Occupational health and safety management in municipal waste companies: A note on the Italian sector

Safety Science 72 (2015) 55–65

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Occupational health and safety management in municipal waste companies: A note on the Italian sector Massimo Battaglia ⇑, Emilio Passetti, Marco Frey Institute of Management, Scuola Superiore Sant’Anna, Piazza Martiri della Libertà, 24, 56127 Pisa, Italy

a r t i c l e

i n f o

Article history: Received 10 April 2014 Received in revised form 25 June 2014 Accepted 9 August 2014

Keywords: Occupational health and safety management system Municipal waste management companies Environmental hygiene sector Italy

a b s t r a c t The environmental hygiene sector is a high risk industry in terms of the public health and safety of employees. This study analyses the level of maturity of the occupational health and safety (OHS) management system in municipal waste companies in Italy. The results show that the training and involvement of employees and operational activities are the most developed aspects, while OHS policy and performance measurements need further improvement. Overall companies have a sufficiently developed level of maturity in terms of their OHS management system. An analysis of contextual factors reveals that organisational factors are more correlated with the OHS management system maturity level than external factors. Companies located in the south of Italy have a low level of maturity in terms of OHS management. Audits by public authorities exercise a punitive role and legislative pressure is not considered by all the companies as a key factor in OHS development. Ó 2014 Elsevier Ltd. All rights reserved.

1. Introduction OHS in the workplace influences the private and social lives of individuals. The aim of health and safety management is to improve working conditions and peoples’ health in the work place. The effectiveness of OHS management depends on managerial, cultural and normative factors (EU-OHSA, 2010). All organisations have a moral obligation to ensure that employees and all other people affected by the company’s actions remain safe at all times (Miller and Haslam, 2009). Legal reasons for OHS management relate to the preventative, punitive and compensatory effects of laws that protect workers’ safety and health (Hale et al., 2013). OHS management can reduce costs related to injury and illness among employees, including medical care, sick leave and disability benefit (Tappura et al., in press). OHS management can also increase (or decrease) a company’s reputation and its image among stakeholders (EU-OHSA, 2010). Several studies have been carried out to verify the effectiveness and the effects of OHS management and of the related managerial system; for example, the relationship between OHS management and company performance (Fernández-Muñiz et al., 2009), the integration of OHS aspects into company culture (Granerud and Rocha, 2011). Furthermore, it has

⇑ Corresponding author. Tel.: +39 050 883974 (O), mobile: +39 3498612683, +39 3453978215; fax: +39 050 883936. E-mail addresses: [email protected] (M. Battaglia), [email protected] (E. Passetti), [email protected] (M. Frey). http://dx.doi.org/10.1016/j.ssci.2014.08.002 0925-7535/Ó 2014 Elsevier Ltd. All rights reserved.

also been underlined the importance of analysing the association between OHS management and contextual factors in order to identify organisational and environmental conditions linked to OHS management (Rosness et al., 2012). OHS management has also been examined in different sectors (McDonald et al., 2000; Parejo-Moscoso et al., 2013). OHS management in the environmental hygiene sector on the other hand, has rarely been investigated despite the fact that employees who work on the road are exposed to different risks caused by chemical, biological, physical agents that influence their health and safety (Kuijer et al., 2010; Giusti, 2009). In the environmental hygiene sector, waste collection and road sweeping can be performed in many ways (Seadon, 2010). Collection activities may be manual, aided by machinery that can pick up great loads, completely mechanised or mechanised with the aid of workers (Kuijer and Frings-Dresen, 2004). Although the workers themselves perform the same duties, the work environment can change drastically on a daily basis and even during the same day, due to the changeable conditions of the outdoor environment. As such, workers are subject to risks from work on the road and from machine-interactions (INAIL, 2009). The lack of OHS management studies in the environmental hygiene sector contrasts with the medical and epidemiological literature, which classify the environmental hygiene sector as high risk with regard to health and safety problems. In light of the above considerations, our study analyses: (1) the level of maturity of OHS management of municipal waste companies, and (2) whether contextual factors influence this level. The

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analysis was carried out through surveys on a sample of 29 waste management companies and through 10 direct interviews. The results demonstrate a sufficiently developed level of maturity of OHS management and the influence of organisational factors on its maturity. This paper contributes to the OHS management literature by empirically addressing OHS management in the previously neglected sector of environmental hygiene, and the factors associated with the development of OHS management. The paper is structured as follows: Section 2 presents the theoretical context and the research hypothesis. Section 3 describes the data collection and research design. Section 4 analyses the results. In Section 5, the discussion, limitations and future research opportunities are presented.

2. Hypotheses development An OHS management system is a set of policies, strategies, practices, procedures, roles and functions associated with safety (Fernández-Muñiz et al., 2007). OHS management system standards, such as CSA Z1000-06 and BSI OHSAS 18001-07, define management systems as, respectively:  A set of interrelated elements to establish and support an OHS policy, its objectives and targets, and the means to achieve them (CSA Z1000-06);  Part of the overall management system that facilitates the management of the OH&S risks associated with the business of the organisation. This includes the organisational structure, planning activities, responsibilities, practices, procedures, processes and resources for developing, implementing, achieving, reviewing and maintaining the organisations’ OH&S policies (BSI OHSAS 18001-07). Implementing an OHS management system is the most efficient way of allocating safety resources for, since it not only improves working conditions, but also positively influences employees’ attitudes and behaviours as well as promoting a culture of safety (Torp and Moen, 2006; Vredenburg, 2002). Bottani et al. (2009) show that companies with a more mature OHS management system have obtained a better health and safety performance than companies without a system or with a less mature level. An OHS management system stimulates and enables the inclusion of OHS issues in ordinary company management. Fernández-Muñiz et al. (2009) show that a more mature OHS management system reduces the rate of incidents and the amount of damage to people, machinery and material, thus enhancing working conditions and employees motivation. An OHS management system can raise a company’s competitiveness because it has a positive effect on the image, reputation, productivity and innovation. Robson et al. (2007) indicate that both voluntary and mandatory OHS management systems have a positive effect on safety climate, safety performance, productivity and costs of accidents. OHS management has become important in companies’ and organisations’ codes of ethics over the past 20 years (Chen and Zorigt, 2013). However, various factors can aid or obstruct the implementation of an OHS management system (Grote, 2012). According to the contingency theory, which views a company as an open system, there is no best way to organise and to lead a company, or to make decisions. Instead, the optimal course of action is contingent (dependent) upon the internal and external situation. Company processes, systems and decisions are linked to contingency factors such as the competitive environment in which the company operates, the technology it adopts, and the level of environmental uncertainty (Grote, 2012; Rosness, 2009). Therefore, the effective structural design of the organisation is where the struc-

ture fits the contingencies (Donaldson, 2001). This implies that it is also unlikely that there will be a single best approach to OHS that is equally optimal for every company, but that the approach which is taken in each case will depend on the specific situation. In the literature on OHS management, a few studies have referred to the concepts associated with the contingency theory and the related contextual factors (Arocena and Nuñez, 2009; Bottani et al., 2009; Fernández-Muñiz et al., 2007, 2012; Ismail et al., 2012; Vinodkumar and Bhasi 2011). For example, Chen and Zorigt (2013) analyse five factors (act and regulation, stakeholder pressure, investment, integrated OHS and organisational culture) that influence the implementation of occupational health and safety management in mining companies. Vinodkumar and Bhasi (2011) empirically investigate the influence of certified management systems on the relationship between OHS management and safety performance in sectors of the chemical industry that have a significant risk of accidents. Their analysis suggests that employees of OHSAS 18001 certified companies, ISO 9001 certified companies, and those with no certification, perceive different levels of safety. Specifically, management commitment, employee training, communication and feedback and rules and procedures, which represent four of the six OHS management practices envisaged by the OHSAS 18001 certification, stimulate proactive conduct. This low number of studies implies a lack of knowledge of the contextual factors that are important determinants of the effectiveness of safety intervention, and a lack of consensus on the taxonomy of relevant contextual factors. Rosness et al. (2012) call for more studies investigating the relationship between contextual factors (or synonymous concepts) and safety at work. Furthermore, theoretical insights from an organisational perspective could also help refine and improve current health and safety specialist knowledge (Zanko and Dawson, 2012). Therefore, considering Taylor et al.’s (2011) taxonomy of contextual factors, we focus on organisational characteristics (OHS available budget, employees and trade union pressure, geographical location); external factors (market stakeholder pressure, legislative pressure and public authority audits) and the availability of implementation and management tools (OHSAS 18001 certification), as highlighted in Fig. 1. We adopt a Cartesian approach since the implementation of OHS management systems requires incremental changes (Granerud and Rocha, 2011), rather than the radical change that the configuration approach postulates.1 2.1. OHS available budget Investment is a key driver for implementing and ensuring effective occupational health and safety management. For example, financial support by governments has contributed substantially to OHS projects. The growing use of OHS management systems

1 Forms of contingency can be divided between Cartesian and Configuration approaches (Donaldson, 2001). The Cartesian approach is characterised by reductionism, while the Configurational approach takes a holistic view. The two approaches lead to divergent opinions about what constitutes a fit and how a fit is attained (Gerdin and Greve, 2004). The Cartesian approach seeks to understand organisations by analysing their constituent parts separately. The focus is on how individual contextual factors affect individual structural attributes and the fit between context and structure is a continuum that allows frequent, small movements by organisations from one state of fit to another. Each level of a contingency variable fits with a level of structural variable and they provide stepping-stones for organisational growth (Donaldson, 2006). The Configuration approach considers that the parts of an organisation take their meaning from the whole and cannot be understood in isolation (Meyer et al., 1993). Relationships can only be understood if many contextual and structural variables are analysed simultaneously (Drazin and Van de Ven, 1985). The Configurational approach underlines the idea of radical change or transformation. It claims that organisations can be conceived as configurations, or constellations, of tightly integrated elements (Demers, 2008).

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Organisational characteristics OHS available budget Employees and trade union pressure Geographical location OHS management system External Factors

OHS policy

Market stakeholder pressure

Training and involvement

Legislative pressure

Operating activities

Audit by public authorities

Performance measurement

Management tools OHSAS 18001 certification

Fig. 1. Contextual factors and their relationship with OHS management systems.

highlights the significant investment of financial and human resources by both governments and companies (Chen and Zorigt, 2013). A specific budget (economic resources) dedicated to OHS may indicate that a company considers OHS to be as important as other company activities and thus lead to a greater commitment on the part of management. Investments in OHS generate positive economic returns. Studies have reported that employers investing in workplace health and safety can expect a reduction in fatalities, injuries, and illnesses. This could result in cost savings such as the lowering of worker compensation costs and medical expenses, avoiding legal penalties, and reducing the costs of training replacement employees and conducting accident investigations. In addition, employers often find that investments in workplace health and safety result in significant improvements in productivity and financial performance (Huang et al., 2007, 2011). Thus, hypothesis H1 indicates that: H1. There is a positive relationship between the presence of a specific budget dedicated to OHS management and the maturity level of the OHS management system.

2.3. Geographical location Italy has large regional disparities created by historical and political factors (Battaglia and Iraldo, 2011; Terrasi, 1999). For example, in northern and central regions of the country, income is much higher, as is the employment rate especially among women. The quantity and quality of business activities also vary according to geographical location, and companies that operate in the north, centre and south have different levels of performance (KPMG, 2010). Companies located in the south of Italy have fewer managerial skills compared with companies in the centre and north (Daniele and Malanima, 2011). For example, Perrini et al. (2007) show that companies in the south of Italy implemented fewer socially responsible initiatives compared with companies in the centre and north. Thus, hypothesis H3 indicates that: H3. There is a positive association between companies located in the north and centre of Italy and the maturity level of the OHS management system.

2.4. Market stakeholder pressure 2.2. Employees and trade union pressure Increasing the health and safety of employees is the main aim of an OHS management system. To ensure the success of OHS actions, the International Labour Office guidelines (ILO-OSH, 2001) encourage the continual improvement in employee health and safety, achieved via a constant process of policy-making, organisation, planning and implementation, evaluation, and improvements, all supported by constant auditing. Employees have the knowledge that makes it possible to diagnose problems and design new forms of OHS intervention, and their influence on OHS management has increased (Kristensen, 2011). Frick (2011) discusses a series of factors that facilitate or obstruct the development of a voluntary OHS system. These factors include management commitment, involvement of employees and pressure from trade unions. Torp and Grøgaard (2009) demonstrate that employee compliance with OHS routines and instruction and the maturity level of an OHS management system is positively and significantly correlated. They also show a positive and significant correlation between the percentage of unionization and the maturity level of an OHS management system. Thus, hypothesis H2 indicates that: H2. There is a positive relationship between the degree of employee and trade union pressure and the maturity level of the OHS management system.

Reasons for implementing an OHS management system can be divided between those that establish relations and legitimacy versus economic benefits, and those that promote internal proactive seeking incentives versus external-reactive avoidance of disincentives (Frick, 2011). Companies need to respond to external stakeholders who require more transparency with regard to working conditions, environmental and social impacts and ethical conduct (Epstein and Buhovac, 2006; Montero et al., 2009). External stakeholders are increasingly concerned with how OHS issues are measured, monitored and reported because an ineffective OHS management has a negative impact at the society level (EU-OHSA, 2010). As such, pressure from an increasingly complex external context has created a situation in which companies must change their conduct in relation to other companies, the local community and customers (Kristensen, 2011). For example in the environmental management literature, pressure from external stakeholders, such as customer and suppliers, has been shown to positively influence the management of environmental variables (Buysse and Verbeke, 2003) and environmental management practices (Testa et al., 2012). The OHS literature demonstrates that a more mature OHS management system can improve the company’s image and reputation among external stakeholders (Fernández-Muñiz et al., 2009). Thus, pressure from market stakeholders may encourage companies to implement a more advanced OHS management system. Therefore, research hypothesis H4 is:

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H4. There is a positive relationship between the degree of market stakeholder pressure and the maturity level of the OHS management system.

H6. There is a negative (inverse) relationship between the number of audits by Public Authorities and the level of maturity of the OHS management system.

2.5. Legislative pressure

2.7. OHSAS 18001 certification

Safety legislation requires ensuring the safety, health and welfare of workers and to manage and conduct all work activities in such a way as to guarantee their safety, health and welfare. This requires all those with a legal responsibility in business activities to be proactive in managing their safety, health and welfare responsibilities and to deal with them in a systematic way. Compliance with legislation has traditionally been a key factor in influencing the adoption of health and safety management practices (HSE, 1998). Arocena and Nuñez (2009) and Torp and Grøgaard (2009) suggested that legislative compliance influences the implementation and improvement of an OHS management system. In Italy, health and safety legislation (d.lgs 81/2008) requires companies to identify and remove causes of risk and to define an organisational strategy, based on technology integration and operational activities, in order to reduce health and safety risks in the workplace. Thus, research hypothesis H5 is:

Company certification of OHSAS 18001, the OHS management system standard, has been increasing rapidly (Salomone, 2008). The primary goal of OHSAS 18001 is to foster good practice and the structured management of health and safety issues. Certification also has a number of strategic and competitive implications, since it is intended to help organisations guarantee the existence of an appropriate OHS management system to the parties concerned. Its implementation is designed to improve work conditions and reduce risks, both personal and material, thereby protecting human capital and a company’s reputation (Sánchez-Toledo Ledesma et al., 2009). As such, the presence of a third party certification which is effectively integrated within the management control system improves a company’s management and performance (Buhr and Gray, 2012). A previous study indicates that the implementation of an OHS management system, including the attainment of OHSAS 18001 certification, encourages the integration of OHS aspects into daily company management (Bottani et al., 2009; Fernández-Muñiz et al., 2012). Thus hypothesis H7 is:

H5. There is a positive relationship between the degree of legislative pressure and the maturity level of the OHS management system.

H7. There is a positive relationship between OHSAS 1800 certification and the maturity level of the OHS management system. 2.6. Audit by public authorities Public authorities have a legal mandate to govern, manage and monitor aspects of public life such as environmental, and health and safety issues. Regarding OHS issues, public authorities have a key role in implementing constructive compliance strategies, providing guidance on hazard identification and risk control (Basso et al., 2004). They carry out inspection and enforcement activities focusing on poor-performing industrial sectors and organisations and work with employers to improve workplace health and safety. In doing so, they analyse specific hazards that pose serious risks and causes of injury (WorkSafe Victoria, 2012). Thus companies that undergo routine, effective, critical and unbiased audits by public authorities have more likely to have effective OHS management systems because public authority auditors can provide the most up-to-date information. However public authorities, particularly in Italy, often operate with scarce resources. They thus need to prioritise which companies to audit. For example, they may focus on companies that show unsatisfactory levels of health and safety in order to stimulate better management, and opt for fewer checks of companies with a good health and safety record. In fact, good safety performances tend to linked to a more mature management system (Fernández-Muñiz et al., 2009; Goh et al., 2012). A more mature management system provides a greater set of guarantees for employees and external agents. It guarantees the existence of an active surveillance committee and of a reporting system through which managerial activities and performances are documented and assessed. It also foresees the implementation of internal audits aimed at verifying and improving the normative compliance, as well as enabling a greater public disclosure of the results achieved (EU-OHSA, 2010; Vredenburg, 2002). In sum, public authorities may carry out fewer (more) checks on companies with effective (ineffective) OHS management systems and good (bad) health and safety performances, focusing their attention and resources on poorer-performing firms. Thus hypothesis H6 is:

3. Data collection and construction of the variables 3.1. Data collection The environmental hygiene sector is a high risk sector for individuals and public health (Giusti, 2009). A seminal study conducted by An et al. (1999) shows that whilst injury rates for all industrial workers in Florida decreased from 1993 to 1997, the injury rates of council workers in the solid waste department almost doubled in the same period. Bunn et al. (2011) found that waste collection is one of the occupations with the highest risk for injuries and illnesses. A study in the UK covering the period 2001/2002 (HSE, 2004) showed that the overall accident rate for the environmental hygiene sector is around four times the national rate, the fatal injury accident rate is ten times the national rate, and the severity rate is more than three times the national rate. The same study highlighted a series of risks to which municipal waste management workers are exposed, such as manual handling, slips and trips, and workplace transport. In the environmental hygiene sector in Italy, the overall accident rate has been decreasing since 2006 despite an increase in the number of workers. In 2012, the severity rate stood at half the national average, while the frequency of injury and accidents was four times the national rate. The level of turnover of operating staff is also low, with an average level of seniority of 14 years. Thus, health and safety costs can increase over time, as the length of time that workers are exposed to risks increases along with their age (Federambiente, 2012). To carry out our research, data were initially collected through an e-mail questionnaire. Company selection started with a sample of 221 companies associated with Federambiente.2 From the initial sample, companies were selected according to two main criteria. 2 Federambiente is the Italian Trade Association of Environmental Hygiene in the Public Services.

M. Battaglia et al. / Safety Science 72 (2015) 55–65

The first criterion combined the company dimension with the size of the geographical area where the activity is carried out. Companies were divided into large companies, operating over large areas and with over 500 employees, and medium/small companies, covering smaller areas and with less than 500 employees. The second criterion refers to geographical location. The companies were subdivided between those located in the northern regions of the country, those in the centre and those in the south. At the end of the sampling procedure, 60 companies were selected. The questionnaire was pre-tested by a small group of academics and managers in order to verify the questions and their measurement methods. This verification led to minor changes in the wording of the sentences. Questionnaire was composed of three sections. The first section asked general information regarding the characteristics of the respondent (job experience, job position and sex) and the company (size and geographical localisation). The second section analysed the contextual factors, and the third section focused on health and safety management. As indicated in Section 3.2, the design of the questions was mainly derived from previous studies. The questions in the third section were adapted from another study, the questions in the second section were mixed (some were adapted and others newly designed), while the questions in the first section were designed from scratch. Questionnaires were managed in collaboration with the Fondazione Rubes Triva .3 The direct involvement of the Foundation was key in promoting our research among companies in order to encourage a high response rate (Dillman, 2007). The Foundation contacted the companies by telephone in order to present the research and verify their interest in participating. Health and safety offices were identified as the optimal respondent, given the key role played in OHS management. During the telephone contact, all 60 companies confirmed their participation. Subsequently, the questionnaire was sent by email together with a letter presenting the study. In line with Dillman’s (2007) study on the recommendations for follow-ups, three weeks after the first telephone contact, the companies were contacted by telephone with a reminder, and then again 10 days later. A total of 29 questionnaires were returned - a response rate of 48.3%. The companies who responded to the questionnaire covered just under 65% of the Italian territory, and represent more than half of the total number of employees in the waste management sector. The questionnaires were initially checked to verify their level of completeness, from which it emerged that three questionnaires were incomplete and thus further clarifications were requested. In addition, in order to verify the reliability of the respondents, the characteristics of the respondents (size and geographical location) were compared with the characteristics of the companies who did not respond. The check showed that the ‘‘non-respondent’’ category was not substantially different from the responding companies. Therefore, the sample was considered as reliable for the study. The average experience of the respondent was around six years, thus ensuring their ability to respond fully to the questionnaire. Twenty-two respondents were health and safety managers, six were OHS office heads, and one was the CEO. All the 29 companies performed waste collection activities, 16 hazardous waste transport, 23 waste storage, 19 disposal of non-hazardous waste, and 8 hazardous waste disposal. All were publically owned. In the next phase, interviews were conducted to extend the analysis of the two research questions and the results of the survey (Creswell and Clark, 2007). The characteristics of four dimensions of an OHS management system, the strengths and weaknesses and its possible association with contextual factors were the focus 3 Fondazione Rubes Triva is a National Foundation for health and safety management in the waste management sector. It aims to promote proactive policies and initiatives to increase health and safety in the workplace.

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of the semi structured interviews. Of the 29 respondent companies, 10 agreed to participate. Confidentiality was ensured prior to each interview. The interviews were semi-structured and composed of questions based on survey results. The interviews lasted from 30 to 60 min, with a combined length of about 8 h. During the interviews one researcher conducted the interview while another took notes. The notes were analysed by the researchers through an iterative process of manual elaborative coding in order to identify the most important information on OHS management systems (Auerbach and Silverstein, 2003).

3.2. Construction of the variables In order to identify the relevant dimensions for the creation of an OHS management system the Deming -Plan, Do, Check, Act(PDCA) approach was chosen. It was divided into four main dimensions: OHS policy and improvement planning; training and involvement; operating activities; performance measurement.4 For each of the four dimensions, specific questions were posed. The companies were requested to express a judgement, using the Likert scale from 1 (low) to 5 (high), on the perception of the level of implementation of the OHS management system. Regarding OHS policy, it was formulated by modifying the protocol defined by Fernández-Muñiz et al. (2007, 2009) to measure the ‘‘safety policy’’ variable. The respondents were asked to indicate the level of formalisation of a series of activities related to OHS planning. OHS training and involvement was constructed by adapting the protocol used by Fernández-Muñiz et al. (2007, 2009) to measure the ‘‘employee incentives’’ and ‘‘training in occupational hazard’’ variables. The respondents were asked to indicate the level of formalisation of a series of activities connected to training and employee involvement. The dimension -analysis of operating activities- was defined by adapting the protocol used by Fernández-Muñiz et al. (2007, 2009), referring to ‘‘preventive planning’’. Respondents were asked to indicate the level of formalisation of the procedures and activities. Finally, the measurement of OHS performance measurement variable was adapted by the protocol used by Fernández-Muñiz et al. (2007, 2009) using the ‘‘internal control’’ variable. In order to verify the validity and reliability of the variables used to measure the OHS management system, a principal components analysis was carried out and Cronbach’s alpha was calculated. The values of the tests indicated in Table 1 were in line with the criteria in the literature (Hair et al., 1998). In order to analyse the contextual factors, the question related to stakeholder pressure was formulated by adapting the protocol used by Banarjee et al. (2003). The respondents were asked to indicate, using the Likert scale with values from 1 (no influence) to 5 (strong influence), what importance they placed on the influence of stakeholders on OHS management. There were two specific questions: one for employees and trade union and one for market stakeholders. For the legislative pressure related to OHS, the same protocol by Banarjee et al. (2003) was adapted to formulate the question. Respondents were asked to indicate, using the Likert scale with values from 1 (no influence) to 5 (strong influence), to what extent they agreed with the role that OHS legislation had on management practices adopted by their company. In order to verify the quality of the construct, PCA (PL_1 = 0.71; PL_2 = 0.77; PL_3 = 0.82) and Cronbach’s Alpha (0.72) were used. Both checks demonstrated satisfactory results, in line with the criteria indicated in the literature. To measure the number of inspections from public authorities (audits by public authorities) companies were asked to indicate the number of checks received by public authorities in the previous 4

The main questions are showed in Appendix A.

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Table 1 Reliability and validity of OHS management system dimensions.

Cronbach’s alpha SSL_PO_1 SSL_PO_2 SSL_PO_3 SSL_PO_4 SSL_PO_5 SSL_F_1 SSL_F_2 SSL_F_3 SSL_F_4 SSL_AO_1 SSL_AO_2 SSL_AO_3 SSL_AO_4 SSL_AO_5 SSL_PE_1 SSL_PE_2 SSL_PE_3 SSL_PE_4 SSL_PE_5

OHS policy

Training and involvement

Operating activities

Performance measurement

0.81 .581 .713 .782 .601 .845 .001 .398 .043 .201 .301 .232 .487 .287 .134 .089 .198 .195 .180 .401

0.74 .018 .452 .120 .140 .112 .759 .789 .742 .613 .296 .384 .435 .110 .181 .580 .480 .066 .390 .119

0.80 .571 .089 .281 .321 .250 .201 .089 .169 .201 .773 .640 .689 .603 .813 .289 .372 .073 .297 .201

0.75 .031 .131 .089 .112 .248 .396 .315 .237 .145 .050 .201 .080 .106 .174 .591 .614 .712 .561 .749

Table 2 Maturity levels of OHS management systems. OHS policy

Training and involvement

Operating activities

Written plan of the policy Measurable objectives and goals Tools for internal communication Employee involvement

3.30 3.35

Use of project team Employee training

3.01 4.10

3.01

Updating of training plan

3.41

Planning of training activities

Comparison objectives/ results Average value OHSMS average value

3.20 3.25

Average value

Performance measurement 3.69 3.87

Measurement of results Monitoring of indicators

2.72 3.59

3.45

Presence of operating instructions Job position analysis vs. level of risk analysis Training for high risk jobs

3.95

3.31

3.91

Presence of emergency procedures

3.77

Registering of accidents and near accidents Accident analysis

Updating of emergency procedures

3.76

Internal audits

3.62

Average value

3.80

Average value

3.34 3.50

3.61

three years. Geographical location was measured using the legal headquarters of the company and the geographical area in which it operates. This variable was measured with a dummy variable: 0 was assigned to companies located in the south and on the islands and 1 to companies located in central and northern Italy. Similarly OHS available budget was also measured with a dummy variable with 0 if the company did not have specific economic resources for OHS issues, and 1 if the company had specific economic resources for OHS issues. Finally, the companies were asked whether they possessed an OHSAS 18001 certification. The answers for this last question were then verified through the website www.accredia.it, which includes the names of all certified companies operating in Italy. In the questionnaire respondents were also asked to indicate how many years ago the certification had been obtained.

4. Analysis of the results The survey results showed that the average level of maturity of OHS management system was 3.50, with a minimum value of 2.30 and a maximum value of 4.64. As indicated in Table 2, the «operating activities» had the highest average value (3.80), followed by «training and involvement» (3.61), «performance measurement» (3.34) and «OHS policy» (3.25). Operating activities and «training and involvement» were the most mature dimensions. Operating activities was the most mature dimension because workers are subject to significant safety risks while working on the street. In the words of one interviewee, risks analysis is ‘‘continuously improved and tailored for each specific task’’ (Interview 5). Training

3.50

was carried out continuously to provide the employees with the necessary knowledge to protect themselves on the job. It was necessary to ‘‘raise awareness and promote the adoption of correct conducts by the workers’’ (Interview 3) and to ‘‘create a shared understanding on specific topics’’ (Interview 6). On the other hand, «OHS policy» maturity is instead hindered in some companies by the fact that OHS is perceived as a specialised activity. In contrast, in other companies OHS policies received more attention by senior management (Miller and Haslam, 2009). The maturity level of the performance measurement was very low. Companies measured their performance through ex-post indicators (severity rate and frequency rate) and the use of leading and early warning indicators were not taken into consideration (Øien et al., 2011a,b). Some companies analysed accidents by geographical area, age, role and job shifts but they were lagging indicators. No companies had a cost-benefit analysis to facilitate safety investments, and incentive systems were often not linked with OHS performance evaluations. ‘‘We use the information to support ex-post analysis but we should direct our information towards ex-ante decisions’’ (Interview 2). Pearson correlations (Table 3) indicate that the level of maturity of the OHS system was positively correlated with the influence of employees and trade union (b 0.610, p < 0.01), thus confirming hypothesis H2. The correlation was positive for «training and involvement» (b 0.667, p < 0.01) and «operating activities» (b 0.703, p < 0.01), but not for «OHS policy» (b 0.393, p > 0.10) nor «performance measurement» (b 0.519, p > 0.10). Legislative pressure had no influence on the maturity of the OHS management system (b 0.143, p > 0.10) and indicated that companies do not consider that legislation is capable of influencing the maturity level

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M. Battaglia et al. / Safety Science 72 (2015) 55–65 Table 3 Pearson correlation between management system and contingent factors. Organisational characteristics

OHS policy Training and involvement Operating activities Performance measurement OHSMS

External factors

Management tool

Budget

ETUP

GL

MSP

LP

0.331 0.099 0.145 0.321 0.257

0.393 0.667** 0.703** 0.519 0.610**

0.701** 0.600** 0.701** 0.780** 0.801**

0.101 0.187 0.185 0.130 0.156

0.126 0.289 0.400 0.280 0.143

APA 0.387 0.639** 0.499* 0.401 0.589*

OHSAS 18001 0.745** 0.535* 0.524* 0.540* 0.691**

Budget, OHS available budget; MSP, market stakeholder pressure; ETUP, employees and trade union stakeholder pressure; LP, legislative pressure; APA, audits by public authorities; GL, geographical location; OHSAS 18001, OHSAS 18001. * The correlation in significant at a level of 0.05 (2-code). ** The correlation in significant at a level of 0.01 (2-code), n = 29.

of OHS management systems. Thus, hypothesis H5 was not significant and therefore not confirmed. In this regard, the interviews indicated that legislative pressure was perceived as the necessary condition which in some cases drove companies to develop proactive safety practices. In addition, moral duties towards the employees and the possibility of improving safety performance and consequently of legitimizing health and safety results were considered more important than legislative pressure. The interviews highlighted that the continuous improvement in OHS management systems requires a specific plan and focus by senior management and in particular more awareness of the importance of health and safety in some areas such as accounting and finance departments. Other barriers included the inadequate amount of financial resources to allocate to OHS management systems and the demanding tasks required by routine OHS management activities. We found that 50% of the companies had no dedicated economic resources for OHS management, which may explain why H1 was not confirmed (b 0.257, p > 0.10). Almost all of the interviewees indicated that the amount of financial investments made in previous years was not able to satisfy all the OHS changes needed. Furthermore, government funding was indicated as a source used in previous years for OHS investments.5 Market stakeholder pressure was not perceived as a key factor (b 0.156, p > 0.10) and thus hypothesis H4 was not confirmed. This result could be explained by the nature of waste management services, which does not involve competitive relationships with the market. In the waste management sector, which is a regulated industry by specific laws, the service beneficiaries are individual citizens who pay annual tariffs to receive waste management services and who may be more interested in the quality of the service provided rather than OHS issues. The interviews also highlighted the existence of a continuous dialogue with market stakeholders focused on the efficiency and effectiveness of waste management services. The role of public authorities was significant, confirming hypothesis H6. The results indicate a negative and significant correlation between the OHS management system and the number of public audits received by companies (b 0.156, p < 0.05), confirming that there are more audits when the system is less structured. The interviews confirmed that control by public authorities was greater in companies with more accidents and with less attention on safety requirements.6 Of the four dimensions, «training and involvement» showed the most significant correlation (b 0.639, p < 0.01). Employee training has been given close attention by regulators since 1990 (see for example the European Directives on OHS)7 and compa-

5 Since 2012, the Italian National Social Authority (INAIL) has provided economic incentives for companies to obtain the OHSAS 18001 certification. From a policy perspective, the OHSAS 18001 is considered as a driver to improve OHS management. 6 The mean number of Public Authority audits in companies is 8.63. 7 Some examples are: 89/391/CEE, 90/270/CEE, 93/88/CEE, 95/63/CE, 97/42/CE, 98/ 24/CE, 99/38/CE, 2001/45/CE, 2003/10/CE, 2004/40/CE, 2005/47/EC, 2006/15/EC, 2009/104/CE, 2010/32/EU.

nies with a high focus on training and involvement have been perceived as being more sensitive to reducing risks to workers and, therefore, have been less subject to controls by local authorities. The correlation for geographical location was significant (b 0.801, p < 0.01). Between companies located in the north and centre and companies in the south there were notable differences for all four dimensions of OHS management system, thus confirming hypothesis H3. A proactive management of OHS in southern Italy is negatively influenced by a lack of managerial culture and knowledge on the topic, by the absence of economic resources for investments and also by the (negative) influence of political parties on a company’s conduct.8 Finally, we found a positive correlation of OHSAS 18001 on the maturity of a OHS management system (b 0.619, p < 0.01), confirming hypothesis H7. As with geographical location, OHSAS 18001 had a positive correlation with all four dimensions of the management system.9 The interviews highlighted that OHSAS 18001 certification was initially used for accountability. All the companies in our survey are publicly owned and a lack of attention to OHS management can negatively impact on the company’s reputation in the area where it operates. Some of the companies can manage OHS also for demonstrating their commitment to improving the local community and public health and safety (Smallman and John, 2001). In fact, the interviews showed that maintaining good relations with other external stakeholders, such as the local community, is important to avoid negative impacts in terms of company legitimacy. Internally, OHSAS 18001 certification was perceived as a sign of the importance of effectively managing OHS issues and stimulated, in particular, the formulation of a written OHS policy (b 0.745, p < 0.01). None of the eight companies located in the south had an OHSAS 18001 certification.10 Cohen’s d test11 was performed to corroborate the correlation analysis (Table 4).12 Employees and labour union pressure, geographical location, and OHSAS 18001 showed a higher level of difference between the sub-groups. Legislative pressure and audits by public authorities showed a moderate level of significance, while

8

These three points emerged during the interviews. The average number of implementation years of OHSAS 18001 was 3.6. 10 Of the total sample, just eight companies had an OHSAS 18001 certification. 11 Cohen’s d test is an index that measures the significance of the difference between the mean. It our case it verifies whether there are significant differences between groups of companies in terms of the level of maturity of the management system in relation to various contextual factors. The validity of the test does not depend on sample size. It is calculated as the difference between M1 and M2, divided by the standard aggregate deviation. Cohen (1988) suggests interpreting the standardised difference between the mean with small (d = 0.2), medium (d = 0.5) and large (d = 0.8). 12 The groupings of companies were calculated starting from the average value of each contingent factor and sub-dividing among companies with high values (above the average contingent factor) and companies with low values (below the average contingent factor). This criterion was used for market stakeholder pressure, employees and trade union pressure, legislative pressure and audit by public authorities. For the OHS available budget, geographical location and OHSAS 18001 certification were used the criteria indicated in Section 3.2. 9

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Table 4 Cohen’s d test results. Organisational Characteristics

OHS Policy Training and involvement Operating activities Performance Measurement OHSMS

External Factors Market stakeholder pressure

Legislative pressure

Audits by public authorities

South

High

Low

High

Low

Below average

Above average

With OHSAS 18001

Without OHSAS 18001

3.73 4.01

2.40 3.10

3.42 3.80

3.20 3.59

3.58 3.97

3.15 3.71

3.44 4.02

3.12 3.35

3.91 4.19

2.80 3.28

2.98 2.60

4.31 3.78

3.28 2.56

4.13 3.45

3.75 3.30

4.25 3.78

3.76 3.11

4.20 3.40

3.76 3.32

4.44 3.82

3.54 3.00

2.68

3.96

2.78

3.70

3.46

3.89

3.39

3.76

3.39

4.07

3.15

OHS available budget

Employees and trade union pressure

Geographical location

Yes

No

High

Low

North and centre

3.56 3.77

3.00 3.63

3.76 4.23

2.44 2.69

4.05 3.60

3.85 3.10

4.46 3.76

3.75

3.39

4.05

Cohen’s d test OHS policy Training Operating activities Performance measurement OHSMS

Management Tool Existence of OHS certification

Medium Not significant Small Medium Medium

Large Large Large Large Large

Large Large Large Large Large

market stakeholder pressure indicated a small difference. Cohen’s d test results confirmed that an increase (decrease) in the value of the contextual factor led to an increase (decrease) in the maturity level of the OHS management system for six of the seven contextual factors. Only for OHS available budget, did Cohen’s d results partially contrast with the correlation analysis results.

5. Discussion and conclusions 5.1. Discussion The waste management sector deals with rising environmental and legal standards, the need for increased efficiency, quality management and the effectiveness of OHS management. The results of our study showed that the maturity level of OHS management systems can be considered as sufficiency developed. The companies were aware of the importance of OHS management. Despite this, they were unable to fully implement the Deming PDCA approach. OHS policy and «performance measurement» were the two least implemented dimensions. Companies appeared more focused on ‘‘core activities’’ such as «training and involvement» and «operating activities», but less on managerial analysis linked with the definition of policies and plans and results measurement and analysis (Passetti et al., 2014). Due to the nature of waste management a greater focus on ‘‘core activities’’ is necessary. Regrettably if this focus continues over time, it may impede the improvement in the OHS management system and may also be inadequate to increase OHS knowledge. Promoting an «OHS policy» is an important way to communicate and diffuse OHS awareness and targets in all company areas. Developing a more structured «performance measurement» system can help in acquiring increasingly accurate information for ex-post analyses but also, more importantly, for improving ex-ante decision making and planning, such as OHS policies and new OHS targets. There is also a strong and a recursive relation between the maturity of an OHS management system and the safety climate. If companies are able to fully develop their management system, they will also increase the workers’ shared perceptions of the firm’s approach to safety, i.e. their safety climate (Choudhry et al., 2007; Guldenmund, 2000). In turn, the safety climate can improve a com-

Small Small Medium Not significant Small

Medium Medium Medium Medium Medium

Medium High High Small Medium

Large Large Large Large Large

pany’s health and safety management and performance, thus reducing workplace injury rates. To promote a safety climate, all the employees should be aware of the OHS policy and of its importance (Granerud and Rocha, 2011). All the employees should also participate in OHS programs aimed at improving OHS management systems. Finally, formal operational and performance management tools, such as root cause analysis, appreciative enquiry, prevention diaries, simultaneous engineering and leading indicators should be used to guarantee the continued development of the OHS management system and the OHS climate. One way for municipal waste management companies to increase the maturity of OHS management systems may be to integrate it with environmental management systems (Cunningham et al., 2010).13 The integration of management systems is important for those organisations with operations involving high hazards (Wilkinson and Dale, 1999), such as municipal waste management companies. In our survey, 23 companies had environmental certifications (ISO 14001 and/or Emas), which may indicate that the PDCA approach for environmental concerns was more structured and mature. Environmental management systems tend to be implemented before setting up an OHS management system (Karapetrovic and Casadesús, 2009). Consequently, the acquisition of OHSAS 18001 and the simultaneous integration of OHS and environmental management systems may stimulate the maturity of OHS management systems, particularly with regard to planning, investments decisions and performance measurements (Duijm et al., 2008; Jørgensen et al., 2006). We found that organisational characteristics are more correlated with the maturity of OHS management systems than external factors. The most correlated is geographical location, followed by OHSAS 18001, employees and trade union pressure, and audits by public authorities. Geographical location results indicate the need for specific public policies tailored for the south of Italy to promote and accelerate OHS knowledge, managerial skills and the diffusion of tools. Pressure from employees and labour unions is more important than legislative pressure, and OHSAS 18001 helps to build on previous results. High numbers of public authority audits can highlight a company’s poor performance in terms of 13 Five companies had an integrated management system. Of these, four demonstrated an above average maturity level of OHS management systems , while in the fifth company the maturity level was in line with the sample average.

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safety. Over time the improvements in maturity of OHS management systems may reduce the number of inspections, thus reducing administrative costs and enhancing the company’s image. The overall results indicate that municipal waste management companies have made some changes in the last few years in terms of the active management of OHS issues. Sub-systems, such as worker protection devices and machinery protection devices, and organisational characteristics, linked with managerial and communication processes, have been improved in order to increase worker’s safety and company performances. Values and beliefs with regard to OHS importance have driven the more tangible changes. Indeed, from a moral perspective, all the companies interviewed recognised the importance of adequately managing OHS issues although they were well aware of the barriers that can hinder their improvements. These results show that organisational characteristics and management tools seem to be the most important factors influencing the maturity of OHS management systems. We believe that this is a positive signal for future improvements driven by internal managerial awareness and moral obligations towards worker safety. 5.2. Conclusions This paper analysed the level of maturity of the OHS management of municipal waste companies operating in Italy, and whether different types of contextual factors influenced this level. The results show that the companies examined reported a sufficient level of maturity of their OHS management system and that budget availability, employee and trade union pressure, geographical location, and OHSAS 18001 certification positively influence the maturity level. Our exploratory study thus indicates that the contingency theory may be a suitable framework for OHS management. In addition, the results highlight that if companies want to achieve a complete level of maturity of their OHS system, they need to invest more resources in OHS issues (Battaglia et al., 2014; Rikhardsson and Impgaard, 2004) and also increase the importance of OHS both internally and externally. Internally, fixing the OHS performance targets in line with a dedicated budget is a key aspect. In addition, those companies without OHSAS 18001 could implement the certification in order to communicate the importance of managing OHS issues and to increase their OHS knowledge. The pressure of trade unions underlined the relevance of mobilising stakeholder engagement and dialogue, in order to effectively meet the needs of worker representatives, and the workers themselves, regarding OHS issues. Externally, due to the public ownership of companies (in most cases the main shareholder is the local municipality), and their sphere of activities in the local area, increasing the skills in managing OHS issues and the related performance may be important in order to achieve a better legitimation of their conduct. Thus, the more the trend moves towards OHS transparency, efficiency and effectiveness, the more legitimate companies will be. Our research has some limitations. Firstly, the small sample makes it impossible to generalise the results, and it could even have influenced the results themselves. However, although the sample size was small, it was representative of the environmental hygiene sector in Italy. Consequently the correlation analyses are demonstrations of relationships (or of non-relationships) to be further tested with larger samples. Despite this, Cohen’s d test largely confirmed the correlation results. Secondly, the results reflect how the interviewees evaluate practices linked to company management, but they cannot reveal whether or not these perceptions are well grounded. Thirdly, all studies that examine the social nature of a company are subject to self-selection, or rather to obtaining results only from those people who are interested in social questions, thus

presenting an unrealistic positive reception. However, the data expressed various types of OHS management and thus this risk may have been reduced. Finally, other OHS management dimensions could have been investigated in order to have a wider representation of OHS management systems and of the related performance. In conclusion, we believe that our results represent a starting point to define more complex contingency models in the OHS management literature. The analysis of contextual factors has led to an initial evaluation of some of the factors that influence the maturity of OHS management systems. By exploiting contingency theory, future research should help to pinpoint the best factors that improve (or inhibit) OHS management development and reveal how companies should manage these factors in order to achieve a satisfactory level of maturity and performance. An analysis of the various forms of fits (Drazin and Van de Ven, 1985; Gerdin and Grave, 2004) may improve the OHS analysis from a managerial point of view, by facilitating company choices. In addition, other organisational, external and managerial factors such as environmental uncertainty, technology development could be studied. Being able to accurately design OHS management based on the indications provided by contingency studies will create a bridge between research activities and company decisions. Furthermore, future research could extend the analysis to a larger sample of companies, even to an international level, and could cover the question of the integration of health and safety management into company culture. Barriers to OHS policy definitions and performance measurements could also be investigated. Finally, physiological aspects could be tested and linked with the implementation and the effects of OHS management systems. Acknowledgements We are very grateful to the editor in chief and two anonymous referees for their constructive comments during the reviewing process. This research has been financially supported by Fondazione Rubes Triva (Rome, Italy). Appendix A. The questionnaire

Section two (contextual factors) 1. Does your company have specific economic resources (budget) for occupational health and safety management? 2. In the last three years how many times has the company been inspected by public health and safety authorities (local health authority, employment inspectorate, municipal administrations, etc.)? 3. How important is the influence of the following stakeholders on your company’s policies in relation to improving worker health and safety management (from 1 ‘‘not important’’ to 5 ‘‘very important’’)?:  market stakeholders, such as customers and suppliers;  internal stakeholders within the organisation, such as employees and trade unions. 4. Considering the occupational safety and health legislation in your company, to what extent do you agree with the following statements?:  health and safety regulations influence company decisions concerning occupational safety and health (from 1 ‘‘not at all’’ to 5 ‘‘very much’’);  with respect to the level of compliance required, health (continued on next page)

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and safety legislation in our sector is (from 1 ‘‘not severe’’ to 5 ‘‘very severe’’);  in the future, the correct management of legislative compliance with regards to health and safety will entail adopting more stringent health and safety management procedures (from 1 ‘‘completely disagree’’ to 5 ‘‘completely agree’’). Section three (OHS management system) 5. Using a scale from 1 to 5, assess the implementation level of the following initiatives (1: no action implemented; 2: poor implementation; 3: adoption of initiatives has begun but has not been completed; 4: good adoption of initiatives; 5: good adoption of initiatives with effective outcomes). Consider the last three years as a period of time. 5.1. Concerning the planning of health and safety matters, is there an official and written declaration that has been signed by the Chairman/CEO showing the company’s health and safety policy:  your company has no official and written declaration all staff have been made aware of the health and safety policy;  management have established measurable health and safety objectives and targets;  managerial tools have been implemented to facilitate communication to all staff;  observations and suggestions by employees or their representatives for OHS improvement are collected;  systematic comparisons are drawn between improvement plans and actions carried out, and the extent to which the objectives and targets are achieved is constantly measured. 5.2. Considering employee training and involvement with regards to health and safety:  teams of staff from different departments have been set up to solve problems relating to working conditions  employees receive training when they join the company (specific training for new employees) and when their duties change;  there is a formalised system to detect health and safety training needs;  specific training plans are established at least once a year. 5.3. Considering the implementation of worker health and safety management initiatives:  specific health and safety operating instructions have been prepared;  work procedures are established considering the risks associated with the duties carried out;  training is provided for particularly risky roles and duties;  there is a procedure to identify and respond to potential emergency situations;  the emergency response procedures are regularly revised (particularly after regular tests or emergency situations). 5.4. With regards to measurement, surveillance and internal control systems:  there is an official performance system to measure the safety targets achieved;  the company’s injury indices (frequency and severity) are regularly monitored throughout the year and compared with sector data and data from other companies with similar characteristics;

 the company has procedures to record and investigate near-misses;  information and data on incidents are reported, recorded, investigated and analysed;  regular internal audits are carried out in order to verify the correct implementation of instructions/procedures and compliance with health and safety legislation.

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