A proactive health, safety & environment risk management strategy
what are the incentives?
In a business environment where the stakeholder perspective is evolving and sustainable development is receiving increased attention, it is of importance for companies to adjust. The demand and pressure is exerted from several stakeholders who force companies to take action and live up to the expectations because if failing to do so, negative consequences will most likely be the case. The attention of this study is on ABB Power Products (ABB PP) and their environment and working environment risk management. The aim of this thesis is to identify and describe how perceived environmental risks are managed and what the incentives are to work proactively to minimize the risks. The incentives for a proactive risk management strategy are researched through both a strategic and operational perspective. The study contributes with an understanding of the complexity of the conflicting interests there is concerning environment and working environment risk management. Both the external as the internal perspective of ABB PP is presented and with more than twenty in-depth interviews and observational studies it has been possible to receive a good foundation of information which cannot be found in sustainability reports or other written data. This case study of ABB PP also includes two minor case studies of a working environment accident and an environment accident as illustrations. The labour cost and the time spent on each of these accidents has been calculated to show how much two rather regular accidents can result in. To put these costs in a perspective the, so called, cost-iceberg model has been used to illustrate the costs associated with environmental accidents and negligence.
ABB PP have a expressed a zero vision of personal injuries and during the last decade there has been a great focus on sustainable development and the main focus has been on working environment safety. The top management are dedicated in these issues and strongly communicate the importance of it. With a strong support from the top, the health, safety and environment (HSE) organisation have received good conditions to improve both the working environment and environmental performance of the company. Though, there are several difficulties and challenges on the path to the zero vision. It takes time to change and adapt a whole organisation but at the end there are several earlier studies pointing at the importance of incorporating the sustainable development into the core business to receive the maximal profitability. A proactive strategy may cost more in the initial stage of investments but in the long term it will contribute to a safer working environment and a better environment with less reactive actions which have shown to be both costly and time consuming.
The main incentive for a safe working environment can be concluded as the fact that no one should risk to get injured when at ABB PP. Then this has positive consequences which will please both external and internal stakeholders through either financial result, obedience to the law and regulations, reputation or attracting professional employees, among other consequences.