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Safety: Expense or Investment?
Corporate Culture Provides the Answer
The costs are plainly evident on a motor carrier’s financial statement Would the results positively improve if funding was increased? What would likely happen if budgets were cut?
Many safety directors have had to field these types of questions from upper management and the answers can be somewhat elusive. It’s easy to quantify the cost of a tire, but difficult to pin a number on safety. That’s probably because safety isn’t an item or a service that’s purchased but rather it’s the absence of bad things happening. Can you quantify that, should you even try?
The story of what’s happening at General Motors has been widely reported.. For many years GM fostered a corporate culture that rewarded cost cutting measures. To be fair there’s no evidence that anyone at GM purposely disregarded safety but the prevailing culture favored reducing costs.
This is not unlike the types of decisions that are made all the time in the low margin, highly competitive motor carrier industry where profits are gained by managing costs. Let’s say that a particular company decides to increase its safety spending ten fold. What effect would that have? At GM the result would have been the same – the safety programs would have existed separately from the cost management programs and product design would have been unchanged. Much the same would happen at a trucking company – safety initiatives and operating procedures exist in separate worlds and many times internal conflicts are left unresolved.
The best definition of safety is that it’s a culture rather than a slogan or program. GM has come to realize that and some motor carriers have discovered this as well. The culture of safety must be integrated at all levels of decision making and every participant must have a voice and the ability to affect the outcome. Even more importantly, all parties must be on the lookout for consequences that might affect safety, even if they are unintended.
This is not to say that training and information programs about safety and defensive driving aren’t important. However, they are only effective if the participants feel empowered to act on the information. Safety is a culture and as such the only true measure of effectiveness is the cost that arises when the corporate culture diverges from that path. Ask GM what the costs are.
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