GhanaStar
  • News
  • Sports
  • Entertainment
  • Politics
  • Business
  • Music
No Result
View All Result
GhanaStar
  • News
  • Sports
  • Entertainment
  • Politics
  • Business
  • Music
No Result
View All Result
GhanaStar
No Result
View All Result
Home Headlines

In Conflict Zones, Companies Struggle With Ethics Vs Profits

March 12, 2017
in Headlines
Share on FacebookShare on Twitter

Some multinationals working in conflict zones are turning to ethically dubious practices to keep their factories operating, employees working and goods flowing.

You Might Also Like

Ghanaian Can Travel to South Africa Visa-Free

2019 – the Biggest Year yet for Ghanaian Tourism

Three Britons On Trial In Singapore Accused of Gang-Raping Drunk Woman

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.

Alexandre Hollander, head of Amarante International, a company specialising in security for international organisations, said: “In a war situation, multinationals generally decide to pull out of the country.”

French oil giant Total left Syria in 2011 and French industrial gas supplier Air Liquide recently quit eastern Ukraine, where pro-Russian separatists decided to seize control of businesses.

Local officials can also play an ambiguous role.

“The fashion is to have ‘cross-expatriates’, such as a Jordanian in Libya, because they are less exposed to risks thanks to their nationality,” Hollander said, but “the understanding of corruption is not always the same for a Russian, a Turk or a Lebanese.”

Moreover, “put under great pressure, mid-level managers can find themselves tempted to turn a blind eye a bit,” he said.

And then, “it is difficult to extract yourself once you’re caught up in the machinery. Once you’ve given two cans of petrol, $1,000, then $100,000, the amount doesn’t matter any more.”

In the Lafarge case, “the basic mistake is that they failed to clearly articulate a break point, to identify what are the red lines beyond which these relationships with local partners become unacceptable,” said David Rodin, an expert in the ethics of war at Oxford University.

In theory the question is “to what extent is Lafarge responsible for the crimes the armed groups commit,” he added. “The question is then at what level were decisions being taken? Was there sufficient oversight and guidance?”

Two companies with extensive foreign operations listed on the Paris stock exchange blue-chip CAC 40 index declined to make public their guidelines while insisting that the issue of ensuring the security of foreign staff is monitored at the highest level of management.

“Lafarge, a company of international standing, approaching such a highly-publicised conflict — shouldn’t it have been extra vigilant?” said Marie-Laure Guislain of Sherpa, a French law association that protects victims of financial crimes, which made a criminal complaint against Lafarge for “financing terrorism”.

France has just adopted a law on companies’ obligation to be vigilant on these issues, which could “have real effects” in this sort of situation, she said.

Join GhanaStar.com to receive daily email alerts of breaking news in Ghana. GhanaStar.com is your source for all Ghana News. Get the latest Ghana news, breaking news, sports, politics, entertainment and more about Ghana, Africa and beyond.

Tags: africaAir LiquideAlexandre HollanderAmarante InternationalBertrand MonnetBusiness ethicsCAC 40Cecile Renouardcellular telephoneCement & Concrete Manufacturingcement manufacturerColombiaCommodity Chemicals - NECcongoConstruction Materials - NECDavid Rodineastern Ukraineethicsfranceheadindustrial gas supplierIntegrated Oil & GasIslamIslamic State of Iraq and the LevantJalabiya plantLafargeLafargeHolcimlaw associationleader in the sectorliberialibyamachineryManagement Consulting ServicesMarie-Laure GuislainNicolas BerlandoilOxford Universityparis:Politics of Syriaprofessorprofessor in criminal risk managementSherpasyriaterrorismtotalUkraineUS Federal Reserveviolencewriter

Related News

Ghanaian Can Travel to South Africa Visa-Free

by
July 10, 2019
0

Citizens of Ghana no longer need a visa to travel to South Africa. This is because the South African Government...

2019 – the Biggest Year yet for Ghanaian Tourism

by
January 24, 2019
0

2018 was a good year for tourism in Ghana with more than GH₵5.8 billion spent in the country's travel and...

Three Britons On Trial In Singapore Accused of Gang-Raping Drunk Woman

by
August 1, 2017
0

Three British men have gone on trial in Singapore today accused of gang-raping a 23-year-old woman while visiting the city-state...

Pakistani Taliban Launches Women’s Magazine

by
August 1, 2017
0

The Pakistani Taliban on Tuesday released the first edition of a magazine for women, apparently aiming to convince its target...

Next Post

Star Abroad, Pest At Home, Indian Magician Fights Law

Access Bank Inspires Women At First National Women's Summit

Categories

  • Africa & World
  • African Music Lyrics Directory
  • Business
  • Business Directory
  • celebrities
  • Computing
  • Diaspora
  • Entertainment
  • Events
  • Feature
  • Featured
  • Ghana Elections 2016
  • Headlines
  • Health
  • International
  • Internet
  • Jobs
  • lifestyle
  • Music
  • News
  • Offbeat
  • Opinion
  • Politics
  • Profiles
  • Religion
  • Security
  • Seth Terkper
  • Smart Home
  • Social Networks
  • Sports
  • Technology
  • Top Stories
  • World News

Tags

accra addo africa Association football Banks - NEC business Business_Finance chairman Donald Trump economy education Entertainment_Culture environment Geography of Africa ghana Ghanaian people government Government of Ghana Human Interest John Dramani Mahama john mahama Law_Crime mahama minister MPs elected in the Ghanaian parliamentary election Nana Addo Nana Addo Dankwa Nana Akufo-Addo National Democratic Congress National Democratic Congress (NDC) New Patriotic Party New Patriotic Party (NPP) nigeria politics Politics of Ghana president Social Issues Social Media Social Media & Networking sports United Kingdom United Nations United States Vice President War_Conflict

Recent Posts

  • Government of Ghana Unveils Official Portraits of President John Dramani Mahama and Vice President Prof. Naana Jane Opoku-Agyemang
  • Who Is the Woman (Sheena Gakpe) in Sarkodie’s Latest Hit “No Sir” and Why Everyone Is Talking about It
List of Ghana Holidays for 2020
Ghana Geocoding
Ghana Cedis Exchange API
Ghana Maps Service
Toyota Cars Auto Auction History
  • African Music Lyrics Directory
  • Business Directory
  • Diaspora
  • Top Stories

All rights reserved © 2021 GhanaStar.com

No Result
View All Result
  • News
  • Sports
  • Entertainment
  • Politics
  • Business
  • Music

All rights reserved © 2021 GhanaStar.com