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.
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.
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 |