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Royal Cargo Inc.–the anti-corruption model

  • Henry J. Schumacher
  • May 9, 2022
  • 309 views
  • 3 minute read
Column box-Integrity Initiative

ON the day after yesterday’s elections, it is my pleasure to highlight an anti-corruption model and its willingness to be a model for the future!

For those of us who are running organizations in the Philippines, corruption created by “enablers” has always been a temptation. Saying that I am against corruption is one thing, implementing it throughout my organization is another thing.

However, there is a model organization with an owner who has successfully been committed to anti-corruption: Michael Raeuber and his Royal Cargo Inc. (RCI).

Michael and I were deeply involved in the creation of the Integrity Initiative in the period of 2011 to 2015. Michael signed the Integrity Initiative Pledge in 2012 and issued a Royal Cargo Inc. commitment to Anti-Bribery and implemented company-wide policies that prohibits all executives, employees and/or agents to commit any form of bribery and corrupt practices. Royal Cargo has been firm in its stand on carrying out its business in a free, fair, and competitive environment in accordance with prevailing municipal and international laws.

Amazing is that RCI has been a TRACE International certified company since May 15,  2016. Every year thereafter and to the present, RCI has successfully managed to pass the recertification audit of TRACE.

TRACE International is a non-profit business association and the leading global anti-bribery standard setting organization that provides anti-bribery compliance support for multinational companies and their commercial intermediaries through a membership program.

TRACE certification underscores Royal Cargo Inc.’s commitment to transparency in international commercial transactions.

Why am I highlighting RCI today?

RCI has been TRACE certified for the year 2022 as compliant with Anti-Bribery and business transparency.

We are all aware of the damage corruption does to the country and its people and see the need to that both government and the private sector make a commitment to work together in anti-corruption efforts with the new government which will effectively take over in June this year.

We are also aware of the damage agri-smuggling does, effectively undermining the much needed stronger food supply strategy.

Given these strategic issues that need to be addressed by the new administration, RCI is committing to effectively contribute to a joint anti-corruption engagement and lead by example.

As a leading logistics company, RCI is very familiar with the extensive issues of helping the farming community of bringing their produce to the market without major losses. Let me be more specific:

RCI is firmly of the opinion that the Department of Agriculture, the local government units with farming activities, and logistic companies like RCI, have to work together to expedite the delivery of farm products to the market inside the Philippines and for exports with little spoilage.

In a tropical country made up of an archipelago, transit time from farm-to-market is critical in preserving agricultural produce. Logistics companies can be instrumental in significantly reducing damages and spoilage by providing proper packaging, storage, handling equipment and transport solutions.

Moreover, logistics companies can extend their value in the agriculture supply chain by investing in agro-processing with individual quick-freeze technology to complement their existing warehouse storage businesses. This facility will give farmers access to the latest (but expensive) technology at a more affordable price, which will prolong their products’ shelf life and eliminate wastage due to overproduction. The effect on the farming community will be that they will get a higher return for their produce and that the middlemen that have earned more than the farmers will be minimized if not be eliminated.

It is, therefore, my pleasure to present RCI not only as the anti-corruption model for business at large but also to highlight the willingness of RCI to work with the new government in addressing the needs of the farming community and contribute to a stronger food supply strategy. Feedback is welcome; you can contact me at hjschumacher59@gmail.com

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