A Study Of The Correlationship Between HSE Input And Enterprise Performance

Applying HSE management system in petrochemical industry constitutes one of the insurances for safe, stable production, and it plays an important role in its development. International petrochemical enterprises have continuously increased their input in HSE management in recent years. However, how the HSE management input promotes the enterprise performance remained a problem without in depth study, which became a hot research topic. In this study, efforts were made to explore the relationship between HSE input and enterprises performance, in order to reveal the inside mechanism both theoretically and practically.Shell, BP, Chevron, Dupont, Dow Chemical Co, and China national petroleum corporation were taken as samples in this study. The effects of different HSE inputs enterprises performance was analyzed, and a new classification of HSE cost was proposed, which was categorized as of HSE prevention cost and HSE damage cost. Data adopted include HSE relevant data and the financial data for five foreign enterprises during the years of 2000 to 2005, as well as CNPC data from 1998 to 2005. Based on quantitative & qualitative examination, a standard reference frame for the relationship between HSE input and enterprises performance was formulated.It was concluded that, the HSE prevention cost was positively correlated to the enterprise revenue and net profit, i.e., had a significant amplification effect on the revenue and net profit. In other hand, HSE prevention cost was negatively correlated to the accident damage, i.e., HSE damage cost had a prominent negative amplification effect on enterprises performance, with a magnitude larger than above positive one. This indicated that the input of HSE prevention cost possessed great significance for the development and high performance of the enterprises.The correlation method proposed for promoting enterprises performance is operational, which was proved in the practice in CNPC. The conclusion of this work provides references for Chinese petrochemical enterprises to promote HSE system and enterprise performance.