CN Rail is the largest freight railway in Canada, with 22 696 employees. It operates the largest rail network in Canada and the only transcontinental network in North America—in eight provinces in Canada and 16 states in the United States. In 1995, CN went public after decades of government ownership. The company underwent a transformation that involved acquiring the Illinois Central Railroad in 1998. As a result, it is now considered to be “North America’s Railroad.”

In 2007, Canada’s Transport minister ordered a review of the railway after a five-year period in which there was a steep increase in collisions and derailments. One of the conclusions of the resulting report was the following: “CN’s strict adherence to a rules-based approach, focused largely on disciplinary actions when mistakes are made, has instilled a ‘culture of fear and discipline’ and is counter to an effective safety management system. CN needs to acknowledge this openly and take concrete steps to improve.”

CN’s goal is to be the best transportation company in North America. Does it need to change the culture to obtain its goal?

Explain how the culture at CN Rail can contribute to collisions and derailments. How can safety be influenced by an organization’s culture? How important is it for CN to change its culture? What do they need to do to change the culture and improve safety?