Introduction to the report:This report is an effort to analyze the various aspects of the cost of implementing safety measures and health standards in an organization, in the context of management accounting. It is mainly focused on Malaysian context and is based on the data that was gathered through interview and online research.
This report analyzes the legal requirements, social needs, cost benefits and overall effectiveness of implementing the Occupational Safety & Health Mentorship programme , and its after-effects in terms of the cost effective policies of an organization.
For the purpose of a comprehensive analysis, we have selected Maybank for its pioneer role in the area of occupational safety and health (OSH) in organizations for this report.
It is also pertinent to mention here that a study indicated that 61.4 per cent of workers who use computers in their course of work complained of lower back pain, shoulder and neck pain while 70.6
per cent of eyestrain is due to work on the computer. This fact, besides others, served as the main factors of selecting this area of research.
Cost Benefit Analysis vis a vis Safety StandardsThe value of safety is not transparent to a company. If an employee is injured on the job, not only is the employee out of work, but there may be medical costs associated with the absence. The productivity of the employee is lost, and may be required to hire additional or temporary replacement labor. This replacement person will need to be properly trained before they can start, as well as their productivity will probably not be as good as the regular employee. These are examples of "direct costs", but there may be additional "hidden costs" that a company will still experience.
These hidden costs include items like an increase in insurance liability rates,