2020 Goal & Update

Business Partner Code of Conduct and Ethics

Further develop and implement vendor assurance procedures ensuring compliance with Carnival Corporation & plc’s Business Partner Code of Conduct and Ethics.

business-partner-code-of-conduct-and-ethics

  • We continue to deploy a Supplier Evaluation Questionnaire within our supply chain.
  • We committed to aligning to welfare standards for broiler chicken by 2024.

FY2017 Corporate Governance & Ethics Performance

Icon board of directors

Boards of Directors

Quarterly performance data, including relevant summaries and trends, are reported to our corporate and brand management, Board-level Committees and Boards of Directors. Specifically, the health, environment, safety and security (HESS) committees are briefed by management on the status, progress of and plans for HESS and sustainability related matters as well as on HESS audit results.

Icon transparency

Transparency

As part of our transparency efforts, we disclose key environmental and social data in our annual reports, the performance summary of this report, as well as internationally recognized sustainability platforms.

Icon fines and sanctions

Fines and Sanctions

  • We did not receive any sanctions or significant fines for non-compliance with non-environmental laws and regulations.
  • On December 1, 2016, Princess Cruises, one of our brands entered into a plea agreement with the U.S. Department of Justice with respect to environmental violations of federal laws by the Caribbean Princess. As part of the plea agreement, Princess paid a $40 million fine. For more details please visit: www.princess.com/news/notices_and_advisories/cbresponse

The amount of environmental fines paid and sanctions is disclosed in the Performance Summary of this report.

modern slavery act icon

MODERN SLAVERY ACT

Our Code of Business Conduct & Ethics explicitly condemns all forms of child exploitation and forced labor and states our intent to comply with and support laws and regulations relevant to slavery and human trafficking. For more information, please see the Statement Pursuant to Modern Slavery Act 2015 in the Appendix.

animal welfare icon

ANIMAL WELFARE

Farm Animals:

  • We continue to work on expanding our sourcing of cage free eggs. Our goal is to be 100% cage free by 2025.
  • We committed to aligning to welfare standards for broiler chicken by 2024.

Tour Operators:

  • We partnered with the Association of British Travel Agents (ABTA) to help us ensure we are responsibly managing excursions involving animals. We are leveraging their global welfare guidelines for animals in tourism.
  • We identified a third party auditor to audit attractions involving animals.
  • Starting in 2018, we will commence audits on all dolphin in captivity tour encounters used by our brands.
board member update icon

Board Member UPDATE

  • Our Boards are comprised of 11 Directors, two with Executive functions and nine Non-Executive Directors. We currently have three female Board members, representing 27% of Board members.
  • In 2017, Jason Glen Cahilly joined the Carnival Corporation & plc Boards. Cahilly sits on the Audit Committee. For details on his qualifications, please visit our website at www.CarnivalCorp.com
  • In 2017, Sir Jonathan Band became the Chair of the Health, Environmental, Safety & Security (HESS) Committees. He also sits on the Nominating & Governance Committees. For profiles of all the current Board members, please visit our website at www.CarnivalCorp.com
Icon arison maritime center

Arison Maritime Center

We continue training our officers in our world-class facility equipped with the latest technology and equipment. The Center provides rigorous safety training for bridge and engineering officers responsible for the navigation and operation of the world’s largest fleet of cruise ships. Participants receive a maritime training experience that fosters critical thinking, problem solving, ethical decision making and skill development. For more information please visit www.csmartalmere.com

Sir John Parker

Boards of Directors Spotlight

Sir Jonathon Band – Chairman, HESS Committee

Sir Jonathon Band has served on Carnival Corporation & plc’s Boards of Directors since 2010. In 2017, he was appointed Chairman of the Health, Environment, Safety and Security (HESS) Committee and also serves on the Nominating & Governance Committee. Sir Jonathon’s qualifications to serve on the Boards include extensive experience in maritime operational and security matters gained through his 42 years of service with the British Royal Navy, and significant international experience in corporate and industry matters.

In 2006, Sir Jonathon was appointed First Sea Lord and Chief of Naval Staff, the most senior serving officer in the Royal Navy. Before serving as First Sea Lord, he served as the Royal Navy’s Commander-in-Chief Fleet. In 2002, he was appointed Knight Commander of the Order of the Bath for his exemplary military service. He is the recipient of honorary doctorates from Exeter and Portsmouth University, is a visiting professor at Reading University and was the President of the Royal Naval and Royal Albert Yacht Club in Portsmouth.

After retiring from the Royal Navy, Sir Jonathon embarked on a life of non-executive responsibilities in the commercial and charity sectors. Having initially held positions with Babcock International Group, MooD International and Lockheed Martin he is now involved with Survitec Group Ltd. and the Creative Engagement Group. His work with charitable foundations includes service as the Chairman of Trustees for the National Museum of the Royal Navy, the President of the Royal Navy and Royal Marine Charity, a Vice Patron of UK Blind Veterans and the Vice President of the White Ensign Association.

Through his years of service on Carnival’s Boards of Directors, Sir Jonathon has been a staunch advocate for key HESS risk mitigation programs including the company’s investments in engine room fire safety improvements, the global officer training facility in the Netherlands and the newly implemented global officer psychometric evaluation program.

As Carnival Corporation & plc’s new HESS Committee Chairman, we are confident Sir Jonathon will lead us to a higher level of HESS excellence which is essential for our continue success as a responsible global organization.

OUR COMMITMENT

We recognize our responsibility to provide industry leadership and to conduct our business as a responsible corporate citizen. We are committed to achieving and maintaining the highest standards of professional and ethical conduct. Adherence to the rule of law, ethical working practices, good corporate governance and transparency are extremely important to our stakeholders, and they are central to our sustainable business success.

Our ships are regulated by the various international, national, state and local laws, regulations and treaties in force in the jurisdictions in which our ships operate. Our ships are registered in the Bahamas, Bermuda, Italy, Malta, the Netherlands, Panama and the UK. They are regulated by these countries and by the international conventions that govern health, environmental, safety and security matters in relation to guests, crew members and the ships themselves.

Representatives of each “Flag,” or country of registry, conduct periodic inspections, surveys and audits to verify compliance with these regulations. In addition, we are subject to the decrees, directives, regulations and other requirements of the more than 700 ports that our ships visit every year as they apply to the various aspects of our ships’ operations. The Summary of Key Regulations Governing Our Operations summarizes the principal laws, acts, codes, directives, legislation, protocols, statutes, rules, regulations and voluntary guidelines related to international environmental, maritime safety and labor requirements with which we comply.

OUR STRATEGY

The daily operations of our company are executed by our employees under the direction and supervision of our President and Chief Executive Officer (CEO) , Arnold W. Donald, and the CEOs and Presidents of each of our brands. Micky Arison is Chairman of the Boards. Our Boards of Directors are responsible for governance of our performance and strategies. We provide further details in the Corporate Governance section on our website and in the annual Proxy Statement at www.CarnivalCorp.com, including:

  • Mechanisms for shareholders and employees to provide recommendations or direction to the Boards of Directors.
  • Processes for the Boards of Directors to ensure conflicts of interest are avoided.
  • Processes for determining the required qualifications and expertise of the members of the Boards of Directors.
  • Processes for evaluating the performance of the Boards of Directors.
  • Linkages between compensation for Executives and Senior Managers, and the company’s performance.

We have policies and safeguards in place which exceed regulatory requirements and promote high ethical standards. Our leadership is committed to our Code of Business Conduct and Ethics and our Business Partner Code of Business Conduct and Ethics, which require that every employee, member of the Boards of Directors, and business partner use sound judgment, maintain high ethical standards and demonstrate honesty in all business dealings. As part of our ethics program, we conduct periodic risk assessments and audits to help us direct and focus our compliance resources and work plans to address identified compliance risk.

Integrity is a fundamental value for all business units. Our employees are informed about our Code of Business Conduct and Ethics when they are hired and at pre-defined intervals thereafter.

In addition, all shoreside employees at the director level and above, or the local equivalent, and personnel in purchasing or recruiting roles, complete and sign a Business Ethics Disclosure Form annually, indicating that they have read, understood and agree to comply with our Code of Business Conduct and Ethics (available in eight languages internally). To reinforce our commitment to ethical business behavior, we also provide issue-specific ethics training to employees and board members on the basis of their roles and responsibilities in relation to identified compliance risk.

Transparency and disclosure are key to our corporate governance and ethics strategy. We monitor, track and report grievances, environmental incidents and other incidents. To facilitate reporting, we have established formal procedures to report concerns in person or via a dedicated hotline telephone number and website. We have a rigorous internal incident reporting system that requires the reporting of spills, releases or discharges internal within the ship or external to the ship. Spills, releases or discharges are reported to external authorities as required by applicable regulations.

Corporate Governance and Ethics Leadership Team

Leadership Team at 2017 Board meeting

We occasionally receive grievances about labor practices, human rights, impacts on society, environment, guest privacy and guest relations, among others. We evaluate all grievances that we receive. Our goal is to complete their evaluation within a reasonable time frame based on circumstances and legal complexity. However, thorough investigation may require an extended period of time to close some complaints.

We are active members of the Maritime Anti-Corruption Network (MACN). MACN is a global business network working towards the vision of a maritime industry free of corruption that enables fair trade to the benefit of society at large. Established in 2011, MACN has become one of the pre-eminent examples of collective action to tackle corruption. MACN continues to develop its strong platform to better understand the challenges and has executed on its strategy, which focuses on capacity building in the maritime industry, driving global collective initiatives against corruption, and building partnerships to improve integrity. Further, MACN has actively engaged with stakeholders, including governments, on shared solutions to improve integrity standards in port operations. We abide by the Cruise Lines International Association’s (CLIA) anti-corruption principles. The principles cover for example bribery and corruption, facilitation payments and hospitality. For more details, please refer to the CLIA website at https://cruising.org/about-the-industry/regulatory/industry-policies/other/anti-corruption.

Maritime Anti-Corruption Network (MACN)

Mission & Hess Commitments

MISSION

Together, we deliver joyful vacation experiences and breakthrough shareholder returns by exceeding guest expectations and leveraging our industry-leading scale.

OUR HESS commitments

Given our global reach and impact, we are committed to the following health, environment, safety, security (HESS) and sustainability core values:

  • Protecting the health, safety and security of our passengers, guests, employees and all others working on our behalf, thereby promoting an organization that always strives to be free of injuries, illness and loss.
  • Protecting the environment, including the marine environment in which our vessels sail and the communities in which we operate, striving to prevent adverse environmental consequences and using resources efficiently and sustainably.
  • Complying with or exceeding all legal and statutory requirements related to health, environment, safety, security and sustainability throughout our business activities.
  • Assigning health, environment, safety, security and sustainability matters the same priority as other critical business matters.

Our management ensures that the values and objectives stated in our HESS Policy are clearly understood by everyone in the organization and articulated on a regular basis. Senior management reviews this HESS Policy at least annually. If changes are warranted, it will be updated; otherwise the policy remains unchanged. The full text of our HESS Policy can be found here, as well as on our website at www.CarnivalCorp.com