Analysis of the calculation of the return on investment in occupational health and safety and its impact on business turnover.

Abstract

This research primarily aims to advocate for the adoption of cost-benefit analysis in decision-making processes related to Occupational Health and Safety (OHS) investments. The goal is to integrate this analysis as a fundamental component within corporate financial management frameworks. The study introduces a foundational methodology for calculating Return on Investment (ROI) specifically applied to workplace health and safety initiatives. This methodology is designed to provide objective, quantifiable data, enabling the economic valuation of such programs beyond mere regulatory compliance. A quantitative approach is employed, focusing on measuring both the direct and indirect costs associated with occupational risk prevention. It concurrently quantifies the financial benefits stemming from these investments. Utilizing cost-benefit analysis and ROI calculations, the research seeks to demonstrate the positive impact of proactive safety management. Key benefits analyzed include the reduction of workplace accidents, occupational illnesses, absenteeism, legal costs, and operational losses, as well as the preservation of the company's economic assets. Furthermore, the research establishes parameters and guidelines to standardize the measurement of OHS investments. This standardization facilitates year-over-year comparisons and the inclusion of this data in both financial and managerial reports. By doing so, the study intends to produce relevant and comprehensible information for managerial and administrative levels. This, in turn, is expected to foster greater interest and promote strategic, data-driven decision-making based on reliable financial metrics. The anticipated results contribute to strengthening a preventative safety culture and repositioning occupational health and safety not as a mere cost center, but as a profitable and sustainable investment integral to the core business.