Expected impact of application requirements of ohsas 18001 and iso 14001

14. međunarodni simpozij o kvaliteti „KVALITETOM PROTIV RECESIJE“, Rovinj, Croatia, 21.-22.3.2013.

EXPECTED IMPACT OF APPLICATION REQUIREMENTS OF OHSAS 18001 AND ISO 14001 ON IMPROVEMENT OF PERFORMANCES IN OCCUPATIONAL HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION1 OČEKIVANI UČINCI PRIMJENE ZAHTJEVA OHSAS 18001 I ISO 14001 NA POBOLJŠANJE PERFORMANSI ZAŠTITE ZDRAVLJA, SIGURNOSTI NA RADU I ZAŠTITE OKOLIŠA Snežana Živković, Ph.D. Faculty of Occupational Safety, University of Niš Čarnojevića 10 A, Niš, Srbija/Serbia E-mail: snezana.zivković@znrfak.ni.ac.rs Darko Palačić, M.Sc. E-mail: darko.palacic@vss.hr Marija Petras, Profess. Spec. Eng. Sec. University College of Applied Science in Safety Lučića 5, Zagreb, Hrvatska/Croatia E-mail: mpetras@vss.hr UDK/UDC: 005.1:006.3/.8+613.6+502.3/.7 JEL klasifikacija/JEL classification: L15; K32 Prethodno priopćenje/Preliminary communication Primljeno: 16. studenoga, 2012./Received: November 16th, 2012 Prihvaćeno: 7. veljače, 2013./Accepted: February 7th, 2013

ABSTRACT Unlike some other measurable quantities, “safety” and “environment” are not directly measurable in the business organization. Standards OHSAS 18001 and ISO 14001 representing the basic tool for the implementation and management of E&OHS. Implementation of measures for environmental protection and occupational health and safety stands, not only for concern of the employer towards the worker and the envi This work has been funded by the Serbian Ministry for Science under the projects No. III43014. and III-42006

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ronment, but also for wider social responsibility. The health of employees and clean environment in which we are living and working are some of the basic requirements for the normal development of business organizations and society in its entirety. Expected improvements in performance in occupational health, safety and environmental protection, by applying these standards with its impact on human and social aspects, have also a significant impact in the economic aspects of the business.

Key words: Improvement, ISO 14001, OHSAS 18001, performance.

1. INTRODUCTION Occupational health, safety and environmental protection represent some of the main areas of personal security during the execution of business processes. Safety must be observed through human, economic and social aspects, which help set a better and more effective management of occupational health, occupational safety and environmental protection for the employee. Although there are many international rules for systems that manage occupational health, occupational safety and environmental protection, praxis shows us that the most commonly applied standard for managing occupational health and safety is the OHSAS 18001 standard and the ISO 14001 standard for managing environmental protection. Enforcement of those standards has a great value.

It does not only indicate the employers concern for the employee and the environment, it also indicates a wider social responsibility.

1.1. I mportance of occupational health, safety and environmental protection The scientific fields and profession of occupational health, occupational safety and environmental protection have to permanently look for opportunities for their own scientific development and affirmation in business practices. This happens because of the negative movement in statistics trends of the numbers of work injuries with all of its features and environmental pollution accidents which cause an increase in expenses, and also cause insufficient efficiency of preventive means in occupation health, occupational safety and environmental protection. The standardization of all processes in modern business and business processes management, which also includes in the previous concerning safety and environmental protection, enables the creation of additional value, competitiveness and success in the organization’s business management. In that sense, the appliance of norms for managing occupational health, occupational safety and environmental protection encourages development of new models in managing this area of security and safety.

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1.2. O ccupational health, safety and environmental protection in business organizations The safety management system (SMS) is a permanent process of a number of structured and related activities in the safety department that allows a normal course of business processes and functioning of the business system, as well as achieving better economic results (Palačić, 2011). Managing safety is one of the most complicated and responsible jobs which demands lots of activity, attention and consideration of the business organization management (Petersen, 2005). The main goal of safety management is to reduce the level of risk from basic threats and threats which exist in the business processes (Duijm et al., 2008). Managing risks in safety is a process of recognition, evaluation, treatment and supervision of possible matters that could have influence on the organization. Safety is a function, organization, condition and emotion that enable normal functioning of business systems in which there is no violation of the current state of affairs, because of different hazards and risks (Palačić, 2011). SMS implies establishment of responsibility systems, identification of risks, and their evaluation; in other words, risk assessment and managing risks, the construction of adequate safety policies and their implementation in real-life surroundings based on results of risk evaluation and defined safety policies (Hunjak et al., 2010).

Based on the conducted researches, Petersen describes important elements of safety programs which are based on the behavior of employees (Petersen, 2001). With it he is introducing a new model for education of safe behavior and construction of a safe work environment through human resources management in the organization. The author concludes that there are three basic subsystems which should be considered while planning an efficient system for safety management: physical, control and behavior system.

Managing environmental protection, occupational health and safety (E&OHS) should be a constituent part in every business organization management. Appliance of the international standards can represent a significant assumption for the development and improvement of the performances in managing E&OHS in business organizations. Recent scientific researches indirectly confirm the influence of the application of the performance rule upgrade, especially in the aspects of managing OHS (Božajić et al., 2010).

Because of the empirical researching of work issues concerning self-contained experts for occupational safety in medium large business organizations in Croatia, new cognitions linked to their work were established (Cmrečnjak et al., 2009). Researches show that the examinees have a positive attitude towards the usage of rules for managing safety and they have a positive opinion about the benefit from the usage of these standards.

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Conducted researches on the usage of the system in managing safety in business organizations and their results have helped in defining the elements of an effective system for occupational safety (Palačić, 2009).

Based on a number of researches, some authors believe that the traditional stance about occupational safety as a profession or science should relinquish some space to new approaches that are expected to make a new kind of professional jobs which would be based on E&OHS MS as the general aspect for managing the business organization (Markič, 1998).

2. RESEARCH METODOLOGY Standards OHSAS 18001 and ISO 14001 promote a safe and healthy work environment by securing the frame for system identification and control of health and safety risks, as well as environmental risks. The goal of the research is to establish the expected impacts when applying the OHSAS 18001 and ISO 14001 standards to improve the performance of E&OHS. The research contains a comparison between given results and the hypothesis: −− Hypothesis H1: decrease in the number of accidents, in the number and severity of injuries, diseases and environmental pollution is expected; −− Hypothesis H2: decrease in the number of lost working days due to accidents, injuries, diseases and environmental pollution is expected; −− Hypothesis H3: adjustment with E&OHS regulation terms is expected; −− Hypothesis H4: reduction in the number of direct and indirect financial expenses in E&OHS is expected, as well as the decrease in the number of operational expenses and deficits; −− Hypothesis H5: other improvements in system management are expected.

In accordance with the set goal, research tasks are: −− to investigate the theory of management of occupational health, safety and environmental protection; −− to analyze the demands of OHSAS 18001 and ISO 14001 standards; −− to confirm the expected effects of application of OHSAS 18001 and ISO 14001 standards, in order to upgrade the performance of E&OHS. In accordance with the set goal, following methods are being adopted: −− studying documentation and content; −− the method of analysis; 248

−− the method of description; −− the method of synthesis.

3. RESULTS AND DISCUSSION The OHSAS 18001 standard specifies the claim for a OH&S MS. The standard has the intention of helping different business systems to control risks related to occupational health and safety (British Standards Institution, 2007).

Management system is a group of mutually linked elements that are being used to establish policies and goals, in order to accomplish those goals, including the structure, planning, risk evaluation, setting up goals, responsibility, good praxis, procedures, processes and resources.

3.1. OHS by applying the OHSAS 18001 The advantages of managing OH&S by the OHSAS 18001 standard: −− the management system based on the implementation in line with hazards and risks in correlation with organization possibilities and its concrete needs; −− helps business systems to acknowledge its compatibility with occupational health and safety politics; −− assures surveillance and achieving goals for the system of occupational health and safety for business necessities; −− constant validation system according to PDCA methodology to enforce occupational health and safety system introduces; −− integrates occupational health and safety into the business processes and actions of the organization; −− enforcement of the occupational health and safety needs full support of the top management and the owner; −− compatibility with the principles and quality management systems and environment; −− ensures a possibility to confirm/certificate in order to give support to future clients and consumers requests; −− acknowledges the system effectiveness through management evaluation; −− establishes a system to track prescript demands and thorough business monitoring (due diligence); −− it builds up based on thorough business monitoring (due diligence) assessment and environment and quality management system.

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3.2. EMS by using the ISO 14001 standard The ISO 14001 standard specifies demands for the EMS that help the organization to shape and apply the policies and goals of the environmental protection, considering the legal and other demands to whom the organization is bound, as well as facts on the significant impact on the environment. The efficiency of the system depends on the implementation commitment of all organizations levels and functions, especially of the management.

The main goal of these standards is to get components of the efficient EMS for the business organizations. The basic ISO 14001 principles are (European Committee for Standardization. Environmental management systems – Requirements with guidance for use, 2004): −− environmental management; −− appliance in every country; −− growth in public interest and number of ISO 14001 consumers; −− adequacy in internal and exterior evaluation and affirmation; −− scientific basis; −− practicality, efficiency and availability; −− expense efficiency and adaptability to satisfy different requirements for organizations around the world.

This international standard contains demands that can be fairly and independently evaluated with the purpose of confirmation and/or self-declaration. The basic goals of the ISO 14001 standard are: −− to decrease present and eventual environmental risks; −− to decrease negative effect on the environment; −− employers conscience boost for importance of the environmental protection; −− better organization skills in environmental protection praxis; −− to assure system and organization approach in situations dangerous for the environment; −− coherence with the legal regulations and demands; −− to provide access for markets that condition EM in accordance with international rules; −− to decrease risks and litigations, as well as criminal and violation prosecutions; −− to decrease operational expenses and losses; −− to provide safety for customers, investors, public and society by introducing its environmental department; −− to decrease the number of incidents that can affect business stability; 250

−− to enhance the client, authority, bank, insurer and public trust towards ecological management of the company; −− to enhance the relationship with local community and other public authority organs; −− to enhance the image and competitiveness of the company.

3.3. Key performances of E&OHS Unlike some other measurable values in business organization (profitability, sales efficiency etc.), “safety” and “environment” are not directly measurable values. The basic goals of the enforcement of safety measures enforcement are risk decrement (probability result) of the unwanted incidence and decrement of unwanted incidence consequences. In accordance with that, E&OHS performance measurements should imply the capacity and the quality of the performances, as well as the unwanted incidence of measurements (Powell, 2009). The most common performances of E&OHS are the unwanted incidences (injuries, diseases, death, environmental protection) with all of its characteristics like lost business hours and other expenses (Tarrants, 2003).

But, E&OHS performances have many other characteristics like planning, enforcement of key activities, safety culture, human resources management, etc. (Živković, 2008). Conducted researches in scientific and professional literature that are involved in E&OHS help us in determining few basic approaches in key performances of E&OHS. 3.4. E xpected impact on the application of standards that improve E&OHS performances The appearance of the implementation and certification of the structural management systems such as E&OHS, implies that business organizations should be able to measure the results and achievements from those implementations. The comparison of the traditional indicators on E&OHS should be taken into consideration as well, but so should the comparison of different untraditional safety success indicators, such as safety culture. The beginning of the correct performances measurements is the correct definition of all safety success indicators (Arezes and Miguel, 2003). E&OHS MS should be the main ingredient of business management of every organization. The current scientific researches, especially empirical ones, are indirectly confirming the effect of appliance of the performance improvement standards, especially aspects that manage occupational health and safety.

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Based on all of the above it can be noted that the appliance of the OHSAS 18001 and ISO 14001 standards in business organizations can have an effect on the improvement of the following E&OHS performances: −− the policies and goals of system management: clearly defined policies and goals (long-term and short-term) of E&OHS; −− the decision making: the decision making process is based on statistical analysis regarding work injuries, diseases, environmental pollution, produced waste, accidents; −− the demand implementation: application of demands for management systems; −− the system management evaluation; −− risk management: to decrease present and potential health, work and environmental risks; −− the safety management: to increase health protection, safety at work and environmental protection; −− the appliance of demands: to coordinate the system with legal regulations in occupational health, safety and environmental protection department; −− accidents, injuries, diseases and environmental pollution: decrease in the number of accidents, injuries, diseases and environmental pollution; −− the state of emergency: organized and systematic approach; −− lost workdays: decrease in the number of lost workdays due to accidents, injuries, diseases and environmental pollution; −− material costs: decrease in the number of direct and indirect financial expenses in occupational health, safety and environmental pollution department, decrease in number of operational expenses and deficits; −− the communication and awareness: consciousness increment, increase in employees and consumers trust, as well as business associates, society, local community and authorities trust; −− to emphasize the aspiration and determination to enhance efficient measurements of occupational health, safety and environmental protection, with preventive activities; −− the insurance: decrease of insurance premiums; −− the market: to provide access for markets that apply the OHSAS 18001 and ISO 14001 standards; −− the business organization image: improvement of the business organization image.

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3.5. Discussion E&OHS are an essential part of work organization and the working process execution. With the development of technology and business processes, new dangers and hazards arise, and they need to be mastered with new methods. Modern business and business processes management strive for standardization of all processes, as well as the safety and protection processes. That helps to develop additional values, competitiveness and success of the business organization. The application of the OHSAS 18001 and ISO 14001 standards that introduce the E&OHS MS, also contributes to the development of new management models for these departments.

The expected improvements in E&OHS performances have a significant effect in business management. Due to the above, in modern societies and countries, the enforcement and input in E&OHS are considered as an investment, and not as an expense. Numerous researches have proved that E&OHS have a positive influence on the improvement of work quality, productivity in business organizations, as well as increasing employee satisfaction and moral, and the company image.

4. CONCLUSION Based on the given research results, results are being compared with the hypothesis, and the hypothesis are being either accepted or declined. −− Hypothesis H1: reduction in the number of accidents, injuries, diseases and environmental pollution is expected. Hypothesis accepted.

It is expected that the application of standards would influence on the performances improvement by the reduction in the number of accidents, injuries, diseases and environmental pollution. −− Hypothesis H2: reduction in the number of lost workdays due to accidents, injuries, diseases and environmental pollution is expected. Hypothesis accepted.

It is expected that the application of standards would influence on the performances improvement by the reduction in the number of lost workdays due to accidents, injuries, diseases and environmental pollution. −− Hypothesis H3: adjustment with E&OHS regulation terms is expected. Hypothesis accepted.

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It is expected that the application of standards would influence the coordination of the enforcement of measurements with the legal regulations of the E&OHS department. −− Hypothesis H4: reduction in the number of direct and indirect financial expenses in E&OHS is expected, as well as the decrease in the number of operational expenses and deficits. Hypothesis accepted.

It is expected that the application of standards would influence on the reduction in the number of direct and indirect financial expenses of the E&OHS department, as well as the decrease in the number of operational expenses and deficits. −− Hypothesis H5: other improvements in the system management are expected too. Hypothesis accepted.

It is expected that the application of standards would influence other improvements such as: clearly defined policies and goals, defined system management documentation, decision making based on statistical analysis, systematical approach in crisis, increase in employees awareness and trust, increase in business associates, society, local community and authorities trust, reduction in insurance premiums, improvement of the business organization image, etc.

Based on the defined key performance indicators it is essential to conduct an empirical research whose results will determine recent understandings about the application of OHSAS 18001 and ISO 14001 standards with the best E&OHS performances in business organizations.

Abstract: OČEKIVANI UČINCI PRIMJENE ZAHTJEVA OHSAS 18001 I ISO 14001 NA POBOLJŠANJE PERFORMANSI ZAŠTITE ZDRAVLJA, SIGURNOSTI NA RADU I ZAŠTITE OKOLIŠA Za razliku od nekih drugih mjerljivih veličina u poslovnoj organizaciji „sigurnost” i „okoliš“nisu izravno mjerljive veličine. Norme OHSAS 18001 i ISO 14001 predstavljaju osnovni alat za provedbu i upravljanje zaštitom zdravlja, sigurnošću na radu i zaštitom okoliša. Provedba mjera zaštite okoliša te zaštite zdravlja i sigurnosti na radu ne označava samo brigu poslodavca prema radniku i okolišu, već i širu društvenu odgovornost. Zdravlje zaposlenih i čisti okoliš u kojem živimo i radimo neki su od osnovnih preduvjeta za normalan razvoj poslovnih organizacija i društva u cjelini. Očekivana poboljšanja performansi zaštite zdravlja, sigurnosti na radu i zaštite okoliša primjenom navedenih normi uz svoj utjecaj na humane i socijalne aspekte, imaju i značajan utjecaj u području ekonomskih aspekata poslovanja.

Ključne riječi: ISO 14001, OHSAS 18001, performanse, poboljšanje.

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