Why do companies "care" about the safety of their employees? | TigerDroppings.com

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Luke4LSU
LSU Fan
Member since Oct 2007
11986 posts

Why do companies "care" about the safety of their employees?



Perhaps I'm a naively pure capitalist, but i don't understand why companies give a shite about the safety of its employees.

A corporation is not a person with morals, and CANNOT (dare I say, SHOULD not, from a pure earnings perspective) give a shite about anything that detracts from maximizing profits. That is the essense of a corporation: it is a non-human entity with the sole purpose of making as much money as possible. A CEO who doesn't even remember the peon employees he meets in his company everyday at BS town hall events and speeches to employees cannot possibly feel a MORAL obligation to make sure those people don't get hurt...and if they do, they're not doing their job if they let that moral obligation retard profits. If I'm an investor, I don't give shite what you have to do to maximize my money, just so long as you MAXIMIZE my money.

Millions upon millions of dollars are spent annually by big companies DIRECTLY on the safety of its employees (huge "safety" divisions with hundreds if not thousands of annual salaries with benefits, safety initiatives, programs, posters, analysis, safety devices, etc.), and I don't know what the impact on the bottom line could be. I've never heard safety performance mentioned in a quarterly report to Wall Street, and I've never seen its impact on earnings. Obviously, Wall Street doesn't give a shit, so why do the CEOs? Is it not their JOB to maximize shareholder return??

Is it purely so that if they get sued by an injured employee or contractor, they have a leg to stand on in court, saying "Look at all we do as a company to ensure that our employees can do their job safely." Seems like a lot of money to spend on personnel risk aversion.

Can anyone who has any REAL knowledge in this subject shed some light on this? Do major companies really spend MILLIONS of direct $$ (and I would venture to say BILLIONS in indirect costs associated with doing it "safe") just for the sake of PR? And if so, is PR really THAT impactful to the bottom line?







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Etiger83
LSU Fan
'dis meat baby mine ya erd
Member since Oct 2004
13150 posts

re: Why do companies "care" about the safety of their employees?


insurance

and EMR in my industry



This post was edited on 11/3 at 8:40 pm


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Hermit Crab
Gonzaga Fan
Under the Sea
Member since Nov 2008
4503 posts

re: Why do companies "care" about the safety of their employees?


because if you dont care about employees they won't care about the company, which leads to the company not doing well





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Corkfather
New Orleans Pelicans Fan
Carthage, TX
Member since Sep 2007
18625 posts

re: Why do companies "care" about the safety of their employees?


quote:

insurance


Correct


I guess common sense isn't so common






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LSUzealot
New Orleans Saints Fan
Napoleon and Magazine
Member since Sep 2003
53266 posts

re: Why do companies "care" about the safety of their employees?


dude is this post serious?

you do realize OSHA violations will put your arse OUT of business






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Luke4LSU
LSU Fan
Member since Oct 2007
11986 posts

re: Why do companies "care" about the safety of their employees?


quote:

because if you dont care about employees they won't care about the company, which leads to the company not doing well


I doubt this can be quantified to the extent that it can justify billions of dollars of LPO for the sake of safety.






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Luke4LSU
LSU Fan
Member since Oct 2007
11986 posts

re: Why do companies "care" about the safety of their employees?


quote:

you do realize OSHA violations will put your arse OUT of business


I'm not talking about requirements by governing bodies.

I'm talking about the above and beyond stuff.

I know for a fact that smaller companies in my industry don't do NEAR as much as larger companies do with respect to safety, and they're still in business and doing fine.






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xrockfordf150x
New Orleans Saints Fan
Cypress, TX
Member since Sep 2008
2479 posts

re: Why do companies "care" about the safety of their employees?


quote:

Is it purely so that if they get sued by an injured employee or contractor, they have a leg to stand on in court, saying "Look at all we do as a company to ensure that our employees can do their job safely." Seems like a lot of money to spend on personnel risk aversion.


Answered your own question.

Cost of lawsuit from several employee injuries caused by neglect >>>> Cost of safety measures






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Hermit Crab
Gonzaga Fan
Under the Sea
Member since Nov 2008
4503 posts

re: Why do companies "care" about the safety of their employees?


quote:

I doubt this can be quantified to the extent that it can justify billions of dollars of LPO for the sake of safety.


one employee dying on the job would be a huge media fiasco and would definitely make the money spent on safety worth it.
Also when people are looking for good jobs, especially engineers and such for big oil companies, the safety record of the companies plays a part in which company they would rather work for. Which means the companies with the better safety record get the better employees and better employees do their job better



This post was edited on 11/3 at 8:45 pm


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Luke4LSU
LSU Fan
Member since Oct 2007
11986 posts

re: Why do companies "care" about the safety of their employees?


quote:

insurance


Explain.

What are the companies getting insured?

How do the insurance companies assess the safety performance of a company when calculating coverage costs, when (in many cases) the companies themselves classify the incidents and report them to these companies?






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heehaw
LSU Fan
Foothills of the Ohio River
Member since May 2009
4574 posts

re: Why do companies "care" about the safety of their employees?


unions





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USMCTiger03
LSU Fan
Member since Sep 2007
63640 posts

re: Why do companies "care" about the safety of their employees?


Worker's comp is the exclusive remedy for injured workers. WC insurance costs. Safety training lowers accidents and keeps premiums lower.

Besides, your point of view is what allowed unions to gain power, and we all know what a GOATfrick that has turned into.






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Luke4LSU
LSU Fan
Member since Oct 2007
11986 posts

re: Why do companies "care" about the safety of their employees?


quote:

Also when people are looking for good jobs, especially engineers and such for big oil companies, the safety record of the companies plays a part in which company they would rather work for


BULL MALARKY.







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LSUzealot
New Orleans Saints Fan
Napoleon and Magazine
Member since Sep 2003
53266 posts

re: Why do companies "care" about the safety of their employees?


quote:

I'm talking about the above and beyond stuff.

I know for a fact that smaller companies in my industry don't do NEAR as much as larger companies do with respect to safety, and they're still in business and doing fine.



you must be mistaken about OSHA...OSHA is so fricking vague you won't know whether you'll get a 10k fine or 100,000k fine...ansi helps out a lot with more specifications...but if you run a company that's not safe OSHA will shut your arse down if they catch you...blee dat






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Etiger83
LSU Fan
'dis meat baby mine ya erd
Member since Oct 2004
13150 posts

re: Why do companies "care" about the safety of their employees?


insurance companies use incident rating systems to determine premiums for companies

more incidents=higher rating=higher premiums







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Vood
Air Force Fan
Enjoying a Forty with Lando
Member since Dec 2007
5959 posts

re: Why do companies "care" about the safety of their employees?


The money they spend on keeping their employees safe will be nothing compared to lawsuits that will happen when employees get hurt at work. They also want to keep them safe to reduce the number of health claims employees make during the year.

We are in a very pro-employee time right now and it's only going to get more pro-employee with this presidential administration so employers have to what ever they can to keep their employees safe and happy.

Keeping good talent is very hard to do so you want to do all you can to attract and keep the employees that will grow your profits. Being a dick about safety will only drive them away.



This post was edited on 11/3 at 8:48 pm


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Coon
Nicholls St. Fan
La 56 Southbound
Member since Feb 2005
15920 posts

re: Why do companies "care" about the safety of their employees?


actually, the money they save by not paying employees in suits and increased insurance premiums = direct money in da bank.





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Luke4LSU
LSU Fan
Member since Oct 2007
11986 posts

re: Why do companies "care" about the safety of their employees?


quote:

Cost of lawsuit from several employee injuries caused by neglect >>>> Cost of safety measures


I find this EXTREMELY hard to believe, given the following 3 things:

1. Most large companies settle anyway, which (in my opinion) invites more frivolous lawsuits.

2. The amount of money spent on safety is just absurd.

3. The INDIRECT cost of safety (not doing something extremely profitable to avoid safety risk) in mind boggling.






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LSUzealot
New Orleans Saints Fan
Napoleon and Magazine
Member since Sep 2003
53266 posts

re: Why do companies "care" about the safety of their employees?


quote:

Luke4LSU


sucks at business






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Etiger83
LSU Fan
'dis meat baby mine ya erd
Member since Oct 2004
13150 posts

re: Why do companies "care" about the safety of their employees?


quote:

3. The INDIRECT cost of safety (not doing something extremely profitable to avoid safety risk) in mind boggling.


This is incorrect. You're not accounting for downtime/indirect expenses of lost time due to injury in your "profitable" statement



This post was edited on 11/3 at 8:49 pm


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