Conflict-sensitivity for multinational companies

Over the last decade, multinational corporations have begun to pay attention to human rights, the environment and other areas of corporate social responsibility, but they often lack the skills and experience to avoid exacerbating instability or violence.

International Alert believes that by adopting a proactive approach to conflict-sensitive business practice, businesses can reduce risks to their operations in conflict-affected regions, promote stability and improve relations with local populations. If the economic benefits of their operations are distributed more fairly and transparently, they can play a significant role in building the strong economic foundations that are vital for lasting peace.

We work towards making this possible in three ways – by undertaking research into the links between business and conflict, then developing tools for businesses to use when planning and carrying out work in conflict prone zones, and pushing for the adoption of policy, principles and guidelines so that multinational corporations, governments and multilateral organisations better understand and contribute to building peace. Our CSBP tools and materials have thus far been developed in two areas:

	Extractive industries – Our toolkit for the oil, gas, mining, and forestry industries was developed over several years with the help and involvement of industry professionals.
	Project finance and engineering – Our expansion of the original CSBP toolkit examines the role of financial institutions and and engineering companies in preventing conflict through their operations.

Influencing public policy

The European Union, Organisation for Economic Co-operation and Development, World Bank, various UN agencies and a number of governments all acknowledge the critical role of economic factors in conflict in a number of key policy documents and are beginning to recognize the potential of the private sector to contribute to peacebuilding. There is growing debate on the need for clearer international guidelines and constraints on companies operating in conflict prone zones.

In order to ensure that this issue remains on the international agenda, we make specific recommendations at the international policy level to inform thinking on how governments and multi-lateral agencies can integrate conflict-sensitivity into their economy-related policies, for example:

Our 2003 publication Transnational Corporations in Conflict Prone Zones: Public Policy Responses and a Framework for Action analysed what key institutions are doing to promote conflict-sensitive business in conflict-prone zones. This generated considerable interest amongst policy-makers and was fed into recommendations to an OECD Development Assistance Committee Conflict, Peace and Development Cooperation Network meeting and other policy seminars convened by Alert.

We are now collaborating with a group of expert organisations including Fafo, Collaborative for Development Action, Amnesty International, Human Rights Watch, OECD Watch, International Committee of the Red Cross, and Global Witness, to promote a clearer regulatory environment for companies doing business in conflict-prone zones.

Alert is one of seven NGO representatives to the Voluntary Principles on Human Rights and Security Group, which is made up of oil, gas and mining companies, governments and NGOs and which works to make progress on the practical implementation of the Voluntary Principles. The Voluntary Principles aim to guide companies in maintaining the safety and security of their operations within an operating framework that ensures respect for human rights and fundamental freedoms. Click here for more information

For more information contact Diana Klein

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Last updated: February 2006