The Maritime Anti-Corruption Networks (MACN) published its annual report for 2022 describing the issues that has led to an increase in demand for frontline support and company compliance tools.
In particular, over the last 18 months, the world move out of a pandemic-driven mindset, handle the ongoing war in Ukraine, and work through major shifts in the economic and trade landscape. Issues of governance, including a focus on anti-corruption, have increased in prominence at the foreign policy, regulatory, and corporate levels.
Digitization and the role of technology
By 1 January 2024, the IMO’s Single Window for data exchange will become mandatory in ports around the world. The Single Window is a significant step in the digitalization of shipping, meaning more transferable data and, potentially, an increase in transparency around how ships are managed and how they interact with port-side authorities.
An increase in data sharing and the number of connected ships improves the industry’s ability to inform a vessel of possible risks, helps MACN provide real-time support to frontline staff, and makes incident reporting faster and easier. Through the launch of tools such as the Global Port Integrity Platform (GPIP) and 3 Sea Diligence (an online third-party due diligence risk management platform), MACN is at the forefront of embedding technology into the fight against corruption.
A governance and workplace issue
Driven by regulatory enforcement and shareholder oversight, there has been a clear trend toward improved corporate governance, notably around bribery and corruption. Governance, a particularly neglected part of ESG, has seen an increase in focus through compliance training and anti-corruption capacity building.
The stress, distraction, and threats that typically accompany corrupt demands are increasingly viewed as workplace safety issues for seafarers and workers in the logistics supply chain. With the digital integration of the shipping, ports, and logistics industries there is less room for accepting ‘this is the way business is done’. Anti-corruptionand compliance training, Know Your Counterparty (KYC), whistleblower hotlines, and frontline staff support structures rapidly improve companies’ ability to respond to and refuse corrupt demands.
Collective action is the (only) way forward
MACN see more push and more standards to criminalize bribery of foreign public officials – focusing on the ‘supply side’ of the bribery transaction. Internationally, this is part of a multi-faceted trend to address all sides of the anti-corruption equation. In this context, industry-driven collective action initiatives — like those run by MACN — have a central role to play in changing attitudes toward corruption, improving transparency, and reducing risk across the wider supply chain.
Collective action strategy
MACN has implemented collective action initiatives since 2012, based on the industry-led mapping of locations where the industry faced a large number of corrupt demands.
MACN’s collective action work is dynamic, and is directed by the following factors:
- Frequency, Severity: Countries and ports targeted are those where the maritime industry experiences severe and frequent integrity challenges, and who are willing to address the problem.
- Relevance: Countries and ports targeted are those that have business relevance for the maritime industry looking 3-5 years ahead from a maritime trade perspective.
- Commercial Leverage: Countries and ports targeted are those where MACN has a critical mass of leverage to change behavior through collective action.
- Feasibility: MACN assesses the opportunity for driving change in collaborating with local stakeholders, and the drivers for this commitment, for example, local political commitments to the anti-corruption agenda and to trade facilitation.
MACN’s in-country collective action work is further assessed by the following factors:
- Impactful – Deliver result-focused initiatives that improve the operating environment and reduce corruption.
- Industry Lead – Increase participation of MACN members in initiatives by focusing on countries where members face challenges and do regular business.
- Inclusive – Increase collaboration with key stakeholders such as governments, civil society, and the local
maritime value chain.
EXPLORE MORE AT MACN’S ANNUAL REPORT
