The Community Strategy on safety and health at work (2002-2006) calls for specific measures in terms of information, awareness and risk prevention programmes for SMEs and especially for very small businesses. This has been reinforced by a recent Commission Communication on the implementation of EU safety and health Directives. According to the Commission, one of the keys to reducing the high level of accidents and ill-health must be to successfully communicate all necessary information to those who run small businesses.
Organisations deal with occupational safety and health (OSH) in different ways. Some have little expertise in OSH and simply react to occupational accidents, work-related diseases and absenteeism as they arise. Others strive to manage OSH more systematically and proactively by mainstreaming OSH into the organisation’s overall management. A report aimed at providing information on how OSH can be incorporated into general business management is summarized in Factsheet 92. The report comprises a literature review, an overview of related policies and examples of good practice.
The present review examines the link between Occupational Safety and Health (OSH) and economic
performance, especially as it relates to small and medium sized enterprises (SMEs). It is essential to
stress from the outset that while there is no clear definition of economic performance, there are
indicators that can examine the concept and its importance to businesses.
OSH is not usually viewed as a contributory factor to the economic viability of an organisation.
Compliance with government guidelines, regulations and laws is generally the primary focus of OSH
policies. Perceptions of the connection between effective OSH and the resulting financial benefits
could, and should be improved. The strong economic advantages of good occupational health
practice need to be highlighted continuously to organisations because the failure to acknowledge the
importance of this link will limit the effectiveness of interventions aimed at preventing disease and
injury (Lahiri, Levenstein, Nelson and Rosenberg, 2005; Toffel and Birkner, 2002). Additionally, while
the cost of ensuring safety is important, “unsafety” is also costly (Rimington, 1993). For example, a
reduction of accidents, damage and improvements to poor health can lead to a reduction in costs and
a greater availability of people and plant. This, in turn, can improve efficiency and thereby heighten
the effectiveness of businesses (Smallman and John, 2001).
Occupational safety and health (OSH) is good for business as well as a legal and social obligation. Enterprises appreciate that OSH prevents people from being harmed or made ill through work, but it is also an essential part of a successful business.