Possible Costs That An Organisation May Incur As A Result Of Inadequate Standards Of Workplace Health And Safety.


The results of providing inadequate standards of workplace health and safety are generally:

An increase in accidents and ill-health of the workers. Consequently, an organisation suffers direct costs such as those arising from:

  • Lost production and time dealing with the subsequent investigations;
  • Those arising from plant damage and replacement and cleanup activities;
  • Paying those involved during absences as a result of accident or ill-health;
  • Having to recruit and train replacement labour;
  • Costs arising from the possibility of action by the enforcement authorities or
  • By a civil claim from the injured parties and The inevitable rise in insurance premiums.

There are also indirect costs related to:

  • Poor staff morale which could lead to industrial unrest and high staff turnover and
  • The damage was done to the organisation‟s reputation which could lead to a loss of orders and a subsequent decrease in its profitability.

The better answers structured their responses under the general headings of direct and indirect costs.

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