During the last year of NORDEN's CSR strategy “On the right course” launched in 2013, NORDEN focused on the development of a new CSR strategy aligned with NORDEN’s new business strategy Focus & Simplicity running from 2016-2018. In the process, it became evident that it would not be a traditional CSR strategy with focus areas, targets and projects. Rather, it would be a new way of working with CSR to ensure that NORDEN reaps the full benefits of all our previous and future CSR efforts.
The new CSR direction is based on the concept of “shared value” which was created by the Harvard professors Michael E. Porter and Mark R. Kramer. The central premise behind creating shared value is that the competitiveness of a company and the communities around it are mutually dependent. Recognising and capitalising on these connections between societal and economic progress has the ability to create growth.
To identify what creates value for NORDEN's customers, we interviewed a number of our key customers as well as a number of NORDEN’s employees. Through these interviews, key issues were identified and with the assistance of external specialists, NORDEN conducted a socio-economic impact study to identify areas with potential for creating ‘shared value’ for society, customers and NORDEN.
3 core issues were identified as creating value for all three parties and in line with the business strategy Focus & Simplicity. Therefore, NORDEN has made these the focus of the company's future CSR direction. The 3 identified issues are illustrated and explained in more detail in the box to the right.
The next step for NORDEN is to anchor the new CSR direction throughout all business units and develop criteria to measure the efforts within the 3 issues. The criteria will be developed in the first half of 2016, and therefore this CSR report does not list any future targets. The focus of this report is solely to describe NORDEN's performance and the results of the CSR strategy’s focus areas and targets for the strategy period 2013-2015.
THE IDENTIFIED ISSUES ARE
NORDEN’s customers and carriers like NORDEN are from time to time confronted with demands for facilitation payments, bribery or other forms of corruption. This threatens customers’ and NORDEN’s reputation as well as the functioning and growth of the economy. NORDEN has a zero-tolerance towards bribery and endeavours to reduce facilitation payments. NORDEN wishes to provide a value-added carrier service that reduces and preferably eliminates this risk and the corruption burden on local society and companies.
2. Crew and vessel quality
Reliability and flexibility are 2 of the 3 most value creating factors that a carrier like NORDEN can offer its customers. It is also an essential part of NORDEN’s Focus & Simplicity strategy to offer customers reliability and flexibility. However, in recent years, financial pressure and harsh competition have resulted in declining global crew and vessel quality in the industry. NORDEN seeks to provide a value-added carrier service that provides high quality crews and vessels. We will therefore focus on initiatives that will ensure that the high quality and standard is maintained for the benefit of safety, reliability and price.
3. Value chain optimisation
NORDEN’s customers’ biggest logistical challenges often occur either before or after NORDEN has provided maritime transport services to them. Assisting NORDEN's customers to reduce the logistical challenges will benefit both customers, NORDEN and society, as it can reduce the cost for some of the world’s most important raw materials.
VISUAL ILLUSTRATION OF THE VALUE THAT THE 3 IDENTIFIED ISSUES
CREATE FOR SOCIETY, OUR CUSTOMERS AND NORDEN