MACN’S WORK 


MACN's Anti-Corruption principles
MACN is comprised of like-minded companies dedicated to promoting compliance with anti-corruption laws and committed to the elimination of corrupt practices. To this end, MACN members will work to implement the following anti-corruption principles. These principles should be a part of each Member’s overall compliance program.
The Seven Principles
 

Compliance Program Requirements

Members should create and maintain an anti-corruption compliance program that reflects and is designed to address the risks pertinent to the company’s business.

Senior management and/or the Board of each Member should give explicit and visible support to the anti-corruption compliance program.

Members should confer responsibility for the anti-corruption compliance program on trustworthy officers who are sufficiently independent and empowered to fully implement the program.
 

Proportionate Procedures

Members should have clearly articulated policies and procedures that comply in full with the laws which apply to them and, as a minimum, prohibit all forms of corruption and give specific guidance on facilitation payments with the ultimate aim of their elimination.

The policies and procedures should be proportionate to the risks faced by the various parts of each Member, as well as the nature, scale and complexity of the organisation's activities, and should apply to all employees as well as third parties that act on behalf of the Member.
 
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Risk Assessment

Members should assess external and internal corruption risks on a regular basis and document their findings.
 
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Training & Communications

Awareness of policies and procedures should be reinforced through communications and training to employees and, where appropriate, third parties. A record should be kept of all training provided.
 
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Monitoring & Internal Controls

The anti-corruption compliance program should include features designed to prevent and detect incidents of bribery, facilitation payments and other forms of corruption through appropriate monitoring and auditing protocols.

Internal controls should be implemented to protect the integrity of financial and accounting procedures such that the company keeps fair and accurate books, records and accounts.

The program itself should be audited regularly and improved or updated as necessary.
 

Reporting, Discipline & Incentives

Members should provide employees with access to methods for asking questions and/or reporting concerns. Those asking questions or reporting concerns in good faith should be able to do so without fear of retribution.

Members should investigate credible reports of improper behavior and should implement appropriate corrective actions when necessary.

Compliance with the anti-corruption compliance program should be encouraged through incentives for proper behavior and, where necessary and appropriate, enforced through discipline for improper behavior.
 

Due Diligence

Members should conduct risk-based due diligence on counterparties as well as in respect of the hiring and oversight of third parties and business partners. The due diligence should include an anti-bribery commitment from third parties.
 

Work Streams

The MACN’s work streams are cornerstones in working towards the networks vision of a maritime industry free of corruption.

 
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Collective Action

Collective Actions Program to identify specific challenges in hot-spot regions and develop action-oriented recommendations. Read more
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Best Practice Sharing and Tool Development

Best Practice Sharing around implementing the MACN Anti-Corruption Principles. Such sharing often leads to the development of shared tools e.g. due diligence and risk assessment frameworks.
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Incident Reporting Mechanism

Ongoing identification of where members have the most challenges through secure reporting mechanisms and identification of best practice solutions. Read more
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Creating Awareness

Communicate challenges and experience developing solutions within the industry, government, business partners, and civil society.
 

“MACN sees its role as that of a catalyst that brings a unique business understanding to the often highly specific drivers of corruption”

Cecilia Müller Torbrand, Chair of MACN


Incident Reporting Mechanism

In order to identify collective actions MACN has set up a unique Incident Reporting Mechanism that assists in identifying areas for collective actions.

Reporting Goals:

  • For members to be able to safely and anonymously report their anti-corruption challenges within the Network and provide best practice solutions.

  • To identify areas for collective action with various external stakeholders to address root causes

Collective Action

MACN has as one of its key objectives to tackle systemic issues and root causes of corruption specific to the maritime sector through collective action. To meet this objective, MACN implements collective action projects in developing countries, addressing both the supply and demand side of bribes and facilitation payments. This is done by not only addressing firm behaviour, but by also engaging stakeholders in developing countries where bribery and corruption is severe and frequent. By engaging stakeholders locally, MACN builds collective actions on local ownership where lasting change is driven by buy in from relevant stakeholders, including the maritime value chain, international businesses, local authorities, and civil society.

The essence of the MACN collective action approach is that successful, lasting changes in the operating environment will take effect only if they are enabled and supported by and beneficial to key stakeholders. As such, key stakeholders must be involved in both assessing the challenges and devising the solutions. Further, the collective action approach assumes that interventions have to be targeted at barriers and that the stakeholders relevant to eliminating corruption are often situation-specific. The approach stresses the importance of transparency throughout the process of engaging in collaborative efforts. Stakeholder inclusiveness, local ownership, and transparency are thus fundamental to this approach. 

An Impactful Model

MACN sees its role as that of a catalyst that brings a unique business understanding and industry expertise of the often highly specific drivers of corruption in the maritime sector, e.g., cumbersome approval processes, overly broad discretionary powers, weak controls, and poor port governance. The MACN membership will often be able to quickly identify the most damaging and prevalent forms and drivers of corruption in the maritime industry—and they may also use their global networks to identify best practices in the industry. Importantly, as a collective of significant businesses in the maritime industry, the network wields significant commercial influence and is committed to an industry free of corruption and bribery.

 
 

MACN Hot Spots

MACN aims to design country specific programs to tackle the challenges of corruption faced at all identified hot spots. A MACN work stream is continuously identifying potential initiatives that may be conducted by the network. As the MACN membership grows, it will continue to survey its membership to update relevant hot spots and specific corruption issues. The current focus is to tackle the issue of facilitation payments. Other activities within the road map include outreach to local authorities to understand how MACN may communicate the vision and mission of the network most effectively and support on the ground improvement actions, including through existing anti-corruption government programs. 

 

Port Study in Nigeria

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The corruption risk assessment in the Nigerian port sector was set out to understand the main drivers of corruption, identify specific measures for addressing such drivers, and catalyze action among public and private sector stakeholders.

The full report, prepared by the Nigerian Technical Unit on Government and Anti-Corruption Reforms, can be found here. It was co-financed by the United Nations Development Programme and the Maritime Anti-Corruption Network, of which BSR is the secretariat and lead facilitator.

 

MACN Training Tool-Box

The tool-box will be delivered to members by September 2014. The training tool-box will be available as a plug and play or can be company branded at a minor cost. Members will be provided further detail on how the toolbox complies with the requirements and principles of the UK Bribery Act. 

Joining MACN

By participating in MACN collective action, you have a greater impact in alleviating a fundamental bottleneck of trade and development than acting alone.
MACN Collective Actions

MACN Collective Action Project In Argentina

 

MACN launched a collective action project in Argentina in 2014. Data from MACN’s member companies highlighted a systemic issue with demands for payment for unclean grain holds in Argentina. When scoping the project we identified the following main challenges:

  • Low level, but regular demands for small amounts of gratuities from government officials
  • Demands from Customs officials for alleged failure to comply with customs declaration processes
  • Demands made for the approval of vessel to load agricultural products
     

In partnership with a local project partner, GovLatam, MACN has engaged with a number of local stakeholders and pursued direct dialogue with relevant authorities. Some of our achievements to date include re-drafting regulations for surveying vessel holds and re-drafting regulations for customs inspection of a vessel. Going forward, MACN is pursuing the following activities in Argentina with expected implementation to be end December 2015:

  • Supporting the training and implementation of new regulations
  • Creation of a database for digital recording of inspections and risk framework
  • Preparation of training material and provision of training for officials
  • Setting up an independent Transparency unit within the Government.

 

MACN Collective Action Project In Nigeria

MACN launched its first collective action project in Nigeria in partnership with the UN Development Programme (UNDP) in 2012. Nigeria had been identified as one of the most challenging countries to do business in, where requests for facilitation payments posed a major risk to member companies, involving cases of extortion and threats of violence. As part of the project, MACN and UNDP instructed project partner TUGAR to conduct an integrity risk assessment in the Nigerian port sector, identifying specific forms of corruption, underlying drivers, and possible solutions. The key findings included:

  • Weak internal ethics infrastructure in port agencies and wide discretionary powers
  • Poor infrastructure and facilities
  • Standard operating procedures not sufficiently well defined
     

The project was developed on a multi-stakeholder consultation model approach, involving stakeholders such as the National Ports Authorities and the Customs Service. Some of our impact achieved to date includes supporting the automation of the ship entry notice system, used by the Ports Authority. With support from the UK FCO, MACN will implement a best practice sharing session with an other East African port later in 2015. MACN is currently working on implementing the following three work streams in Nigeria:

  1. Training and Capacity Building: integrity training of officials and implementation of Anti-Corruption policy
  2. Improving governance of port operations
  3. Establishing a port sector grievance mechanisms for companies and local public authorities

 

MACN Collective Action Project In Indonesia

In 2015 MACN launched a collective action project in Indonesia in collaboration with the UK Foreign Commonwealth Office and the local Indonesian NGO Kemitraan. The project was launched to address one of the main challenges faced by the shipping industry, namely ambiguous and undefined laws and regulations where requests for facilitation payments are made without a clear legal ground. MACN is currently working with DG Customs and the Port Corporation in Jakarta to create more transparent and trusted process in the maritime sector.

The project will result in the following deliverables due in March 2016

  • An integrity risk assessment and reform action assessment plan;
  • Recommended models for an accountability mechanism in the maritime sector, enabling stakeholders to report and seek solutions to alleged noncompliance of laws and regulations.
  • A road map for a capacity building program for building and upholding integrity in the maritime sector;