Measuring ROI in Environment, Health, and Safety E-Book

Jack J. Phillips

• Herausgeber: John Wiley & Sons
• Kategorie: Wissenschaft und neue Technologien
• Sprache: Englisch

Seitenzahl: 601

Veröffentlichungsjahr: 2014

Beschreibung

Using the most successful evaluation system in the world for measuring impact and ROI--the ROI Methodology--learn how to measure the success of all business programs and projects involving environmental initiatives, health-related programs for employees and citizens, and various safety programs in all types of settings Few topics are more important than the health and safety of employees, associates, and citizens. Organizations focus a tremendous amount of money/resources on maintaining a zero-harm approach to its employees, the greater community, and the surrounding environment. At the same time, organizations are implementing many types of wellness and fitness programs ensuring that employees remain healthy, safe, and productive. Measuring ROI in Environment, Health, and Safety shows how to measure the success of all types of programs and projects involving environmental initiatives, health-related programs for employees and citizens, and various safety programs in all types of settings. Environmental efforts, or green projects, can represent value for organizations. Eighty percent can deliver a positive ROI, and the other 20 percent are often required by regulation. In either case, it is critical to understand whether or not these projects are working. This new book will show step-by-step how to measure the success of many types of green programs. Within an organization, responsibility for environment, health, and safety is often under the direction of the same executive team. Their concern is always about how well the programs are working and, more importantly, what can be done to ensure that they are more successful. ROI in Environment, Health, and Safety introduces the ROI Methodology, now used by over 4,000 organizations, and the most successful and utilized evaluation system in the world for measuring program impact and ROI. It shows step-by-step how to capture the reaction to the various initiatives and programs a firm may institute, the learning necessary to make them successful, progress in terms of application and implementation, the specific business impact measures driven by these programs, and, finally, the financial ROI. Along the way, data is collected for process improvement to ensure that if certain programs are not working, they can be adjusted for success.

Leseprobe

Contents

Preface

List of Authors

Chapter 1 Environment, Health and Safety is Everywhere

1.1 The New Role of EHS

1.2 Environmental Initiatives

1.3 Safety Initiatives

1.4 Health and Fitness

1.5 Managing Change in EHS

1.6 Final Thoughts

Chapter 2 Is It Worth It?

2.1 EHS Killers

2.2 Value Redefined

2.3 Why Now?

2.4 EHS Chain of Impact

2.5 Shortcomings of Current Measurement and Evaluation Systems

2.6 EHS Leadership: A Requirement for Success

2.7 Challenges Along the Way

2.8 Final Thoughts

Chapter 3 Investing in Environment, Safety and Health Initiatives

3.1 Overview

3.2 Strategy 1: Avoid the Investment

3.3 Strategy 2: Invest the Minimum

3.4 Strategy 3: Invest with the Rest

3.5 Strategy 4: Invest Until It Hurts

3.6 Strategy 5: Invest as Long as there is Payoff

3.7 Final Thoughts

Chapter 4 The ROI Methodology: A Tool to Measure and Improve

4.1 A Brief Overview

4.2 Results Framework

4.3 Results Framework and Business Alignment

4.4 Benefits of Developing the Chain of Impact

4.5 The ROI Process Model

4.6 Operating Standards and Philosophy

4.7 Case Application and Practice

4.8 Implementation

4.9 Benefits of Applying the ROI Methodology

4.10 Final Thoughts

Chapter 5 Project Positioning

5.1 Creating Business Alignment

5.2 Determining Payoff Needs

5.3 Determining Business Needs

5.4 Determining Performance Needs

5.5 Determining Learning Needs

5.6 Determining Preference Needs

5.7 Developing Objectives for EHS Projects and Programs

5.8 Case Study Examples

5.9 Final Thoughts

Chapter 6 Measuring Reaction and Learning

6.1 Why Measure Reaction?

6.2 Sources of Data for Measuring Reaction

6.3 Areas of Feedback

6.4 Data Collection Timing for Measuring Reaction

6.5 Data Collection Methods for Measuring Reaction

6.6 Use of Reaction Data

6.7 Why Measure Learning?

6.8 Challenges and Benefits of Measuring Learning

6.9 Learning Measurement Issues

6.10 Data Collection Methods for Measuring Learning

6.11 Use of Learning Data

6.12 Final Thoughts

Chapter 7 Measuring Application, Implementation and Impact

7.1 Why Measure Application and Implementation?

7.2 Application Measurement Issues

7.3 Data Collection Methods for Measuring Application

7.4 Barriers to Application

7.5 Use of Application Data

7.6 Why Measure Impact?

7.7 Impact Measurement Issues

7.8 Data Collection Methods for Measuring Impact

7.9 Considerations for Selecting Data Collection Methods

7.10 Measuring the Hard to Measure

7.11 Final Thoughts

Chapter 8 Isolating the Impact of EHS Projects

8.1 Why the Concern About Isolating Project Impact?

8.2 Preliminary Issues

8.3 Methods to Isolate the Impact of Projects

8.4 Considerations When Selecting Isolation Methods

8.5 Final Thoughts

Chapter 9 Converting Impact Data to Money

9.1 Why the Concern About Converting Data to Monetary Values?

9.2 Five Steps to Convert Data to Money

9.3 The Five Steps to Convert Data in Practice

9.4 Methods to Convert Impact Measures to Money

9.5 Considerations When Selecting Data Conversion Methods

9.6 Intangible Benefits of EHS Projects

9.7 Final Thoughts

Chapter 10 Calculating the ROI

10.1 Why the Concern About Project Costs?

10.2 Fundamental Cost Issues

10.3 Fully Loaded Cost Profile

10.4 Cost Classifications

10.5 The ROI Calculation

10.6 ROI Misuse

10.7 ROI Targets

10.8 Intangibles Revisited

10.9 Other ROI Measures

10.10 Final Thoughts

Chapter 11 Reporting Results

11.1 Why the Concern About Communicating Results?

11.2 Principles of Communicating Results

11.3 The Process for Communicating Results

11.4 The EHS Scorecard

11.5 Final Thoughts

Chapter 12 Implementing and Sustaining ROI

12.1 The Concern About Implementing and Sustaining ROI

12.2 Implementing the Process: Overcoming Resistance

12.3 Assessing the Climate

12.4 Developing Roles and Responsibilities

12.5 Establishing Goals and Plans

12.6 Revising or Developing Policies and Guidelines

12.7 Preparing the Project Team

12.8 Initiating ROI Projects

12.9 Preparing Sponsors and Management Team

12.10 Removing Obstacles

12.11 Monitoring Progress

12.12 Final Thoughts

References

Chapter 13 Measuring ROI in Safety Management for Project Leaders

13.1 Background

13.2 Why Evaluate this Program?

13.3 The ROI Process

13.4 Planning for Evaluation

13.5 Data Collection Plan

13.6 ROI Analysis Plan

13.7 Action Planning: A Key to ROI Analysis

13.8 ROI Forecast with Reaction Data

13.9 Improving Response Rates

13.10 Results

13.11 Communication Strategy

13.12 Lessons Learned

13.13 Discussion Questions

Chapter 14 Measuring ROI in a Modular/Reusable Safety Railing System in Commercial, Multi-Family & Residential Construction

14.1 Background

14.2 Problem Definition

14.3 Project Background

14.4 Business Alignment

14.5 Evaluation Methodology

14.6 Evaluation Results

14.7 Communication Strategy

14.8 Lessons Learned

14.9 Questions For Discussion

Chapter 15 Measuring ROI in an Ergonomics-Based Risk Management Intervention

15.1 Background

15.2 Evaluation Methodology

15.3 Evaluation Results

15.4 Communication Strategy

15.5 Lessons Learned

Questions for Discussion

About the Author

Resources

Chapter 16 Measuring ROI in Stress Management

16.1 Background

16.2 Why ROI?

16.3 Program Results

16.4 Communication Strategies

16.5 Policy and Practice Implications

16.6 Questions for Discussion

Chapter 17 Measuring ROI in a Safety Incentive Program

17.1 Background

17.2 The Solution

17.3 Data Collection and Analysis

17.4 Data Interpretation and Conclusion

17.5 Calculating the Return on Investment

17.6 Communication of Results

17.7 Questions for Discussion

Chapter 18 Measuring ROI in a Job Safety Training Program at a Major Food Retailer

18.1 Background

18.2 Evaluation Methodology

18.3 Calculating ROI

18.4 Barriers and Enablers

18.5 Communication Plan

18.6 Conclusion

18.7 About the Author

Chapter 19 Measuring ROI in a Work-at-Home Program

19.1 FMI: PART A

19.2 FMI: PART B

19.3 FMI: PART C

19.4 FMI: PART D

19.5 FMI: PART E

19.6 FMI: PART F

19.7 Questions for Discussion

19.8 FMI: PART G

19.9 Questions for Discussion

Index

Also of Interest

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Library of Congress Cataloging-in-Publication Data:

ISBN 978-1-118-63978-8

Preface

The Need for this Book: Focus on EHS

If you are part of the workforce, you’re directly affected by three important issues: environment, health and safety (EHS). Your employer is concerned about the environment and implements a variety of projects and programs to minimize the organization’s impact on it. Leaders are also concerned about your health. The cost of employee healthcare has skyrocketed in the past decade and is greatly impacting the financial health of all types of organizations. And employee safety is no new concern. Maintaining a safe workplace has been a common goal as employers have come to understand that safety is good business.

EHS concerns are often grouped together and managed by one executive. This book is for that executive and his or her entire EHS team, as well as others who support EHS projects, programs and initiatives.

Environmental Issues

Everyday focus on EHS is a relatively recent phenomenon. When global warming first surfaced in the 1980s, it stirred up worldwide debate and concern. However, business leaders resisted the issue, recognizing the extra cost involved in addressing the causes of such a phenomenon. For example, when the United Nations formed the Intergovernmental Panel on Climate Change (IPCC) in 1989, business groups formed their own organizations, the Global Climate Coalition and the Competitive Enterprise Institute, to counter the issues and the debate about the causes of climate change. While most agreed that climate change was occurring, views differed regarding its origins. Finding solutions was not a priority to the business world at large.

Today, most, if not all, businesses recognize that climate change is an issue. The Global Climate Coalition was disbanded in 2002, and most businesses are attempting to solve the problem, resulting in a wave of sustainability, climate change and environmental projects.

From an organizational perspective, addressing environmental issues offers employees, contractors, volunteers and other members the opportunity to influence environmental sustainability through involvement and contribution. The challenge is to create the correct approach to involve these people—one that includes teaching, convincing, communicating, enabling, supporting and encouraging participation in the green process. Mandating change is rarely a recipe for success. Organizations must engage their people and position processes for successful implementation.

The sheer number of environmental projects and initiatives, as well as the fact that not everyone is buying into the issues, brings into focus the need for a systematic way to show the value of those projects. Employees do not always see the need for action because they do not understand the issues or know what they can do to help. Some executives do not understand environmental projects and sustainability efforts. They often feel negatively affected by project outcomes or perceive projects to require unrealistic investments.

Health Issues

Employee health mirrors the health of society. In the U.S. and other countries, citizen health continues to deteriorate. Unhealthy employees contribute to lower productivity, decreased job satisfaction and increased accidents, medical costs, absenteeism and use of sick leave. For example, the annual healthcare cost of obesity in the U.S. is estimated to be as high as $147 billion a year, and healthcare costs related to smoking are approximately $96 billion per year. The effects of smoking are so serious that many organizations refuse to hire employees who smoke. Unhealthy employees put tremendous strain on an organization. The workplace can sometimes make employees sick. For years, employers have implemented different types of programs to protect employees from toxic chemicals, hazardous materials and harmful dusts. Because of this, many organizations are taking initiatives to ensure that employees are healthy through wellness, prevention and health activities.

Safety Issues

Employers have been addressing safety and accident prevention since the beginning of the Industrial Age, when workplace accidents reached near-epidemic proportions. In the early 1900s, much focus was placed on how to change the work environment and procedures in order to avoid incidents and accidents. These efforts continued through the 20th Century. In recent years, much effort has focused on the attitudes and behaviors of employees, including mental alertness and not only an understanding of safety standards but also a willingness to promote them among fellow employees.

Still, accidents and even fatalities happen far too often. The BP explosion and subsequent oil spill in the Gulf of Mexico is an extreme example of a failed EHS management system that cost BP about $50 billion. If an organization does not employ solid and robust safeguards, the consequences can be disastrous; companies are investing heavily because of this reality. Consequently, there is a need and a desire to know whether EHS programs are working, and if they are not, what can be adjusted or changed to make them successful.

This book is for those involved in programs that affect environment, health and safety. The goal of many employers is to protect the environment, keep employees healthy and maintain a safe workplace, but at what cost? Employers need a way to show the value of EHS projects and programs. The following table shows some typical projects undertaken by organizations. The ROI Methodology provides a systematic way to measure success, including ROI for any of these projects.

Examples of EHS Projects

Environmental Initiatives

Energy saving projects Recycling programs Water conservation projects Waste management solutions Air pollution projects

Health Programs and Initiatives

Industrial hygiene Ergonomics Stress management Health screenings Fitness and exercise Healthy eating and nutrition Smoking cessation programs Obesity programs Sick leave management

Safety Initiatives

Safety management systems Safety leadership programs Safety auditing programs First aid and personal protection Workers compensation Accidental prevention (causation and investigation) Safety incentives System safety Fire prevention and protection Behavior based safety programs Workplace violence Hazardous chemicals and materials

History of the ROI Methodology

The ROI Methodology described in this book was originally developed by Dr. Jack Phillips in the early 1970s. Its application in the training, development, education and human resources fields is unmatched. Dr. Patti Phillips, his wife and partner, used her interest in the application of the ROI Methodology in economic, community and international development to expand its use in government, nonprofit, non-governmental and in private sector organizations. Together, they founded the ROI Institute over 20 years ago and have applied this approach to accountability in more than twenty fields in more than sixty countries. To date, the application of the ROI Methodology includes the following areas of focus:

Broad Applications

• Human Resources/Human Capital • Training/Learning/Development • Leadership/Coaching/Mentoring • Knowledge Management • Organization Consulting/Development • Policies/Procedures/Processes • Recognition/Incentives/Engagement • Change Management • Technology/Systems/IT • Green Projects/Sustainability Projects • Safety and Health Programs

• Talent Management/Retention • Project Management Solutions • Quality/Six Sigma/Lean Engineering • Meetings/Events/Conferences • Marketing/Advertising • Communications/Public Relations • Public Policy/Social Programs • Risk Management • Ethics/Compliance • Healthcare Initiatives • Wellness and Fitness Programs

Al Pulliam has used the ROI Methodology on a variety of environment, health and safety issues at two organizations. He has worked in EHS in both professional and managerial roles for two decades.

All the examples, data and case studies in this book are taken from EHS projects. The ROI Methodology offers common approaches to measuring and evaluating project success so organizations can compare results across functions and channels. More importantly, it allows organizations to develop information that can guide them to improve and reposition projects as they expand across areas of the organization. By addressing EHS projects, executives and managers can drive improvement at the organizational level and improve the environment, employee health and safety.

Motivation to Pursue EHS Projects

Four important forces drive the implementation and maintenance of EHS projects. The first motivation for organizations to implement EHS projects relates to their public image. Organizations want their employees, stakeholders and any other observers to view them as environmentally friendly, health conscious and safety minded. This is a necessity to be considered a “great place to work,” the “most admired organization,” or the “best organization.”

The second motive is to comply with various regulations, laws and standards. To ignore them can be disastrous. For environmental projects, much of the initial effort was driven by regulatory efforts in the 70s. The timing is similar for safety because of major regulations passed by organizations such as OSHA.

The third force is cost savings. Recently, the motivation has been based on cost control and avoidance. When projects and programs are implemented properly, cost savings and cost avoidance are significant. Approximately 80 percent of green projects can produce positive ROIs. Most projects in employee health should deliver positive ROIs if properly implemented. Projects in safety should do the same.

A fourth driver is employee satisfaction, attraction and retention. Employees place a premium on an employer who is protecting the environment, offering a variety of programs to improve the health of employees and providing a safe and comfortable workplace.

These reasons alone make the subject of EHS critical to organizations. Consequently, it is important to ensure that EHS programs are adding value. Following through with the use of the ROI Methodology, this book shows how to measure the success of each of these programs using six types of data.

Audience

This book is designed for those who manage, support, initiate, implement and approve EHS projects and programs. First and foremost, it is for those who create these projects and programs. It provides the framework to plan for success and to measure that success throughout the process to ensure that value is delivered to various stakeholders.

Second, the book is for those who must implement the programs. It shows step-by-step how to collect data early and often in the program, making adjustments along the way. EHS program implementers will find the methodology to be user friendly.

The third audience is those who fund the projects, often the top executives and administrators in an organization. This book shows them that it is possible to measure the impact and financial ROI for investing in any type of program. It often brings in great relief and optimism that there is a proven, credible way to show the value of these important programs.

Next, the book is for individuals who support EHS programs. These are often managers who sometimes see these efforts as overkill or, at times, unnecessary. They question whether a program is working and even when they see safety or health measures improve, they wonder how much of it was related to the project. This book takes the mystery out of these issues and brings this group into an enhanced supporting role.

The last audience is made up of individuals who teach, research and provide consulting for EHS programs. These are professors, researchers, independent consultants and even suppliers to this industry. Individuals who are very critical to the success of EHS programs will find this book a useful tool to show program value in a very credible way.

Collectively, this work provides many tips, tools and techniques that satisfy the diverse needs of these five audience groups.

Flow of the Book

The book first introduces issues in the EHS role, setting the stage for the rest of the book. It explains how the measurement and evaluation processes for EHS have evolved and describes some of the challenges along the way. It shows the progress that has been made and the need for a consistent measurement system. The ROI Methodology is introduced as a systematic, logically proven process for the EHS occupation. Through the next chapters, the ROI Methodology is described, starting with initial alignment and objectives and expands on data collection and analysis. The last chapters focus on reporting results and sustaining the measurement culture as a routine part of the process—not just focusing activities on these areas, but also achieving results. The organization expects a program to not only drive safety and performance, but also to represent a great investment. The table of contents illustrates this flow in more detail.

Acknowledgements

No book is ever the work of the authors alone. Many individuals, groups and organizations have participated in the development of this book. We owe particular thanks to the hundreds of clients we have had the pleasure to work with in the past two decades. They have helped shape, develop, mold and refine this methodology. Their contributions are evident in this book.

We are particularly indebted to Scrivener Publishing for taking on this project. Phil Carmical was very patient with our delivery schedule. Phil and the entire Scrivener team have been very helpful and we are impressed with their commitment to bringing innovative, cutting-edge processes to the environment, health and safety field.

Special thanks go to Rebecca Henderson for the final editing of this book. We look forward to working with her on many more publications.

From Jack:

Thanks to the team and staff at the ROI Institute. With their help, we are pleased to present another important ROI book. I want to thank Patti. The book was her idea. Thanks, Patti, for your diligent editing in the early stages of publication. Patti is an outstanding writer, researcher, teacher, consultant, educator and spouse. My love and my fondness for Patti grows every year. My life, this book, our family and the ROI Institute are much better because of her.

From Patti:

We have two mantras around our house. The first is all roads lead to ROI. Jack and I firmly believe that what life (work life and otherwise) holds for us is a balance of benefits versus costs. The second mantra is we can only do good if we do well. This mantra describes our mental model most accurately. Limited resources require individuals, organizations and communities to do right by the resources at hand. These resources include people, planet and profit. Reference to this triple bottom line is not new; however, evidence of its acceptance is still waning. Organizations that invest in EHS are clearly interested in people and the planet, but unless their attention is also turned to the optimal allocation of financial resources, their ability to sustain EHS activities is limited, if not impossible. A critical element in measuring the success of optimal resource allocation is ROI. It is through this book that we hope to communicate to EHS professionals and executives a process that helps ensure they implement the right programs, for the right people, at the right time, for the right investment.

Many thanks go to the thousands of people with whom we have had the opportunity to share our process. Their input and encouragement keep us moving forward as we tackle new and interesting issues. Thanks, especially, to Phil Carmical at Scrivener Publishing for giving us an opportunity to describe how our process can help EHS professionals; and particular thanks to our co-author, Al Pulliam, for contributing his expertise in the field of EHS. Having been an executive in the EHS arena for years, he knows the importance of ensuring a balance between EHS investment and the outcomes generated by that investment.

Many thanks go to our team at the ROI Institute. They keep us on track, even when we try hard to veer down a different path.

Finally, and most importantly, thank you, Jack. I’ve always said Jack gives away more than he gets in return. It is certainly true when it comes to me. For 16 years, I have engrossed myself in a process he developed years ago, finding new and interesting ways to apply and teach it. His continuous encouragement keeps me moving, and he routinely challenges me to do more. I’ve heard it said that if a couple can complete each other’s sentences—or even better, communicate without saying a word—their relationship is a bond not to be broken. We have that; and Jack, while your ROI may not always be positive, I promise to make the intangibles well worth the investment!

From Al:

First I would like to thank Patti and Jack Phillips for inviting me to participate in the writing of this book. Its concepts and methods have an important place in the EHS professional’s toolbox. To succeed at advancing EHS programs or projects that compete for scarce resources, the EHS professional has to not only think like a business person but also communicate like one. EHS professionals need to be able to turn what they believe intuitively into a credible business case for their projects, in a language understood by executives. It doesn’t take much reading on the EHS professional social media sites to see a question or comment about “management” not approving a project or cutting funding for a program. Managers and professionals who can communicate value win budgets. This book is timely for the profession.

Certainly there is always the person behind the scenes who makes things happen. I would like to thank Nicole Mallory of the ROI Institute for helping keep me on pace. And thank you to my past colleagues from the former Bayou Steel Corporation. During my tenure at Bayou Steel, I had the opportunity to experience most all of the challenges and rewards an EHS career can offer. The lessons learned there have served me well.

List of Authors

Jack J. Phillips, Ph.D.

As a world-renowned expert on accountability, measurement, and evaluation, Dr. Jack J. Phillips provides consulting services for Fortune 500 companies and major global organizations. The author or editor of more than 50 books, Phillips conducts workshops and makes conference presentations throughout the world. His expertise in measurement and evaluation is based on more than 27 years of corporate experience in the aerospace, textile, metals, construction materials, and banking industries. This background led Phillips to develop the ROI Methodology—a revolutionary process that provides bottom-line figures and accountability for all types of learning, performance improvement, human resource, technology, and public policy programs. His work has been featured in the Wall Street Journal, Business Week, Fortune Magazine, and on CNN. Phillips also serves as president of ISPI 2012–2013. He is chairman of the ROI Institute, Inc., and can be reached at [phone], or by email at [email protected].

Patti Phillips, Ph.D.

President and CEO of the ROI Institute, Inc, Patti earned her doctoral degree in International Development and her Master’s Degree in Public and Private Management. Early in her professional career, Patti was a corporate manager who observed performance improvement initiatives from the client perspective and knew that results were imperative. As manager of a market planning and research organization for a large electric utility, she and her team were responsible for the development of electric utility rate programs for residential and commercial customers. In this role, she played an integral part in establishing Marketing University, a learning environment that supported the needs of new sales and marketing representatives. Internationally known as an accountability, measurement, and evaluation expert, Patti facilitates workshops all over the world and consults with U.S. and international organizations – public, private, non-profit, and educational – on implementing the ROI MethodologyTM. Patti is the author of ROI Basics (ASTD 2006) and The Bottom Line on ROI (CEP Press 2002), which won the 2003 ISPI Award of Excellence. She is editor or co-author of ROI at Work: Best-Practice Case Studies from the Real World (ASTD Press 2005), Proving the Value of HR: How and Why to Measure ROI (SHRM 2005), The Human Resources Scorecard: Measuring the Return on Investment (Butterworth-Heinemann, 2001), and Measuring ROI in the Public Sector (ASTD 2002).

Al Pulliam, MSPH

Al Pulliam, MSPH, is a veteran Environment, Occupational Health and Safety professional with over 20 years experience. This experience includes EHS management in heavy manufacturing, industrial construction, commercial construction and consulting. He holds a Master of Science in Public Health degree from the Tulane University School of Public Health and Tropical Medicine.

Chapter 1

Environment, Health and Safety is Everywhere

Proliferation of the Field

Abstract

This initial chapter describes the vast scope of topics and issues in the EHS field. After discussing the new role of EHS, it tackles environmental initiatives, such as energy-saving projects, recycling programs, water-conservation projects, waste-management solutions and air pollution projects.

Next, a variety of safety issues are explored, including safety management systems, safety leadership programs, safety auditing programs, first aid and personal protection, workers’ compensation, accident prevention, safety incentives, systems safety, fire prevention and protection, behavior-based safety programs, workplace violence, hazardous chemicals and materials and occupational health and safety.

The last portion of the chapter focuses on health issues, including health screenings, healthy eating and nutrition, smoking cessation programs, obesity programs, industrial hygiene, ergonomics and stress management. Finally, the chapter stresses the fact that the changes needed must be managed within the EHS function.

Keywords: EHS topics, energy-saving projects, recycling programs, water-conservation, waste-management, safety, safety leadership, safety auditing, accident prevention, health screenings, ergonomics, stress management, changes within EHS function

1.1 The New Role of EHS

No matter what industry, business or occupation, the field of environment health and safety (EHS) is everywhere. In the early 1970s, the United States Environmental Protection Agency (EPA) and the Occupational Safety and Health Administration (OSHA) were established to protect the environment and employees from abuses by the industrial and business communities. In the 1970s and 1980s, the role of the EHS professional who worked in business was primarily one of compliance with new and complex regulatory regimes. Today, to a large degree, there has been a fundamental shift in the way organizations view the EHS effort. While compliance with the vast regulatory burden remains a major function of the EHS professional, organizations have recognized the importance of EHS-related matters to employees, communities and the bottom line. The scope of the EHS profession is vast, and senior EHS professionals are called upon to initiate, evaluate and execute initiatives in a number of areas.

According to a study performed for the Small Business Administration’s Office of Advocacy, environmental regulations cost businesses about $281 billion annually. Occupational safety and health regulation costs are estimated at $65 billion annually (Crain, 2010). This is just the estimated annual regulatory burden and does not include proactive initiatives in pollution prevention, health and wellness practiced by many EHS professionals. Below are a few examples of EHS initiatives and programs that the EHS professional faces on a daily basis.

1.2 Environmental Initiatives

Historically, environmental programs and initiatives were compliance based, stemming from a large and complex regulatory framework. The EPA, pursuant to certain milestone legislative laws/acts, promulgated the bulk of these regulations. Some primary laws of concern to the contemporary EHS professional include the Clean Air Act (1970), the Clean Water Act (1972), the Resource Conservation and Recovery Act (1976) (laws addressing hazardous waste) and the Comprehensive Environmental Response and Liabilities Act (Superfund) (1980), plus all of the subsequent amendments for each of these acts. Senior EHS professionals must have a working knowledge of how each of these regulations applies to his or her organization. When that applicability is understood, EHS professionals can develop programs and/or initiatives to comply with the regulatory requirements.

Determining the return on investment (ROI) of the programs has not been a real concern for the EHS field for a variety of reasons. Many companies use compliance with the regulations as a baseline for their environmental programs. Compliance is not optional, but that doesn’t mean the EHS professional shouldn’t seek cost-effective and optimal solutions. However, for these companies, ROI does not drive the decision-making process. Another reason ROI has not been of great concern to the EHS professional is that maximum penalties are known. This makes the ROI calculation straightforward, eliminating the need for any sophisticated analysis. Furthermore, since 1984, the EPA has used an economic benefit model to determine any economic gain from non-compliance. This essentially eliminates financial gains as part of the ROI equation. As mentioned, when it comes to compliance projects, the EHS professional needs to evaluate the most cost-effective means commensurate with the size and scope of the business. This should be a fairly straightforward proposition.

Today, however, the EHS professional and the financial decision makers are faced with environmental projects, programs or initiatives that are not as straightforward as a pure compliance project. These initiatives are often more technically challenging, broader in scope and connected to more departments and individuals, making them more difficult to implement and harder to isolate the impact of the program.

1.2.1 Energy Saving Projects

Energy-saving projects receive significant attention in the business community. Not only do energy savings translate to an improved bottom line, but energy consumption is also the primary driver for greenhouse gas (GHG) generation.

At an energy-intensive company, engineers, scientists and financial personnel are often involved in energy reduction. The energy-intensive nature of the business drives financial metrics, which in turn focus on the pure economic need for energy savings. This economic relationship works fine. If an energy-saving project can meet the company’s financial requirement for capital expenditures, the project is approved.

ROI begins to break down, however, when companies are less energy intensive or have reached a significant point of diminishing returns on energy-capital expenditures. In this case, all the energy and GHG savings that can be justified on a pure economic basis have been wrung from the system. EHS professionals charged with leadership roles in GHG reduction are faced with difficulties quantifying the business impacts and returns for energy reduction, which is what drives GHG reduction.

1.2.2 Recycling Programs

For a variety of products, economic infrastructure is in place to make the evaluation of recycling programs fairly straightforward. For instance, assume that a facility generates a form of ferrous scrap metal in its production process. The technology for recycling ferrous scrap is well established, and ferrous scrap is a valuable raw material. The products made from recycled ferrous scrap are no different from the products made from virgin ore. This creates a pull through the system for scrap metal, creating value. An EHS professional can easily call a local scrap dealer, determine the value of the scrap material and thoroughly evaluate the financial return on a scrap metal recycling program.

Other recycling programs aren’t as clear-cut. For many materials, recycling technology exists but there is no demand. Recycled products are often more expensive than the product made from virgin material or are inferior in quality. If you visit your local for-profit recycling center, for example, you will get paid for aluminum cans but not for last week’s newspapers. Companies wishing to move in a “zero waste” direction must assign some values to the recycling efforts.

1.2.3 Water Conservation Projects

One does not have to look far in the media today to read headlines about the impending water shortage. Whether or not the water crisis is real, companies are looking to conserve water. These initiatives include installing closed-loop cooling systems, water-polishing systems to reuse what was previously water discharged to the environment, improved spraying systems and different building cooling systems that do not use chilled water. Since the technology exists for companies to go to zero discharge, the question becomes, what is the value?

Depending on the company’s location, the abundance and therefore cost of water can be relatively low compared to energy. In fact, depending on the business and location, water is virtually free. The cost is in treating the water to meet the needs of the process. While the use of publically treated water is more expensive, it remains relatively inexpensive compared to installing pricey water recycling and reuse infrastructure within a facility. EHS professionals and financial decision makers need methods to know the total impact on a proposed water conservation project.

1.2.4 Waste Management Solutions

In addition to the recycling initiatives mentioned above, waste management solutions can be broad and complex. These are end-of-pipe solutions such as delisting a hazardous waste, which, due to the nature of the process, is not straightforward in terms of a return on investment calculation. There are legal fees, process engineering costs, process certification expenses and all the internal costs and time associated with delisting. The gains are not always forthcoming either. Disposal costs change or are eliminated, storage requirements change and handling and recordkeeping requirements are different. Additionally, if the delisting of the waste changes the status of the facility from a large-quantity generator to zero hazardous waste generated, an entire regulatory regime is removed.

In addition to end-of-pipe solutions, upstream efforts are being made. Today’s EHS professional is often involved in working with upstream vendors to modify packaging to eliminate waste. These efforts require resources from many areas such as purchasing, receiving and manufacturing. The quantity, size, shape and type of packaging material impacts all these operations and have costs and/or benefits to all that must be incorporated into a waste management solution.

1.2.5 Air Pollution Projects

Air pollution reduction projects face similar challenges to GHG reduction initiatives. For instance, a company consuming natural gas as an energy input generates nitrogen oxide (NOx) in addition to any GHGs (which are typically measured in carbon dioxide equivalents). NOx is a criteria pollutant where GHGs are not. Therefore there is a regulatory regime for NOx and none (currently) for GHGs.

As noted in the GHG example above, a company has an economic incentive to reduce the use of natural gas as an energy input until the cost of the marginal reduction does not meet some established criteria (or the return on some other project that competes for scarce capital). As such, companies are not overtly encouraged to reduce natural gas consumption beyond the obvious financial criteria. Moreover, if the facility is in compliance with all regulatory requirements, there is no obvious incentive for downstream controls such as low NOx burners or post combustion technologies beyond financial incentives.

This same logic holds for virtually all air pollution reduction projects. Take for illustration a simple paving project. While the calculations for particulate matter emission reductions are dependent on many factors, paving a previously unpaved road results in significant particulate matter reduction. Aside from compliance with any regulations, the EHS professional has to isolate, quantify and, if possible, monetize all the other business impacts related to emission reductions.

1.3 Safety Initiatives

Just as much of the environmental professional’s work historically resided in the area of compliance, the same holds true for safety management and accident prevention. The EHS professional’s role grew largely out of the establishment of OSHA in 1970. The profession focused on compliance with OSHA standards. The safety-related EHS role was not well integrated into business operations and was often viewed as a standalone isolated department. Today that has changed. Executives are more aware of the value of a safe and healthy workforce. Most have recognized that safety is actually a line, not a staff function. Many have performed well, pushing safety down to the supervisory and employee level. This has shifted the EHS professional into a proactive role. With this change, the programs and initiatives that EHS professionals manage have adjusted. Even the scope and design of some classic EHS safety programs have changed. For example, in the past, hearing conservation programs were often limited to the scope of what was required by OSHA. Employees who were part of these programs were managed as such. Now EHS professionals are actively involved with the design of facilities and the implementation of systems to reduce occupational exposure to noise and to keep employees out of hearing conservation programs. With these modifications come the challenges of articulating the value and business impact of the programs as they move farther from compliance-based initiatives. Here are the major safety programs with which the contemporary EHS professional may be involved:

1.3.1 Safety Management Systems

There are two predominant third-party certifiable safety management systems. One is the British System OHSAS 18001. This management system is international in its use and is likely the most recognized safety management system in the world. The second system is OSHA’s Voluntary Protection Program (VPP). While any management system can be applied to safety, these are widely recognized standards in the safety area. Certification by either of these safety management systems requires the development of a formal system and a third-party auditor. The decision to implement a formal safety management system may often be made without any consideration to cost or expense. If a company’s board of directors is aware that a competitor has recently been certified under OSHA VPP, the decision to implement a system can come without any analysis or thought. Company leadership may not feel the need to formally quantify the value. Albeit intuitive, the company knew that failure to keep up with the competition would have an adverse impact on the brand beyond the cost of implementation.

In cases where there is not a great deal of support for implementing a safety management system, the decision becomes more complex. The joint costs can be significant since there is substantial employee and managerial involvement. The general benefits of an effective safety management system are the promotion of a safe and healthful working environment by establishing a system that identifies and controls safety and health risks, reduces the potential for unwanted events, assists in compliance and positively impacts the bottom line. Quantifying the benefits and comparing them to the existing system is not a typical skill set of the EHS professional, although it should be.

1.3.2 Safety Leadership Programs

Safety leadership programs take many forms. One of the most extensive is General Electric’s (GE) Environment, Health & Safety Leadership Program (EHSLP) for entry-level EHS employees. It incorporates a series of rotational assignments across various EHS disciplines in various geographic locations. GE’s EHSLP requires a significant time and resource commitment that GE believes returns benefits to the bottom line.

Most safety leadership programs are not as extensive as EHSLP. On some level, however, investments into current and future safety leaders are made in virtually all organizations. Senior EHS professionals are challenged to develop future EHS leaders in ways that bring value to their companies.

1.3.3 Safety Auditing Programs

Safety auditing programs have come a long way from just the “safety man” walking around with a clipboard. Today’s comprehensive audit programs include regular formal reviews by frontline supervisors and managers. Facility-level EHS personnel often validate these audits. Corporate internal audits are frequently performed on both management systems and regulatory compliance. In addition to the internal audits, a comprehensive audit system includes third-party certification audits for the management systems and comprehensive compliance by third-party consulting experts. In fact, many of the EHS consulting firms are building business models around program assurance and compliance auditing.

Given the size and scope of a comprehensive audit program, the costs are significant and identifiable. For example, the cost of conducting comprehensive management program assurance and regulatory compliance audits in a 500-person manufacturing operation with two operating facilities can be up to $100,000. The benefits, however, are not clear.

1.3.4 First Aid and Personal Protection

The EHS professional performs a leadership role when it comes to first aid and personal protection. He or she will likely supervise or work closely with the plant nurse or other medical professionals to establish all requirements related to administering first aid. This could include determining which first aid supplies to keep on hand and choosing the location of eyewash stations and emergency showers.

The OSHA standard now includes regulations about personal protective equipment (PPE). The standard requires that a hazard assessment be performed to determine necessary PPE. The EHS professional must consider all the jobs performed at the facility, the hazards presented by the jobs that cannot be engineered out and the appropriate PPE to be used. The EHS specialist must make decisions regarding what type of protection is required to safeguard hearing, the eyes, face, skull, feet and hands; select protective clothing; and choose appropriate respiratory equipment. In addition to the choice of equipment, systems must be developed for screening employee lung capacity, fit testing and respiratory maintenance.

1.3.5 Workers’ Compensation

Depending on the organization, workers’ compensation may or may not fall under the EHS expert’s job description. In either case, the EHS professional must be familiar with current workers’ compensation laws. Workers’ compensation claims are a closely watched metric and are considered a prime indicator of the success of the accident prevention program. Simply put, the central question is, “how much is paid out in claims?” The EHS professional must understand how injuries are categorized, who is exempt from workers’ compensation, how premiums are calculated and how to conduct proper recordkeeping. While much of the basic workers’ compensation duties are straightforward, the EHS professional must be able to know and demonstrate how all of his other programs interact with this important metric.

1.3.6 Accident Prevention (Causation and Investigation)

One of the most important roles of the EHS professional is preventing accidents. An effective investigation will reveal the root cause of the incident. Knowing why the event happened is a threshold matter to providing a corrective action to prevent a re-occurrence.

A variety of accident investigation techniques are available to the investigator. One size does not fit all. A good EHS professional will be able to determine the depth and breadth of the investigation based on the facts as they become apparent. He or she should be skilled in interviewing witnesses, understanding the psychology of why incidents or facts may not be reported and in not letting their personal biases shade the facts.

In addition to good investigative techniques, the EHS professional must know the basic theories of accident causation. These include, but are certainly not limited to, the domino theory of accident causation, the human factors theory of accident causation, systems theory of accident causation and the combination theory of accident causation.

By coupling good investigative techniques with knowledge of why unwanted incidents occur, the EHS professional can make not only determinations about the causes, they can also use this information to determine the business impact of the corrective actions.

1.3.7 Safety Incentives

Many safety incentive programs are effective at rewarding desired behaviors that result in fewer incidents. Although there is debate as to which metric to use as a basis for determining that incentive, they can be successful. Regardless of the metric used or the size and type of the award, the EHS professional must ensure that program objectives are met.

Some programs offer small giveaways that simply promote safety awareness. Others are designed to provide somewhat more meaningful cash awards. Still, other programs may impact significant portions of variable income for supervisors and managers. In either case, the EHS professional must be able to isolate any cause and effect relationships and quantify the business impact of the program to make good business decisions.

1.3.8 System Safety

System safety is a specialized area in the EHS field. It was originally developed in the aerospace industry and gained formal acceptance by the Department of Defense and NASA in the 1960s (System Safety Society, 2002). The basic premise of system safety is that safety can be built into a machine or a system. Not all EHS professionals are system safety experts but all must have a grasp on the concepts of system safety and some of the techniques used. Tools utilized by the system safety professional include preliminary hazard analysis, subsystem hazard analysis, failure modes and effects analysis, technique for human rate error prediction, fault hazard analysis and fault tree analysis.

A system safety technique in which all EHS professionals should be well versed is the job safety analysis (JSA). The JSA basically lists the steps of each particular job, analyzes the potential hazards of each step and addresses the safety precautions and safety equipment necessary to complete them. In organizations that use the JSA or a similar system, the JSA is the first document reviewed in an incident investigation.

Therefore, even though most EHS professionals are not experts in the field of system safety, they should be able to understand, interpret and communicate system safety analyses.

1.3.9 Fire Prevention and Protection

The subject of fire protection and the safety professional could fill volumes. Fire safety includes all the concepts of fire prevention plus fire response. Prevention programs include hot work permit programs, infrared analyses to ensure equipment is operating at optimum temperatures, maintenance programs to ensure clean ventilation systems, combustible dust programs and general housekeeping programs.

Fire protection and response is a significant responsibility for the EHS professional. Programs and systems that EHS professionals manage include evacuation programs, detection and alarm systems, fire brigades, fire extinguisher management and training, standpipe and hose systems, sprinkler systems and dry chemical systems.

Due to the potential loss of life and property because of a fire, considerable resources are devoted to the prevention and control of fires in the workplace. EHS professionals are integral in implementing comprehensive fire prevention and protection programs.

1.3.10 Behavior Based Safety Programs

Behavior based safety (BBS) programs are complementary programs within a safety management system designed to encourage all employees to recognize the daily importance of safety. BBS programs are not designed to replace or supplant other portions of a safety management system. BBS takes a process approach that views safety performance as a long-term development that can be improved.

A variety of ways to approach and implement BBS programs are available, including some off-the-shelf systems on the market. Some EHS managers develop their own systems. For example, if organizations use some form of W. Edwards Deming’s plan-do-study-act (PDSA) as part of their quality systems, this system can be easily adapted to a BBS effort. Key to these types of programs is the integration of behavioral management into the safety management program. Safety professionals must understand the concepts of BBS in order to integrate programs throughout the organization and to understand the value proposition the program brings.

1.3.11 Workplace Violence

A relatively new phenomenon in the EHS profession is the prevention of workplace violence. The degree of workplace violence is almost epidemic. There are nearly two million violent victimizations per year in the workplace. Occupational homicide has been a leading cause of death by injury in the workplace for women. One in four U.S. workers will be attacked, threatened or harassed during their working career (Friend, 2010).

Obviously this will become an area of focus for not only the EHS professional but for the country as well. No one is immune to the threat of workplace violence. As of this writing, OSHA has published some guidance on the subject of workplace violence but has not concluded any rulemaking on the subject. The EHS professional will be heavily involved in the initiation of workplace violence abatement programs.

1.3.12 Hazardous Chemicals and Materials

As a result of catastrophic industrial incidents in the 1980s, OSHA implemented its Process Safety Management (PSM) standard. PSM will continue to be a significant program for the EHS professional to facilitate and manage. The standard prescribes a systematic approach to analyzing the safety of systems that store, handle or produce certain hazardous chemicals or materials. In some instances, companies that may not fall under OSHA’s PSM standard are developing their own risk based management systems of hazardous materials.

This will continue to be a significant issue in the field of EHS. In addition to analyzing processes, operational procedures must be developed, employees and contractors must be trained and sensitive facilities must protect these systems against acts of terrorism.

1.3.13 Occupational Health Programs and Initiatives

This is the area where the EHS field has experienced the most change over the last few years. Companies are expanding traditional health programs and initiating many new proposals. In addition to focusing on workplace stresses, these programs influence employees in all parts of their lives. This phenomenon is driven by two factors. The first is the cost of employee health care. From 2002 to 2008, the annual average cost of employee health care per employee nearly doubled. In 2002 the cost was approximately $4,336 per employee. In 2008 the annual average cost was $8,331 (Bray, 2009). In 2012 the national cost, according to the global consulting and outsourcing business Aon Corporation, was approximately $10,475 per employee (PR Newswire, 2011).

The second driver for this focus on health is the cost of absences and lost productivity. In fact, a study done by the Wharton School of Business found that the business cost of absenteeism is 28 percent higher than the worker’s wage (Bray, 2009).

These cost drivers are causing employers to develop new programs and initiatives to improve the bottom line. These programs are aimed at reducing absences, reducing healthcare costs and improving worker productivity on the job.

1.4 Health and Fitness

There is no doubt that wellness and fitness is positive for health and well being. The question may be, “what is the right type of program for my organization?” This is what the company must evaluate and the choices are endless. Many company campuses are equipped with weight rooms, tennis courts and jogging trails. Some companies offer free gym memberships or encourage and sponsor competitive events. As with many of the newer health and wellness programs, isolating the value of a specific program becomes difficult. With current spending on wellness programs equaling approximately 2 percent of a corporation’s total insurance claims, defining that value becomes more important (Society of Human Resource Management, 2010).

1.4.1 Health Screenings

One element of an overall health and wellness program is a health-screening plan. These are designed to provide baseline information about both new and existing employees’ physical state. These programs supplement existing programs that ensure the employee is physically capable of performing their job. For instance, to operate an overhead crane the employee has to meet certain correctable vision standards. Employees likely know if they have monocular vision. On the other hand, if employees are long-term smokers and have trouble getting up stairs that is an opportunity to improve their health by encouraging a smoking cessation program, additional medical treatment and a very limited exercise program. Presented in a positive way, employees are encouraged to improve their heath resulting in gains associated with healthy and productive employees.

1.4.2 Healthy Eating and Nutrition

As with exercise, the connection between good health and nutrition is well established. Companies are developing programs to encourage healthy eating both at home and in the workplace. Campuses with in-house dining services are offering healthier products. Some companies are simply buying healthy breakfasts and lunches for their employees. Other options are swapping out the traditional snacks in vending machines with healthier alternatives.

While promoting healthy eating is not an overly expensive proposition, it is still a program that someone in the organization must design, implement and manage.

1.4.3 Smoking Cessation Programs

Counter to fitness and healthy eating being positive for employee health, the connection between smoking and poorer long-term health is also well established. Most experts agree that smoking takes about a decade off a person’s life. In addition, the habit is very expensive for employers. In some cases smoking cessation in the work environment is fairly easy to implement. Simply eliminate smoking anywhere in or around the facility. While there may be some push back from a group that has been going to a smoking pit for the last few years, overall, a non-smoking facility is well received by staff and employees. For those with difficulties quitting, at least while at work, there are intervention options.

In addition to eliminating smoking from the workplace, companies are looking to provide financial incentives for employees to completely quit. While there are a few HIPPA hurdles, companies are establishing two-tiered health insurance programs. Smokers pay a substantially heftier premium than non-smokers.

In addition to addressing smoking among existing employees, employers today are refusing to hire people if they are smokers. Being a smoker is not a protected status, and companies that are serious about these issues are not hiring those who currently smoke. According to the CDC, smoking accounts for $96 billion in direct medical costs and another $97 billion in lost productivity and premature death. Business continues to take smoking seriously.

1.4.4 Obesity Programs

Another of the health issues plaguing this country and its workforce is the obesity problem. The health effects of obesity are well known. Obesity can lead to a number of conditions:

Type 2 diabetes

Heart related illnesses such as high blood pressure and stroke

High cholesterol

Osteoarthritis

Gall bladder disease

Liver disease and other illnesses.

Obese workers are less healthy, miss more work and drive up insurance costs. Companies are implementing programs to combat obesity. One place to start is with employee health screening programs. As a part of that program, encouragement to lose weight and to improve health can be initiated in a positive way with the privacy of medical staff. Other obesity program efforts include

Educational programs

Activities programs

Individual treatment

Moral support programs

Any and all of these programs are being used as obesity reduction initiatives in the business community.

1.4.5 Industrial Hygiene

While the role of the industrial hygienist remains devoted to the anticipation, recognition, evaluation, prevention and control of stressors arising from the workplace, a considerable amount of industrial hygiene work has moved from the shop floor to the main office. Today’s industrial hygiene focused EHS professional spends a great deal of time working on programs such as indoor air quality (sick building syndrome, second hand smoke), occupational diseases such as AIDS and other blood borne pathogen programs and cumulative trauma disorders.

In addition to the newer programs, the industrial hygienist continues to develop and initiate programs that include:

Managing chemical exposures

Detecting and controlling exposures in the areas of radiation (ionizing and non-ionizing), noise and illumination

Emergency response and community right to know

More than ever, the programs within the industrial hygiene field impact all employees.

1.4.6 Ergonomics

With the rising cost of health care and the increase in musculoskeletal disorders (MSDs) as a portion of workplace injuries, much focus has been placed on the field of ergonomics in the workplace. In fact, MSDs are the most common form of workplace illness in industrialized nations (Bray, 2009). These MSDs include carpal tunnel syndrome, repetitive strain injuries and cumulative trauma disorders.

Comprehensive ergonomic programs are being developed. These programs include extensive training for employees and management, surveillance of data to spot trends early, case management of all MSD illnesses, job analyses and design to address ergonomic risk factors (force, repetition, awkward postures, static postures, vibration). While these programs address the multidisciplinary sciences addressing the interface between the employee and the work performed, the value of these programs is often unclear. Productivity improvements are hard to isolate. Also MSDs may be caused or aggravated by activities outside the work area. Finally, the treatment of these illnesses is different for each individual. While it is widely believed that a sound ergonomics program brings value to the business, determining that value is a difficult task.

1.4.7 Stress Management

According to the Institute of Stress, employers lose $300 billion annually due to excessive worker stress. This is before the impact of health care costs, which are nearly 50 percent higher for workers reporting high levels of stress (Bray, 2009). Given these numbers, stress management/reduction programs are getting ample attention in the business community. Companies are making various efforts to reduce stress in the workplace. Some of these programs include the following:

Bringing pets to work

Assistance with time management

Classes on financial wellness

Time off for exercise

Time for meditation

Mutual support pairings

While the value of some of these programs may remain questionable, employers have recognized that stress arising from the workplace impacts the bottom line and are taking action.

1.5 Managing Change in EHS

The landscape is covered with all types of EHS initiatives and projects. EHS is everywhere. It touches every part of a business’ operations and each employee within the business. Still, these programs must be integrated, managed and properly implemented to reap the greatest rewards. There are several factors that help drive the changes that are taking place in the EHS profession:

1.5.1 Employer Image

As we noted in the introduction, historically, the number one driver for implementing EHS projects in the past was compliance. Now EHS is not only about compliance, it is also about the image it presents of an organization. EHS is in vogue in all types of organizations. Organizations recognize that it is in their best interests for their constituents, consumers, employees, stakeholders and the general public to view them as environmentally friendly, safe and healthy places to work while serving as valuable members of the communities in which they operate.

1.5.2 EHS and The Bottom Line

To convince a group of money-conscious executives to undertake EHS projects, a method must exist to show there is value in these projects that will ensure continued funding and growth.

In our work at the ROI Institute, we have the opportunity to see hundreds of studies each year in a variety of different applications. For those that focus on EHS related subjects, the rate of failure (i.e., a project delivering a negative ROI) is about the same across all functions and it is typically low, usually ranging from 20 to 30 percent. Most of those projects are adjusted to ensure that they deliver value in the future and only about 10 percent are discontinued. A project is discontinued only if it cannot show business value when that is the principal reason for implementation.