Introduction to Health and Safety at Work

4.10.5 Economics
Economics can play a major role in infl uencing health 
and safety standards. The following ways are the most 
common:
➤
lack of orders and/or money can cause employers 
to try to ignore health and safety requirements
➤
if employers were really aware of the actual and 
potential cost of accidents and fi res they would be 
more concerned about prevention. The HSE believe 
that the ratio between insured and uninsured costs 
of accidents is between 1:8 and 1:36 (see 
The Costs 
of Accidents at Work
, HSE Books, HSG96)
➤
perversely when the economy is booming activity 
increases and, particularly in the building industry, 
accidents can sharply increase. The pressures to per-
form and deliver for customers can be safety averse
➤
businesses that are only managed on short-term 
performance indicators seldom see the advantage of 
the long-term gains that are possible with a happy 
safe and fi t workforce.
The cost of accidents and ill-health, in both human 
and fi nancial terms, needs to be visible throughout the 

---

Promoting a positive health and safety culture
65
organization so that all levels of employee are encour-
aged to take preventative measures.
4.10.6 Commercial 
stakeholders
A lot can be done by commercial stakeholders infl uence 
standards. This includes:
➤
insisting on proper arrangements for health and 
safety management at supplier companies before 
they tender for work or contracts
➤
checking on suppliers to see if the workplace stand-
ards are satisfactory
➤
encouraging ethical investments
➤
considering ethical standards as well as fi nancial 
when banks provide funding
➤
providing high quality information for customers
➤
insisting on high standards to obtain detailed plan-
ning permission (where this is possible)
➤
providing low cost guidance and advice.