Corporate And Social Responsibility In Ship Management - Case Study Example

Corporate And Social Responsibility In Ship Management How have the social responsibilities of ship management business managers changed over the years? What now is a major part in their business policies? Give relevant examples of genuine companies if possible Management, irrespective of field they belong to have very similar responsibilities; business development. Managerial functions for first-line supervisors, middle grade managers, and top executives are quite identical, except that the higher the hierarchy, the more the responsibilities and accountability. To be sure, there are considerable variations in environment, scope of authority, and types of problems in the various fields. Yet all managers undertake the same basic functions to obtain results by establishing an environment of effective and efficient performance from individuals working together in groups. This is the same with ship management business managers. Their social responsibilities mirror their company’s ideology and ethics directed to professional client service and association, of mutual interest. In the 1990s, and at the turn of the century, a galaxy of developments was witnessed around the globe, especially in the Asia-Pacific region, where globalization took many developing countries by storm. China, India, and Vietnam, to name a few, benefited through FDI. The development of infrastructure, imports and exports has led to frantic activities in all major ports around Asia. Be it sea or airports, the movement of cargo in and out has made officials and workers work round the clock to clear backlogs. As huge ships ferry bulk cargo from and to different ports around the globe, the need to establish alternate points to ease the congestion has come under the scanner. As the major ports in China and India work overtime, their respective governments have been busy studying the feasibility of expanding port operations to smaller ports around the country. Ship business managers take pride in keeping their fleet operational at all times. When they come across ports ill-equipped to handle large ships, they need to supplement that sector with smaller ships. This is a critical area of operations, which lie squarely on their shoulder. In times of contingencies, ship business managers must be there to handle client grievance. In short, ship business managers are the front-line PR of shipping companies. Motivation is the key to success. Sailors find themselves at sea for a long period of time, and feel homesick. Administrators, technicians and general helpers are all important in the development of company image, and they too require motivation. Corporate and Social Responsibility (CSR) are part motivation and part creativity. Having said this, social responsibility remains a prerogative in the development of any business. Trust is an important scale by which employees, customers, suppliers and the broader public judge a company. Building trust and credibility is central to a company’s success and this forms a major part in the development of a corporate and social responsibility (CSR) policy. The social responsibilities of ship management business managers have changed over the years. With more and more shipping companies entering the fray, competition has gone up a level, creating a necessity for image building. To retain the best people in the business, companies add incentives to attractive salaries. Also, shipping opportunities have widened and scope for better pay and promotions have risen. Ship management business managers have the additional responsibility of having to plug these contingencies. Horse-trading is part of the corporate strategy. While it bolsters some, it has an adverse effect on others. Well established shipping giants, who through their employee’s discretion, find replacements hard to find, end up spending time on recruitment and training, losing valuable time in the process. This is an area of grave concern with all business. Retention of employees is an important part of the business manager’s repertoire. CSR, an essence of good image building, is about creating trust among employees; making them feel important and proud to be a part of the organization they work for. This is equally true in the case of customers and suppliers, as they too would like to be seen as an integral part of a big family that stands for mutual respect and benefit. After all, customers and suppliers would like to associate with an organisation that they can trust and rely upon. A reputable organisation is one, which values time as well as money. This is equally true with investors and financiers too, who would rather believe in what they see and stick with it. Caring for people and responding to social issues is a part of developing this image. Charitable trusts, infrastructural developments, educational issues are few areas where a corporate can build an image. Corporate and Social Responsibility (CSR) Many shipping companies have taken the responsibility to involve in Corporate and Social responsibilities as an image building exercise. V.Ships put in place a number of programmes and invested in resources dedicated to CSR. Their Training Report Process promotes the concept of continuous professional development, setting training targets amongst sea staff and defining objectives. For the benefit of their crew, the company initiated schemes on crew welfare, training and development. In order to ensure professionalism at all levels, the company embarked on programmes directed at cadet training. This is a way at getting the respect of clients, who forever would like to see their associate carrier competent and alert to happenings. Continuous training programmes and update on new technology is a way to keep support staff alert to unforeseen contingencies. Ship management business managers have to ensure that apart from image building, safety of the employees is addressed. All business operations must be within the parameters of individual and group safety. V.Ships, with its SafeShips policy, incorporates a series of initiatives and educational promotions for on-board safety and environmental protection. Among other social services that V.Ships handles include fundraising for community development and charity. In 2006, V.Ships supported the Tour Pour La Mer, a 200km cycling event which involved 300 riders from the maritime industry. The event was held to raise £250,000 for The Mission to Seafarers and The Sea Alarm Foundation. This was an event that went noticed by major players in the shipping industry. There is no denying that such magnanimous gestures; helps build a positive image about the company in the public eye, which in turn is good for establishing business relationships. As a ship management business manager, one needs to identify and promote events that can create an impact for the company, in this highly competitive industry. Responsibility Many leading companies have understood the measure and begun to monitor key additional areas such as social, environmental, safety, and corporate governance, as part of a formal Corporate Social Responsibility strategy. Shipping is an expansive business and this calls for a lot of deliberations. Customers must have faith in the safety of their valuables in the hands of their freight carrier and its crew. No customer today is more socially aware of the environment under which some companies behave irresponsibly. Taking a cue, many multi nationals, including oil majors, and blue-chip shipping companies are focused on building socially responsible performances to enhance their reputation. V.Holdings, through their active social service has taken a step to set an example for their suppliers and subcontractors to follow. Social service in areas of environmental performance, health, safety and human rights are strong precedent of CSR. Such strong social responsibilities send positive signals to all, that the company in the limelight believes in safe-guarding the environment and those who inhabit them. It is synonymous of how they care for their client and their business. There have been numerous cases of shipwreck at sea, and again near coastal areas. Ships carrying oil and chemicals are forced or damaged beyond control, culminating in the release of dangerous chemicals into the sea, causing widespread aquatic damage. Reminiscent of the gulf war wherein thousands of birds and fish were lost to oil spillage near international borders, shipwrecks can cause just as much damage. Such catastrophe can cause damage the eco-system leading to ecological imbalance. V.Ships has always stood for safety first, and this has helped the company earn valuable recognition. The company has managed to meet safety demands and demonstrated its commitment to good business practices. At the same time the strengthening of corporate governance ensures that there are clear and robust processes and procedures that are needed to operate the business efficiently; an essential component in this highly competitive industry. A Professional Workforce Social responsibilities also help in recruitment. Funny as it may seem, but the fact remains true. A company that is involved in social activities will always be gauged by its worldly image. Should the company have a positive outlook; people will look to be a part of it. This is true when it comes to attracting and retaining the best people in the business. MORI research throughout the 1990s consistently found that the vast majority of people believed a company that supported society and community, was a good company to work for. The positive impact plays a vital role in visualizing the quality of the company’s workforce; a sure indication of safety and professionalism (V.Holdings, 2007). OSM Supports Special Games OSM, an independent marine-services provider offering high-quality offshore and ship management and consultancy services, recently supported the celebration of 24th Kiwanis Special Games for the Physically and Mentally Challenged Children at the Amoranto Stadium in Quezon City Philippines. The event saw over 1000 special children from 36 different institutions participate. The exercise was to spread the word of equality and unity despite adversities. The day long programme, regardless of their incapacitation, was in more than one way, a most memorable and playful day, synonymous to OSM CSR (OSM, 2007). References 1.0 V.Holdings, Corporate and Social Responsibility, March 2007, www.vships.com/portal/site/vhcom/menuitem.dc2e8b7750654727f055c310341046a0/ 2.0 A league of their own, OSM: Welcome to the New Generation in Ship and Offshore Management, www.osm.no/, March 2007 Read More