More than half of Main-Biz corporations (management-innovation small and midsize enterprises) said their management burden has increased since the Serious Accidents Punishment Act took effect, a survey found.
The Main-Biz Association on Dec. 8 released the results of its "awareness and response to the Serious Accidents Punishment Act" survey. From Oct. 24 to 31, it surveyed 369 Main-Biz corporations.
The survey found that 61.2% of corporations said their management burden has increased since the law took effect. The smaller and more nonmanufacturing the corporations were, the greater the burden they reported. They cited negative impacts such as conservative management, weaker investment, and increased legal risk.
While 95.9% of Main-Biz corporations said they know the Serious Accidents Punishment Act itself, fewer than half (47.4%) said they understand its specific mandatory provisions. Only 7.6% of corporations had both a dedicated safety and health organization and dedicated personnel.
As many as 74.6% of corporations said they cannot reflect safety management costs in supply prices. The biggest burden when failing to fulfill legal obligations was cited as the chief executive officer's criminal punishment (64.0%). Corporations pointed to financial support for safety and health investment (66.4%), tax benefits, and tailored consulting support as the most needed assistance.
The Main-Biz Association proposed improvements including: ▲ introducing tailored and differential regulatory systems by size, industry, and risk level ▲ establishing a package-type safety support system that links finance, tax policy, and specialized personnel ▲ clarifying the definition of management responsibility and roles ▲ shifting from punishment-centered to prevention-centered approaches ▲ strengthening safety across the entire supply chain, including between prime contractors and subcontractors.
The Main-Biz Association said, "The current system uniformly applies standards centered on large corporations, placing an excessive burden on small and midsize enterprises that lack personnel and budgets," adding, "urgent, reasonable reforms that consider corporations' size and circumstances are needed."