Occupational Health and Safety: management accounting failure

On a global level, it is estimated that over 5,000 people die every day due to accidents, injury or sickness contracted at work. For each fatality there is another 1,000 injuries which lead to incapacitation (Else, 2003). These figures raise the question of whether this is a necessary side-effect of present day society, or the result of failure to address key issues. This paper presents a brief history of the development of occupational health and safety (OHS) and the failure of management accounting to effectively support management in this area. Specifically, by failing to effectively measure, record, and communicate direct and indirect costs (and benefits) in this area, it is argued that management accounting shares some of the responsibility for the accidents and incidents that have damaged and destroyed property and life. Failure to address OHS issues has led to massive and unnecessary economic and social costs, and has allowed significant benefits to pass by unrealised. Reasons for the failure of accounting are examined and the accountants’ claims of professionalism challenged.