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

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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 costsOperational costsFinal costs
Site studiesCapital equipmentClosure/decommissioning
Materials
Labour
Supplies
Utilities
Structures
Salvage value
Potentially hidden costs
RegulatoryVoluntary (beyond compliance)Image and relationship costsContingent costs
NotificationPublic reportingCorporate imageProperty 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 costsOperational costsFinal costs
Site studiesCapital equipmentClosure/decommissioning
Site preparationMaterialsDisposal of inventory
PermitsLabourPost-closure care
Research and developmentSuppliesSite survey
Engineering and procurementUtilities
InstallationStructures
Salvage value
Potentially hidden costs
RegulatoryVoluntary (beyond compliance)Image and relationship costsContingent costs
NotificationPublic reportingCorporate imageFuture compliance costs
LabellingCommunity relationsCustomer relationshipsPenalties/fines
ReportingMonitoring/testingInvestor relationshipsResponse to future releases
Monitoring/testingTrainingInsurer relationshipsRemediation
Modelling and other studiesAuditsProfessional staff relationshipsProperty damage
RemediationQualifying suppliersManual staff relationshipsPersonal injury damage
Record keepingAnnual reports (public)Supplier relationshipsLegal expenses
PlansInsuranceLender relationshipsNatural resource damages
TrainingPlanningHost community relationshipsEconomic loss damages
InspectionsFeasibility studiesRegulator relationships
ManifestsRemediation
Emergency preparednessRecycling
Protective equipmentEnvironmental studies
Medical surveillanceResearch and development
Environmental insuranceHabitat and wetland protection
Financial assuranceLandscaping
Pollution controlOther environmental projects
Spill responseFinancial support to outside groups
Stormwater management
Waste management
Taxes/fees