Corporate Social Responsibility in Shipping

The first time I came across the term Corporate Social Responsibility (CSR) in shipping was a year back when my son, a media student, had to submit a project as a pre-requisite to qualify for higher studies. He came to me for advice. As usual we were short of time and I had to think of something quickly.

At that time (and even now) shipping industry was hit by piracy. There were dreadful stories detailing the plight of hijacked seafarers. As a community, merchant seamen are not taught to deal with aggressive situations. They have to simply run a ship and not handle weapons. No agency or government is backing them to fight the criminals. They are there to earn their bread. Fighting is the last thing they want to do. After all injuries can only limit their earning capacity.

Today’s mariners have a tough time dealing with piracy, terrorist threats, being put behind bars in alien countries. They are after all soft targets. Therefore, in my opinion any voluntary action taken by shipping industry to help the affected seamen should qualify as CSR in shipping. Especially if the action is taken purely to alleviate the misery of fellow human beings.

That is what I told my son. He took my interpretation in full faith. After all Baba knows best. And so his project took off.

He went around and met the contacts I had given. I nodded my appreciation as he took various interviews and wrote the reports. He was able to submit the project just in time.

He spoke about piracy and the jungle out there at sea. The International Ship and Port Facility Safety (ISPS) Code developed as a response to the 9/11 attack on the twin towers. The role a shipping company had assumed to protect the private port they were developing against the terrorist threat. It was a voluntary act undertaken by the company so that their port is projected as a safe haven for ships to anchor or berth.

“Doing our little bit.” The captain of the port explained.

The project was accepted and my son made the cut to pursue his higher studies.

A few weeks back I strolled into a Finnish stall at the SMM exhibition in Mumbai. Browsing through Maritime Finland’s Navigator Yearbook I came across this article “CSR in Shipping.”

Wow! I thought to myself. I know all about this subject. That is, till I started reading the article. I couldn’t find any mention about piracy/terrorism/ criminalization of seafarers. The article talked about sustainable development in shipping. The measures taken on three different levels – Planet, Profit and People. According to this theory true sustainable development in business is not only about financial profitability but also environmental quality and social equity.

The article talked about using clean fuels to reduce carbon footprint. The different challenges included risk management from oil spills, emission control through fuel oil quality and engine design, waste management and safety at sea. In other words the stress was upon the protection of the environment.

I was looking at CSR in shipping from a totally different angle.

Referring to the textbook definition, it says CSR is a concept whereby organizations consider the interests of the society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders as well as the environment. This obligation is seen to extend beyond the statutory obligation to comply with the legislation.

It includes organisations which voluntarily take steps to improve the quality of life for their employees and their families as well as for the local community and society at large.

I guess the definition is broad enough to include supporting a hapless wife of a seafarer held for ransom by the pirates or jailed in an alien country for doing his job as best as he could.

One must remember that shipping is a complicated international business. It is common to have a Greek ship-owner chartered by a Dutch company to carry Saudi cargo to Japan. The vessel agents could be located in India and the crew is a mix of Philipinos and Bangladeshi nationals.

When Somali pirates hijack this ship the families are totally clueless whom to approach for help. In such a situation any action taken by a shipping company to mitigate the problems of the seafarer’s family is laudable.

Lately the internet has added another vocal body called the Yahoo merchant navy group whose members include anybody to do with shipping. They organize rallies, write letters to the government and generally act as an overseer whose views and opinions carry a lot of weight in the maritime industry.

The world was quite different when I was sailing seven years back. The salaries have shot up but so have the dangers. And the means to fight these dangers.