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Technical Publications Mass Notification Systems: Corporate Financial Implications
Loss is the operative word. Consider monetary loss brought about by non-compliance fines. Depending on the infraction severity and profit margin, they may seem anemic. If nothing else, however, they are persistent; and, they do not help to enhance a firm’s image. Post-incident fines cost more. A major Texas based oil refinery operation saw this first-hand following the 2005 explosion that killed 15 workers. As if the resultant $21 million OSHA fine, the settlement of 4,000 individual claims and $1 billion in safety upgrades were not painful enough, just last month a federal judge approved an additional $50 million fine against the company. Although mass notification may not have been failing, it is unclear if it met the most recent regulatory requirements. None the less, this event is a recent example of the consequences of unsafe operating procedures – exactly what a well planned and implemented MNS is instrumental in eliminating. Some companies do not recover from industrial accidents. The 1984 Union Carbide gas release in Bhopal, India, killed about 3,800 people and permanently injured many thousands more. The Indian high court approved a $470 million compensation package. Union Carbide never recovered from the incident and has since lost its corporate identity. Regardless of the cause of the release, one thing remains clear: the lack of an adequate MNS and solid rules governing its use prevented warning the hapless victims of the gas cloud’s approach.
Also lacking a MNS system was a major food processing plant in North Carolina. In a horrendous 1991
fire, 25 people perished. Blocked exit routes, insufficient emergency training and inadequate emergency
mass notification means contributed to disaster and landed the owner in prison for four years. The plant
never reopened. For more information on how to properly source and implement a MNS, please feel free to contact your local Industronic Representative or our Corporate Headquarters @ 1-866-986-PAGA (7242). Industronic is one of the worlds leading manufacturers of Industrial Emergency Warning and Mass
Notification Systems. All systems comply with the latest regulatory codes. More information on
Industronic's systems can be found on the web at www.industronic.com
or contacting us via phone.
Industronic Inc.
1011 US Highway 22 West, Suite 301 Bridgewater NJ 08807 T - 908-393-5960 F - 908-393-5961 For additional information or to to discuss your project call, fax or e-mail us. [ Publications ] | |||
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Last Updated June 3, 2009 |
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