Improving Workplace Safety Through Better…Accounting?

A new study out of the University of Iowa that looks into the relationship between worker safety and company accounting quality has made the determination that they are indeed linked.

‍

While 60% of CFOs claim to be aware that every dollar invested in improved safety tends to more than double in terms of return on investment via savings on reduced accident expenses, there still seems to be a disconnect with many companies not truly internalizing the costs of poor safety execution.

‍

According to the study, factors like the accuracy of management forecasts and the speed at which year-end earnings announcements are released are directly linked to workplace safety because a failure to properly account for expenses related to accidents and safety breakdowns in a timely and meaningful way prevents managers and directors from properly investing in the tools, education, and process improvements necessary to avoid those accidents in the first place.

‍

You can read more about that research here.