The Private Sector

Through expanding trade and investment, private sector actors have exercised growing influence on global policy, including in many conflict zones. In fact, some multinational corporations now have market capitalizations that exceed the Gross National Product of medium sized countries. Given the enormous challenges to the international community in this respect, partnerships are increasingly necessary, not only with civil society and non-governmental organizations, but also with the private sector. With almost 96 per cent of the private sector engaged in the manufacturing of civilian goods and services, the private sector has a vested interest in peace building and economic stability, and in complementing, rather than exacerbating humanitarian efforts.

But not all businesses seek to be helpful or socially responsible. The severe impact of the pursuit of economic interests in conflict areas has come under increasingly critical scrutiny. Corporations have been accused of complicity with human rights abuses and corporate royalties have continued to fuel wars. It has become common knowledge that by selling diamonds and other valuable minerals, belligerents have been able to supply themselves with small arms and light weapons, thereby prolonging and intensifying the fighting and the suffering of civilian populations.

Bringing the resources and services of the private sector to bear in the prevention and resolution of violent conflict in a manner that encourages and promotes corporate social responsibility is a challenge to which the international community must rise. Corporate actors themselves are heeding the call in assisting the United Nations and other international organizations by seeking to place their operations within the framework of international norms and standards, and in providing the infrastructure on which global commerce increasingly depends. By supporting efforts to end hostilities, promoting respect for international law, generating employment and income, assisting economic recovery and development in a peaceful environment, the private sector can contribute to the prevention and resolution of violent conflicts.

The Global Compact, agreed upon by global leaders from the world of business, labor, civil society and the Secretary General on 20 July 2000, is a prime example for the establishment of the creative partnerships referred to earlier. Established in order to launch a joint initiative in support of universal values and responsible business operations, the Global Compact is an innovative process for joint action and collaboration. The first of the Compact's Dialogues is bringing together major corporations, human rights organizations, trade unions and United Nations officials to discuss the role of business in zones of conflict. Over time, such dialogues can develop shared visions and guidance on principles and practices for private sector engagement and ethical business in conflict areas, including on ways to ensure the safety of business operations within a framework of recognized rules of international humanitarian and human rights law. Human security is a fundamental need shared by individuals, communities, business and Governments alike.

It is of critical importance in this respect that the United Nations, continue to promote the exercise of responsible investment in crisis areas by building upon and expanding the existing partnership with the private sector. In this respect, consensus among the parties on guiding principles of corporate social responsibility in situations of conflict must be arrived at in consultation with the relevant entities, including business itself.