Increasingly, environmental, health, and safety (EHS) practitioners are reporting that it is becoming more difficult to sell investments in health and safety, and environmental management. Global competition, government downsizing—including ongoing efforts to re‐engineer Safety and Health regulatory agencies and their underlying legislation changes in technology, and the overall drive by organizations to improve operating efficiency have placed added pressure on EHS practitioners. This pressure manifests itself by placing increased financial accountability on all staff functions, including EHS.
Business, economics, and environmental management literature have increasingly devoted space for articles concerning such topics as performance measures, quality management, cost control and management, cost and benefit analyses, environmental liabilities, business and environmental management integration, EHS management systems, and EHS performance and the valuation of firms, among many other topics. It is clear that the expectations of senior executives for EHS performance have changed. EHS practitioners must continue to come to the workplace with exceptional academic education and training in the sciences and engineering, but business and communication tools are also needed to successfully meet the new performance challenges.
This chapter presents the basic concepts of financial and quality management tools to plan, manage, measure, and control EHS activities, so they may be considered as investments and not pure cost. The goal of this chapter is to demonstrate that EHS practitioners can begin to integrate their technical disciplines into the “business of business”. In some cases, the business and financial tools presented are not commonly used by EHS organizations today. In such instances, the discussion focuses on advantages and benefits of using such tools. By using the tools presented in this chapter practitioners will be better able to manage EHS activities to drive improved EHS performance and to facilitate greater line management interest and involvement in this critical business function. These tools are useful to all EHS practitioners, regardless of whether they organizationally reside in private, public or nonprofit sectors of the economy.