Corporate social responsibility (CSR) from shipping companies in the straits of Malacca and Singapore

Abstract

According to the World Business Council for Sustainable Development, Corporate Social Responsibility (CSR) is the continuing commitment by businesses to behave ethically and contribute to economic development while improving the quality of life of the workforce, the local community and society at large. The Straits of Malacca and Singapore, which connect the Indian Ocean with the South China Sea and the Pacific Ocean is considered one of the busiest waterways in the world, a vital trade and communication link to the international shipping community. In 2010 the Malaysian Marine Department recorded traffic of 74,136 ships through the Klang Vessel Traffic System (VTS). The high vessel-traffic in these waters presents regulatory and operational challenges, not the least of which are the risk of accidents and the need to maintain effective navigational systems. By virtue of Article 41, 42 and 43 of the 1982 LOSC, the burden of responsibility lies on the Strait States, especially in regard to navigational safety and pollution prevention. The case is argued in this article, however, for User States, contributing to the maintenance of safety of the Straits of Malacca and Singapore. This article analyses the concept of CSR and how it is adopted by the User States, i.e., the shipping companies. The findings reveal that CSR of the shipping companies is addressed through voluntary contributions and cooperative mechanisms. The CSR also complies with relevant laws and regulations related to safety and pollution (for example MARPOL 73/78, SOLAS 1974, International Safety Management Code). The concepts of voluntary contribution and cooperative mechanism are derived from obligations established under Article 43 of the 1982 LOSC.

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