Injuries and high injury/illness costs indicate internal related factors that affect the bottom line: waste, productivity, turnover, absenteeism, low morale

"…let's look at the benefits of effective internal control and its link to performance…companies with strong internal control are more likely to have rapid growth, success in meeting corporate objectives and increasing return on equity-the 'big three' in corporate success. At companies with weak internal control, these qualities are usually scarce. An organization cannot win this triple crown until senior executives take personal responsibility for internal control and realize that relegating it to lawyers, compliance staff, internal auditors and chief financial officers is not adequate…."William C. Jennings, Viewpoint, The New York Times, December 29, 19961

Strong internal control

To maintain smooth and uninterrupted product output, there are some indicators within your operations that you watch closely such as the peaks and valleys of cash flow, poor delivery of raw materials, and delayed shipments of products to customers. At such times, you and your management staff take immediate remedial action. At other times, unplanned or unexpected events-natural disasters, fire, job-related death or serious injury to one or more employees-can cause major disruptions. If you do not have contingency plans developed to handle such occurrences, you and your managers are confronted with scores of clean-up problems along with maintaining regular operations.

With strong internal controls in place, the impact of temporary setbacks can be minimized. Exerting control over or planning for events that can cause you to lose money, people, or other resources is one of the major responsibilities of senior leadership. Taking personal control of your safety and health management systems can significantly contribute to the improvement of absenteeism, turnover, waste, and profitability.

Evidence of the reality possible through strong control and administration of your safety and health systems comes from some of the VPP participants."In the three years we worked to qualify for the Star (VPP) Program, we reduced our lost workday cases by 74% and our workers' compensation costs by 88%," says Phillip B. Chandler, safety and environmental superintendent, Thrall Car Company, Winder, Georgia.2

OSHA cites a Monsanto spokesman: "Monsanto Chemical Company's Gonzales, Florida, plant experienced a steady decline in its lost workday case rates during the period the worksite was implementing effective safety and health programs and in the four years since approval to the VPP. The rates fell from 2.7 in 1986 to 0.15 in 1993."3

A Mobil Oil spokesman as cited by OSHA:"Mobil Oil Company's Joliet, Illinois, refinery experienced a reduction in its lost workday case rate from 3.8 in 1987, the year before it began implementing VPP quality safety and health programs, to 0.1 in 1993, two years after approval to the Star Program. In the same period, the refinery experienced a drop of 89% in its workers' compensation costs." 4

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