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5 years ago

Corporate responsibility in transport sector

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On November 28, 2018, BBC news reported that a bus operator in Birmingham, England has been fined around £2.2 million for failing to carry out corporate responsibility as evidenced from corporate negligence and poor performance. The reporter did not mention that corporate negligence by the bus company was the main reason for an accident in which two persons had died in Birmingham nearly five years back. But it was clearly mentioned that lack of diligence on the part of the owners/operators resulted in the lack of maintenance of standards that caused uncontrolled operation leading to accidents. As there was clear evidence of failure on the part of the management, the fine was imposed. This news was followed by a statement from the managing director of the bus company where he accepted the liability and declared that the company has no intention to appeal against the fine.

Readers in Bangladesh must be wondering why this news from the United Kingdom is relevant for them. The intention is to let Bangladeshi readers know how the management and operation of road transport system has changed in the UK. This is on the back of an incident this year when a minister in Bangladesh had said that no minimum standard of education is necessary for obtaining driving licences in Bangladesh and that it was enough for drivers to be able to differentiate cows from goats. Persons in the helm of responsibility need to educate themselves with the changes taking place elsewhere in the world and take the lead for changes and modernisation in Bangladesh.

The global aviation industry was the first in the world to recognise the need for quality control, in which not only pilots and flight engineers but also the owners and operators were equally involved. In fact, an airline has to obtain an operator's licence before the first flight can be conducted by them. The international body ICAO (International Civil Aviation Organisation) is a specialised UN agency that adopts standards for aircraft safety, airport safety, and licensing of pilots. Member states through their relevant civil aviation authority implement those standards. The national authority grants the operator's licence after making sure that the operator is fully capable of meeting all situations and circumstances. The primary responsibility rests with the flag state that is the country of registration, and the secondary responsibility rests with the country where or in whose airspace the aircraft is located.

According to ICAO requirements, every accident must be investigated. The purpose of the inquiry is not to apportion blame, liability or responsibility but to find reason/s behind the accident. It is imperative to learn lessons to avoid similar mistakes from occurring again. This is how the industry constantly achieves higher standard of safety. Compensations for death or injury are normally settled as per international (ICAO) convention ratified by member states. The airlines are normally insured against such liability. Parties involved may sue each other for further claims. Inquiry-investigation conducted by national (civil aviation) authority focuses more on compliance of requirements. Disciplinary action can be taken against the pilot, engineer or operator (owners and company executives) only through judicial inquiry after defendants are given every opportunity to defend themselves. These measures have nothing to do with apportionment of blame or responsibility or settlement of any claim.

On March 06, 1987, the cross channel ferry 'Herald of Free Enterprise' capsised, killing 193 persons. The UK government conducted a judicial inquiry that among many other recommendations, made it very clear that responsibility or blame cannot be confined to the master and the crew only but it must be also shared by managers as part of corporate responsibility. It emphasised the need for quality-controlled operation where the company shall also bear its part of the responsibility. For the first time, the judiciary made it clear that profit making is not the only responsibility of the owners-managers. They are also responsible for safety, environment, health and hygiene. The primary responsibility is to provide safe working conditions and environment and attend to other needs and requirements to maintain the standard. There is a clear necessity for documented procedure to meet the regulatory requirements, conduct training to work according to procedures and record action in compliance with procedure. There must also be periodic review of procedures for possible improvements. Based on these recommendations, the United Kingdom submitted a proposal for introduction of a safety management system to the IMO (International Maritime Organisation). ISM (International Safety Management) was adopted and added to SOLAS-74 (Safety of Life at Sea) Convention. Now it is mandatory for both ship and the company to be audited and certified for compliance of the code. Inquiry/investigation of maritime accidents conducted by the administration is not for apportionment of blame or responsibility and certainly not for settlement of claims. It can ensure regulatory compliance. Any disciplinary action must be taken by a judicial investigation after giving the accused every opportunity to defend him/her. Matters relating to damage, loss, claim and compensation are for courts to settle. Informatively compensation in respect to passengers and their luggage are regulated by the Athens Convention and cruise ships are insured against such liability.

Both the international aviation and maritime sectors work to achieve total quality management. As both sectors are international, they have to comply with common requirements. The road transport system is different from these two because it is essentially a national matter. However, a country can study systems already in operation elsewhere and blend them with their specific requirements to find the best solution.

In Bangladesh over 90 per cent vehicles involved in road accidents are commercially operated vehicles. It can be concluded that greed for money is the primary reason for the accidents. It is for more profit that vehicles are run without proper maintenance and sufficient rest for the drivers and assistants. These factors must be kept in mind by policy-makers while developing a safety management system that would place responsibilities on the owners and operators.

The same principles incorporated in the international maritime and aviation industries can be applied to construct the foundation for a road safety management system in Bangladesh. Before a commercial vehicle plies the road, its owners can be required to obtain an operator's licence or a road safety management certificate. In order to obtain such licence or certificate, the operator would need to convince the certifying authority that they have enough resources including necessary expertise to safely operate the vehicle. Their submission must then include:

a) NAME AND ADDRESS OF THE COMPANY;

b) AIM AND OBJECTIVES OF THE COMPANY;

c) COMPLIANCE OF NATIONAL REQUIREMENTS;

d) ADDITIONAL COMPANY REQUIREMENTS;

e) COLOUR SCHEME OF VEHICLES: This should be acceptable to the authority and there should be no confusion with other companies.

f) NAME OF THE OFFICER RESPONSIBLE FOR SAFE OPERATION AND COMPLIANCE OF REQUIREMENTS;

g) NAMES OF OFFICIALS RESPONSIBLE FOR OPERATION OF EACH VEHICLE;

h) ROUND-THE-CLOCK TIMESLOTS FOR OFFICERS;

i) CONSTANT OR IMMEDIATE COMMUNICATION WITH INDIVIDUAL VEHICLE;

j) RECRUITMENT POLICY FOR DRIVERS, ASSISTANTS AND RESPONSIBLE STAFF IN THE OFFICE;

k) UNIFORM OF STAFF-This needs to be acceptable to the authority and there should be no confusion with other companies.

l) ADDITIONAL COMPANY TRAINING SYSTEM AND PROCEDURES- This can include training for driving, telecommunication, medical first-aid and fire-fighting;

m) REQUIREMENTS FOR ADDITIONAL MEDICAL TEST FOR OFFICIALS AND STAFF;

n) ADDITIONAL VEHICLE TEST REQUIRED BY THE COMPANY - These can be conducted at regular intervals of weeks or months;

o) MANDATORY SERVICING REQUIREMENTS;

p) SYSTEM OF DRUG TEST AND RECORDS THEREOF;

q) RECORD OF HOURS WORKED etc.

r) PROCEDURES FOR TAKING FUEL, EMBARKING AND DISEMBARKING OF PASSENGERS;

s) PROCEDURES TO DEAL WITH PASSENGER COMPLAINTS;

t) MANDATORY INSURANCE TO COVER LIABILITY FOR DEATH, INJURY AND DAMAGE;

u) SYSTEM OF INTERNAL AUDIT;

v) OTHER MATTERS-- considered essential by experts;

The aforementioned points can help the responsible administration to evaluate the management system of the bus companies after these are submitted by the latter. Once these are approved, the vehicles of the said company can then ply the roads. The companies and the vehicles operated by them must be audited once every year. If necessary, the authority can open inspection offices at divisional or district headquarters.

Besides introducing a new management system, present statutory requirements should be reviewed for improvement. It is time that minimum educational requirements are introduced for drivers. It can be set at a level higher than SSC. Driving tests must include a written test prior to practical test.

Death on the roads in Bangladesh is increasing due to the growing number of road accidents. A responsible government cannot remain silent. Whoever wins the national parliamentary election this month will need to deal with the issue soon. A radical and revolutionary change in the transport sector of Bangladesh is necessary. The death of innocent people on the roads of Bangladesh needs to stop without further delays.

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