Top 10 Emerging Challenges for 2010: Issue 2

Establishing universal criteria for operating in conflict zones

The challenge of operating responsibly in conflict affected areas continues to be at the heart of debates on business and human rights.

Despite path-breaking efforts such as the Voluntary Principles for Security and Human Rights and the Kimberley Process to eliminate trade in conflict diamonds, examples of corporate involvement or exposure to conflict situations abound.

One need look only to the news headlines to see the challenges which remain. Rebel forces attack oil pipelines in Colombia. Armed opposition groups abduct contractors operating in the Niger Delta. State security forces ask mining companies for funds or equipment to bring about stability in the area around mines in the Democratic Republic of Congo. Banks receive funds from government officials who may be implicated in grave human rights abuses.

These and other conflict related dilemmas cry out for constructive action.

It is increasingly acknowledged that the mere presence of large companies can exacerbate a fragile situation that can end up contributing to conflict. But the solution is not as simple as divestment from countries experiencing conflict. Through their presence, businesses can often provide stability and help build peace. But if they act irresponsibly, they may also prolong conflict.

A range of initiatives are seeking to address that fact. The UN Global Compact has commissioned new research to highlight how companies can operate in a way that helps peace building efforts.

The Red Flags initiative, a joint project of FAFO and International Alert provides guidance to companies of the liability risks they face when they operate in conflict zones. International Alert has also developed Conflict Sensitive Business Practices, which provides guidance to companies in the extractive sector, to operate in a conflict-sensitive way. The Collaborative for Development Action has proposed ways of working that are conflict-sensitive.

UN Special Representative for Business and Human Rights, John Ruggie, has recently announced a new initiative to engage key governments in addressing the role of corporations in conflict situations and to develop legal and administrative measures to prevent and address violations in such situations.

As the SRSG engages with governments on this issue it will be important to study the experience of companies in delivering services or maintaining civilian infrastructure while operating in conflict zones and to encouraging a process through which agreed principles and practical guidance to companies operating in such high-risk zones can be developed.