Return on Prevention:

An International Study –

Calculating the International

Return on Prevention

3 Pillars for Prevention

Law Ethics Economic

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$ §

tools for prevention

Source: © Fotolia

Partner

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Participating Countries

Azerbaijan Australia

Austria Canada

Germany Hong Kong

India Ivory Coast

Malaysia Romania

Russia Singapore

South Korea Sweden

Switzerland The Czech

Republic

Turkey USA

Vietnam

Research interest

• Occupational safety and health (OSH)

• Social and macroeconomic benefits

• Microeconomic benefits ?

• Return on Prevention (ROP)

• sunk costs worthwhile investments?

• Direction and strength

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€

Source: © Butch/Fotolia

Concept

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Bild Interview einfügen

Source: © IAG

• National coordinators

• Training

• Data statistically analysed

Results (1)

Cost-benefit ratio (Return on Prevention) of OSH

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RoP = 2.2

Potential not a guarantee !!!

Results (2) Impact of OSH in company areas

4,38

4,65

4,75

5,27

4,92

4,75

3,81

3,79

4,56

1,00 2,00 3,00 4,00 5,00 6,00

Purchasing

Production planning

Personnel allocation

Production

Transport

Warehousing

Research andDevelopment

Marketing

Total average

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• Personnel allocation

• Production

• Transport

• Warehousing

Results (3) Effects of OSH within the company

5,11

5,08

5,02

3,90

4,39

4,43

3,90

3,92

4,05

4,10

4,31

4,29

4,88

4,84

5,10

4,49

1,00 2,00 3,00 4,00 5,00 6,00

Reduced hazards

Reduced breaches

Reduced workplace accidents

Reduced fluctuations

Reduced disruptions

Reduced downtime

Reduced wastage

Reduced time for catching…

Improved quality of products

Improved adherance to…

Increased number of…

Improved customer…

Improved corporate image

Improved workplace culture

Increased employee hazard…

Total average

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• Reduced hazards

• Reduced breaches

• Reduced workplace

accidents

• Increased employee hazard

awareness

Results (4) Significance of different benefit

types of OSH

19%

15%

21%

15%

9%

21%

0% 5% 10% 15% 20% 25%

Prevention ofdisruptions

Prevention of wastageand reduction of time…

Increased employeemotivation…

Sustained focus onquality…

Product innovations

Better corporate image

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• 19% prevention of disruptions

• 21% increased employee

motivation and satisfaction

• 21% better corporate image

Results (5)

Further data analysis

• Large companies tended to rate the effect of OSH as

higher than smaller companies

• Asian companies tended to rate the impact/effect of

OSH as higher than companies in Europe

• ≈ 75% companies => additional investment in OSH

costs will be the same or decrease over the long term

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Conclusion

Prevention accounting reveals the

direction and the strength of OSH effects

• OSH prevention is an investment for

companies and good for business

success

• Future OSH policies must take this

“prevention pillar” into consideration

More information:

www.dguv.de Webcode e143522

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Return on Prevention:

An International Study