Another Poor Report Card on Organisational Culture: What Can We Learn?

Elizabeth Knight reported in The Age recently, that for the second time in a year, Rio’s chief executive Jakob Stausholm has issued an apology – this time to the mining giant’s victimised workforce. Elizabeth writes, “Rio has long prided itself on its operation safety – and the extent to which this has been embraced at all levels of the organisation. However, it has clearly failed to recognise the vast, intangible risks associated with a toxic workplace environment.”

These comments relate to a report commissioned by Rio itself, produced by former sex discrimination commissioner Elizabeth Broderick who was tasked with conducting a review of the organisational culture. Stausholm describes the contents of the report as ‘disturbing’ and ‘difficult’, citing the cultural and behavioural issues uncovered as a mountain that Rio has to climb. And he acknowledges he is only standing at the foothills.

The report cites significant challenges across Rio Tinto’s workplace culture.

Stausholm, who has only been the CEO of the Rio Tinto Group since January 2021, should be congratulated for having the courage to firstly commission the report and then release it publicly. He is demonstrating effective leadership skills that directly address organisational culture.

Rio Tinto is known as an organisation that has traditionally put a lot of effort and emphasis on physical safety, however, like other organisations, now needs to move beyond physical safety to also include psychological safety and in particular bullying, harassment and discrimination which all constitute a safe workplace. A safety culture is no longer just about physical safety, albeit that being an important part.

Our whitepaper investigates how organisational cultures become unsafe and the difficulty many have in transitioning from a toxic to constructive and caring workplace environment.

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