What are the moral, legal and financial reason to manage safety in an organization by Vignesh.M.pptx
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- 2. Health SAFETY Health is the state of being “healthy” (from French santé), the condition of being free from illness or injury Safety is the state of being “safe” (from French sauf), the condition of being protected from harm or other non- desirable outcomes 2 2
- 3. Occupational Health And Safety • The field of public health focuses on reducing the risks of injury and illness in the workplace. This includes both preventing accidents and protecting workers from exposure to hazardous materials and conditions • Occupational health and safety programs typically include training for workers on how to safely work with or around potential hazards, as well as regular safety inspections of the workplace. • Employers are also required to provide a safe working environment and to take steps to prevent accidents from happening. 3
- 5. • Moral /Ethical is all about a duty that every person owes to protect others • It is our duty to protect the lives of others. We have a moral obligation to do everything we can to ensure that others are safe from harm. This includes ensuring that the workplace is safe. • Managing health and safety in the workplace protects the workers themselves. It is immoral to allow them to work in unsafe conditions. • In simple terms, the moral reason can be summarized as, ‘it’s the right thing to do’. It is right and proper that workers go to work to earn a living and return home in the same state, not suffering from ill health or serious physical injury. Moral Reasons/ Ethical Reasons 5 5
- 6. Global statistics have been published by the International Labour Organization (ILO) • There are over 350,000 work-related fatal accidents reported each year – half of these occur in agriculture. • Over 2.75 million people die every year from occupational accidents and occupational diseases. Around 2.4 million of these deaths are attributable to occupational diseases. • There are over 270 million occupational accidents and 160 million occupational diseases recorded each year. • 4% of the world’s gross domestic product is lost each year through the cost of injury, death, absence, etc. Other high-risk sectors are the construction and fishing industries. These figures relate to the number of accidents and cases of disease which are reported and recorded globally. Not everything is reported or recorded, however, so the real figures are almost certainly higher. 6 6
- 7. Financial Reasons /Economic Reasons • When an accident or ill-health occurs, there will be direct and indirect costs associated with that event. Some of these losses can be insured against, but many cannot. Accidents and ill health can significantly affect the financial resources of an organization and, in some cases, can put an organization out of business. • When an accident occurs, the organization will face both direct and indirect costs • Direct costs – the measurable costs arising directly from the accident. • Indirect costs – those which arise indirectly as a consequence of the event. Indirect costs are often difficult to quantify precisely and may be hard to identify. 7 7
- 8. • First-aid treatment. • Worker sick pay. • Repairs to, or replacement of damaged equipment and buildings. • Lost or damaged product. • Lost production time while dealing with the injury. Direct costs: Indirect costs: • Reduction in staff morale (which impacts on productivity, quality and efficiency). • General difficulties in recruiting and retaining staff as a result of the accident. • Loss of goodwill of customers following delays in production and fulfilling orders. • Damage to public image and business reputation. • Damage to industrial relations, perhaps leading to industrial action (eg. strikes). 8 8
- 9. • Damage to plant, buildings and equipment. • Compensation paid to workers. • Medical costs. • Legal costs associated with a legal claim for • compensation. Uninsured Costs • Production delays or down time. • Loss of raw materials due to accidents. • Accident investigation time. • Criminal fines and legal costs. • Sick pay for injured workers. • Overtime to make up for lost production. • Hiring and training new employees. • Loss of business reputation. Insured Costs 9 9
- 10. Legal & Social Reasons • The legal reason for managing health and safety relates to the framework of international and national laws that govern the conduct of businesses and organizations. • Most countries have laws that set standards for how organizations should conduct themselves with regard to the management of health and safety risks. • A key player in the area of international legal standards in health and safety is the International Labor Organization (ILO) • In 1981, the ILO adopted the Occupational Safety and Health Convention (C155). Later (R164) supplements C155 and provides more detailed guidance on how to comply with the policies of C155. In particular, it identifies obligations that might be placed on employers and employees in order to achieve the basic goal of a safe and healthy place of work. 10 10
- 11. R164 obligations on employers • Provide workplaces and work equipment, and use work methods, which are safe and pose no risk to health. • Provide appropriate instructions and training. • Provide necessary supervision. • Put in place health and safety arrangements adapted to suit the size and nature of the undertaking. • Provide any necessary personal protective clothing and equipment free of charge. • Ensure that the hours of work do not adversely affect employees’ safety and health. • Take measures to eliminate any extreme physical and mental fatigue. R164 obligations on workers • Take reasonable care of their own safety and that of other people who might be affected by the things that they do and the things that they fail to do. • Comply with safety instructions and procedures. • Use all safety equipment properly and not tamper with it. • Report any situation which they believe could be a hazard and which they cannot themselves correct. • Report any work-related accident or ill health. 11 11
- 12. The Role of Enforcement Agencies • Each country or region has one (or more) enforcement agency (or authority) responsible for enforcing health and safety law. • These agencies often provide advice, investigate workplace accidents, take formal enforcement action to force employers to comply with the law and start criminal proceedings against persons or organizations they believe have committed offences. • Many countries have a separate fire authority with a role in enforcing fire safety legislation and/or advising employers. • In some countries, insurance companies fulfil a major role in enforcing safety by carrying out inspections and audits on a regular basis. Consequences of Non-Compliance A breach of health and safety legislation is usually a criminal offence – wherever you are in the world. Failure to meet legal standards might lead to: • Formal enforcement action • Prosecution of the organization in the criminal courts: • Prosecution of individuals,such as directors, managers and workers 12 12