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Blog | Friday January 11, 2019

Procurement in 2019: Shared Objectives, Shared Challenges

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In 2019 procurement executives can help advance their objectives by aligning with their colleagues in trade finance and the sustainability department. At the end of 2018, BSR and Bank of America Merrill Lynch held an event in London to discuss what our future supply chains will look like and how procurement, trade finance, and sustainability can work together.

The objectives and challenges of these three seemingly disparate groups are more aligned than you might think. As such, there is value in working together to achieve a shared vision for supply chain management.

Aligned Objectives

The 2018 Deloitte CPO survey showed that, once again, the top priority for procurement chiefs was cost savings, and their top strategy was consolidating spend.

Managing the corporate social responsibility (CSR) strategy rose to sixth position, which suggests that procurement and sustainability agendas are increasingly aligning. In some of our own research, we have found trade finance professionals want to integrate sustainability more firmly into their offerings, which implies there is room to work together.

Sustainability professionals also welcome efforts to consolidate spend among a smaller pool of suppliers, as long as CSR issues are considered in the equation. Indeed, working with a smaller number of first-tier suppliers can help focus sustainability efforts and improve performance in this area.

At the same time, when considering suppliers that are further upstream, all actors agree having improved visibility and a more connected supply chain is better. For sustainability, it enables them to have an impact where challenges exist; for procurement, it helps to better manage risk and ensure security of supply; and for trade finance, it opens up opportunities to provide financing to a broader array of companies with a wider set of service offerings.

Finally, everyone needs to digitalize. Digitalized supply chain finance is overtaking traditional trade finance mechanisms. Procurement chiefs are looking to digitalise their processes, while sustainability professionals are increasingly using digital tools, such as satellite imagery, to help in their efforts to drive performance.

Shared Challenges

There are shared challenges as well. The first is how they measure sustainability performance of suppliers at all tiers of the supply chain. As certifications, audits, and other traditional measurements of sustainability performance are being called into question, and as the number of databases and tools measuring sustainability performance increases, complexity grows.

Trade finance professionals need to consider this in their know-your-customer efforts, and buying organizations need to consider what they are going to ask for and potentially reward. The attendees to our event agreed there is a tremendous opportunity to learn from each other and harmonize efforts and datasets.

Another challenge these three face is in trying to break down silos. Sustainability professionals need to be in the room with finance and procurement, but they often don’t speak the same language. Procurement and finance can see some correlation between sustainable suppliers and high-performing suppliers, but they need a better articulation of this fact.

Finally, engaging and accessing upstream suppliers is a critical issue for everyone. Procurement knows some of the greatest supply chain risks lurk there, and this aligns nicely with sustainability’s perspective on where their biggest challenges lie. Trade finance can see opportunities to finance further up the chain, but they also need better access to be able to derisk the opportunities such that they become financially interesting.

In short, we can see a path forward from three siloed approaches—where procurement optimization, maximizing financial returns from trade finance, and achieving sustainability objectives in the supply chain could become truly integrated. Perhaps this is what supply chain transformation should really be about.

Blog | Thursday December 27, 2018

ICYMI: Our Top Sustainability Insights from 2018

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2018 was a big year for many of the issues that BSR works on: We saw climate, human rights, and women’s empowerment make headlines around the world, from the release of the new IPCC reports and protests in France, to the removal of military officials from social media in Myanmar, to the #MeToo and #TimesUp movements in the United States.

We also spent this year thinking about the major forces that we see shaping our world for decades to come, from artificial intelligence (AI), automation, and blockchain to the increasing impacts of our changing climate on people and supply chains globally.

We know it can be easy to miss a blog post or a report launch in today’s news cycle, so we’ve rounded up some of your favorite pieces of content from this year.

Without further ado, here they are, for your end-of-year reading pleasure.

Blogs and Case Studies

• Seven Things Every Company Should Know about Artificial Intelligence and Sustainable Business explores—you guessed it—how your organization can start thinking about AI and sustainability.
• Announcing a New Collaboration Using Tech to Combat Human Trafficking introduces our Tech against Trafficking collaborative initiative.
• We Need to Talk about Blockchain—Together considers why collaboration will be essential to realizing the sustainability promise of blockchain.
• Our Human Rights Impact Assessment of Facebook in Myanmar summarizes our work with the company on its programs and policies in this space.
• How Luxury Can Lead the Future of Sustainable Business describes the opportunities the Responsible Luxury Initiative identified for the industry to increase its sustainability leadership.
• The Coca-Cola Company: Building a Climate-Resilient Value Chain is a case study of our work with the company to examine climate risk and resilience beyond its direct operations.
• Three Hot Debates in Sustainability Reporting Today addresses questions like whether companies should move to more real-time sustainability reporting or stop using “materiality” outside of investor relations.
• An Exciting New Era for ESG and Socially Responsible Investing in Japan shares an update on key developments in this space and the global implications.
• How Do We Solve the Plastic Waste Puzzle? provides an overview of our work on this topic with companies in the Asia-Pacific region.
• How Businesses are Collaborating for the SDGs gives five examples of private-sector collaboration toward the accomplishment of the Global Goals.

Reports

• Redefining Sustainable Business: Management for a Rapidly Changing World is a guide for sustainability practitioners in today’s dynamic environment.
• State of Sustainable Business 2018 details the results of our 10th annual BSR/GlobeScan survey of BSR member companies.
• Private-Sector Collaboration for Sustainable Development shares insights on how companies can contribute to the realization of the UN SDGs.
• Doing Business in 2030: Four Possible Futures leverages futures thinking to share four possible scenarios for 2030, which you can use to help your company develop a more resilient business strategy.
• Win-Win-Win: The Sustainable Supply Chain Finance Opportunity describes the massive opportunity for business to leverage supply chain finance to realize sustainability objectives.

We published a lot of great content on other cross-cutting issues, too, including a series of reports about the nexus between climate and other key sustainability topics, a set of papers on the human rights implications of artificial intelligence, a new video and guidance for more gender-sensitive supply chains, and the Sustainability Short Takes video campaign on hot topics in our space, which we will continue next year.

This is my last post as the editor-in-chief of the blog—while I’m staying here at BSR, I’ll be moving over to do more work directly with companies on sustainability management and strategy. Of course, you’ll be in great hands with my successor, Aimee Louise Bataclan, and we’ve got lots of exciting content lined up for you in 2019.

From me and my colleagues here at BSR, we wish you a safe and happy new year, and we look forward to working with you next year to create a more just and sustainable world.

Blog | Wednesday December 19, 2018

COP24 Set the Rules of the Road; Now We All Have to Drive

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In a part of Poland where local residents still have bags of coal delivered to heat their homes, the 2018 UN Climate Conference (COP24) in Katowice saw countries agree to rules on how they will measure and report progress to reduce carbon emissions under the Paris Agreement.

In the context of a challenging global political landscape on climate, crafting a single set of rules that brings the Paris Agreement to life was a significant achievement. But it’s important that we don’t confuse setting the rules of the road with strong climate leadership.

What’s at stake could not be clearer. COP24 began in the shadow of the IPCC’s Special Report on the impacts of 1.5°C of global warming. The report warned that failing to reach global net-zero emissions in 2050 would cause more extreme weather events, additional damage to coastal infrastructure and reduced food security. Achieving the 1.5°C goal would improve health, reduce poverty, and help build a sustainable, resilient economy that leaves no one behind.

Business ambition was on full display at COP24, with shipping giant AP Moller Maersk announcing a net-zero carbon goal by 2050, IKEA announcing 80 percent reductions of emissions from production processes by 2030, and American utility Xcel Energy announcing a switch to all zero-carbon power by mid-century.

Companies including Mars, Mahindra, and Microsoft urged governments to choose the economic opportunities of our zero-carbon future over the economic risks of our high-carbon present and past in their “Talanoa Dialogue” discussions with Ministers. This was backed up by the 500 companies now committed to the Paris-aligned emissions reductions known as science-based targets.

One of the early outcomes of COP24 was the conclusion of the Solidarity and Just Transition Silesia Declaration. It demonstrated that enhancing political will for climate action will depend on ensuring that the economic opportunities of the zero-carbon transition are widely shared, while minimizing disruption to people and communities. Governments who ignore the need for a just transition risk growing unemployment and even civil unrest.

Businesses made a joint call to action at the Global Climate Action Summit in September. At COP24, they joined investors, cities, and regions to call on governments to increase domestic policy ambition, develop long-term plans toward the net-zero economy, and help create quality jobs.

While the Paris rulebook underpins global ambition over time, COP24 fell short of an explicit commitment to improve domestic policies over the next two years. However, in the spirit of the Paris Agreement, a High Ambition Coalition—including Canada, the European Union, France, Germany, Italy, Spain, the United Kingdom, New Zealand, many small island states, and the group of Least Developed Countries—emerged to announce that they would step up ambition by 2020.

The High Ambition Coalition invites businesses and other sub-national actors to join them in this effort, and we encourage you to do so by email here.

For businesses digesting the impact of the COP24 outcome, the developments provide glimpses into our future.

• First, sub-national coalitions are steering us toward ambition. The We Are Still In movement in the U.S. and the Global Climate Action Summit demonstrate that together, businesses, investors, cities, and regions can be as impactful as national governments—or more.
• Second, the High Ambition Coalition is the way forward. In a fractured international political landscape, businesses taking strong climate action will find friends banding together and governments offering their hand. Progress will come from different constituencies arm in arm.
• Third, through rising support for the just transition, the climate and inclusive economy agendas will increasingly intersect. More and more, we must emphasize how climate action does not merely protect our environment. It reduces inequality, generates jobs and improves public goods like health.

For those willing to drive action toward a zero-carbon future, the next stop is already on the horizon—the UN Secretary General’s Climate Summit next September. By then, we will measure success not by the road underneath us, but by how fast we are going.

Find out how your company can take action.

Blog | Monday December 17, 2018

BSR18 Participation Report (for Japanese Newsletter)

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Blog | Monday December 17, 2018

Why Multilateral Human Rights Bodies and Frameworks Are Vital for Business

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This year marks the 70th Anniversary of the Universal Declaration of Human Rights. At BSR, we are pleased to reflect on and celebrate the progress initiated by that landmark declaration. However, it is also important to highlight and address growing threats to the international human rights regime.

2018 has been a difficult year in this regard. The United States withdrew from the UN Human Rights Council, signaling a retreat from multilateralism. And toward the end of the year, there were threats to the funding of the Office of the High Commissioner for Human Rights (OHCHR).

BSR believes that this matters not just for politics, but for business—and many business leaders that we speak with agree.

Multilateral institutions and frameworks for human rights are critical to ensuring that human rights are consistent for individuals around the world—in different countries and cultures with different political regimes and histories. However, they are equally critical for business and its operations.

The unanimous adoption of the UN Guiding Principles on Business and Human Rights (UNGPs) in 2011 marked the first time that the international human rights regime, originally developed for states, was authoritatively applied to business. Subsequently, leading companies have played an active role in uptake and promotion of their implementation. Businesses rely on these Principles to guide their human rights policy frameworks and due diligence processes through which they assess, manage, and report on human rights-related risks across their operations and supply chains. Support for the UNGPs extends to influential organizations representing business, including the International Organization of Employers, the International Chamber of Commerce, and the U.S. Council for International Business.

Together, the UNGPs and OHCHR are a powerful force, giving business a much-needed touchstone for human rights and supporting the continued proliferation and enforcement of human rights policies around the globe, from corporate offices to supply chains.

The UNGPs help level the playing field in global competition and promote the rule of law in countries where this has historically been lacking. Additionally, the requirements embedded into the UNGPs are entirely consistent with the increase in regulation of business and human rights issues around the world, from the Modern Slavery Act in the U.K. and similar pending legislation in Australia and Hong Kong to the CLOUD Act in the U.S.

OHCHR is at the heart of efforts related to the UNGPs. As part of its global mandate to promote and protect human rights, OHCHR is the institutional home of the UNGPs and thus serves a critical function as a centralizing body for managing, stewarding, and promoting adoption and implementation of the Principles.

In addition, companies that take measures to assess, mitigate, and remediate risks related to human rights, whether concerning forced labor and human trafficking or broader labor rights, have benefited from the research and guidance developed and disseminated by OHCHR. For example, OHCHR is currently engaged in an important two-year study to help clarify the role of companies and states relating to operational grievance mechanisms for harms arising from business operations. OHCHR is taking significant steps to engage companies directly, so that the guidance adequately addresses the real-life challenges that business experiences in difficult operating contexts. As regulations around human rights due diligence and reporting continue to spread around the world, the expertise and guidance of OHCHR on how business can meet the expectations set out in the UNGPs will become even more relevant for companies. 

Together, the UNGPs and OHCHR are a powerful force, giving business a much-needed touchstone for human rights and supporting the continued proliferation and enforcement of human rights policies around the globe, from corporate offices to supply chains.

In this anniversary year, BSR encourages all companies to express their support for these institutions. Moreover, we call for continued adequate funding for OHCHR in 2019 and beyond to ensure that the various human rights challenges emerging around the world can be met by companies in a consistent and effective fashion.

For companies wishing to engage on this and other policy issues related to human rights, BSR’s Business Action Platform for Human Rights helps companies support policy frameworks that protect and promote human rights at a time when these universal Principles are increasingly under threat. For more information or to get involved, please contact us.

Case Studies | Thursday December 13, 2018

Stora Enso: Human Rights Commitment through Prioritization

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For four years, BSR has worked with Stora Enso, a leading forest products company based in Finland, to support the company’s human rights journey. Stora Enso is one of the first companies globally to systematically track its human rights impacts and publish the findings.

The Challenge

Stora Enso initiated a company-wide human rights impact assessment (HRIA) in 2013. It was accelerated by a challenging situation in Pakistan the following year, when child labor was discovered deep in the local supply chain of a company in which Stora Enso held a minority stake. The goal of the HRIA, conducted together with the Danish Institute for Human Rights, was to gain a holistic view of Stora Enso’s potential human rights impacts in all of its 92 business units worldwide. Based on the findings, the company developed a global human rights action plan (HRAP) that features hundreds of action points.

Upon completing the HRAP, which included a collaboration with BSR to implement a local HRAP in China from 2015-2017, Stora Enso partnered with BSR to identify the company’s highest priority human rights issues. The goal was to find those human rights issues that Stora Enso has the most impact on and should therefore focus on when planning its work and allocating resources.

Our Strategy

Identifying Stora Enso’s human rights priorities was a unique project in how it was structured. As the company has transformed from a traditional paper company into a renewable materials company, its human rights profile has changed. A successful project required commitment from all business units and supporting functions; the project also had to reflect the real-world business challenges the organization was facing.

With frequent one-on-one engagement with the project steering group and function heads, BSR and Stora Enso mapped the company’s existing human rights systems and gaps in its processes. This diverse working group identified eight human rights priorities, which were then discussed and approved by Stora Enso’s executive team, making the bigger plan a company-wide effort.

Our Outcomes and Impact

Over the past four years, BSR’s support has helped Stora Enso to identify its highest priority human rights impacts and to develop a plan for addressing them. The eight highest-priority human rights will guide Stora Enso’s future work, which will include an updated due diligence and monitoring program.

Case studies on Stora Enso’s work have been shared within the BSR Human Rights Working Group as topics for discussion and learning, which has directly impacted the group’s member companies and, more widely, the global human rights field.

Lessons Learned

Companies about to undertake the development of a comprehensive human rights program may want to consider these suggestions.

• Remember that it’s not only about scale: Normal risk thresholds may not work when it comes to human rights. Stora Enso was first exposed to serious human rights issues in the supply chain of a minority investment company in an emerging market. The subsequent publicity impacted the company’s reputation heavily for more than two years. 
• Gain internal buy-in: Involve all relevant business functions when developing your human rights program. True commitment and willingness to act come from inclusion in the process.
• Ensure practicality: For human rights recommendations to turn into action, they need to be pragmatic. Introduce plans that are realistic to implement, measure, and assess.
• Get top management sign-off: Having top management approval demonstrates that human rights are important to the company. Involve leaders at an early stage.

Blog | Tuesday December 11, 2018

Are You Prepared for the Future of Business and Human Rights?

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The Universal Declaration of Human Rights (UDHR) was adopted by the United Nations General Assembly 70 years ago on December 10, 1948. While written for states, the UDHR asserts that “every organ of society” shall strive to secure the universal and effective recognition and observance of human rights. We have witnessed huge progress in the role of business as an “organ of society” since the publication of the UN Guiding Principles on Business and Human Rights (UNGPs) in 2011.

As a historian (Dunstan) and a futurist (Jacob), we are naturally fascinated by the relationship between time and human rights. Embedded in the UDHR is the notion that every organ of society should strive toward the realization of human rights, while the UNGPs encompass “actual or potential adverse human rights impacts” (our emphasis). In addition to dealing with current and past harms, both documents are also forward-looking.

The emerging practice of human rights due diligence by business has led to the burgeoning completion of human rights impact assessments and accompanying human rights management and mitigation plans. This is highly encouraging; it reflects the increasingly prominent role played by business in society today when compared to 1948, as well as the desire to proactively mitigate adverse impacts that might arise in the future.

However, the world around us is changing at an increasingly rapid pace, with disruptive technologies, shifting social norms, and turbulent politics (among other forces) transforming the circumstances in which business is expected to meet its responsibility to respect human rights. Indeed, the very definition of “human” will be increasingly problematized by emerging developments in biology and technology.

In this context, one big question looms large: Is the business and human rights field equipped to identify the potentially adverse impacts of the future and put in place effective plans to mitigate them?

One big question looms large: Is the business and human rights field equipped to identify the potentially adverse impacts of the future and put in place effective plans to mitigate them?

We believe that there is huge potential for the business and human rights field to deploy futures and strategic foresight methodologies in ways that significantly enhance the effectiveness of human rights due diligence. One way to do this is through the use of future scenarios.

During the BSR Conference last month, we published a new report, Doing Business in 2030: Four Possible Futures, which presents four such scenarios describing alternate future contexts for business. From climate disruption to automation and artificial intelligence, the changes depicted in the report will create an entirely new operating environment for business, and for human rights.

The scenarios combined rigorous research with creativity to imagine four plausible yet very different versions of what the world might be like in 2030. In the first, challenges to the Western model of capitalism draw emerging economies into China's orbit and eventually drive a shift toward sustainability. In the second, the notion that “all business is political” has taken hold—and the polarization of today has intensified into profound social, economic, and cultural fragmentation. A third envisions a future in which people opt out of consumerism, big business, and social media and rediscover the benefits of local community. The fourth scenario explores a world dependent on incredibly powerful AI, where privacy has largely disappeared, but benefits in health and other areas are profound.

Scenarios are neither predictions nor forecasts, and none of BSR scenarios will “come true” exactly as written. Instead, they are a tool to help us think differently and consider truly radical changes that escape the bounds of our current models. Rather than providing us with a single answer about the future—which would almost certainly be wrong—they enable us to embrace uncertainty, eliminate blind spots, and develop more resilient strategies.

So, how can you use scenarios to enhance human rights due diligence?

First, suspend disbelief and immerse yourself in each new world. Imagine it is 2030, and the scenario you’re reading accurately describes the world your business inhabits. What would your operations look like? How might your products and services be used? What lifestyles would your customers, employees, and communities be experiencing?

Second, explore what new human rights risks and opportunities may arise for your business in each of these scenarios. What new human rights impacts might your business be causing or contributing to through its activities in 2030? How might your products and services be used to violate human rights in each scenario? Which of your rightsholders, especially vulnerable groups and those at risk of marginalization, would be at greatest risk, and why?

Third, consider how you could make your company’s human rights mitigation plan more resilient to the entire set of scenarios. Are there any elements of your current approach that would fail in one of these scenarios, but which could be reconsidered? Are there any actions you could take that would work well across all the scenarios? What system-wide challenges would need to be addressed through collaboration, rather than each company acting alone? Once you’ve identified the most promising activities, consider what you’d have to start doing today to bring them to life.

We are not proposing the deployment of futures and strategic foresight methodologies as an alternative to today’s human rights due diligence—far from it. Rather, our premise is that futures and strategic foresight methodologies offer a promising pathway for improving today’s human rights due diligence methodologies so that they are better equipped to address an uncertain future.

On the 70th anniversary of the UDHR, we believe this is an important new way to promote respect for the rights and freedoms it protects.

Blog | Monday December 10, 2018

Happy Birthday to Your Human Rights!

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Birthdays are a great time for reflection. This week, as the international human rights system turns 70, is a good time to look back on what it has achieved, especially as it relates to business.

This week, as the international human rights system turns 70, is a good time to look back on what it has achieved, especially as it relates to business.

The first thing to acknowledge, and the most often forgotten, is that the human rights system is a major achievement. When the world emerged from World War II, a common set of values, and the institutions to implement them, were far from inevitable. The world had just seen 60 million deaths and was divided by two economic systems and political ideologies, each with missiles pointed at the other. All those actors coming together required dozens of visionary leaders and thousands of individuals to put aside their national interests and work toward a better world. That’s a rare thing, and one that is worth celebrating on its own.

The second achievement of the international community was what happened next. We now have more than 100 international instruments that define and elaborate human rights from freedom of expression to non-discrimination. This, too, is often overlooked. Autocrats who say it’s impossible to deliver basic schooling to all of their citizens, or despots who claim that jailing their political opponents is justified, speak in contradiction of an entire field of law and practice.

From legal jurisprudence to international monitoring to UN investigations, today we have dozens of vehicles to bring human rights abuses into the light and define, precisely, why they breach international norms. All of this comes not only because the foundation stone of the international human rights system was laid down on December 10, 1948, with the Universal Declaration of Human Rights, but also because it’s been steadily expanded ever since.

But one of the greatest achievements took place within our lifetimes, in June 2011. This was the UN Human Rights Council’s unanimous adoption of the UN Guiding Principles on Business and Human Rights—the first time the human rights regime, originally designed for states, was authoritatively applied to businesses.

This offered benefits for all actors. For states and citizens, it gave them a framework for holding companies to account, using the same principles that civil society was already conversant with in applying to states. For businesses, too, the human rights regime gave them clarity, a defined set of obligations at a level above legal regulation and activist demands. The human rights regime defined, finally, the ‘S’ in CSR and the ‘people’ in the triple bottom line of people, planet, and profit. The clarity of the UN Guiding Principles, along with their unanimous backing by actors from the Nigerian government to Amnesty International to Coca-Cola, finally offered a framework that was as international and powerful as the private-sector actors applying it. 

I should also mention, rather selfishly, that this framework also came to underpin BSR’s work. Broad principles and international agencies operate at a speed and altitude that isn’t ready-made for companies. BSR takes those principles and translates them to the day-to-day. For example, we’re currently working with companies to mitigate the knock-on effects of poor labor practices in the supply chain, set up grievance mechanisms in Papua New Guinea, and develop a platform for technology to act as a vehicle for securing human rights.

But no birthday would be complete without a few thoughts on what we have yet to achieve. The human rights system is defined by its shortcomings as much as its successes.

Like anyone else in this field, I could bore you for days with my nitpicks about the human rights system. You’ve heard (or read) most of them before: It’s not binding, it’s slow, the coffee at the conferences is terrible. All that is nothing new.

So here, I want to talk about a shortcoming that doesn’t come up as often, but that I can’t stop thinking about—the difficulty of the international system to deal with systemic human rights abuses.

Companies need to think about their roles in larger economic systems, whether it’s how they promote an inclusive economy or how they contribute to climate change. In this sense, human rights is sometimes too narrow for business. We’ve got to look at the wider ecosystem of laws, society, and structures around the company to fully address its human rights impacts. BSR is currently building out our ecosystems approach to human rights in collaboration with our member companies.

Ultimately, human rights standards are always behind societal ethics. Child labor, for example, first got attention in the industrial revolution, but it took decades to be codified into domestic laws, then a decade or two more before it was enshrined at the international level. We’re seeing this same trajectory with living wage policies and data privacy right now: Information about their social impacts is clear, but it will take years of mobilization before they are effectively settled as law.

Companies, on the bright side, can move faster. While it’s important to use human rights as the basis of action, they can also extend their vision closer to the horizon, to issues where the impacts are clear, but the law is still evolving.

I don’t think we have even started to feel the full effect of the human rights regime on businesses. Governments are regulating more. Civil society groups are demanding and educating more. Investors are asking more questions. And indeed, more C-suite discussions on human rights are taking place than ever before. But no matter how revolutionary this moment feels, we’re still at the beginning.

But no matter how revolutionary this moment feels, we’re still at the beginning.

I think that’s a pretty good attitude to have on your birthday.

Blog | Friday December 7, 2018

The Maritime Anti-Corruption Network: More Members, More Action, More Impact

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The Maritime Anti-Corruption Network (MACN)—a global business network working toward the vision of a maritime industry free of corruption—was founded in 2011 by a small group of companies. It was created with the recognition that for many years, the shipping industry has faced a difficult issue: When a ship travels in and out of ports, there is an opportunity to ask for illegal payments.

For example, one captain told us recently:

“The customs officer threatened to delay the ship and fine us US$60,000 for an error on the luboil [lubrication oil] declaration. Then he asked us for US$7,000 to help us have no problem.”

These corrupt demands are bad for shipping companies, as they can lead to delays or other commercial consequences for those who stood their ground. They are bad for the ports and governments, who acquire a reputation for corruption and have friction in the trading environment. Above all, they are bad for the ships’ captains and crews, who come under pressure to reject demands yet face threats, intimidation, and sometimes violence when they try to do so.

MACN started small, but it’s not small today: In 2018, MACN was delighted to welcome its 100th member. Members come from across the shipping value chain and include the largest vessel owners and operators, as well as associate members like companies that provide agents for ships entering ports. Collectively, MACN members represent over 25 percent of total global tonnage.

A bigger membership means a stronger collective voice when speaking with governments, ports, and customs: With over 100 members, we have real power to bring to the table and push for change. It means more resources to deliver tools and resources to members. And ultimately, it means greater impact and a better operating environment for those on the front line—the captains and crews.

A bigger membership means a stronger collective voice when speaking with governments, ports, and customs: With over 100 members, we have real power to bring to the table and push for change.

Here are some of the things we have been proud to accomplish in 2018 and three reasons why we would love for you to join us.

Collective Action

MACN’s collective action in Argentina has resulted in the successful adoption of a new regulatory framework for dry bulk shipping. This year, according to MACN data submitted through our anonymous incident reporting mechanism, corruption incidents in Argentina have decreased by more than 90 percent. This has been driven in part by high-level support for the new regulatory framework from the customs authorities and also from high-level politicians, including the Argentine President.

Elsewhere, we have completed our collective action project in Nigeria, which was supported by (among others) the Danish Maritime Foundation, the Orient Fond, and Lauritzen Fonden. The project included training over 1,000 government officials and developing a training course on ethics for government officials. We are proud to work with local partner Soji Apampa, founder of The Convention on Business Integrity Ltd.

MACN is also preparing to launch a collective action in India, with a port integrity campaign through which vessels will prominently display signs and posters co-signed by the government about the “Say No” policy and opposition to corruption.

Culture of Integrity

In addition to collaborating with members and stakeholders to find solutions in corruption hot-spots, MACN seeks to influence the wider culture to ensure lasting change. In 2018, MACN was delighted to present its work to the Facilitation Committee (FAL) of the International Maritime Organization (IMO). This was a major step in engaging the broader maritime community, and MACN is following up through a cross-industry working group.

MACN also spoke at several major conferences this year, including Transparency International’s International Anti-Corruption Conference in Copenhagen.

Finally, MACN was invited to provide testimony at the U.K. House of Lords on the U.K. Bribery Act’s effect on the maritime industry. You can watch a recording of the session here.

Our Impact

We’re delighted to see that the word is spreading, and our impact is growing. Around the world, corrupt demands in hot-spots are decreasing, and where demands are still being made, our members are better prepared, with stronger policies, more resources, and the best practices of their peers.  

But don’t just take our word for it. We asked some of our members why they joined MACN, what its value was, and how it can enable fair trade to the benefit of society and all stakeholders. Watch the video below to hear from them, and if you would like to get involved, contact us.

Blog | Wednesday December 5, 2018

Supply Chains Give Us the Opportunity to Measure and Fight Violence against Women

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“There are times when a woman deserves to be beaten.”

That’s what 34 percent of approximately 11,500 workers and managers in factories in India believe, according to a survey conducted by BSR’s HERproject, which works with global brands, their suppliers, and expert local partners to empower women working in global supply chains.

In many countries at the heart of supply chains (such as India), unequal power relations between men and women facilitate and excuse violence and sexual abuse against women. Yet while this may be common knowledge, it is not always easy to demonstrate—and it is certainly not easy to tackle at a societal level.

Workplaces like factories bring together large numbers of women and men every working day. As such, they can be an ideal location to measure and tackle the norms that underpin violence against women.  

That’s why leading global brands and their suppliers are putting their weight behind efforts to address violence against women through workplace-based interventions. 

BSR’s HERrespect, a pillar of HERproject, provides training sessions for managers and both women and men workers, joint sessions between workers and managers to facilitate dialogue, and support for managers to develop and communicate policies. It invites workers and their managers to reflect on the different ways violence might manifest in a relationship, how to recognize it, and its consequences at home and at work. It helps both men and women explore how power relationships might be abused. And it works to change managers’ preconceptions around how supervisors should motivate their workforces.

BSR has implemented HERrespect trainings in nine factories in India (four in the South and five in the North), which included approximately 11,500 women and men workers and managers. Before the training begins, we present all participants with a series of statements and ask them whether they agree or disagree. A month after the training is complete, we return and repeat the process.

The results from the final survey are encouraging. Across all participants, including workers and managers, agreement with the statement, “There are times when a woman deserves to be beaten,” dropped by 55 percent (from 34 percent to 15 percent). In three factories, female workers did not see any justification for violence at the end of the program; the percentage of female workers in agreement with that statement dropped from 34, 48, and 36 percent to zero.

Similarly, we presented participants with the statement: “If a male supervisor makes suggestive comments to a female worker and she seems interested, it is not sexual harassment.” Following the implementation of HERrespect, agreement for this statement dropped by 50 percent (from 36 percent to 18 percent).

These are preliminary data: BSR will continue to review and expand our evidence base on violence. Nonetheless, two things are clear.

First, the scale of the challenge is enormous, because these are issues that stem from deeply unequal norms that workers and managers have internalized. When 34 percent of a group—including a high proportion of women—agrees that there are times when a woman deserves to be beaten, we see how deep the problem runs.

But secondly, there is hope for progress—and business can be a major player in the solution. Global brands and their suppliers have not created discrimination against women, and they cannot be expected to end it on their own. Nonetheless, smart businesses are recognizing that the manifestation of these attitudes in the workplace constitutes a major business risk. Moreover, as employers of millions of women and men in countries like India, global brands and their suppliers have an opportunity to push positive messages that counteract discrimination and reduce violence, playing a positive role as corporate citizens.

The surveys we conducted at the end of the program leave us optimistic that real change is possible. As one worker put it after completing the HERrespect training:

“There was a time when men in my floor would not listen to me. They not only believed that women can’t speak, but also condemned all those who are not educated enough. The combined sessions with men and women really helped to create our own identity in the workplace. During sessions when our male counterparts saw me speak so confidently, I began to realize my own value.”

We encourage other leading brands to join us in HERrespect and become a force for positive change for women. Please contact us for more information.