Abstract
Background:
This study is the first cost–benefit analysis (CBA) of occupational health and safety (OHS) in a low-income country. It focuses on one of the largest shipbuilding companies in Bangladesh, where globally recognised Occupational Health and Safety Advisory Services (OHSAS) 18001 certification was achieved in 2012.
Objectives:
The study examines the relative costs of implementing OHS measures against qualitative and quantifiable benefits of implementation in order to determine whether OHSAS measures are economically advantageous.
Methods:
Quantifying past costs and benefits and discounting future ones, this study looks at the returns of OHS measures at Western Marine Shipbuilding Company Ltd.
Results:
Costs included investments in workplace and environmental safety, a new clinic that also serves the community, and personal protective equipment (PPE) and training. The results are impressive: previously high injury statistics dropped to close to zero.
Conclusions:
OHS measures decrease injuries, increase efficiency, and bring income security to workers’ families. Certification has proven a competitive edge for the shipyard, resulting in access to greater markets. Intangible benefits such as trust, motivation and security are deemed crucial in the CBA, and this study finds the high investments made are difficult to offset with quantifiable benefits alone.
Acknowledgements
The authors wish to thank all people involved in data provision and analysis. In particular, the management at Western Marine Shipyard Limited, Chittagong, Bangladesh, was supportive and helpful and also provided much insight and information to enrich this study. Thanks are extended to the local GIZ experts for their valuable insights and feedback. GIZ funded this study as part of their Multidisciplinary HIV/AIDS Programme in Bangladesh. The study benefited greatly from the exchange of ideas with Dr. Andy Thomson, EOH Health, South Africa. The authors are grateful for valuable comments from the editor and some anonymous referees on earlier drafts of this paper. Any remaining errors rest solely with the authors.