Abstract-
This paper examines Corporate Social Responsibility emphasizing on the Maritime Industry, Reducing costs down to gain rapid wealth and eliminate competition has been around since the days of Yore. This persistent strategy is now being advanced by Corporate social responsibility while forming new allegiances with stakeholders Meanwhile employee welfare has taken center stage.
The study extends to discuss relevant environmental, social, and comparative analysis regarding Corporate Social Responsibility in developed and developing countries in the Maritime Industry while meeting societal expectations.
Keywords- Maritime Administration, Corporate Social Responsibility, Ocean Governance, Maritime law, International Law
Introduction-
Social responsibility Although the concept has been available to the knowledge of humankind since the start of civilization plenty of literature has been discovered be it Socrates ideology further developed by Plato, Machiavelli in The Prince, Bhagavad Gita, Arthashastra by Kautilya makes copious statements regarding society and corporate social responsibility thus summarised under defined pillars that presumably elaborates on Intent, Holistic development and Welfarist approach towards society at large, but happened to gained its significance around the time of renaissance and Industrial revolution.
The world is changing at an unprecedented pace various conventions have been formulated regarding the Universal Declaration of Human Rights, the Environmental Protection Agency, and many more. Recently the UN global compact has been a big step forward in terms of corporate social responsibility focusing solely on business impact on people-planet-profit.
Corporate Social Responsibility seemed to have increasing benefits to attract customers and employees, including that of Seafarers. In the Maritime Industry corporate social responsibility has distinctly focused on environmental issues like avoiding pollution and reducing GHG’s.
The maritime sector just like other industries it seeks to protect the brand image by demonstrating to stakeholders that the services provided by them are safe and comply with the environmental paradigm although the shipping industry often not face this kind of publicity and consumer pressure issues straight, The recent developments and awareness among the society has caused a stir the recent incident of Baltimore bridge collapse and shipping company trying to evade and unseaworthiness of vessel MV dali has raised questions. Here The stakeholders might look forward to manage the risks to their reputation by selecting shippers that are demonstrating the Corporate Social Responsibility.
Research Methodology-
This research paper consists of a secondary research methodology. While conducting this secondary research, a systematic approach was adopted to gather and form a conclusion on the existing literature on the topic of Corporate social responsibility in the maritime industry. A comprehensive search strategy was undertaken while utilizing academic databases, library content, and online present sources whereby a complete overview was generated. The findings are hence summarized in the research paper with a hint of how it has evolved following the present scenario on Corporate social responsibility in the maritime industry.
Review of literature-
While there has been much research on Corporate Social Responsibility, a few researchers have taken CSR in the Maritime Industry into consideration amongst them some commendable representations are WMU Journal of Maritime Affairs vol.5 stating various perspectives on CSR in the maritime Industry Maritime Administration and Ocean Governance, Legal aspects, Safety Considerations and Impact of CSR on women in Maritime Sector.
Notable works of Michael Hopkins in Corporate social responsibility are available on Google Scholar, ResearchGate that elaborates on CSR around the world its applications, and differences country by country.
United Nations Conference on Trade and Development (UNCTAD) and International Maritime Organisation (IMO) report on Maritime Shipping, Administration, Safety and Security.
Corporate Ethics in Global Shipping-
“Shipping” the term itself defined as the movement of goods or cargo from one place to another that is maritime transportation undertaken by a ship. As Maritime transport involves 80% of the global trade, The recent UNCTAD’s review on Maritime transport suggests maritime trade is expected to grow by more than 2% between 2024 to 2028. While navigating through complex regulating and environmental challenges IMO, COP28, UNCTAD taking imminent measures with regulatory intervention, green technology, and decarbonization measures.
Meanwhile, as the Maritime industry is developing it is also important to take into consideration the efforts taken by Ship owners, Maritime personnel, Master, and seafarers who are at the forefront of the Industry having an overwhelming amount of share in global trade. In case any incident occurs whether it poses a hazard or any risk to the individuals and crew on board or happens to affect the environment, the particular company is held responsible and scrutinized by concerned stakeholders. Deliberate measures are hence recommended to be undertaken in the Maritime industry to integrate economic businesses, environmental concerns, and social inclusion of people having common interests along with having occasional interaction with stakeholders from time to time, this altogether sums up to be called as Corporate Social Responsibility in the maritime industry.
Maritime Administration–
Maritime administration is a specialized branch of public administration that deals with providing aid to the government in policy formulation, Monitoring, Implementation, and regulation governing safety and security which are often formulated on par with IMO regulations, Cargo handling, and transportation, Prevention of Marine Spills, ISO 45001 Occupational Health and Safety (Maritime), MARPOL Conventions.
These tasks are executed by the designated person of the Ministry of State at the same time it is not just related to the National significance but here comes forth International Standards it needs to comply with, As various cross-border operations are involved the flag state, Loading Port, Discharge port, transit with compliance to EEZ and SEZ as determined by UNCLOS.
Henceforth, Good Governance is the key to attain effectiveness and efficiency linked with Corporate social responsibility and accountability Yet to ensure this efficiency there is a pivotal need of a specific structure for CSR to be present but considering the diverse approaches amongst the developed and developing countries and the availability of resources the one size fits all approach seems to be a far dream. Despite the limitations among Nation’s Maritime obligations set by International Law, International Maritime Organization, United Nations Convention on Law of Sea, Maritime Labour Convention, Shipboard Marine Pollution Emergency Plans(SOPEP) under MARPOL, International Convention for Safety of Life at Sea(SOLAS) and Port State Control Inspection, ISO 45001 Occupational Health and Safety, Regulation for Preventing Collision at Sea(COLREGS), Certification of Watchkeeping for Seafarers (STCW), TONNAGE, Merchant Shipping Convention ILO 47, plays an essential role still their enforcement should also be observed closely for ensuring effectiveness.
Environmental and Social Challenges in Shipping-
Environmental challenges although are taken quite seriously but some accidents are inevitable, Yet shipping companies strive to tackle the issues while addressing CSR amidst,
Greenhouse Gas Emissions- Carbon dioxide, methane, Nitrous oxide, Sulphur Hexafluoride are some of the substances that have a high potential to cause Global warming, However, various measures have been adopted by IMO to curb and limit emissions from Shipping Industry for instance when certain vessel while entering emission control areas tend to switch the fuel of main engine from HFO to diesel oil so less sulphur would be emitted, likely many measures are taken with help of technological advancements recently green ports are emerging in providing sustainable shipment practices.
Pollution- Oil spills, Sewage and Garbage dumping, Ballast water are a grievous issue in the Maritime industry, Recent developments like the use of the nuclear technique for measuring oil spills by International Atomic Energy Agency Marine Environment Laboratories have made serious advancements in this field. Due to enforcement of conventions like MARPOL has led to a dramatic decrease in pollution.
Energy Efficiency- In the maritime industry energy efficiency holds one of major part of the CSR agenda for companies As amongst 20 most important cities of the world’s 20 economical consist of 14 major port cities, which holds an epicenter of wider development in terms of industrial expansion ensuring environmental and sustainable growth. Governing measures to ensure advancement includes the European Energy Efficiency Directive, The Air Quality Framework (AQF), and United Nations 2030 Agenda regarding the Sustainable Development Goals (SDG’s) in addition to government sponsored initiatives are some of the various major drivers in this direction.
Marine vessel scrapping/dismantling/recycling- Enhances grave concerns about health, safety, and environmental problems as shipping vessels should be recycled/dismantled only in facilities that are friendly regarding designated purposes although various guidelines and tools have been designed to help the flag states and shipping companies to take over the control regarding scrapping and recycling methods while handling the waste and ensuring proper demolition which do not raise serious concerns hence the vessels are demolished and the waste material is handled with due care.
Safety of Life at Sea(SOLAS)- Seafarers working at sea are always exposed to injuries and hazards, With due regulation of IMO’s SOLAS and International Safety Management (ISM) code provide safety standards, and guidelines in accordance of carrying dangerous cargo or be it regarding the search and rescue operations.
Comparative analysis Regarding Corporate Social Responsibility of Developed and Developing Countries in Maritime Industry.
To understand the notion of ocean governance in accordance with that of Developed and Developing Countries the foremost thing to be taken into consideration is that not every country has defined or stringent laws in terms of maritime administration and corporate social responsibility it differs from state to state and company to company with compliance of the Ministry or Flag state under which it is registered. Meanwhile, a careful interpretation of maritime administration could be provided as to how developed states have formulated the structure and how it evolved with time while its impact on developing countries wherein the developing countries dealing with its Infrastructure and standards and thriving to be on a level playing field to that of developed countries.
Regulatory Framework-
European Maritime Safety Agency (EMSA) published a report on overview of European Maritime administration consisting name of member country, head of maritime administration and further division, collectively there is an ideal layout, and the functions are notified in detail and thoroughly segregated compared to that of the developing countries which doesn’t seem to have an ideal layout and functions seem to be overlapping to that of other Ministries with Inconsistency in implementation and is still evolving. International Maritime Organisation have observed that developing nations frequently face difficulties in terms of reinforcing regulations according to the Flag State Implementation (FSI), Meanwhile this helps maritime governances of developing nations to promote improved administrational practices.
Infrastructure-
With advanced shipping methods, Highly modernized ports with automation, Artificial Intelligence, and smart ports, Blockchain Technology has been progressively making advancement in the maritime industry while providing supply chain management mechanisms cargo tracking, and more. The ports like Rotterdam, Los Angeles, and Shanghai are leading toward digital transformation with adherence to Corporate Social Responsibility it tend to increase sustainability and bringing efficiency. In case of Developing countries, technology is likely to be outdated with financial constraints and impediments in providing essential training.
Gender Equality and CSR-
Integration of women in the maritime sector, capacity-building activities, and the ratio of participation of women in maritime industry in developed nations is comparatively high as that of developing ones, Backwardness, poverty, and Illiteracy have existed for a prolonged period but corporate social responsibility here plays a major role.
For Instance, A.P Moller-Maersk aims towards a Social inclusion strategy, It has provided Maternity Relief to women in their company worldwide. Meanwhile, in India, the shipping corporation came up with a policy of appointing two women seafarers at the same time on a vessel. yet compared with the progress of other developing nations in social inclusion and gender equality in the maritime industry situation remains unclear.
Challenges to Corporate Social Responsibility in Maritime Industry-
Scarcity of resources, Human capital retention and motivation are some of the most important asset of the organization. Shipping companies must always come up with innovative ways to motivate their employees both at the offices and those onboard the ships, Insufficient knowledge regarding corporate social responsibility in the maritime industry, Fluctuations in fuel and freight rates, Inadequate assistance from authorities, and lack of support from stakeholders. Safeguarding Maritime piracy with proper surveillance. Meanwhile, The societal and environmental impacts of an oil spill are so severe that can completely damage the public image of both the company and the whole maritime industry altogether. Instances like MV Prestige (2002) happened at coast of Spain, This oil spill has affected humankind for generations. This sector’s challenges are multiple and evergrowing due to the cyclical nature of the maritime industry.
Suggestions-
Strategy regarding corporate social responsibility differs between organizations herein tailored solutions are necessary for better enforcement. Some of a few suggestions might be taken into consideration like- Review and assessment of methodology being undertaken by companies around, identification of Scope for improvement in terms of social needs that is expected to be fulfilled, whether it involves building stronger long-term relationships with important client, employees or individuals with help of Corporate Social Responsibility can lead to the enhancement of the firm’s value, Financial planning regarding making resources available, Ensuring Communication and cooperation among stakeholder while formulating plan Imminent measures must be taken by firms to improve their reputation publicly and proceed for Implementation, monitoring and to evaluate if persist any. One point that must be duly noted is that corporate social responsibility must be integrated with the organization’s overall strategy.
Conclusion-
It is noteworthy that rigorous developments have been taking place in corporate social responsibility in the Maritime Industry wherein it must be taken in due consideration that CSR is not just only reputational. Quality management, work safety, and employee satisfaction moreover it should be value-driven, the strategic aim must not be on Immediate returns but Integration of social, environmental, and sustainable enhancement of the Maritime Industry. As The International Maritime Organisation’s slogan elaborates, “safe, secure and efficient shipping on clean oceans” can effectively be accomplished only through collective mutual responsibilities among all maritime stakeholders which further advances the development of the industry in a sustainable manner.
Author Information-
Name- Kiran Jadhav
College- Government Law College, Mumbai