This paper addresses vital issues pertaining to effective functioning of the safety and environment management (SEM) set-up in an organization. The findings of the paper are based on a project study undertaken, covering functioning of the discipline, "its organisational design, development, performance and supporting administration" in selected organizations both upstream and downstream in petroleum sector. The study entailed analysis of systems in vogue i.e. organisational set-up, objectives, functions, performance parameters, monitoring systems etc. and suggests an optimal systematic approach necessary to ensure implementation and monitoring of SEM in the organisation.

The findings of the study highlights non-existence of either uniform or standardised systems in the industry as a whole emphasis everywhere, being more on compliance with statutory requirements than in the evolving and development of SEM as a holistic and integral core of all functional activities in the organisation.

Effectiveness of safety and environment management in an organisation requires, defining of policies, objectives, activities, key performance areas, as well as development of core competencies among others.

An effective SEM facilitates implementation of total loss control, environment protection, compliance with statutory requirements, codes and standards, company's safety and environment policies and achievement of international levels of recognized safety and environment management. The requirement of safety case demonstrates, that the risk to persons in installation's be properly controlled and each safety case should be subject to formal acceptance by the regulator before operations commence and calls for an effective SEM to be in place, in professionally managed organisations.

Implementation of SEM policies and programs lead to reduction of accidental losses, improves overall productivity maintain environment protection and boosts organizational image.

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