PROJECT DESCRIPTION

PROJECT AIMS

The primary aims of the Systematic Accident Cost Analysis (SACA) project were to test a method for analysing company costs in relation to occupational accidents as well as assess these costs for selected accidents in selected companies. This method is called the SACA method - is developed by researchers from the Aarhus School of Business and consultants from PricewaterhouseCoopers.

SACA: SYSTEMATIC ACCIDENT COSTS ANALYSIS

The SACA method has two broad aims. The first is to analyse the costs of occupational accidents by identifying the activities performed after the accident and assessing the costs of these activities. It thus borrows elements from the Activity Based Costing methodology. The second aim is to assess the possibility of current and future additional costs due to stakeholder interest in occupational accidents.

THE SACA COST ANALYSIS

The SACA process is composed of three main phases. In the first phase the activities following the accident are identified. This includes both those activities directly related to the accidents such as first aid as well as more indirectly related activities such as production disturbances in another department. In the second phase the costs of these activities are identified. The calculation of costs includes identifying man-hours and average wages as well as calculation of lost production capacity. In the third phase the feasibility of possible integration of accident cost calculations in the accounting information system is explored.

THE SACA STAKEHOLDER

ANALYSIS

Based on stakeholder analysis the current and future possibilities of increased corporate costs are assessed. Examples could be employees, customers and investors boycotting a company due to its bad occupational health reputation. This part of the SACA method is more strategic in nature than the accident cost analysis part and aims at the strategic management level.

CASE STUDIES

The project conclusions are based on case studies in nine Danish companies. These companies were selected to represent the service industry, the construction industry and the production industry. To further increase the scope of the empirical data, the companies were selected to represent small, medium-sized and large ones. The accidents analysed were selected to represent a serious accident, a less serious accident and a typical accident in the company.

COMPANY WORKSHOPS

Following an extensive literature survey and development of survey tools the case companies were visited individually. In a one-day workshop the research team interviewed e.g. safety managers, accountants, project managers, CEOs and in some cases the employees involved in the accident. The workshops focused both on analysing the costs of the selected accidents according to the SACA method as well as analysing the interests of company stakeholders in relation to company occupational accidents in general.

METHODOLOGICAL CAVEATS