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Economic methods of safety management on industrial enterprises

Journal: Journal of Lviv Polytechnic National University. Series of Economics and Management Issues (Vol.3, No. 84)

Publication Date:

Authors : ;

Page : 178-182

Keywords : Economic factors influence economic losses; safety and working conditions; safety; economic methods of safety management; production industry.;

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Abstract

The article reviews the security situation and labor conditions in most enterprises in the country, considers the economic losses caused by non-compliance with safety regulations on the workplace. The analysis of economic methods of safety management on industrial enterprises in modern conditions was conducted. The factors of economic impact on employer and employees, as far as compliance with safety regulations in the workplace is concerned, were revealed. The priority areas of socio-economic governance conditions and safety measures in the present situation were pointed out. Accidents and diseases at workplace, inadequate working conditions, not interested in the safety workplaces employers and employees negatively affect the economic efficiency of enterprises, as well as cause a decline in profitability and profit. That is why, economic methods of safety management in the industry become important in the current market conditions. Economic methods of safety management may be considered as a tool that allows the state, as guarantor of rights of employees, with the use of relevant laws and regulations, create such economic conditions for employers, so that it becomes profitable for them to direct funding for: the prevention of accidents and occupational diseases; creating favorable work conditions; modernization of assets that must take into account safety requirements; financial incentives for compliance with safety regulations in the workplace. The scientists have identified two tendencies of safety management economic methods usage. The essence of the first lies in usage of direct economic incentives that are based on direct and obvious economic benefit to person or groups of people to whom they are applied for the safety requirements compliance. Namely, different systems of incentives for workers, carried out in the enterprise; centralized system of incentives for business owners and labor groups by the state, regional authorities, Social Insurance Funds from industrial accidents, etc. The second group of economic methods of safety management is based not on the direct and obvious benefits, but on the fundamental features of the economic laws and indirect incentives. The characteristic feature for this group is that the very economic incentives are undistinguished and are usually applied through a chain of cause-effect relationships. Thus, the legal relation of expenditure on safety measures to the gross production, stimulates the financing needs of labor at the cost of production costs (decreases taxes). An important task of economic management conditions and labor protection in industrial enterprises is to ensure production safety and reduce injuries by decreasing the number of accidents, implementing the safe working methods, lessening the number of safety rules violations. The current period of Ukraine's economy requires unconventional approaches to creating the most suitable for people safety working conditions, and improving of the state of labor protection on the domestic enterprises. On average almost a third part of workers are working in the harmful and dangerous working conditions, that is why not only daily, but of an anticipatory nature effective measures to normalize conditions at the state level and at the level of the individual enterprises are unavoidable.

Last modified: 2019-09-13 21:50:02