We examine how the lack of attention, a scarce cognitive resource, impacts workplace behavior. Utilizing a large sample of over 46,000 establishment-years and an institutional investor distraction measure derived from exogenous shocks, we find that distracted institutional shareholders are associated with increased work-related injuries and illnesses. This effect is more pronounced among firms with weaker corporate governance levels and elevated competition risks. During periods of reduced monitoring by distracted shareholders, we observe a reduction in safety-related expenditures, an increase in employee workloads, and a rise in earnings management. In addition, distraction-induced injuries and illnesses result in a decline in firm value. Overall, this research provides further insights into the effects of shareholder distraction and suggests the necessity for alternative corporate monitoring mechanisms.