# 4 Integrated management

## 4.1 Introduction

Annual costs to employers from accidental injury and occupational illness are on the order of 5–10 per cent of the gross profits of UK industry. The total social cost, including the cost of benefits and National Health hospitalisation and treatment, make this a truly staggering drain on the nation's coffers!

## SAQ 2

Consider for a moment the examples of the hidden costs – the bottom of Heinrich's iceberg from Section 2.

Complete Table 3 by listing examples of conventional and hidden costs. We have included some examples to start you off.

## Table 3: Examples of typical costs incurred by organisations

Conventional costs
Initial costs | Operational costs | Final costs
--- | --- | ---
Site studies | Capital equipment | Closure/decommissioning
| Materials |
| Labour |
| Supplies |
| Utilities |
| Structures |
| Salvage value |
Potentially hidden costs
Regulatory | Voluntary (beyond compliance) | Image and relationship costs | Contingent costs
Notification | Public reporting | Corporate image | Property damage
Labelling |  |  |

### Answer

Our list is in Table 3 Completed. You may not have listed all that we have, but we hope that you have identified many of the hidden costs. If not, their significance may be even more surprising to you.

## Table 3 Completed: Examples of typical costs incurred by organisations

Conventional costs
Initial costs | Operational costs | Final costs
--- | --- | ---
Site studies | Capital equipment | Closure/decommissioning
Site preparation | Materials | Disposal of inventory
Permits | Labour | Post-closure care
Research and development | Supplies | Site survey
Engineering and procurement | Utilities |
Installation | Structures |
| Salvage value |
Potentially hidden costs
Regulatory | Voluntary (beyond compliance) | Image and relationship costs | Contingent costs
Notification | Public reporting | Corporate image | Future compliance costs
Labelling | Community relations | Customer relationships | Penalties/fines
Reporting | Monitoring/testing | Investor relationships | Response to future releases
Monitoring/testing | Training | Insurer relationships | Remediation
Modelling and other studies | Audits | Professional staff relationships | Property damage
Remediation | Qualifying suppliers | Manual staff relationships | Personal injury damage
Record keeping | Annual reports (public) | Supplier relationships | Legal expenses
Plans | Insurance | Lender relationships | Natural resource damages
Training | Planning | Host community relationships | Economic loss damages
Inspections | Feasibility studies | Regulator relationships |
Manifests | Remediation |  |
Emergency preparedness | Recycling |  |
Protective equipment | Environmental studies |  |
Medical surveillance | Research and development |  |
Environmental insurance | Habitat and wetland protection |  |
Financial assurance | Landscaping |  |
Pollution control | Other environmental projects |  |
Spill response | Financial support to outside groups |  |
Stormwater management |  |  |
Waste management |  |  |
Taxes/fees |  |  |

OpenLearn - Integrated safety, health and environmental management
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