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Economic Analysis of Law - Ruling 11001-3103-035-1999-02191-01 - Coggle…
Economic Analysis of Law - Ruling 11001-3103-035-1999-02191-01
Benefits of Assumption and/or Transfer of Occupational Risk
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Transfer of Responsibility to Third Parties :recycle:
Reduction of Corelca’s direct exposure to legal claims for workplace accidents
Use of insurers to cover potential compensations resulting from workplace accidents.
Subcontracting of Sadelec Ltda. as Corelca’s strategy to transfer responsibility in high-risk activities.
Incentives for subcontracted companies to improve their occupational risk prevention policies.
Financial Protection for Companies and Workers :silhouettes:
Reduction of the financial impact on companies from workplace incidents by transferring risks to insurers.
Subcontracted workers are covered under insurance, facilitating economic protection in the event of accidents
Insurance policies ensure quick compensation to workers or their families in case of serious accidents
Compensation for moral damages and loss of earnings adequately compensates victims' families.
Differences Between Anglo-Saxon Tort Law and the Latin American System :male-judge:
The Anglo-Saxon system focuses on out-of-court settlements and judicial precedents, while in Colombia, judicial reparation is prioritized.
Objective liability, present in the Latin tradition, places a greater burden on companies in the protection of workers.
In Anglo-Saxon law, prevention is encouraged through financial incentives and private insurance.
The Latin tradition promotes broader protection for victims of workplace accidents, as seen in the Boxiga case.
Optimization of Risk Management :warning:
Subcontracting fosters specialization in occupational safety management, reducing Corelca’s direct exposure.
Well-structured contracts between Corelca and Sadelec allow for a clear distribution of responsibilities in case of accidents.
Outsourcing dangerous activities allows Corelca to focus on risk supervision and control
Risk transfer facilitates the implementation of preventive measures and long-term cost reduction.
Importance of Ethical and Social Corporate Responsibility
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Business Ethics in Occupational Risk Prevention
Investing in preventive measures is part of the ethical responsibility that companies must assume.
Ethical companies focus on workplace safety as a fundamental value, beyond legal regulations.
Corelca had the ethical obligation to ensure safe working conditions for subcontracted employees.
Active prevention, based on ethical principles, minimizes the occurrence of serious workplace accidents.
Impact of Corporate Social Responsibility (CSR)
Investment in CSR reduces litigation risk by preventing workplace accidents through proactive measures.
The integration of business ethics with occupational safety and health policies strengthens legal protection against claims.
Adopting good CSR practices enhances the company’s corporate image and strengthens its relationship with employees
Implementing CSR policies promotes a safer work environment and reduces the likelihood of accidents
Relationship Between Business Ethics and Labor Regulations
Complying with legal regulations is not enough; business ethics requires active and preventive management of occupational risks.
Business ethics complements legal regulations and reduces vulnerability to lawsuits from workplace accidents.
Companies that go beyond the minimum safety regulations significantly reduce the risk of accidents.
Companies that adopt ethics as part of their workplace culture promote the safety and well-being of their employees.
Costs of Workplace Accidents and Business Ethics
Business ethics requires continuous updating of occupational safety and health policies to prevent accidents.
Business ethics helps mitigate reputational costs resulting from poor management of workplace accidents.
Investing in prevention and ethics reduces long-term costs by avoiding lawsuits and expensive litigation.
Prevention and training in workplace safety, promoted by ethics, reduce the financial costs associated with workplace accidents.
Economic Efficiency in Workplace Accident Prevention
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Efficient Allocation of Resources in Risk Prevention
Subcontracting high-risk activities must be accompanied by efficient control measures to avoid accidents.
Accident prevention through the proper allocation of financial resources is essential to reducing litigation exposure
Investing in accident prevention optimizes the company’s resources and avoids costs associated with compensations.
Effective prevention policies reduce the need for financial compensation, optimizing the company’s budget
Prevention as a Tool to Avoid Legal Claims
An adequate preventive policy reduces legal and transaction costs related to labor litigation.
Active prevention also generates long-term savings by reducing the number of workplace accidents.
Investing in prevention reduces the risk of facing costly lawsuits, as in the case of Corelca.
Designing efficient preventive systems improves workplace safety and reduces the costs associated with accidents
Reduction of Transaction Costs Through Prevention
Implementing rigorous safety systems reduces transaction costs related to accident management.
Companies that invest in prevention minimize the time and resources needed to manage workplace incidents.
Effective preventive policies avoid costs associated with legal disputes over workplace accidents.
Reducing accidents significantly lowers administrative and legal expenses related to workplace litigation.
Economic Impact of Workplace Accidents
The costs of workplace accidents can be prevented through investment in stricter safety measures.
Companies that do not invest in prevention face higher economic and social costs.
Workplace accidents generate high costs for companies, not only in terms of compensation but also in reputation.
Workplace accident prevention is an economically efficient strategy to minimize long-term financial impact.
The law of damages and the minimization of accident costs.Coderch & Gómez (2005)
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Tort Law as an Incentive for Prevention
Tort law encourages companies to adopt safety measures that prevent accidents, as discussed in Coderch and Gómez (2005). In the case of Corelca, the lack of preventive measures resulted in civil liability.
Cost Minimization Through Compensation
The compensation system in tort law redistributes the costs of workplace accidents, minimizing the economic impact on victims and society.
Primary, Secondary, and Tertiary Costs of Workplace Accidents
The costs resulting from workplace accidents are not limited to direct compensation; they also include secondary and tertiary costs, such as legal ones, which affect the company
Compensation and Restorative Justice in Tort Law
The compensation system in tort law seeks to restore victims or their families to their pre-accident condition, fulfilling a fundamental restorative function.
The decision on accidents: an approach to the objective allocation of costs.Calabresi (2019)
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Objective Liability in High-Risk Environments
Chiassoni (2013) highlights that objective liability is essential in high-risk jobs. Corelca, being responsible for an electrical substation, had the obligation to ensure a safe environment.
Avoidable Costs Through Proper Prevention
Workplace accidents, such as the one in Boxiga, are avoidable if companies invest in proper safety systems.
Optimization of Resources to Prevent Accidents
An efficient allocation of resources in occupational risk prevention reduces the costs derived from compensation and litigation.
Relationship Between Prevention and Economic Savings
Investing in prevention not only reduces accidents but also lowers the associated legal and operational costs.
The Economic Analysis of Law. Origins and methods of Law & Economics in the U.S. Chiassoni,(2013)
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Economic Efficiency and Occupational Risk Prevention
The EAL (Economics analysis of law) suggests that companies must design efficient preventive policies to reduce costs derived from workplace accidents.
Efficient Allocation of Resources in Risk Management
Proper allocation of financial resources in prevention reduces the costs of workplace accidents and legal claims.
Prevention as a Tool for Economic Optimization
Investing in prevention not only protects workers but also optimizes the company’s resources, avoiding financial losses.
Transaction Costs and Avoidable Litigation
The EAL emphasizes the importance of reducing transaction costs associated with labor litigation through the implementation of preventive policies that lower the likelihood of accidents.