Integrated safety, health and environmental management: An introduction
Integrated safety, health and environmental management: An introduction

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Integrated safety, health and environmental management: An introduction

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
T835_1

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