Social Actor #1 - Management

The management group within any organization is trained and rewarded for producing positive financial results. Businesses are established to make a profit and will continue to exist only as long as they achieve this goal. Implementing effective OSH efforts can require a significant investment of resources. Common safety-related expenses within an organization might include the cost of staffing the OSH function, developing necessary OSH programs, providing OSH training, safeguarding equipment, and purchasing protective equipment.

Unfortunately, expenditures on occupational safety and health are sometimes seen by management as limiting profit. This is a shortsighted perspective as OSH can be best viewed as a means of controlling costs. As indicated in the previous lesson, devoting resources to OSH can lead to a substantial cost savings in the form of fewer injuries and illnesses. Employers who have "safe" workplaces with low injury rates will benefit financially through reduced workers' compensation premiums and avoidance of regulatory fines. Expenditures on workplace safety can often be justified by weighing costs against potential benefits.

Let's consider the example of a workplace with equipment that produces a high level of noise. The noise is loud enough that employees working near the equipment must wear earplugs to reduce their risk of hearing loss. The employer is considering the purchase of mufflers which can be installed on the equipment to reduce the noise levels to a safe point.

Weighing the costs and benefits in this situation might be done as follows:

Table 2.1. Workplace Example

Workplace Example

Installation of Noise Mufflers on Equipment
Costs	Benefits
Cost of materials and installation Ongoing maintenance of mufflers	Better employee protection--no longer any potential for noise "overexposure" Reduced potential for employee claims of hearing loss Elimination of regulatory concerns related to noise exposure (no longer need to provide annual hearing test or training to employees) Improved communication between employees due to reduced noise levels Employees may work more efficiently (more comfortable, less stressful work environment) No longer need to purchase hearing protection

In this situation, it is likely that the cost of installing and maintaining the mufflers could be easily justified through an analysis of the potential benefits.

Remember that we also previously described a number of other benefits related to OSH such as better employee relations and a more positive public image. These benefits are difficult to quantify, but may also help persuade management to approve funding for safety initiatives.