Profit and Safety …
a High Wire Balancing Act
So, do you know who Don Blankenship is OR why you should even care? Blankenship
was chief executive of Massey Energy and believed to be the first chief
executive of a major US corporation convicted in federal court for essentially putting
profits ahead of safety. As a result, Blankenship spent 12 months in a federal
prison and halfway house.
The basic goals for almost any company are to provide a fair return to
investors and a safe work environment … a balancing act to be sure. So what happened?
The event leading to Blankenship’s conviction was an explosion at
Massey’s Upper Big Branch coal mine in April 2010, killing 29 workers … the
worst US coal mining accident in 40 years. A subsequent independent
investigation condemned Massey for multiple failures to meet basic safety
standards, operating “it’s mines in a profoundly reckless manner.” According to
this independent investigation, Massey neglected safety precautions for the
purpose of increasing profit margins. Thousands of safety violations at the
Upper Big Branch mine in the years prior to the explosion certainly appear to
support this conclusion. Blankenship was ultimately charged with conspiring to
violate federal safety laws and making false statements to investors and
regulators. He was subsequently convicted of the conspiracy charge. In handing
down his sentence, the presiding judge said Blankenship had abused the trust of
Massey’s shareholders, its officers and its employees by putting profits ahead
of safety.
So by now, you may be asking what
does this have to do with cyber security and more importantly ... you?
This illustration demonstrates the importance of balancing a return to
shareholders while also providing a safe and secure work environment. Think of
the Flying Wallendas, just like them, you’re constantly in motion to maintain
balance. Lose balance and the result can be devastating! Our world is
constantly changing so there are many factors involved in balancing profit and
work environment. Focusing on cyber
security may reduce some of our profit margins but if not considered it may
devastate our work environment and ultimately our company. So, pick up the
balancing pole because whether you know it or not, you are on the high wire! Think it through.
By Greg Hudson, PE
