Down the centuries, man has pondered the nature of sin. What is it? How do we commit sin? What are the consequences of sin? Many people feel that sin involves offending their God, and perhaps it is this idea of “offending” that takes us further towards an understanding of the concept of sin. If when we commit sin, we “offend”, then it may be possible to say that sinning is not confined to the relationship that we have with our God! People commit offences against the law, against their neighbours, and sometimes even against common sense! In the business world profitability and good governance are the ideals which most companies strive to achieve, and so the acts and omissions that prevent us from reaching these goals could indeed be said to be “sins”!

This is no more so than in the area of health and safety at work, where poor management not only results in losses and low productivity, but also impacts upon the wellbeing of employees and of others who may be affected by the company’s activities. Apart from the moral issues involved, it is the sheer waste of resources and the loss of employee-motivation that is of concern here. Directors are required to run their businesses in ways that maximise dividends for their shareholders; in fact this is their primary duty. This requires the development of a business model that reduces costs to an absolute minimum whilst at the same time ensuring that products and services are sold at the highest prices that the market will bear. So when trying to achieve these goals, why do so may directors and senior managers fail to consider the opportunities that the effective management of health and safety offers? Perhaps it is because they associate the subject only with expenditure, thinking that health and safety represents a cost to the business rather than an investment. The reality is that nothing could be further from the truth. If we look at many of the world’s leading companies; companies such as DuPont and IBM we find that they invest in their health and safety management just as they would in their other business functions, recognising that far from being a cost-centre, health and safety can actually help to generate profit. This is a serious and important point, and it is appropriate to ask ourselves, “if it makes sense for someone like DuPont, then why would it not make sense in my company?”

Some directors may simply not understand how effective health and safety management can help to improve business efficiency. In fact there are two ways in which h&s can make a contribution. The first is by helping to avoid losses, and the second is by maximising the ouput from human and material resources. Losses include those arising from absenteeism, accidents and ill-health, legal expenses, damage and poor quality products, and loss of business through poor reputation. Improvements in business efficiency result from better-motivated staff whose talents and energy are used to the full, improved working methods devised after structured analysis, and by the selection of appropriate tools, equipment and materials the first time round. In a publication produced by the UK’s Health and Safety Commission entitled “Reduce Risks – Cut Costs”, several examples are given, one being the case of an engineering worker. This individual was using an unguarded machine and suffered extensive injuries when he was caught in the moving parts. He spent 12 days in hospital and was off work for 3 months. It was a further 8 months before he could operate machinery again. The HSC reported the costs of this accident as follows, but it is worth remembering that there would have been many other unseen costs such as those associated with the effects of the accident on other staff:

• Wages for the injured worker                                = £10,000
• Loss of production and repairs                            = £8,000+
• Overtime wages to cover injured worker             = £3,000+
• Replacement worker                                              = £7,000+
• Loss of manager’s and MD’s time                      = £4,000+
• Legal expenses                                                       = £3,000
• Fines and court expenses                                     = £4,000+
• Increased insurance premium                             = £6,000
• TOTAL COST TO THE BUSINESS                       = £45,000+

This was of course just one incident in one workplace, and sadly it is something that is being repeated in many, many other companies. The effects may not always be quite so dramatic as they were in this case, but they all represent a draining-away of profitability as well as being disastrous events for the victims.

The good news for decision-makers in companies is that it is relatively simple to overcome these problems and avoid the “sins” that lead to failure. In their forthcoming conference, “Health and Safety: the seven deadly sins”, the Institute of Health and Safety (IHS) will present seven of the most common ways in which companies and organisations are losing money through poor standards of health and safety management. International speakers will set out the business case for dealing with the key issues, and representatives from local companies that have been through the process of change will outline how they developed their management systems. For further details of the conference, please call IHS on 21 311 966 or e.mail info@ihs.com.mt

Article by Chris Hudson, Director of Training and Consultancy at the Institute of Health and Safety