Successful Cases of CSR Activities

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1 Seminar on the Global Shortage of Seafarers and the Role of the Shipping Industry & CSR London, 11 May 2010 Successful Cases of CSR Activities Robert C Beckman Director, Centre for International Law (CIL) National University of Singapore 117

2 Corporate Social Responsibility CSR According to the World Business Council for Sustainable Development, CSR is: the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large Employee loyalty is one of the most important results of CSR This also helps in recruitment of new staff 118

3 CSR CSR is concerned with: Environment Safety Labour (employees) Customers Investors The (wider) community Business Ethics 119

4 CSR Success Story Ben & Jerry s Ben & Jerry's ice cream became as famous for its approach to responsible business as for its products. Its mission: continued commitment to incorporating wholesome, natural ingredients and promoting business practices that respect the Earth and the Environment. It also promotes the value of employee development and positive contributions to local, national, and international communities. The company also seeks to minimize waste and maintain safe food production standards. 120

5 IMO Secretary-General on CSR.. today, issues such as environmental sustainability, the fair treatment of workers and the duty of care businesses have towards their customers are of increasing concern... Investors and investment fund managers have begun to take account of CSR policies when making investment decisions and consumers have become increasingly sensitized to the CSR performance of the companies from which they purchase goods and services. shipping.. needs to be able to show that it has.... cultivated a reliable and well-trained labour force, and has good environmental, health and safety policies built into its day-to-day operations. Developing and sustaining a safety culture and an environmental conscience will do much to enhance its image worldwide 121

6 CSR & Seafarers Studies show that companies which place an emphasis on CSR have more committed and loyal employees Given the shortage of seafarers problem, it may be wise for shipping companies and shipping organizations to emphasize labour or employee issues as an important component of their CSR Shipping companies should consider more actively promoting ratification of the 2006 Maritime Labour Convention Shipping companies might want to consider implementing 2006 MLC even before it enters into force this could have a significant impact on how seafarers view the company 122

7 CSR Success Story - NYK The Japanese shipping company NYK takes a broad view of CSR which includes programmes to assist its staff and their families NYK has developed a uniform set of educational materials and curricula to be used by local instructors at training centers and manning offices around the world NYK operates manning offices in many areas across the globe to recruit highly skilled seafarers NYK classes are long-term programs that offer its staff classroom study in addition to training on vessels NYK also holds meetings in local communities with seafarers and their families 123

8 CSR Success Story - V.Ships V.Ships is the world s largest supplier of ship management services to a fleet of over 1000 vessels V.Ships has shown a strong commitment to CSR relating to the health, safety and welfare of its seafarers V.Ships has adopted a Seafarers Charter which it prominently displays on its web page V.Ships declares that: If you are not treated in accordance with the provisions of this charter you may contact the following address and your complaint will be investigated. Seafarers-Charter@VShips.com 124

9 CSR Success Story V.Ships V.Ships Seafarers Charter recognizes: 1. The right to a safe and secure workplace that complies with safety standards 2. The right to fair terms of employment 3. The right to decent living and working conditions on board 4. The right to health protection and welfare measures and other forms of social protection 5. The full implementation of the above rights 125

10 CSR Success Story - V.Ships Furthermore, V.Ships confirms its commitment to ensuring that: 1. Employment is offered to seafarers free of charge 2. A workplace free of discrimination of any kind is provided 3. Wage payments and allotments are paid in a timely fashion and measures are in place to verify this 4. All seafarers receive wages to which they are contractually entitled 5. Every effort is made to relieve seafarers at the time stipulated in the contract of employment and that measures are in place to achieve this 126

11 CSR Success Story - V.Ships 6. Recruiting offices provide a welcoming environment and courteous disposition towards all seastaff 7. Shore-based employees treat all seastaff with respect at all times and that this respect is reciprocated to promote harmony on board 8. There is follow up of any complaint from seafarers alleging non compliance with this Charter 9. There is commitment to improving seafarers lives at sea and ashore as an ongoing priority 127

12 CSR to promote Navigational Safety and Environmental Protection Many companies do CSR by raising funds for local charities, protecting the environment, etc It would enhance the image of shipping companies if they channeled their community program efforts into activities which demonstrate their commitment to improving navigational safety and protecting the marine environment This would send a message to the local communities that shipping companies care about navigational safety & the marine environment For example, shipping companies could fund or sponsor coastal clean-up campaigns 128

13 CSR & Cooperative Mechanism for Straits of Malacca & Singapore In September 2007, after three years of negotiations, a new cooperative mechanism to enhance safety and environmental protection was adopted for the Straits of Malacca and Singapore First cooperative arrangement which implements Article 43 of the 1982 UN Convention on the Law of Sea in a strait used for international navigation 3 littoral States and users share responsibility for enhancing safety and environmental protection in the straits 129

14 Importance of the Straits Major shipping route between Europe / Middle East and East Asia 50% of the world s supply of oil 30% of the world s commerce 90,000 vessels over 100 gross tons / year 23,000 oil tankers / year 4,000 LPG/LNG carriers / year 130

15 Cooperative Mechanism for SOMS 1. Cooperation Forum to enable user States and other stakeholders to meet with littoral States to discuss safety, security and environmental protection in the Straits 2. Aids to Navigation Fund voluntary fund to maintain and replace aids to navigation 3. Projects specific projects supported by user States to enhance safety & environmental protection in the Straits 131

16 2009 Contributions: Aids to Navigation Fund Nippon Foundation - US$ 2.5 million Japan Shipowners Association US$ 0.5 million Middle East Navigation Service (MENAS) -US$ 1 m Korea - US$ 100,00 United Arab Emirates - US$ 100,000 Greece US$ 1 m (IMO Trust Fund) 132

17 Features of the Mechanism 1. Scheme is inclusive intended to include private companies and NGOs as well as States 2. Scheme gives cooperating stakeholders a voice in the Cooperation Forum 3. Cooperation is purely voluntary no attempt to impose tolls or mandatory charges 4. It does not infringe the sovereignty of the littoral States and is consistent with UNCLOS 5. IMO played a crucially important role as a facilitator 133

18 CSR & Cooperative Mechanism In March 2007, Mr Yohei Sasakawa, head of The Nippon Foundation, argued at a seminar of think tanks in Singapore that shipping companies have an international social responsibility for the safety and environmental protection of the oceans Mr Sasakawa also argued that under CSR, private shipping companies, as major users and beneficiaries of the Straits, should bear some of the costs of safe passage through the Straits of Malacca and Singapore 134

19 CSR and Cooperation Mechanism Mr Sasakawa argued that because they directly benefit from aids to navigation in the Straits of Malacca and Singapore, shipping companies should help pay for the maintenance, management and replacement of such aids to navigation the costs of installing new navigational aids as well as the costs of any dredging that was necessary to improve navigational safety 135

20 CSR and Cooperation Mechanism The participation of private companies such as the Japan Shipowners Association is a demonstration that they accept their corporate social responsibility as beneficiaries of the aids to navigation The Roundtable Members were instrumental in obtaining the support of MENAS Roundtable members have also pledged in kind support for the Cooperation Mechanism Nippon Foundation continued its long support for navigational aids in the Strait by also making a major contribution to the Aids to Navigation fund 136

21 Conclusions Shipping companies should do more to send a clear message that they support programmes that are intended to promote navigational safety and environmental protection Shipping companies should also adopt CSR policies to demonstrate a genuine concern for the welfare of their employees, especially seafarers 137

22 Conclusions If shipping companies adopt an effective CSR policy, it will not only improve the image of the shipping industry, it will indirectly assist in recruitment and retention of seafarers Studies have shown that employees who are satisfied with their company s commitment to social and environmental responsibility are likely to be more positive, more engaged and more productive 138

23 Thanks for Your Attention Prof Robert Beckman Director, Centre for International Law (CIL) National University of Singapore Website: 139

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