Royal Caribbean Group, hereinafter “Company”, is the world’s second largest cruise company. We wholly own and operate three global brands: Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. Through these brands, the Company operates a large and diverse fleet of ships on a selection of worldwide itineraries that call on hundreds of destinations across all seven continents.
This statement was prepared pursuant to the United Kingdom’s Modern Slavery Act of 2015 and Australia’s Modern Slavery Act of 2018 for the financial year ending December 31, 2020. It is published on behalf of the Company, its wholly owned global brands, and our Azamara brand which we operated throughout 2020 and sold in the first quarter of 2021.
The statement is signed by the Chairman and Chief Executive Officer of the Company and approved by the Audit Committee of the Board of Directors. A signed copy of this statement is available upon request.
We endorse the principles contained in the United Nations’ (“UN”) Universal Declaration of Human Rights and in the International Labour Organization’s (“ILO”) core conventions on labour standards, and we pledged our support in 2019 to the UN Global LGBTI Standards of Conduct for Business. We are committed to respecting human rights and core labour principles in our business operations, and we approach and undertake this commitment seriously. More information is available in our Human Rights Statement.
We are a diverse Company doing business with equally diverse customers, suppliers, business partners, and third parties, and we value the backgrounds and experiences brought to our Company therefrom. Together, we foster an inclusive environment where we treat each other with respect and dignity and in a manner consistent with the Company’s values.
We place a high priority on conducting our business in compliance with the law and in accordance with the highest standards of business ethics. The Company’s Code of Business Conduct and Ethics (“Code”) sets forth the Company’s values and governs the ethical and legal conduct of our employees across our global operations, including our commitment to human rights and core labour principles and our condemnation of human trafficking and all forms of forced and child labour. All employees are trained on, and certify compliance with, the Code upon commencement of employment and at regular intervals thereafter. The Code is reviewed and updated on an annual basis and is approved by our Board of Directors. We also provide specific content training on modern slavery to targeted employees within supply chain and other functions in the organization.
Our Supply Chain
Our supply chain consists of suppliers servicing our newbuild, shipboard hotel, marine, and human resources operations and our general shoreside operations. We are committed to transparent relationships with our suppliers. We act ethically and comply with the laws applicable to where we conduct business, and we expect that our suppliers do the same in their business operations, including their dealings with and for the Company. These expectations and requirements are stated in the Company’s Supplier Guiding Principles and referenced in our Code and on our Internet-based supplier portal.
The Supplier Guiding Principles also state our expectation that suppliers make the same commitment to human rights and core labour principles as we do by providing a safe and healthy workplace for their employees, prohibiting all forms of forced and child labour, ensuring compliance with applicable wage and hour laws, promoting a diverse workplace free from harassment, discrimination, and abuse, and respecting legal rights on freedom of association and collective bargaining. Our purchase order terms and conditions with suppliers incorporate these expectations and reserve our right to inspect and audit records related to the supplier relationship to ensure obligations have been/are being met. We use a risk-based approach to manage our supplier relationships, including due diligence and internal processes, procedures, and controls. Periodic risk assessments of our business operations guide this approach.
The health, safety, and security of our shoreside employees, crewmembers, and guests is paramount. With the global spread of the virus, our shoreside employees began working remotely. We also implemented additional health measures, including isolation and quarantine measures, across our fleet and worked with our global supply chain to procure related medical supplies, including additional personal protective equipment and virus testing kits, to ensure the health of our crewmembers and guests.
As we suspended vessel operations, we were tasked with the safe repatriation of tens of thousands of crewmembers and guests to their home countries — a large scaled effort as countries began closing their borders. The refocus of operations to repatriation and the continued supply of the vessels involved the input and coordination of several departments of the Company and significant support from our suppliers.
Currently, our efforts are focused on the healthy return to our facilities and the healthy return to service of our vessels. Similar to the repatriation effort, this has involved several departments of the Company and significant support from our suppliers, including the adoption of new processes and procedures and the sourcing and procurement of related health and safety related supplies.
Throughout the pandemic, the continued mental and physical health of our shoreside employees and crewmembers remained a priority. To this end, we’ve maintained routine communication to and dialogue among our workforce, worked with seafarers’ unions representing our crewmembers regarding pandemic-related disruptions in employment, and made available certain health-related resources.
We operate in the U.K. through RCL Cruises Ltd., and in Australia through a branch office of the same.
We acquired a 66.7% equity stake in Silversea Cruises in July 2018 and acquired the remaining stake in July 2020. Silversea Cruises operates in Australia through Silversea Cruises Australia Pty. Ltd. and is in the process of integrating their supply chain and associated processes and procedures as above.
We encourage employees and suppliers to report known or suspected illegal and unethical conduct or activities to certain designated contacts, including our Global Compliance and Ethics Group or through the Company’s Compliance and Ethics AWARE (“Address Wrongdoing As Responsible Employees”) Hotline, which is accessible by phone or the Internet, 24 hours/day, 7 days/week. More information about the Company’s Compliance and Ethics AWARE Hotline can be found in Our Code, Supplier Guiding Principles, our corporate website, and at rclaware.ethicspoint.com. Reports are reviewed, and investigations and actions are taken when appropriate.
The above processes are periodically reviewed and/or updated to ensure they remain appropriate and effective.