Prepared and edited by: Dr. Amin Padash, President of the Iranian Scientific Association of Health, Safety and Environment Management and Engineering (HSEME)

The Health, Safety, and Environment (HSE) practices in operational companies (like manufacturing, construction, or energy) differ significantly from those in commercial companies (like retail, hospitality, or service-oriented businesses) due to the nature of their operations, associated risks, and regulatory requirements. Here’s a detailed comparison:

Operational Companies

Characteristics:

• High-Risk Environments: Operational companies often work in environments with significant physical hazards, such as heavy machinery, chemicals, or construction sites.
• Regulatory Scrutiny: These companies are usually subject to stringent regulations and standards from various regulatory bodies (e.g., OSHA, EPA).
• Focus on Physical Safety: HSE practices prioritize physical safety due to the inherent risks of operations.

Example: Oil and Gas Industry

• HSE Practices: In an oil and gas company, HSE practices include comprehensive safety training for workers on handling hazardous materials, implementing robust emergency response plans for oil spills or explosions, and conducting regular safety audits and drills.
• Implementation: The company may use advanced technologies like drones to inspect infrastructure for safety compliance, ensuring that all operations are conducted under strict safety protocols.
• Impact: By effectively managing HSE, the company can significantly reduce accidents, enhance employee morale, and minimize environmental impacts, thereby safeguarding its reputation and operational viability.

Commercial Companies

Characteristics:

• Lower Physical Risks: Commercial companies generally face fewer physical hazards, focusing instead on service delivery or retail operations.
• Customer Interaction: HSE practices often incorporate aspects of customer safety, such as ensuring clean environments and safe products.
• Employee Well-being: Emphasis on mental health and ergonomic practices is often more pronounced, given the nature of desk jobs or customer-facing roles.

Example: Retail Chain

• HSE Practices: In a retail company, HSE practices might involve regular training on workplace ergonomics, maintaining a clean and safe shopping environment, and implementing health protocols (like those for COVID-19).
• Implementation: The retailer may conduct routine safety inspections of stores, provide employees with ergonomic workstations, and ensure that emergency exits are clearly marked and accessible.
• Impact: By fostering a safe environment for both employees and customers, the company enhances customer satisfaction, reduces employee turnover, and avoids potential liabilities from accidents.

Key Differences

1. Risk Profile:
• Operational Companies: Higher risks associated with physical work and hazardous materials necessitate rigorous safety protocols.
• Commercial Companies: Risks are generally lower, focusing more on operational efficiency and customer safety.
2. Regulatory Focus:
• Operational Companies: Must comply with complex environmental and safety regulations, often undergoing frequent inspections.
• Commercial Companies: Compliance is typically less stringent, focusing more on general health and safety standards.
3. Training and Development:
• Operational Companies: Extensive, ongoing training on equipment safety, emergency procedures, and hazard recognition.
• Commercial Companies: Training often centers around customer service, workplace ergonomics, and health protocols.
4. Crisis Management:
• Operational Companies: Detailed emergency response plans tailored to specific risks (e.g., chemical spills).
• Commercial Companies: More generalized plans focusing on customer emergencies, such as evacuations or health crises.

Conclusion

In summary, while operational and commercial companies prioritize HSE, their approaches differ based on the nature of their work and associated risks. Operational companies like oil and gas companies face higher physical risks and stringent regulatory scrutiny, necessitating comprehensive safety measures. In contrast, commercial companies like retail chains focus more on employee well-being, customer safety, and operational efficiency. Understanding these differences is crucial for tailoring effective HSE strategies that meet the unique needs of each type of organization.