Theories of Costs of Health and Safety Compliance and Non-Compliance with Regulations

Globally, the economics of health and safety compliance and non-compliance with regulations remains absurd and elusive. Costs of health and safety compliance at enterprise level are elements that organisations find difficult to define or price adequately due to subtle, inconspicuous, and elusive nature. Conversely, evidence shows that costs of health and safety non-compliance with regulations in recent times are eye-watering and mind-boggling. Yet, theory that provides explanation of cost behaviours concerning health and safety compliance and non-compliance with regulations is rare.

Aim: The aim of the study is to develop a theoretical concept that can be used to predict costs of health and safety non-compliance with regulations.

Research question: put forward by the paper is: What are the predictable cost behaviours of health and safety compliance and non-compliance with regulations?

Research Method: Phenomenological research strategy was adopted; with qualitative data collected via focus group discussions; in addition to detailed observation of 20 years real costs of health and safety non-compliance with regulations data.

Findings: Reveal that costs of health and safety compliance with regulations are often ill-defined and elusive. Similarly, the study discovered that cost behaviour of health and safety non-compliance with regulations can be erratic and exponential in nature. Other finding reveals that for every health and safety failure (ill-health, injuries/fatalities), there are likely associated costs, that are contingent on specific legislations, rule of law, state (national laws), and commercial viability of organisation involved.