Purpose: The objective of this report is to analyze the ambiguous issues within the ship recycling industry in South East Asia. The European ship owners are under pressure from various stakeholders regarding sustainability in their global business practices. Corporate Social Responsibility has within the recent years become a competitive element of international business. The main topics of the report are 1) issues and implications regarding dismantling of redundant ships on beaches of Bangladesh, Pakistan and India. 2) Corporate Social Responsibility as concept- how to adjust a company to a more sustainable business structure with the global initiatives and CSR tools available. 3) An analysis of the opportunities and limitations of business development that benefit all actors in the ship recycling industry in South East Asia.
Methodology: This review is based upon qualitative desktop-studies of primary and secondary data, drawn from various sources both academic and non-academic literature, online conference lectures and videos, in order to make a clear interpretation of the materials. With the purpose of creating an analytic approach to this complex issue I have used the framework of Flyvbjerg´s four questions of consideration when dealing with social, economic and environmental issues that impact different groups.
Key findings: The impacts of working on the beaches in South East Asia are tremendous on the workers’ health and safety and further more – the marine environment around the ship breaking facilities is changing. So far the ship owners have not been subjected to any serious consequences from their pollution of the beaches, but this review found that the stakeholder’s attitude towards sustainability is getting stricter. When examining the Danish ship owners TORM and Maersk´s CSR strategies, it became clear, that it is not within their grasp to change the ship recycling situation in South East Asia. At least not until the countries have a fundamental level of workers’ rights, environmental concerns and infrastructure. Finally two different hypothetical suggestions on how to create a sustainable solution for the multiple stakeholders are proposed. One with a global co-operation plan and one with an entrepreneur approach.