For several decades the climate of organizations has been driven by an economic rationalist calculus, while the costly consequences of compromised worker psychological health have been largely ignored (Dollard, 2007a;Johnson, 2008;Karasek, 2008). In this chapter we introduce a new construct called psychosocial safety climate (PSC), and describe how it can be developed in an organization to reduce psychological distress and injury. PSC refers to workplace "policies, practices, and procedures for the protection of worker psychological health and safety" (Dollard, 2007b). We argue that low PSC is a pre-eminent cause of work-related psychological distress. We discuss how PSC can be built in an organization to reduce workplace psychological distress and improve productivity outcomes. We argue that it could be built via the Healthy Conducive Production Model. Our conceptualization is drawn from Karasek's (2008) "associationist" Demand-Control Stress Disequilibrium theory. This is the idea that the impact of the stress burden results from the lack of control an individual has over the complex physiological coordination required to respond effectively. The solution is to impose higher level controls. We apply this idea at the level of the organization.We outline a process whereby an organization can organize itself into higher levels of complexity, and in this way develop more effective alternative actions-which could yield benefits at all levels. This chapter illustrates an example of these general principles applied in the organizational behavior context (the original Stress-Disequilibrium theory formulation focuses on multi-level physiological responses). Benefits occur through the development of a social level collective that in turn builds the conditions for a strong PSC and then health productivity (conducive production). First, we delineate the construct of psychosocial safety climate contrasting it with related constructs to draw out what is uniquely important about PSC. We then sketch an outline of the Stress Disequilibrium theory, the "associationist" Demand-Control model, prior to