OSH in Business

Occupational Safety & Health (OSH) is a discipline related to protect safety & health of employees at workplace. Nowadays, consciousness in OSH is improve which especially media also publish the incident happens around the world. From simple first aid incident such as scratch by knife till major & catastrophic accident such as fall from 30 meter building, major chemical spillage, fire & tank explosion.

Basically, any activity include safety programmes need amount of fund. But, safety also is considered as an investment in running plant. Why? It is because of continuous small investment in safety programme including safety awareness, personal protection equipment (PPE), and suitable facilities may prevent major loss from properties damage, compensation, penalty by enforcement body etc.

Beside that, those Company is practicing safety efficiently will help increase on client trust. Evidently shown in oil & gas field, which those Company have any relevant safety certification eg. OHSAS 18001 will get good impression & increase the trust from client or developer which will result on contract award. Why its become one of the major requirement in that Oil and Gas (O&G) field? The answer is simple, O&G industry is high cost project and any small mistakes include wrong type of bolt costing few dollars may result million dollar lost. And, it same goes to safety matter which any incident may delay the project, potentially to be fine by the government, compensation summon etc. The case of BP Deepwater Horizon oil spill in Y2010 is a good example that the Company have to take care of penalty & compensation claim.

A theory of cost on safety investment versus the losses have to take by a firm in case of incident explained by Iceberg Theory. According to Iceberg Theory, we only see the figure of expenses to invest for safety programme, but the losses amount that try to protect is much bigger and it may unexpected amount.

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