In conflict zones, companies struggle with ethics and profits
PARIS: Some multinationals working in conflict zones are turning to ethically dubious practices to keep their factories operating, employees working and goods flowing.
French- Swiss cement manufacturer LafargeHolcim admitted earlier this month that it resorted to “unacceptable” practices in 2013 and 2014 to keep its Jalabiya plant in Syria running until it was seized by the Islamic State.
In practice this amounted to the financing of armed groups.
Recent history is full of scandals involving businesses paying armed groups and fanning the flames of war.
Banana companies paid paramilitary groups in Colombia in the 1990s and 2000s, jewellers fed the trade in ‘ blood diamonds’ in Liberia and Congo and mobile phone makers are regularly accused of using minerals taken from mines controlled by armed groups in Africa.
But how do companies get themselves into this? Errors of judgment? Sliding imperceptibly past a point of no return? Too much responsibility given to middlemen? A fundamental contradiction between profit and ethics?
“Whether it wants to or not, a business working in a war zone or a post- crisis zone becomes an economic stakeholder in a military environment,” said Bertrand Monnet, a professor in criminal risk management at France’s Edhec business school.
“And it is not always quite able to manage the challenges that this involves.”
Big companies have ethical codes and while “this type of talk is all very well...in reality it’s not enough to cope with the tensions between economic logic and fundamental rights,” said Cecile Renouard, a professor at the Essec business school in France and a writer on corporate ethics.
She said that in the Lafarge case, the company’s ethics statement was ambiguous in this respect.
“The company says it wants to be the world leader in its sector and at the same time contribute to making the world a better place”, but “permanently striving for economic and financial performance inevitably comes into conflict with the desire to take into account the local situation.”
Nicolas Berland, a professor at the business ethics and management department of the Paris-Dauphine university, said that while there are “true cynics” who work in conflict zones with no regard for the morality of what they are doing, others find themselves in grey areas.
Trying to honour agreements and protect their workers in difficult, unpredictable environments “they sometimes try to find a compromise by betting the situation will change rapidly,” he said.
The safest approach is not to get involved in dangerous areas in the first place, or to pull out as quickly as possible when a crisis blows up. — AFP