Barriers to the Implementation of Strategic Corporate Social Responsibility in Shipping

Abstract

Strategic corporate social responsibility (CSR) involves the voluntary practice of social and environment activities to satisfy firms’ stakeholders, with the intention of generating profits. Companies, especially those within the shipping industry, often face challenges when implementing strategic CSR. The paper therefore, seeks to identify, rank, and discuss the barriers to the implementation of strategic CSR in shipping. A list of barriers was first identified from reviewing the literature. Subsequently, a survey was administered to 600 shipping companies in Singapore and the collected data were analysed using structural equation modelling. The results showed that factors relating to lack of resources, lack of strategic vision, lack of measurement system, high regulatory standards, and low willingness to pay for CSR are significant barriers to implementing strategic CSR in shipping. The findings imply that the practice of strategic CSR is contingent on both the firm's macro-environment and micro-environment, albeit to a lesser extent. Understanding these potential barriers can help companies avoid or overcome these barriers and improve their chances of successfully implementing strategic CSR.