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Corporate social responsibility the role of industry representative organisations l.jpg

Corporate Social Responsibility- the role of industry representative organisations

Hong Kong Shipowners’ Association

24 November 2006

Peter M. Swift

Managing Director, INTERTANKO


What is corporate social responsibility csr l.jpg
What is Corporate Social Responsibility(CSR) ?

CSR is:

  • Good corporate citizenship

  • A Duty of Care

  • Acting Beyond Compliance (Beyond Profit)

  • More than charitable acts

  • CSR is NOT PR but is ”good business”


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What is Corporate Social Responsibility(CSR) ?

”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.”

World Business Council for Sustainable Develoment, ”Changing Expectations”, 1999


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What is Corporate Social Responsibility(CSR) ?

CSR is concerned with:

  • The environment

  • Labour (employees)

  • Human Rights

  • The (wider) community

  • Stakeholder involvement

  • Business Ethics

    Kennedy School of Government, Harvard University

    Leadership, Accountability & Partnership: Issues in CSR 2004


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Corporate Social Responsibility (CSR)

Individuals

CSR

Environment

Wider Community

Human

Rights

Business Ethics

Stakeholders


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CSR - What is role of industry representative organisations?

  • None ?

  • Complementary to, or an extension of, members’ own CSR activities ?

  • A wider role on behalf of the “industry” it represents ?


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Mission and Vision

MISSION

“Provide leadership to the Tanker Industry in serving the world with the safe, environmentally sound and efficient seaborne transportation of oil, gas and chemical products.”

VISION FOR THE TANKER INDUSTRY

“A responsible, sustainable and respected Tanker Industry, committed to continuous improvement and constructively influencing its future.”


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One of the Association’s primary goals:

Lead the continuous improvement of the Tanker Industry’s performance in striving to achieve the goals of:

Zero fatalities

Zero pollution

Zero detentions


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Society and the International Shipping Industry share the same goals

Shipping should be:

  • Safe and secure

  • Environmentally responsible

  • Reliable

  • Efficient (Low cost)


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CSR Checklist for industry representative organisations? same goals

Environment

  • Ballast water management, anti-foulings, responsible recycling, air emissions

    Engaging with stakeholders

  • Politicians, regulators, environmental NGOs

    Wider community

    - media, public (?), shipping charities


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CSR Checklist for industry representative organisations? same goals

Business Ethics

  • focus on corruption – principally PSC

    “People” / “Welfare”

  • Training programmes, Support for ILO-MLC, HSE practices in demolition yards

    Human Rights

    - Speaking out on unfair treatment & practices


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CSR Checklist for industry representative organisations? same goals

AND one more

A responsibility to ensure good governance structures for the industry


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REGULATION same goals

Effective Regulation

SELF-REGULATION

Best Practice

Shipping’s Governance Structure


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Work responsibly for same goals“Effective” Regulation

Regulation, which is:

  • Developed at the global level, wherever appropriate (consistent with existing law)

  • Fit for purpose (provides solutions)

  • Properly considered (stakeholders involved)

  • Impact(s) fully assessed (economic and social)

  • If adopted, implemented uniformly and promptly


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Promote “Self Regulation” same goals

By

  • Encouraging / Adopting industry “best practices”

  • Producing industry guidelines

  • Developing programmes, procedures, etc. - Design, Shipbuilding, Operations, Training, Inspections, Investigations and more…


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Promote acceptance of industry’s case for ”Self-Regulation”

  • Shipping has to be seen as a “Responsible” industry

    and

  • To be respected by the public, legislators, regulators and media


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Industry “best practices” ”Self-Regulation”

Examples:

  • Adopting IMO Pilotage “Recommendations”

  • Signing-up to Early Warning Information (Sharing) Systems

  • Implementing Green Passport / Preparing Applying Hazardous Material Inventory

  • Applying VOC control on passage

  • Implementing anti-fouling regulations ahead of IMO timetable

  • Establishing Emergency Response procedures

  • Developing & rehearsing crisis management procedures, (including media training)

  • ……………………


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Industry “Guidelines” ”Self-Regulation”

Examples:

  • Flag State Performance

  • Recycling guidelines

  • ISGOTT

  • Newbuilding Awareness guide

  • Model Ballast Water Management plan

  • Garbage Management plan

  • ISO 14001 planning

  • Oil record book completion, OWS guidance

  • Mooring, STS, COW, etc.

  • ………


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Industry “programmes and procedures” / Quality Initiatives

Examples:

  • Ship & Terminal vetting

  • Management self-assessment programmes

  • Casualty reporting and analysis

  • PSC record analysis

  • Establishment of Inter-Industry Group (Chemical Tanker accidents):

    Recommendations for Inert Gas for Cargo Tanks on presently exempted ships,

    Establishment of Human Element Task Force

  • ………..


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Other Examples of Industry’s Quality Initiatives / Acting “responsibly”

  • Industry-Government Programmes

    • Marine Electronic Highway

    • Reception Facilities Forum

    • Double Hull Panel (EMSA)

    • ………

  • With many similar programmes on the dry side, plus sector specific

    - BC Loading Rates

    - Carriage of DRI

    - Annex V issues

    - ………


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Other Examples of Industry’s Quality Initiatives / Acting “responsibly”

Acting “Ahead of” regulatory implementation:

  • Annex VI (Nox & Sox, VOC)

  • Anti Fouling Systems (TBT Ban)

  • Fixed Gas detection systems (Ballast tanks)

  • Cargo tank coatings

  • IG on smaller chemical tankers

  • BW management trials

  • OWS alternatives

  • Green Passport and HMI standards

  • ……….


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Shipping’s Governance Structure “responsibly”

Legislation & Regulations

- Regulation & self regulation

With licences to operate provided by:

- Flag

- Class (newbuild & in-service)

- Insurer (compulsory certificates)

- Charterers (through vetting)

- PSC (on behalf of coastal states)


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Engaging with FLAGs “responsibly”

  • producing industry guidelines

  • Support for IMO Flag State audits


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Engaging with Classification Societies “responsibly”

  • Regular meetings of Industry and IACS

  • Development of Common Structural Rules

  • Tripartite dialogue: owners, builders and class:

    • Common structural rules

    • Coatings and coating performance standards

    • Goal Based Standards (Tiers IV & V)

    • Information sharing

    • Shipboard waste management


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Engaging with Insurers, Charterers and Port State Control “responsibly”

  • Regular meetings of Industry and the International Group of P&I Clubs

    - seeking differentiation based on “quality”

    - IOPC Quality WG

  • Continuing dialogue with Charterers: –

    - OCIMF-SIRE, CDI and others

    - MSDS, terminal safety, etc.

  • Meetings with PSC MoUs

    • Seeking uniformity in standards and procedures

    • With EQUASIS, seeking consistency in data and effective analysis of information


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INTERNATIONAL “responsibly”

EU Challenges to UNCLOS

EU Ship Source Pollution Directive

Canada Bill C-15

Ballast Water Legislation

Air Pollution / Fuel Quality regulations

(USA) FEDERAL

Challenges to EPA regs on Ballast Water Discharges

Massachusetts Oil Spill Response legislation

Pending legislation in Rhode Island on LNG movements

State legislation on Air Emissions

Maintaining the supremacy of IMO,International and US (Federal) LawAgainst the challenges of Local and Regional Legislation


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Speaking out on “Criminalisation” “responsibly”

A two-fold concern:

  • Unfair treatment / human rights

    and

  • Counterproductive nature of other measures


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Speaking out on “Criminalisation” “responsibly”

Unfair treatment and violation of human rights

  • Too many cases of unlawful detentions after shipping accidents

  • Welcome for the joint IMO/ILO Guidelines for the Fair Treatment of Seafarers

  • Too many other unjust practices – unjustified fines, denial of shore leave, prohibition of terminal access and more


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Speaking out on “Criminalisation” “responsibly”

Counterproductive consequences not recognised:

  • Destroys “no blame” cultures

  • Discourages openness and frank reporting

  • Curtails surveyors’ reports – detracts from ”good practice”

  • Deters salvors in circumstances when we need them most

  • Deflects focus for proper casualty investigation and denies benefits of same

  • Destroys and damages morale of seafarers and others

  • Dissuades new recruits and accelerates departure of experienced staff

  • Drives responsible people and companies from the business

    Is this what the legislators and society are seeking ?


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Speaking out ………. “responsibly”

“Bad” legislation is the

enemy of the “good”


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CSR - The role of industry representative organisations? “responsibly”- Supporting and encouraging responsibility and quality across the industry- Being in the game as a player,not a spectator on the sidelines


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CSR - The role of industry representative organisations? “responsibly”Members of a Leadership Forum ?“Lead or be Led ?”


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THANK YOU “responsibly”

www.intertanko.com

www.shippingfacts.com

www.themaritimefoundation.com


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Challenges to the International Governance of the Shipping Industry

International vs. local, national and regional

  • Liability – EU Penal Sanctions vs. International Conventions

  • Safety & Environment – EU (Post Erika & Prestige) vs. IMO/Marpol & SOLAS

  • Sulphur Levels / Air Emissions – EU, USA vs. IMO

  • Security – MTSA vs. ISPS

  • Ballast Water Management – US, Australia et al vs. IMO


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Maintaining the Supremacy of International and US Federal Law

What is being done ?

  • Major industry-wide efforts to remove the threat of criminal sanctions for accidental discharges, including a Legal Challenge to the European Court of Justice

  • Industry speaking out against “Unfair treatment”

  • Extensive lobbying in the EU and US

  • Legal Challenge in US with DoJ against the State of Massachusetts

  • Legal Challenge in US with USCG over Regulation of Discharges

  • Challenges to use of “Age” as a selection criterion

  • Challenging Torres Straits compulsory pilotage

  • And much more ………………


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Poseidon Challenge Law- commitment to continuous improvement- commitment to working with all partners


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