The Viable Business Practice of Optimizing the Occupational Accidents Cost: A Microeconomic Approach

Occupational Safety and Health (OSH) is a social requirement but enterprises often see it merely as a legal obligation. Occupational accidents impose a significant economic burden on societies, extending beyond medical and compensation costs, as they result in losses due to reduced productivity, social consequences, and a burden on the health and welfare systems of regions. Through a microeconomic analysis, this paper evaluates the cost of occupational accidents and examines the tradeoff between their prevention and recovery components to determine the optimal security level that minimizes the total accident cost. The analysis emphasizes the need for firms to incorporate the costs of occupational accidents into their strategic planning and operations, demonstrating the effectiveness of optimizing these costs as a business practice. The ultimate purpose of this paper is to contribute to the culture that OSH should not be seen as an obligation but as a strategic asset for companies seeking sustainability, as, in the long run, it reduces risks, enhances business profitability, promotes anthropocentric development and life quality, and demonstrates corporate social responsibility. Overall, calculating the total occupational accident cost and choosing the appropriate prevention strategy are elements contributing to a safer, more efficient, and viable working environment.