Audit, Compliance and Risk Blog

Recent Confirmation That Canadian Directors Can Consider Non-Shareholder Interests

Posted by Jon Elliott on Tue, Dec 03, 2019

The most basic principle of corporate directorships is that the directors have a fiduciary duty to act in the best interests of their corporation. It has followed closely that directors should serve the best interests of the shareholders – in most circumstances this means all the shareholders, not the majority or some faction to which a director might owe allegiance. Although it’s not so clear how expansively directors should interpret those corporate interests, the trend is toward consideration of more groups of “stakeholders.” The past year has seen important reinforcements for that trend.

Read More

Tags: Corporate Governance, Business & Legal, Canadian, corporate social responsibility, directors, directors & officers

Protecting Workers During Holiday Sales Events

Posted by Jon Elliott on Tue, Nov 26, 2019

As we approach the winter holidays, retailers everywhere are planning their biggest cycles of annual sales. One doesn’t have to be a grinch to notice that these events can introduce additional hazards for retail employees – and for others who may be shopping. It’s therefore a good time to review guidance for managing these hazards, which was promulgated by the Occupational Safety and Health Administration (OSHA) in 2012. This guidance followed a national review after a highly-publicized incident during which a worker at a Long Island Walmart was trampled to death by a crowd mobbing the store’s Black Friday (day after Thanksgiving) sales event in 2008. OSHA determined that Walmart should have anticipated crowd-related hazards, and fined the company for a violation of the Employer’s General Duty Clause (I wrote about this here)

Read More

Tags: Business & Legal, Employer Best Practices, Health & Safety, OSHA, Employee Rights, EHS, Workplace violence

OSHA Revises Its Inspection Priority Weighting System

Posted by Jon Elliott on Tue, Nov 19, 2019

The Occupational Safety and Health Administration (OSHA) does not routinely inspect all employers, but instead allocates its inspector resources based on the agency’s evolving compliance and enforcement priorities. These priorities include a complex set of national/state/local priorities, such as “national emphasis programs (NEPs)” for process chemical safety or machine guarding, industry focus projects on primary metals industries, and site-specific responses to reported injuries or worker complaints. To meld and rationalize these overlapping priorities, OSHA headquarters periodically establishes weighting programs under which local offices tabulate inspection statistics to demonstrate inspection productivity by achieving higher overall scores. Effective October 1, 2019, OSHA has introduced a revised inspection weighting system, intended to motivate local OSHA offices to revise their inspection priorities.

Read More

Tags: Business & Legal, Employer Best Practices, Health & Safety, OSHA, Employee Rights, PSMS

President Trump Restricts Agencies’ Use of Guidelines

Posted by Jon Elliott on Tue, Nov 12, 2019

Since assuming office, President Trump and his administration have generally sought to reduce and repeal formal federal regulations, and to tighten appointed agency heads’ direct control over their agencies’ regulatory actions. These efforts have included executive orders (EO) from the President providing government-wide mandates and priorities (For example, I wrote about EO 13777, “Reducing Regulation and Controlling Regulatory Costs”, here). They have also included formal regulatory proceedings, mostly directed toward reducing or revoking requirements adopted during President Obama’s tenure (for example, I wrote about the latest changes to national vehicle emission standards here). Individual agencies have followed and reinforced these efforts (For example, I wrote about the Environmental Protection Agency “Back to Basics” initiative here).

Read More

Tags: Business & Legal, Audit Standards, Environmental, EHS

OSHA Revises Respiratory Protection Requirements

Posted by Jon Elliott on Tue, Nov 05, 2019

The Occupational Safety and Health Administration (OSHA) requires employers to evaluate whether air quality in their workplaces requires respiratory protection for workers, and to establish comprehensive evaluation and respiratory protection programs where necessary. In September, OSHA issued minor revisions to its respiratory protection requirements provisions for general industry (29 CFR 1910.134), adding two new quantitative fit testing protocols. Because of these changes,  now is a good time for employers to review requirements and compliance programs.

Read More

Tags: Employer Best Practices, Health & Safety, OSHA, Employee Rights, Environmental risks, EHS

EPA’s Superfund Task Force Issues Final Report

Posted by Jon Elliott on Tue, Oct 29, 2019

In May 2017, the Environmental Protection Agency (EPA) convened a task force of career professionals to evaluate the agency’s Superfund cleanup policies and make recommendations for improvements. The Task Force issued recommendations in December 2017  (I wrote about them here), and has now issued its final report. The report includes multiple examples of accomplishments related to each of the Task Force’s five goals.

Read More

Tags: Environmental risks, Environmental, EPA, site auditing

Feds Issue Nationwide Motor Vehicle Greenhouse Gas Standards and Declare California’s Standards to be Preempted

Posted by Jon Elliott on Tue, Oct 22, 2019

The federal government has taken another step in its car wars with California. Late in September the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) issued joint rules declaring NHTSA’s preemptive authority to set national standards covering greenhouse gas (GHG) emissions from petroleum-fueled vehicles and electric vehicles, and revoking a waiver from EPA that lets California set such standards.

Read More

Tags: California Legislation, Environmental risks, Environmental, EPA, ghg, Transportation, greenhouse

Department of Justice Reemphasizes its Disfavor for Supplemental Environmental Project Agreements with State and Local Governments

Posted by Jon Elliott on Tue, Oct 15, 2019

Since President Trump took office, the US Department of Justice (DOJ) has taken repeated steps to restrict federal attorneys from negotiating settlements in which defendants agree to conduct “supplemental environmental projects (SEPs)” in exchange for reduced formal penalties for the noncompliance that led to the agency investigation and enforcement. Proponents see SEPs as a way to promote environmental and health values by encouraging defendants to undertake projects that wouldn’t occur otherwise in order to reduce or eliminate civil and/or criminal liability. Opponents see them as rogue efforts in which prosecutors substitute their own judgment for the statutory and regulatory directives that are supposed to guide their actions.

Read More

Tags: Business & Legal, Environmental risks, Environmental, EHS, EPA, clean water

Business Roundtable (Re)states Position for Broad Corporate “Purpose”

Posted by Jon Elliott on Tue, Oct 08, 2019

The Business Roundtable has just offered its answer to the question “what’s the purpose for a corporation”? There are various ways to ask that question – existentially, legally, and/or operationally. Because the Roundtable is an association of chief executive officers of (CEOs) of many of America’s leading companies, its formal statements reflect the views of forward-looking Big Business. The Roundtable is most focused on the operational version, although press reports are pushing in all directions. The remainder of this note looks at what the Roundtable actually said, and provides some context to the multi-faceted question.

Read More

Tags: Corporate Governance, Business & Legal, directors, directors & officers

Chemical Safety Board To Work on Accident Reporting Regulations

Posted by Jon Elliott on Tue, Oct 01, 2019

Among nearly one thousand pages of expansions to Clean Air Act (CAA) requirements, the 1990 CAA Amendments legislation provided for the creation of a national agency to conduct independent investigations of major chemical accidents, to issue accident-specific findings and specific or general recommendations for improved chemical handling and regulation, and to establish chemical accident reporting regulations.  This agency’s formal name is the Chemical Safety and Hazard Investigation Board – which usually refers to itself as the Chemical Safety Board or CSB. CSB was finally funded and began work in federal Fiscal Year (FY) 1997-1998.

Read More

Tags: Health & Safety, Environmental risks, Environmental, Hazcom, CAA, csb