Dollars and Sense: The Value of Environmental, Health & Safety Compliance

Environmental, Health & Safety (EHS) compliance is often perceived as non-value added legal requirements; however there is data that supports the exact opposite.  The Environmental Protection Agency’s  (EPA’s) most recent annual report indicates that regulatory non-compliances in Fiscal Year (FY) 2011 cost businesses over $200 Million; this figure does not include fines resulting from non-compliances with state or local requirements, subsequently businesses in this nation spent much more. This figure is a summation of $25 Million spent in supplemental environmental projects; $19 million in pollution control activities and equipment; and over $152 Million in civil penalties. [i]

In the arena of Health & Safety, an article entitled U.S. Economic Burden of Occupational Injury and Illness estimates the national cost of occupational injuries at $250 Billion. [ii] Injuries are often a result of non-compliances or inadequacies with one or more of the Occupational Safety and Health Administration’s (OSHA’s) Top Ten Most Frequently Cited Violations.[iii]

This simple analysis provides supporting evidence that EHS compliance indeed affects the bottom line and while business value analyses often do not attribute compliance activities to profit and loss statements there are actual financial benefits to complying with regulatory requirements.

At EHS Compliance Service Inc. our compliance experts understand the regulatory requirements that cost companies.  We pride ourselves in partnering with businesses to understand compliance risks.  We work efficiently and thoroughly to implement effective compliance solutions that not only meet regulatory requirements, but also provide the framework for compliance maintenance and improvement.


[i] U.S. Environmental Protection Agency. 2011. Fiscal Year 2011 EPA Enforcement & Compliance Annual Results. Available at http://www.epa.gov/compliance/resources/reports/endofyear/eoy2011/resultscharts-fy2011.pdf  (accessed June 9, 2012).
[ii] Leigh, J.P. 2011. Economic Burden of Occupational Injury and Illness in the United States. The Milbank Quarterly 89(4): 728-777.
[iii] U.S. Department of Labor Occupational Safety and Health Administration. 2011.  Top Ten Most Frequently Cited Violations for Fiscal Year 2011 (Oct 1, 2010 to Sept 30, 2011).  Available at http://www.osha.gov/Top_Ten_Standards.html (accessed June 9, 2012).
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