Evaulating the Use of Third Parties to Measure Process Safety Management in Small Firms

Abstract

This paper describes a pilot experiment designed to investigate the use of third party auditors to inspect facilities that use hazardous chemicals in order to evaluate compliance with the Environmental Protection Agency’s (EPA’s) Rule on Risk Management Programs for Chemical Accidental Release Prevention (Section 112(r) of the Clean Air Act). (1, 2) The research examines the market forces and regulatory infrastructure necessary to attract third party auditors, the financial and regulatory incentives necessary for small firms to use third parties, and the potential benefits to employees, shareholders, regulatory agencies and communities.