A good working environment is good business
Figure: Economic effects of safety and health at company level. (see more at http://osha.europa.eu/publications/reports/207/ )
It might be, however, difficult to convince employers and decision-makers of the profitability of improving working conditions. Often an effective way is to make financial or economic estimations. Although making calculations or making an analysis of costs and future benefits need not be complicated, many safety and health professionals are put off by the potential difficulties. Indeed, some elements in economic appraisal, like the value of health or human life, can sometimes be complicated. However, the basic principles are quite straightforward and can easily be performed by safety and health professionals and managers.
It is necessary to study the economic effects of health and safety policy at company level in order to be able to:
- take a balanced decision with regard to the allocation of company resources;
- bridge the gap between health and safety needs and management requirements and desires;
- take account of legal requirements.
We should remember that the economic approach to health and safety at company level cannot replace the value of the human requirements and social obligations. Health and safety is part of the social and ethical role of a company and policy cannot only be based on economical parameters alone. It is difficult or even impossible to quantify qualitative costs such as suffering, reduction of the quality of life, family problems, decrease of life span time, etc. in monetary terms.
EU strategy
The European Commission has published a Communication on the EU Strategy, "Adapting to change in work and society: a new Community strategy on health and safety at work 2002-2006". This document states that it is necessary to set up initiatives to ‘Develop knowledge of, and follow-up to, the “cost of non-quality”, i.e. the economic and social costs arising from occupational accidents and illnesses. The Commission will, in conjunction with the Bilbao Agency, instigate work on collecting data and other information with a view to improving the fund of knowledge on this subject.’ Furthermore, the Commission indicates ‘that a safe and healthy working environment and working organisation are performance factors for the economy and for companies.’
Innovative solutions to safety and health risks in the construction, healthcare and HORECA sectors
