Challenges and Best Practices: Marine Industry CSR and Sustainability

This report delves into the critical aspects of business ethics, corporate responsibility, and sustainability within the marine industry, focusing on Maritime London as a case study. It identifies significant challenges, including decarbonization, compliance with regulations like the BWM rule, digitalization, and the financial burdens associated with sustainability initiatives. Furthermore, the report addresses CSR challenges such as resource limitations, lack of strategic vision, inadequate measurement systems, low willingness to invest in CSR, and the impacts of Brexit and the COVID-19 pandemic. The main body also outlines best practice considerations in the marine industry, emphasizing honest and ethical conduct, financial record-keeping, anti-competitive behavior prevention, and compliance with laws and regulations. The report concludes with recommendations for how the marine industry can become more responsible by considering global factors.

Business Ethics,
Responsibility and
Sustainability

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Challenges relating to corporate responsibility and sustainability in Marine Industry..........1
Sustainability Challenges..............................................................................................1
CSR Challenges............................................................................................................3
Best practice considerations in Marine Industry related to ethical and moral issues.............6
Recommendations for Marine Industry to show they are being more responsible by taking into
account global considerations.................................................................................................9
CONCLUSION..............................................................................................................................11
References:.....................................................................................................................................12

INTRODUCTION
Business ethics, responsibility and sustainability can be defined as the management of
values that are being handled by the companies related to the employees, customers, products,
competitors, employers, external environment, internal environment and various others
stakeholders. This is done in order to control and restrict the business from any misconduct or
unethical doings which are legally as well as non legally wrong and that can impact the image of
the business in the market by hurting someone's core morals, professional and personal life also.
Industry chosen here is the marine industry, it is defined as the industry which is associated with
the sea transport either for normal travelling or for the transportation of goods and services
across countries by following all the proper ethics, responsibilities and sustainability. Specific
business or company chosen here is the Maritime London, it is one of the leading international
marine company based in London, UK on 17th March, 1948. It is a type of United Nations
Specialised Agency. The following discussions are made on the challenges relating to corporate
responsibility and sustainability in Marine Industry, best practice considerations in Marine
Industry related to ethical and moral issues and recommendations for Marine Industry to show
they are being more responsible by taking into account global considerations with proper
findings and conclusion.
MAIN BODY
Challenges relating to corporate responsibility and sustainability in Marine Industry
Sustainability Challenges
Decarbonisation and lower emissions
Transportation could not stay uninfluenced from the current discussion and greater
cognizance on the contrary effects of condition alteration worldwide, with global marine
administration encouraging attempts to reduce the industry’s discharges over the past years. The
IMO’s position judgement 2018 for at least 50% less in greenhouse gases by 2050 in comparison
with 2008 causing new objections for the business on how to pull off a lower-emissions path
(Schaltegger and Burritt, 2018). It is accepted that advanced problem is the inbound
decarbonization authorised by IMO, including a different secondary fuels, which have their
merits and demerits: To resolve this, it is to be started instantly with short-run scaling.
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BWM
Since the IMO’s BWM rule came in September 2017, watercraft have been needed to
have a ship-specific substance water governance program and keep a substance water evidence
ledger. They also must pull off their substance water to follow either with the D-1 dealing
standard or the D-2 execution standard. The current improvements enforced on 13 October 2019,
launched an enforcement agenda to guarantee transport negotiation their substance water to meet
standard. The 8th September 2024 depicts the concluding point for amply complying with BWM
Practice. The complexness of the content authorised from controller to be clear, while from
industry and proprietor to be enlightened and cognizant. There are a batch of assembly situations
leading, like the BWM Rule: it is expected to perceive rather a fewer difficulties that are
progressing.
Digitalization and automation
While the realness of a clever existence forms the picture of a clever upcoming certain
and granted the vantages conferred by mechanization and smart engineering, the large objection
for transport companies appear to be an accurate mentality. Firms which are inactively stuck in
their conventional manner of doing things will have to alter orientation in command to choose a
fresh realness of the digital domain (de Bakker, Rasche and Ponte, 2019). Engineering is
approaching into transport very quickly for decarbonization or mechanization and artificial
intelligence. Establishments and everybody concerned in this business must expend wealth in
these applications and discovering the correct answer in command to be sustainable and form the
precise judgements for the upcoming time.
Cost
The preceding trends need non stop finance from transport firms in the basic level to
accomplish conformity with the fresh modulations and in a 2nd level to hold back sustainability
amid a perpetually dynamic surroundings and an unsure future. For instance, wide discussions
recently are the expenditure expressions related with the 2020 sulphur cap, where owners can
either set up scrubbers on watercraft or prefer low-sulphur fuels but both mixture levels up costs
compared to the formulaic HFO utilized until today (Crane, Matten, Glozer and Spence, 2019).
These fresh evolutions need from firms to discover efficient structure to negotiate the cost and
endure or even forms the divergence. In command to get rid with the fresh conventions, it is to
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be invested. It is the flock of cost concerned. It is to be managed. It is required a discover
equilibrium between the finance and the sustainable transport.
Over regulation and politics
While transportation is already demanding the heading of a densely organized- business,
things modifies so rapidly endlessly transforming necessities and request from transportation
firms, mariner, stakeholders, ports, constructor, categorizing societies and many more.
Meantime, an accelerative trend of politics stress and endorsement infliction newly uncovers
how politics is expectable to increase an even larger effect on commercialized transportation
(Rendtorff, 2019). A leading situation is over-regulation and the false targets set by bureaucrats
who have no obligation and no awareness of economics and technology. This is a mortal and will
keep transportation in a changeless state of economic crisis.
CSR Challenges
Lack of resources
This is one of the CSR challenge which is faced by the marine industry that is the lack of
resources such as stakeholders internally or externally because corporate social responsibility is
applied mainly on the employees and customers in the market who are doing well in the industry
but lacking in numbers and skills creates the challenge for the business (Freudenreich, Lüdeke-
Freund and Schaltegger, 2020).
Lack of strategic vision
This is an another CSR challenge which is faced by the marine industry that is the lack of
strategic vision such as strategic goals and objectives because vision defines the ethics and
values which is to be followed in an organization but if proactivity is only lacking in the business
then it can prove the challenge for the company.
Lack of measurement systems
This is also the one of the CSR challenge which is faced by the marine industry that is the
lack of measurement systems such as performance management of employees, employers and an
organization as well as a whole because corporate social responsibility is difficult to apply on the
business until and unless accurate measurements systems are not available in an organization (de
Bakker, Rasche and Ponte, 2019).
Low willingness to pay for CSR
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This is also an another CSR challenge which is faced by the marine industry that is the
low willingness to pay for CSR such as different values and ethics are sometimes proves to be
costly for the business so firms are more reluctant to expend for the CSR activities (Sullivan,
Thomas and Rosano, 2018).
Brexit challenges
It is also the one of the CSR challenge which is faced by the marine industry that is the
Brexit challenges which means Brexit situation in UK has suffered a lot by marine industry and
that is why it has became the CSR challenge, companies are not able to properly follow the
social responsibility and ethics due to the loss faced by them because of the Brexit challenge.
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Corona virus pandemic challenges
It is also an another CSR challenge which is faced by the marine industry that is the
corona virus pandemic challenge which means that the whole economy has reached out to the
depression period due to the pandemic and because of losses faced by the marine companies,
they have neglected the social responsibilities and ethics which must be covered by them.
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Best practice considerations in Marine Industry related to ethical and moral issues
Honest and ethical conduct
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Directors, employers and workers shall possess and boost the advanced regulation of
honest and ethical behaviour by: inspiring and gratifying professional unity hence destroying
compulsion, concern of revenge or disaffection from the firm itself, which can enact as
obstruction and suppress accountability and honourable conduct. Confronting, forbidding and
destroying any battle of involvement or occurrence of a battle of involvement between the firm
and what could outcome in individual profit for a manager, employers or workers of the firm, as
characterized in the connected Battle of Involvement argumentation. Pursuing a procedure for
workers of the institution to communicate senior administration of doings which distracts from
honest and ethical conduct. Showing their individualized aid for such argumentation and process.
Performing in the top-grade involvement of the firm in command to domain the firm's image as a
professional dealings with unity and great quality (Chen, Wu and Tsai, 2018).
Financial records and periodic reports
Directors, employers and workers shall level relevant inside the range of their job role,
guarantee that: Enterprise proceedings are decently accredited and entirely and correctly taped on
the firm's books and records in conformity with Generally Accepted Accounting Principles
(GAAP) and constituted firm fiscal policy. The possession or correct administration of firm
records shall be in conformity with constituted firm policies and relevant to judicial and
regulative necessities. Reports and representation the firm's records with Securities and
Exchange Commission or other authorizes public discipline and disclosures, incorporate full,
just, faithful, punctual and apprehensible data.
Anti-competitive conduct
Directors, employers and workers shall not come in to any statement, apprehension or
agreement with any rivalry about cost, district limitation, denial to sale, allotment of enterprise,
or cooperative command, or pursue in any another type of opposed competitive doings in offense
of practical laws or legislations (Edwards, Fleming and Kelly, 2021).
Compliance with applicable laws, rules and regulations
Directors, employers and workers shall follow with relevant laws and legislations in the
course of all behaviour in place of the firm involving the United States Foreign Corrupt Practices
Act (FCPA) of 1977.
Related Policies
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Firm adopts the following additive conduct-related policies as portion of the Code of
Ethics: Conflict interest and confidentiality, Maritime Corporation Code of Conduct and Ethics
for Senior Financial Officers, Trading Maritime Securities, Office of Foreign Asset Control
(OFAC) Policy, U.S. Foreign Corrupt Practices Act (FCPA) Policy. These policies are
connected. As a status of occupation, each worker of the firm must be acquainted with these
policies and accept to stay by their provisions. Contravention of the content of this Code of
Ethics and its accompanying provisions are unsatisfactory and may track to corrective act and
considering expiration of occupation or breakup of current enterprise relations with the firm
(Stahl, Chatfield, Ten Holter and Brem, 2019).
Reporting Violations
If anyone has cognition of a misdemeanour of this Code, such individual should
complaint the thing to the individual's direct superior or the firm's General Counsel. By calling
the relevant phone number related with the particular country or on website, for global calls. The
firm will not permit any return against a worker who acts in good belief in coverage any such
offense or directed offense.
Conflicts of Interest
No director, employer and worker of the firm shall have, straight or indirectly, any fiscal
or different involvement in any entity that does dealings with the firm. Employers and workers
shall not be hired by other entity or individualistic, enter in self-occupation, or service other
entity in any mode where such action will necessitate an extravagant magnitude of instance or
materially impede with the employer's or worker's quality to execute their job role in place of the
firm. Any petition for a release of any condition of this battle of Involvement policy must be in
authorship and addressed to the directors. Employers and workers have a responsibility to
confront manageable battle of involvement. Battle of involvement may not ever be clear-cut, so
if any question arises, it should be consulted with superior or manager, if conditions warrant, the
General Counsel of the firm (Van Zanten and Van Tulder, 2018).
Confidential Information
It is essential that it must defend the secrecy of the firm's private data. Private data
reckons copyrighted, technological, enterprise, fiscal, joint venture, consumer and worker data
that is not accessible publicly. It is the worker's duty to recognize that what data is private and
when to acquire elucidation when in uncertain state of mind. The non accomplishment of any
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worker to match to these broad program may effect discipline including separation of occupation
and payment originating from occupation or judicial action by the firm.
Recommendations for Marine Industry to show they are being more responsible by taking into
account global considerations
Crew management
It is recommended that the business must invest in culture and teamwork, invest in crew
welfare packages, integrate training, appraisal and development management systems, use of
combination of personal and computer based training and use of integrated crewing solution
onboard and onshore (Wijen and Chiroleu-Assouline, 2019). This is because it helps the firm in
employee management on a global basis so that they can handle the ethics, responsibilities and
sustainability along with the CSR activities in an organization because employees are the
greatest assets of the company so they are needed to be handled with care for the smooth
functioning of the company internationally and that is why crew management is recommended
for proper global considerations along with the management of diversity in culture and
backgrounds of employees. It is important to take up the responsibilities of crew mates of the
places wherever the business is operating and rendering it's services so that administrating the
crews can be helpful for an organization.
Technical management
It is recommended that the business must organise along processes, build processes
around a state of the art planned maintenance system, managing the key element of maintenance
budget: dry dockings, paying attention to hull maintenance, harmonise and centralise the
management of master data and embrace condition based maintenance (Fasoulis and Kurt, 2019).
This is because it assist the firm in working and collaborating it's business technical activities on
a global manner in a more comfortable way as it also includes the CSR activities so that the
company could not harm in any way. It is important to move with the latest technology now a
days so that company can accomplish it's technical requirements with better upgrades and fast
working of the business's technology. Updated technology which are mostly used in a current
trend is the automation and artificial intelligence. Therefore, it is important to take up the
responsibilities of technology because it is updating at a very great pace with better sustainability
options.
Financial management
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It is recommended that the business must integrate operations with finance, simplify and
harmonise the accounting structures, centralise the invoice registration process, harmonise and
automate reporting and invest in cash management procedures (Kronfeld-Goharani, 2018). This
is because it supports the firm in cash flow management across the world globally, international
support is being given by such management to control the funds of the business where income is
being generated and high calculation is done for the investments and expenses. Such
management handles various activities such as budgeting, investments, cash flow, funds,
expenses and many more. It also contributes in the assets management not only the high valued
and large assets but also the small assets also so that it can dissolved easily internationally.
Therefore, it is important to take up the responsibilities of finance so that it can look up to the
CSR activities of the company not only at a national level but also at international as well.
Quality and safety management
It is recommended that the business must move from QS to QHSE, deploy and monitor
regular crew training on safety issues, use integrated quality and safety solution, automatically
produce regular quality and safety KPI reports and have risk assessment integrated in regular
processes. This is because the it assist the firm in operations management on a global basis such
as with the help of total quality management, just in time management, capacity management,
inventory management, production management, logistics management and many more. Such
activities are performed internationally which also supports the CSR activities of the firm. Safety
is equally essential for not only the employees but employers and customers as well so that they
can all be comfortable with the company in terms of safety and security globally. Therefore, it is
important to take up the responsibilities of operations so that there can be the maintenance of
quantitative and qualitative management in an organization.
Procurement
It is recommended that the business must not purchase outside the system, communicate
with suppliers electronically, automate and simplify the process, embrace strategic sourcing
activities and reduction number of suppliers (Grover, Kar and Ilavarasan, 2019). This is because
it aids the firm in agreeing to the terms and in the decision making of buying and purchasing
under the conditions of scarcity. It is a method which provides the company in gaining the
competitive advantages in the marine industry so that it can perform at district, state, national
and international level of operations and procurement. For example, such systems includes the
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