Oregon’s Longitudinal Business Survival Data

We examine whether a safe work environment truly enhances productivity and engagement or if it stifles business efficiency. Historical incidents like the Union Carbide disaster and BP's Deepwater Horizon blowout are analyzed to question if neglecting safety can still lead to profitability. Finally, we break down the misconception that good safety practices automatically translate to business profitability. We highlight the tangible benefits such as enhanced publicity, stronger client relationships, and improved employee satisfaction, and stress the importance of complex discussions about the actual costs vs. benefits of safety practices.

The Paper’s Abstract

This research addresses the fundamental question of whether providing a 15 safe workplace improves or hinders organizational survival, because there are conflicting predictions on the relationship between worker safety and organizational performance. The results, based on a unique longitudinal database covering over 100,000 organizations across 25 years in the U.S. state of Oregon, indicate that in general organizations that provide a safe workplace have significantly lower odds and 20 length of survival. Additionally, the organizations that would in general have better survival odds, benefit most from not providing a safe workplace. This suggests that relying on the market does not engender workplace safety.

Discussion Points:

• Is safety “good for business”? Examining the relationship between safety and business viability
• Bhopal and the costs, Occidental - you can still make money without safety
• The backgrounds and qualifications of the paper’s authors
• Workplace safety can both benefit and hinder organizational survival due to productivity prioritization and potential risks
• Workplace safety and business performance are complexly related, with a study showing a decrease in survival odds and length due to safety prioritization
• Safety compliance at the lowest minimal cost may hinder productivity and divert attention from safety, leading to increased risks
• Safety is not inherently good for business; instead, it can bring tangible benefits like publicity, client relationships, and employee satisfaction
• Strict regulations and upfront investments in safety are necessary for fostering a safer work environment and ensuring business success
• Takeaways - Stop claiming safety is “good for business”
• The answer to our episode’s question is, “So the short answer is on average, no. At least according to this study, businesses are more likely to survive in the short term and long term if they're hurting more people more seriously.”

Quotes:

“The sorts of things that you do to improve safety are the sorts of things that I thought should also improve productivity and reliability in the long run.” - David

“Which is science, right? That's what it's about. We think we're right until we get a new piece of information and realize that maybe we weren't as right as we thought we were.” - David

“Even though there is a reasonably high volume of research out there, it's really hard to look very directly at the question.”- Drew

“So we know from this data that it's not true that providing a safe workplace makes you more competitive.” - Drew

Resources:

The Paper: The Tension Between Worker Safety and Organization Survival

The Safety of Work Podcast

The Safety of Work on LinkedIn

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