard to employer of choice
strategies, policies and practices (Hewitt, 2003; Hull & Reid, 2003; Human Resources, 2005;
Work Safe Victoria, 2004).
Risk Management
Two key risk considerations for the current Australian workforce are low unemployment rates
and employee burnout. Pfeffer (1998) in his book ‘The Human Equation: Building Profits by
Putting People First’ concluded that a global study of human resources practices directly
equated to higher revenue and growth with better employee policies. “Attracting, motivating
and retaining knowledge workers have become important in a knowledge-based and tight
labour market, where changing knowledge management practices and global convergence of
technology has redefined the nature of work,” (Horwitz et al. 2003, p. 23). An informed and
secure human capital source is a significant element in organisational success.
The Australian unemployment rate in February 2008 of 4.3 per cent was at a thirty-year low
(ABS, 2008), resulting in a ‘job-seekers’ market. Such a job-seekers market allows the
Australian workforce to exercise a greater choice and to consider a broader range of issues
when contemplating employment (Fracaro, 2005). Annual staff turnover in Australia has leapt
from between 11 to 13 per cent in 2005, to more than 18 per cent in March 2008 (Schneiders,
2008). However, the retention and attraction of effective staff can be more successfully
managed through providing a working environment conducive to employee needs and
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preferences (Clarke, 2001). Such a working environment requires staff to be knowledgeable
of their employment EOC policy and practices.
Another trend that requires proactive attention is employee burnout, which is eroding the
bottom-line of Australian businesses and is generating serious implications for organisations
(Human Resources, 2005). A recent Hudson survey of more than 7,800 employers found 32
per cent of managers are witnessing burnout among their employees and a 29 per cent
increase in the number of sick days being taken. Burnout has also resulted in an increasing
number of employees leaving organisations (Human Resources, 2005, p. 21).
Ashridge Centre for Business and Society director, Andrew Wilson, states employee options
that include a broad range of work-life initiatives, such as flexible working options, remoteworking opportunities, tele-commuting, time-off policies and wellbeing programs, provide the
tools for coping with any extra work demands that may impact on employees’ lifestyles.
Future relevant issues might include religion in the workplace, employee privacy, HIV/AIDS,
sexuality and benefits for domestic partners. In the ‘war for talent’ it is often argued that such
options can be crucial in attracting and retaining the best talent as companies strive to be seen
as desirable places to work (2004, pp. 16-17).
Making staff your reputation champions
Organisations that promote significant employee opportunity not only reduce staff turnover,
but enhance staff loyalty (Herman and Gioia, 2000). “Organisational wealth is increasingly
attributable to ‘soft forms’ of capital - reputation, trust, goodwill, image and relationships,”
(Post, 2004, p. 13). These “intangible” assets, which originate from the organisation's internal
policies and practices, undeniably deliver value to the company according to 96 per cent of
executives polled in an Accenture Survey (Post, 2004, p. 14). Such intangible considerations,
relating to CSR from an instrumental perspectives, make it all the more imperative that
organisations put a lot of thought and effort into designing their EOC programs and educating
their employees about them.
Staff who are comfortable with their organisation’s values and work practices from an ethical
perspective are important assets in enhancing their employee’s reputation. According to
Harris and de Chernatony (2001, p. 441) employees constitute the interface between a brand’s
internal and external environments and can have a powerful impact on consumers’
perceptions regarding the brand and the organisation. In a sense, employees are recognised as
brand ambassadors through their emotional interactions with other stakeholders: as a source
of information, a service, at the point of sale and as a provider (Harris & de Chernatony,
2001, p. 441).
A critical element to a reputation platform is the mode of behaviour for the organisation. This
is reflected in how the organisation creates value for, deals fairly with, and fulfils its
obligations to its various stakeholders, i.e. embedding a socially and financially responsible
culture (Dowling, 2006, p. 89). Dowling (2006) refers to communicating corporate reputation
through a narrative that explains the behaviour of an organisation through its mission and
morality; the way it creates an emotional bond with and fosters trusts and support with key
stakeholders. These “stories” are told everyday through the way employees internally and
externally interact with stakeholders. It is the responsibility of the organisation to align
employees’ values and behaviour alongside the desired brand values (Harris & de
Chernatony, 2001, p. 442). Achieving the desired brand values is instrumental in the
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organisation’s performance, but is dependent upon employees ‘living’ these values through
their work behaviour.
Australian companies which embrace “good” EOC policies and practices and corporate
responsibility are laying the foundations for ongoing positive reputation transmitted through
their key stakeholders, especially from within. Companies with a strong and developing
employer of choice program are well placed to reap the immense advantage associated with
making their employees their reputation champions (Campbell, 2004).
Employee Education on EOC
According to Drucker (1989) the knowledge worker is a powerful resource in terms of
increasing the intellectual capital of an organisation and improving the productivity and
viability of the operation. Staff education is fundamental in terms of safety, productivity,
lifelong learning, communication, and effective people policies (Work Safe Victoria, 2004;
Harrison, 2007). These issues play an important role in the operations of a company and are
core to an EOC program.
Many issues associated with office education, including: large numbers, motivation, time,
access, capabilities and relevance to a broad audience, can be addressed through online
education or computer-assisted learning (CAL). An online resource used to facilitate the
development of an EOC education program utilising contemporary information and
communication technology has the ability to be a cost-effective educational tool that can
operate successfully under office conditions in large organisations. The online resource will
not only provide EOC information for users, but also have the capacity to pinpoint areas
requiring further development (Ross, 2000). This can lead to a more complete and progressive
EOC education program.
A CAL tool is time-flexible and cost-effective for the office as it can easily be uploaded to the
in-house drives and is available at convenient times for staff with access to computers. The
majority of office staff have access to, and are capable in, the basic principles associated with
computer operations (Barker, 2003). ‘Those who undertake formal learning are also those
individuals likely to use ICT,’ according to Gorrad et al. (2005, p. 84). Most office workers
are trained, capable and comfortable working with computers. Justin O'Brien, Director of
High Performance People Group captures its essence when he notes that “The benefits of
online learning systems compared to face-to-face training for large staff numbers are many.
Such systems are cost-effective, transportable, adaptable, and can be programmed to reflect
the culture of the company” (2008).
Reynoldson and Vibert have identified seven distinctive capabilities of ICT-enabled
education, which complement an office environment. These are: flexibility, customisation,
practicable lifelong learning, borderless education, visualisation and simulation, business-inthe-classroom, and theory-practice nexus (2006, p. 7). These capabilities complement the
demographic characteristics of Australian office workers including: information technology
capabilities (Reeves & Reeves, 1997), variety in learning styles (Fuller and Unwin, 205, p.
21), a need for lifelong learning and transferable knowledge (Arnold, 2008) and practical
application (Reiser 2001a).
The content should typically contain information on the criteria for being an employer of
choice for the host business. This classification should address people management issues
regarding effective people-policies relating to: internal and external relationships,
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occupational health and safety, learning, community involvement, environmental conscience,
and financial security (Herman & Gioia, 2000; Hull & Read, 2003; Looi et al., 2004). It links
with the policy and procedures for that organisation, and should permit access to external
websites for expanded information, allowing for individual interpretation and aiding life-long
learning (Arnold, 2008).
It is important that the education tool can create authentic activities in keeping with the values
and ethics associated with the employer of choice principles of particular companies. This is
consistent with Constructivism theorists (Vygotsky, 1962; Dalgarno 2001; Reiser, 2001b)
who believe learner-centred education is the most effective way to learn. Constructivists base
learning on building upon prior knowledge, presenting information within a context in order
to relate to prior experience and learner activity rather than teacher instruction (Dalgarno,
2001, p. 184). Reiser (2001b), citing Dick, points out that authentic learning tasks that echo
the complexity of the real world environment in which learners will utilise their skills need to
be reflected in instructional design and adaptation of online learning management systems.
Conclusion
This paper’s main aims have been to determine what constitutes EOC within the Australian
context, why EOC is important to Australian organisations and to show that ICT through
CAL can be a valuable tool for educating a large organisation’s employees about their EOC
program.
Employer of choice reflects the value and importance an organisation places on its key
stakeholder - its staff. It is clear that organisations that invest in their people are perceived to
be better places to work and are more likely to retain key staff and outperform other
organisations on financial measures (Hewitt, 2003). EOC reflects the CSR principles of the
organisation from an employee’s perspective, in terms of its ethical commitment to staff. This
commitment has the mutual benefit of encouraging staff loyalty and commitment, which, in
turn, is reflected through staff engagement with stakeholders. Such commitment has
instrumental value to the organisation through improved motivation and reputation.
There is a business need in Australia for an effective program that educates staff, management
and business-policy designers about employee opportunities and makes the most out of an
organisation’s culture. The first step to developing and articulating an EOC brand is
internally, through an organisation’s greatest ambassadors - their staff (Australian Institute of
Management, 2004).
Using the information technology already available in an office environment, computerassisted learning represents an ideal tool for facilitating staff education concerning an
organisation’s employer of choice program, in keeping with Constructivism principles
regarding lifelong learning.
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Appendix One – EOC associated studies
Title
PriceWaterhouseCoopers Global
Human Capital Survey
Good Employee Practices Are Good
For Your Business - Report by
Department of Labour, NZ
Title
The State of Corporate Citizenship
in the United States - Centre for
Corporate Citizenship
Strategic Plan for Addressing the
Communication for Employer of
Choice - University of Idaho
Management Challenges in the 21st
Century – Ashridge Centre, UK
Year
2002/03
Research
Global survey
2003
Questionnaire
survey
Year
2003
Research
Survey
2000
Literature
research
2004
Questionnaire
The New Business Responsibilities
– Ashridge Centre, UK
2001
Questionnaire
The IBM Global Human Capital
Study
2005
Survey and
interviews
KPMG International Survey of
Corporate Responsibility Reporting
Simply the best - workplaces in
Australia - University of Sydney
2005
Standard
questionnaire
Field study and
open-ended
question
checklist
2003
Key Objective
Effective people management
policies
More competitive business
through staff retention
Key Objective
Examination of attitudes,
expectations, and commitment
towards corporate citizenship
Criteria for “employer of
choice” education
Management and
organisational challenges,
personal challenges for
management, and learning
development trends
Personnel policies and
practices, pay and benefits,
recruitment, staff satisfaction
and training
Human capital practices for
successful organisations
Analysis of social issues in the
workplace
Fifteen key drivers were
present in each of the leading
workplaces
12
Appendix Two – EOC associated Awards and Ratings
Agency
“Great Place To Work”
Institute
Award
100 best
companies
Country
US, UK and
Europe
Hewitt and Associates
Best
Employers
Australian Government’s
Equal Opportunities for
Women in the Workplace
Agency
“Employer of
Choice for
Women”
(EOCFW)
citation
Australia &
New
Zealand,
Asia,
Canada,
Europe,
India and
Latin
America
Australia
HR Awards – Human
Resources Magazine
Employer of
Choice Award
Australia
Key Criteria
Relationship between employees and
management, employees and their
jobs/company, and employees and other
employees
Company and strategy, solid senior
leadership, compelling promise to
employees, alignment of people practices
to support high performance culture, and
measurement and employee engagement
Policies for support of women in the
organisation, and have rights and
obligations in place regarding sex-based
harassment, diversity, transparency,
inclusive organisational culture, and
people development
Employee-centric culture, career
opportunities, marketplace success, the
link between HR and business strategy,
personal development opportunities,
performance management and
measurement processes, and recognition
of people as a competitive advantage
13
Appendix Three - Government and industry regulations and initiatives regarding employee
management
Title
Corporations Act Amendment Bill
2004 for the Corporations Act of
2001 (Treasury, 2005)
Commonwealth of Australia Joint
Parliamentary Inquiry into
Corporate Social Responsibility
2005 (Corporate Public Affairs,
2005)
Australian Stock Exchange (ASX)
Corporate Governance Council
Type of regulation
Government Act
CLERP 9, the Corporate Law
Economic Reform Program (Audit
Reform and Corporate Disclosure)
Act 2004 (ASIC, 2005)
Australian National Contact Points
(ANCP) for the OECD “Guidelines
for Multinational Enterprises”
Financial Services Reform Act
2000 (ASIC, 2003)
Government Act
Occupational Health and Safety
Act 1991 (OHSrep, 2005)
Covers all Commonwealth
Government departments
and business enterprises
OHS State Acts (e.g. Victorian
OHS Act 1985)
Australian Competition and
Consumer Commission (ACCC)
State Government Acts
Industrial Relations Reform
(Parliamentary Library, 2008)
Government Inquiry
Recommendations, must
be addressed by ASX
listed companies
Government Obligation
Government Act
Independent
Commonwealth statutory
authority formed in 1995
to administer the Trade
Practices Act 1974
The Australian Labor
Government legislation
Relates to:
International law and the evolving
legal environment for corporate
social responsibility
Proposed to encourage using the
Principle 7 ASX Corporate
Governance Council guideline as a
vehicle for greater environmental and
socially responsible behaviour
Developed a set of 10 guidelines,
Principles of Good Corporate
Governance and Best Practice
Recommendations
Holds chief executive officers and
board members more accountable
for their business practices
Australia’s obligation to ensure the
effective implementation and
promotion of the guidelines
The inclusion of information relating
to labour standards and
environmental, social and ethical
factors in the product disclosure
statements (PDSs) of investment
products (Policy Statement 168)
An employer must take all
reasonably practicable steps to
protect the health and safety at work
of employees
Ensure the safety and health of all
employees
Includes reference relating to EOC
including: consumers, suppliers,
personal injury, severability,
breaches of confidence and
competition
Introduce wide-ranging industrial
relations reforms counteracting
Australian Workplace Agreements
14
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