Relation between occupational safety management and firm performance

Abstract

Occupational accidents severely deteriorate human capital, and hence negatively affect the productivity and competitiveness of countries. But despite this, we still observe a scarcity of preventive practices, an unsatisfactory management commitment and an absence of safety culture among Spanish firms. The result is evident in firms’ high accident rates. This situation is a consequence of the general belief among firms that investing in safety is a cost, and hence has negative repercussions for their competitiveness. The current work aims to identify good practices in safety management, and analyse the effect of these practices on a set of indicators of organisational performance. For this, we first carry out an exhaustive literature review, and then formulate a series of hypotheses. We then test the proposed model on a sample of 455 Spanish firms. Our findings show that safety management has a positive influence on safety performance, competitiveness performance, and economic-financial performance. Hence they provide evidence of the compatibility between worker protection and corporate competitiveness.