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The Tension Between Worker Safety and Organization Survival

Author

Listed:
  • Mark Pagell

    (Michael Smurfit Graduate School of Business, University College Dublin, A94 XF34 Dublin, Ireland;)

  • Mary Parkinson

    (College of Public Health and Human Sciences, Oregon State University, Corvallis, Oregon 97331;)

  • Anthony Veltri

    (Fisher College of Business, The Ohio State University, Columbus, Ohio 43210;)

  • John Gray

    (Fisher College of Business, The Ohio State University, Columbus, Ohio 43210;)

  • Frank Wiengarten

    (Esade Business School, Universitat Ramon Llull, 08172 St. Cugat, Spain)

  • Michalis Louis

    (Michael Smurfit Graduate School of Business, University College Dublin, A94 XF34 Dublin, Ireland;)

  • Brian Fynes

    (Michael Smurfit Graduate School of Business, University College Dublin, A94 XF34 Dublin, Ireland;)

Abstract

This research addresses the fundamental question of whether providing a safe workplace improves or hinders organizational survival, because there are conflicting predictions on the relationship between worker safety and organizational performance. The results, based on a unique longitudinal database covering more than 100,000 organizations across 25 years in the U.S. state of Oregon, indicate that, in general, organizations that provide a safe workplace have significantly lower odds and length of survival. Additionally, the organizations that would, in general, have better survival odds benefit most from not providing a safe workplace. This suggests that relying on the market does not engender workplace safety.

Suggested Citation

  • Mark Pagell & Mary Parkinson & Anthony Veltri & John Gray & Frank Wiengarten & Michalis Louis & Brian Fynes, 2020. "The Tension Between Worker Safety and Organization Survival," Management Science, INFORMS, vol. 66(10), pages 4863-4878, October.
    • Handle: RePEc:inm:ormnsc:v:66:y:2020:i:10:p:4863-4878
    DOI: 10.1287/mnsc.2020.3589
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    References listed on IDEAS

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    Cited by:

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    3. Stephanie Cheng & Pengkai Lin & Yinliang Tan & Yuchen Zhang, 2023. "“High” innovators? Marijuana legalization and regional innovation," Production and Operations Management, Production and Operations Management Society, vol. 32(3), pages 685-703, March.
    4. Fan, Di & Yeung, Andy C.L. & Yiu, Daphne W. & Lo, Chris K.Y., 2022. "Safety regulation enforcement and production safety: The role of penalties and voluntary safety management systems," International Journal of Production Economics, Elsevier, vol. 248(C).
    5. Deng, Saiying & Mao, Connie X. & Pu, Xiaoling & Xu, Yuan, 2023. "Import penetration and workplace safety," The Quarterly Review of Economics and Finance, Elsevier, vol. 90(C), pages 149-161.
    6. Chenyu Shan & Dragon Yongjun Tang, 2023. "The Value of Employee Satisfaction in Disastrous Times: Evidence from COVID-19," Review of Finance, European Finance Association, vol. 27(3), pages 1027-1076.
    7. Anton Shevchenko, 2021. "Do financial penalties for environmental violations facilitate improvements in corporate environmental performance? An empirical investigation," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1723-1734, May.
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