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Responsible supply chain management. The ship owner’s perspective Ulla E. Nielsen, Director, CSR, Dampskibsselskabet NORDEN A/S Kathrine Geisler Madsen, Manager CSR & Corporate Communication, J. Lauritzen A/S. agenda. Presentation of NORDEN and J. Lauritzen Background – why RSCM
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Responsible supply chain management The ship owner’s perspective Ulla E. Nielsen, Director, CSR, Dampskibsselskabet NORDEN A/S Kathrine Geisler Madsen, Manager CSR & Corporate Communication, J. Lauritzen A/S
agenda • Presentation of NORDEN and J. Lauritzen • Background – why RSCM • by Ulla E. Nielsen, NORDEN • Process – real life scenario • by Kathrine Geisler Madsen, J. Lauritzen • Questions
The shipowners behind the initiative Dampskibsselskabet NORDEN A/S J. Lauritzen A/S A leading global tramp operator One of the most modern fleets in our industry Global network of offices and port captains Asset light business model - active fleet can quickly be adjusted to demand and market conditions Business driven approach to CSR Owned by the Lauritzen Foundation Operate and own a modern fleet Strategically located overseas offices covering all time zones Operations ranging from bulk carriers to offshore support vessels Value and principles based approach to CSR Evt et Lauritzenfoto her
Background – why rscm • Regulations • UNGP • OECD • National requirements • Report on human rights • Background • Sphere of influence • First tier supplier • Challenging task • Collaboration J/L & NORDEN • Efficient • Common sense • Proper behaviour • Third Party on-board to lift the concept IMPA
Business and human rights? • What is Human rights? • Translated • The human rights explained in a language developed for and by business • Common sense • Human –rights • Right to non-discrimination • Labour Rights • Right to safe and healthy working conditions • Environment • Manage emissions to air • Anti-Corruption • Not permitting the payment of bribes to business partners, government officials or workers
strategy • Next step • Approach our suppliers • IMPA ACT • Enter a dialog • Self assessment scheme • Code of Conduct • Register in the database • Process • UNGP 2011 Safe process • Natural next step Focus area • RSCM vs. Environment • “Order in our own house” • Mapping all in-house processes • Transparency
Process – real life scenario • Our interaction process at a glance • Working closer with our suppliers
organisational development • Commitment from top management gives enthusiasm • Internal awareness and understanding motivates • Training of key people/ purchasers ensures competence development • Knowledge sharing creates cohesion • Internal capacity development
engaging in dialogue • SUPPLIERWe have signed and support the UN’s Global Compact • SHIPOWNERPerfect – our approach to RSCM will assist your commitment (prin. 1-6) • UNGP outline and operationalise how to respect human rights Policy commitment, due diligence, remediation • SHIPOWNERThey might not be – but your company could have a potential impact on rights never considered • All businesses shall respect all human rights – this is an opportunity for thorough risk assessment • SUPPLIERAll of the rights in your Self Assessment Survey are not relevant for us • A systematic approach is more cost effective – and the system shall be relative to size, context etc. • SHIPOWNERYou are already doing a lot! More customers will demand this your competitive advantage • SUPPLIERWe are just a small supplier, we cannot have all kinds of systems in place
Dealing with dilemmas ”Evt teksten fra Lauritzen – slide 9 her ? • Decision making matrix • Is it a crucial or non-crucial supplier? • Do we have leverage? • Suggested actions • Use our leverage to mitigate abuse and ensure access to remedy • Capacity development • Collaborate with other ship owners • Work with local or central government • End relationship
Questions? Ulla E. Nielsen, uen@ds-norden.com Kathrine Geisler Madsen, kge@j-l.com