Achieving the objectives of the International Safety Management Code: The role of the consultant and external auditor

The mandatory International Safety Management (ISM) Code will be in force for select commercial merchant ships starting in July of 1998 with a phase-in period that is completed in 2002. All companies effected by the ISM Code will have to establish a Safety Management System (SMS) that is intended to improve safety and prevent pollution to the environment. A cornerstone of the SMS is the Code's objective to establish a continuous improvement process (CIP). The shipping company will be audited by an independent external auditor to establish compliance with the code's requirements.;This research utilizes exploratory case study methodology to observe how the external auditors are determining if companies are establishing a continuous improvement process as part of their SMS. Consulting firms that assist companies in setting up a SMS were also studied as to how they are building the elements of CIP into a company's SMS. The two groups were compared and contrasted on how they assist companies on a strategic and operational level for sections 6 and 9 of the ISM Code. The research clearly indicates that all of the external auditors and a majority of the consultants are working to have shipping companies establish and use a CIP but both groups had areas of concern in the implementation process. The data collected was used to create a reform agenda that outlines methods of establishing a CIP that meets the objectives of the ISM Code. Additionally, by utilizing the information collected, specific improvements in the Code's internal auditing process are proposed and future research questions are discussed.