Accounting for Lost Time:
Examining Corporate Accountability to
Stakeholders for Occupational Health and Safety
A thesis submitted in fulfillment of the requirements
for the degree of Doctor of Philosophy
Sharron M. O’Neill
B.Com, MCom(Hons), CPA
School of Accounting
College of Business
RMIT University
March 2010
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Declaration
I certify that except where due acknowledgement has been made, the work is that of
the author alone; the work has not been submitted previously, in whole or in part, to
qualify for any other academic award; the content of the thesis is the result of work
which has been carried out since the official commencement date of the approved
research program; any editorial work, paid or unpaid, carried out by a third party is
acknowledged; and, ethics procedures and guidelines have been followed.
Sharron M. O’Neill
3rd March, 2010
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Dedication
This thesis is dedicated to the memory of my great-great-grandfather, William
Montgomery, who was killed in a mining accident in the Stanford Merthyr Colliery in
June 1907, and his son Robert who suffered respiratory damage from long-term coal
dust inhalation; to my great-grandfather Fred Carter who passed away from surgical
complications after a mining accident in 1932, and his brother John (Jack) who lost
his arm in a mining incident and was subsequently known for the hook worn where
his hand should have been. It is dedicated to these and to the many other men and
women who have suffered, and continue to suffer, work-related injury or illness.
This thesis is also dedicated to those men and women charged with the responsibility
of managing hazardous workplaces and in particular to those who are actively
cognisant of the health and safety impacts of their managerial decisions. To those
mine managers and mine accountants, my great-grandfather Robert Johnson, my
uncle Ray and all those who strive to manage industrial operations in a socially
responsible way, this thesis is also dedicated to you.
Finally, this thesis is dedicated to those advocates committed to protecting miners
and other workers. To the vocal campaigners for workplace health and safety:
regulators, trade union officials, safety officers, academics, mine rescue and
emergency response teams. In particular I thank those who have inspired me in this
journey by sharing their experiences and research: Yossi Berger, Robert O’Neill, Bill
Shorten and John Webb; Darren Flanagan, Geoff McDonald, Roger Kahler and Philip
Byard; Ron MacCallum, and Michael Quinlan. To all those men and women
dedicated to ensuring workers go home safely at the end of each day, this thesis is
dedicated to you.
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Acknowledgements
I would like to take this opportunity to acknowledge and thank those people who
have, in one way or another, provided invaluable guidance, assistance and support
as I researched and wrote this thesis. First, thank you to my supervisor, Professor
Craig Deegan, for his continued support and good humour, for guiding me through
the process, for encouraging me to be critical and thorough, and for inspiring me to
explore the broader issues within my field.
I am indebted to my husband Robert who travelled with me throughout this journey
and whose endless love, support, patience and encouragement was invaluable.
Robert’s willingness to be a sounding board and thoughtful critic for my ideas was
always appreciated and his practical insights helped frame my research questions
and shape the thesis. I also offer heartfelt thanks to my parents, Errol and Jill, my
extended family and my close friends for their encouragement, for providing me
space to work and (hopefully) forgiving my absence from recent social gatherings. In
particular, I thank Dr Cornelia Beck for her generous words of wisdom and support.
Finally, I also wish to acknowledge and thank the University of Sydney and the
Discipline of Accounting for providing the semester of teaching relief which permitted
me to substantially progress this thesis. I also thank Sara Haddad for proof-reading
my final draft and helping me ensure the content was consistently presented and the
reference list was complete.
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Contents
Declaration .............................................................................................................ii
Dedication .............................................................................................................iii
Acknowledgements ..............................................................................................iv
Research Summary ...............................................................................................1
Chapter 1. INTRODUCTION................................................................................3
1.1 Justification for the research ............................................................................ 4
1.2 Research objectives........................................................................................... 5
1.3 Issues for research ............................................................................................ 7
1.4 Contribution to knowledge................................................................................ 9
1.5 Structure of the thesis ..................................................................................... 10
Chapter 2. LITERATURE REVIEW....................................................................11
2.1 Corporate accountability for OHS .................................................................. 12
2.1.1 Defining OHS.............................................................................................. 12
2.1.2 Ethical duty of care – OHS as a human right ............................................. 13
2.1.3 Legislated duty of care – OHS as a legal obligation................................... 15
2.1.3.1 Robens: Reshaping OHS regulation ....................................................... 16
2.1.3.2 WorkChoices: Reshaping industrial relations .......................................... 19
2.1.4 Consequences of OHS failure .................................................................... 24
2.1.4.1 Economic consequences of OHS............................................................ 24
2.1.4.2 Non-financial consequences of OHS....................................................... 26
2.1.5 Summary .................................................................................................... 26
2.2 Constructing corporate accounts of OHS...................................................... 28
2.2.1 Accounting for corporate OHS performance .............................................. 29
2.2.1.1 Financial measures of OHS performance................................................ 29
2.2.1.2 Non-financial indicators of OHS outcomes.............................................. 32
2.2.1.3 Non-financial indicators of OHS inputs and processes............................ 35
2.2.2 Philosophical foundations of OHS strategy ................................................ 36
2.2.2.1 Egocentric ideology ................................................................................. 36
2.2.2.2 Ergonomic ideology................................................................................. 37
2.2.3 OHS strategy, programs and performance................................................. 38
2.2.3.1 Risk identification and assessment ......................................................... 39
2.2.3.2 Behaviour-based programs ..................................................................... 41
2.2.3.3 Safety incentive programs ....................................................................... 42
2.2.3.4 OHS management systems (OHSMS) .................................................... 45
2.2.4 Revisiting indicators of OHS....................................................................... 47
2.2.5 Summary .................................................................................................... 49
