Business and International Humanitarian Law

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C O N T E N T S CICR_Business&IHL 22.08:Mise en page 2 21.11.06 11:24 Page 5

PREFACE 7

INTERNATIONAL HUMANITARIAN LAW 9

What is international humanitarian law? 9 What are the basic rules of international humanitarian law? 10 When and where does international humanitarian law apply? 11 Where can we find the rules of international humanitarian law? 12 What are the relationship and differences between international humanitarian law and human rights law? 13 Are business enterprises and their staff and managers bound by international humanitarian law? 14 What are war crimes? 15

RIGHTS AND PROTECTIONS 17

How are the operations of business enterprises protected against attacks under international humanitarian law? 17 What additional protections do the personnel of business enterprises enjoy? 18 What additional protections do the assets of business enterprises enjoy? 19

OBLIGATIONS AND RISKS 21

What does international humanitarian law say with regard to managing the security of business operations? 21 Are there rules relating to the acquisition of assets in situations of conflict? 22 What does international humanitarian law say about labour conditions? 23 What does international humanitarian law say on displacement? 24 Are there any rules protecting the environment in times of conflict? 24 What are the specific risks associated with the manufacture and trade of weapons? 25 What are the risks of liability under international humanitarian law? 26

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P R E F A C E CICR_Business&IHL 22.08:Mise en page 2 21.11.06 11:24 Page 7

The risk of criminal or civil liability is undoubtedly the most pressing challenge confronting business enterprises whose activi- The globalization of market economies offers new opportunities ties are connected in one way or another with armed conflict. It is for business enterprises. While these opportunities can generate relevant not only for business enterprises which may themselves growth, jobs and prosperity, they also give rise to risks. Indeed as violate international humanitarian law, but also for those which business enterprises explore these opportunities, they increasingly may contribute to violations of international humanitarian law operate in unstable environments or areas affected by armed committed by the parties to the armed conflict. The issue of conflict. potential complicity is thus something business enterprises must be keenly aware of. A number of business enterprises have declared a commitment to conducting their activities in a conflict-sensitive way. In particular, The aim of the present brochure is to provide managers of busi- in recognition of the fact that their operations are likely to have an ness enterprises with a simple basic document flagging situations impact on the dynamics of conflicts and on the suffering of civilian where business operations may either benefit from the protections populations, they have indicated that they will take great care not to afforded by international humanitarian law or be constrained by exacerbate conflicts and their effects on civilian populations. its rules. The brochure is meant primarily for a readership of country managers and security managers who face the daily chal- Business enterprises have become increasingly familiar with human lenge of running business operations in conflict environments. It rights law. Many have adopted corporate policies aimed at ensuring may also serve as a reference for financial, insurance and trading that their operations respect, and at times even promote respect companies which are not directly operating in zones of armed for, human rights, as well as policies aimed at reducing the likeli- conflict themselves, but may do so indirectly through their clients hood of contributing, directly or indirectly, to human rights abuses. and suppliers. And many are involved in the various fora searching for a shared understanding of the boundaries of business responsibility for The brochure does not provide a comprehensive legal analysis. human rights. Depending on the circumstances, business managers may thus wish to seek legal advice. Business enterprises are generally less familiar with international humanitarian law, even though this body of law, specifically devel- The International Committee of the Red Cross (ICRC) hopes that oped to regulate situations of armed conflict, has important impli- this brochure will prove a useful introduction to the complex and cations for them when they operate in countries experiencing under-explored issue of the relationship between business and armed conflict. On the one hand international humanitarian law international humanitarian law. It is convinced that by clarifying grants protection to the personnel – provided they do not take part the relevant aspects of international humanitarian law for busi- directly in armed hostilities – and the assets and capital investments ness enterprises whose activities are connected in one way or of business enterprises. On the other hand it imposes obligations another with armed conflict, this brochure will help them develop on managers and staff and exposes them – and the business enter- business operations that, at a minimum, respect and do no harm prises themselves – to the risk of criminal or civil liability. to people affected by conflict.

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I N T E R N A T I O N A L H U M A N I T A R I A N L A W CICR_Business&IHL 22.08:Mise en page 2 21.11.06 11:24 Page 9

What is international humanitarian law?

International humanitarian law is also known as “the law of armed conflict” or “the law of war”. Its fundamental premise is that even in times of armed conflict human dignity must be respected and protected, and means and methods of warfare regulated. Rules reflecting these principles can be found through- out history in most if not all cultures.

The codification of these rules at the international level started in the mid-nineteenth century, when States sought to formalize international humanitarian law in binding treaties. Since then, a variety of treaties have been concluded in order to develop and define humanitarian protections during armed conflict. TESY COUR

OSE, REUTERS/JIRO

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INTERNATIONAL HUMANITARIAN LAW

Parties to an armed conflict must at all times distinguish between the civilian population and combatants in order to spare the civilian population and civilian property. Attacks may be directed solely against military objectives. Neither the civilian population as Attacks against works and installations containing dangerous a whole nor individual civilians may be attacked. Attacks against forces, such as dams, dykes and nuclear electrical generating sta- civilian objects or indiscriminate attacks are prohibited. It is also tions are also generally prohibited. Moreover goods that are indis- prohibited to displace the civilian population. pensable to the survival of the civilian population – in particular food and water – must be protected. What are the basic rules of international humanitarian law? The wounded and sick must be collected and cared for by the People who do not or no longer take a direct part in the hostili- party to the conflict which has them in its power. Medical person- ties are entitled to respect for their lives and for their physical and nel and medical establishments, transports and equipment must mental integrity. Such people must in all circumstances be pro- be spared. The red cross, red crescent or red crystal on a white tected and treated with humanity, without any adverse distinction background is the distinctive sign indicating that such persons whatever. It is forbidden to kill or wound an adversary who sur- and objects must be respected. renders or who can no longer take part in the fighting. Captured combatants and civilians who find themselves under Parties to an armed conflict do not have an unlimited right to choose the authority of the adverse party are entitled to respect for their methods and means of warfare. It is forbidden to use weapons or lives, their dignity, their personal rights and their political, reli- methods of warfare that are likely to cause superfluous injury or gious and other convictions. They must be protected against all unnecessary suffering or widespread, long-term and severe acts of violence or reprisal. They are entitled to exchange news damage to the environment. with their families and receive aid. They must enjoy basic judicial guarantees. BOUVET/ICRC ERIC

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BUSINESS AND INTERNATIONAL HUMANITARIAN LAW

International humanitarian law regulates situations of armed conflict. It applies in the whole territory of the States involved in a conflict, regardless of whether combat actually takes place there. Furthermore, it applies continuously until the end of the conflict. When and where does international humanitarian law apply?

International humanitarian law distinguishes between international and non-international armed conflicts. International armed conflicts oppose two or more States. Non-international armed conflicts – colloquially known as civil wars – on the other hand oppose a State and an organized armed group or two or more such groups. Although as a matter of law internal disturbances, such as riots, isolated and sporadic acts of violence and acts of criminality, do not amount to non-international armed conflict, such events may escalate into non-international armed conflict or often occur in States experiencing armed conflict.

An extensive range of treaty rules governs international armed conflicts, including situations of military occupation. A more limited set of treaty rules governs non-international armed conflicts. How - ever, no matter which specific set of rules applies, all entities, States, groups and individuals whose activities are associated with armed conflict are required to respect international humanitarian law irrespective of the reasons for the conflict or the conduct of the opposing side.

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INTERNATIONAL HUMANITARIAN LAW

Where can we find the rules of international humanitarian law?

Since the initial Geneva Convention of 1864, humanitarian law As a testimony to the universality of international humanitarian law, has evolved to meet the ever-growing need for protection result- all States have ratified the Geneva Conventions of 1949. The vast ing from developments in weaponry and new types of conflict. majority are also party to the Additional Protocols of 1977. Today, the four Geneva Conventions of 1949 and their Additional Protocols of 1977 constitute the main instruments of international humanitarian law. Numerous other treaties address more specific topics related to conflicts, such as the regulation and use of specific weapons. International humanitarian law treaties are also comple- mented by customary international law. The latter is constituted by a series of rules that are not necessarily codified in treaties but derive from the consistent practice of States, accompanied by a belief that this practice is legally required.

Main IHL treaties 1907 Hague Regulations concerning the Laws and Customs of War on Land · 1995 Protocol on Blinding Laser Weapons (Protocol IV to the 1980 1949 Geneva Convention (I) for the Amelioration of the Condition of the Convention) Wounded and Sick in Armed Forces in the Field · 1996 Protocol on Prohibitions or Restrictions on the Use of Mines, 1949 Geneva Convention (II) for the Amelioration of the Condition of Booby-Traps and Other Devices (Protocol II to the 1980 Convention Wounded, Sick and Shipwrecked Members of Armed Forces at Sea as amended on 3 May 1996) 1949 Geneva Convention (III) relative to the Treatment of Prisoners of War · 2001 Amendment Article 1 to the Convention on Prohibitions or Restrictions 1949 Geneva Convention (IV) relative to the Protection of Civilian Persons on the Use of Certain Conventional Weapons Which May be Deemed to be in Time of War Excessively Injurious or to Have Indiscriminate Effects. Geneva 1977 Protocol Additional to the Geneva Conventions of 12 August 1949, and · 2003 Protocol on Explosive Remnants of War (Protocol V to the 1980 relating to the Protection of Victims of International Armed Conflicts (Protocol I) Convention) 1977 Protocol Additional to the Geneva Conventions of 12 August 1949, and 1997 Ottawa Convention on the Prohibition of the Use, Stockpiling, Production relating to the Protection of Victims of Non-International Armed Conflicts and Transfer of Anti-Personnel Mines and on their Destruction (Protocol II) 1954 Hague Convention for the Protection of Cultural Property in the Event 2005 Protocol Additional to the Geneva Conventions of 12 August 1949, and of Armed Conflict relating to the Adoption of an Additional Distinctive Emblem (Protocol III) · 1954 Protocol for the Protection of Cultural Property in the Event of Armed 1980 Convention on Prohibitions or Restrictions on the Use of Certain Conflict Conventional Weapons Which May be Deemed to be Excessively Injurious · 1999 Second Protocol to the Hague Convention of 1954 for the Protection or to Have Indiscriminate Effects of Cultural Property in the Event of Armed Conflict · 1980 Protocol on Non-Detectable Fragments (Protocol I to the 1980 Convention) · 1980 Protocol on Prohibitions or Restrictions on the Use of Mines, Booby-Traps and Other Devices (Protocol II to the 1980 Convention) 12 · 1980 Protocol on Prohibitions or Restrictions on the Use of Incendiary Weapons (Protocol III to the 1980 Convention) CICR_Business&IHL 22.08:Mise en page 2 21.11.06 11:24 Page 13

BUSINESS AND INTERNATIONAL HUMANITARIAN LAW

International humanitarian law and international human rights are complementary bodies of law that simultaneously apply in times of war. Both share certain common goals, such as the protection of life, health, dignity and property. Because international humanitarian law is more specifically focused on the regulation of armed conflict, in such contexts human rights will often be interpreted based on standards of international humanitarian law. For example, in situations of armed conflict the right to life under human rights law must be interpreted in light of the rules of international humanitarian law, which permit attacks against combatants. What are the relationship and differences between international humanitarian law and human rights law? In relation to other issues, such as procedural safeguards, human rights law may be relied upon as a supplementary body of rules protecting persons affected by armed conflict.

Despite the sometimes complex overlap with human rights law, international humanitarian law retains various distinct character- istics. Perhaps the most fundamental one of these is that human rights are traditionally understood as only binding on States – although this position is challenged by some human rights advo- cates – while international humanitarian law binds both State and non-State actors – including managers and staff of business enterprises for instance – whose activities are closely linked to an armed conflict. While certain human rights may temporarily be derogated under strict conditions and circumstances threatening the life of the nation, such as armed conflicts, international humanitarian law is specifically designed for such circumstances and can never be derogated.

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INTERNATIONAL HUMANITARIAN LAW

International humanitarian law does not just bind States, organized armed groups and soldiers – it binds all actors whose activities are closely linked to an armed conflict. Consequently, although States and organized armed groups bear the greatest responsibility for implementing international humanitarian law, a business enterprise carrying out activities that are closely linked to an armed conflict must also respect applicable rules of international humanitarian law. Moreover, whether a business enterprise operates in a context of ongoing armed conflict or whether its operations, On the other hand, a business enterprise that violates provisions established in a peaceful setting, are caught up by the outbreak of of the national criminal law of a country in circumstances that are an armed conflict does not affect its obligation to respect interna- completely independent of a surrounding armed conflict does not tional humanitarian law. violate international humanitarian law. However, the line between these various situations is at times difficult to draw precisely. Are business enterprises and their staff and managers bound by international humanitarian law?

Determining which activities are closely linked to an armed conflict In view of the above, business enterprises operating in zones of is, however, not always easy. Providing direct support to one side armed conflict should use extreme caution and be aware that their in a battle is clearly such an activity. But business enterprises are actions may be considered to be closely linked to the conflict even likely to carry out a whole range of other activities which can be though they do not take place during fighting or on the battlefield. more or less connected with an armed conflict. Likewise, it is not necessary for business enterprises and their managers to intend to support a party to the hostilities for their activities to be considered to be closely linked to the conflict.

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BUSINESS AND INTERNATIONAL HUMANITARIAN LAW

What are war crimes? War crimes represent a core of the most egregious violations of international humanitarian law. In recognition of the seriousness of such violations, States have agreed that the perpetrators of war crimes should be prosecuted and punished before criminal courts. The Geneva Conventions and their Additional Protocol I not only oblige States to criminalize certain grave breaches of international humanitarian law in their national legislation, they also require that all States investigate and prosecute such offences irrespective of where they take place and by whom they are committed.

List of war crimes War crimes include:1 · wilful killing, torture or inhuman treatment, including biological experiments, wilfully causing great suffering or serious injury to body or health to protected persons or prisoners of war; unlawful deportation or transfer or unlawful confinement of · TESY

a protected person; COUR

· compelling a protected person or prisoner of war to serve in the forces of a hostile Power; HAKIZIMANA, · wilfully depriving a protected person or prisoner of war of the rights of fair and regular trial; · taking of hostages;

· making the civilian population or individual civilians the object REUTERS/THEMISTOCLES of attack; · launching an indiscriminate attack affecting the civilian population Consequently, war crimes form part of the criminal law of most or civilian objects in the knowledge that such attack will cause States. In addition, several international courts and tribunals, excessive loss of life, injury to civilians or damage to civilian objects; including the International Criminal Court, have jurisdiction to · extensive destruction and appropriation of property, not justified by prosecute those responsible for such offences. military necessity and carried out unlawfully and wantonly. Many States have also criminalized under their national law other 1 See: Article 50 Geneva Convention I; Article 51 Geneva Convention II; serious violations of international humanitarian law that are not Article 130 Geneva Convention III; Article 147 Geneva Convention IV; and listed above. Article 85 Additional Protocol I.

A significant risk of criminal liability thus exists for those who commit grave breaches of international humanitarian law, including where business enterprises or their representatives commit or knowingly assist violations carried out by others, such as contractors, subsidiaries or clients.

Moreover, participation in war crimes might also give rise to civil liability before national courts.

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CICR_Business&IHL 22.08:Mise en page 2 21.11.06 11:24 Page 17

ness assets are military targets is in particular whether the facilities or resources in question are used in a way that makes an effective contribution to military action.5

If, for example, a business enterprise with manufacturing facilities in a country in conflict produces ammunition that One of the most immediate threats to business enterprises oper- is used by a party to the conflict, then its munitions factory ating in conflict zones is that of military activities affecting their becomes a legitimate target, as would trucks or planes used to transport the ammunition. workforce or their assets. Similarly, if a private oil pipeline carries oil that is transferred to and used by a party to the conflict for its military operations, International humanitarian law strictly prohibits deliberate it also becomes a legitimate target. On the other hand, if a business enterprise manufactures or sells attacks on civilians and civilian objects,2 such as business enter- products or services that do not effectively contribute to military prises, as well as indiscriminate attacks, i.e. attacks that do not action, it does not become a legitimate target, unless its premises distinguish military targets from civilian persons or objects.3 are used by a party to the conflict for its military operations. How are the operations of business enterprises protected against attacks under international humanitarian law? It is thus crucial to keep in mind that any civilian object may become Personnel of business enterprises – be they local or expatriate a military target depending on the manner in which it is used. personnel or contractors – performing their usual business activities are generally considered civilians and therefore benefit from Legitimate attacks against military objectives can cause civilian the protection against deliberate and indiscriminate attacks. How - “collateral damage”. However, international humanitarian law ever, international humanitarian law stipulates that civilians who stipulates that military targets may not be attacked if the likely directly participate in hostilities lose their protection from attack incidental consequences for civilians and civilian objects are exces- for the time that they are carrying out these activities.4 It is not sive in relation to the concrete and direct military advantage of always easy however to determine what amounts to “direct partic- destroying the military objective.6 ipation in hostilities”. The use of a grenade to kill a single soldier in a crowded International humanitarian law instruments do not provide marketplace or factory would thus be prohibited as its adverse a clear-cut definition of what amounts to “direct participation effects on civilians are likely to be excessive in relation to in hostilities”. It is however generally understood that the the concrete and direct military benefit of killing the soldier. commission of acts which, by their nature and purpose, are On the other hand minor damage to a factory located in close intended to cause actual harm to enemy personnel and matériel proximity to a major military barracks could be justified. amounts to a direct participation in hostilities. That would Civilians working in an ammunition factory would be at risk clearly be the case if an employee of a business enterprise in case of attack against this military objective. took up arms or participated in the planning of a military operation. On the other hand, an employee of a business enterprise who supplied food or shelter to combatants or generally Between these examples are a number of more difficult situations, “sympathized” with them would not be considered to be which business enterprises should consider when they determine directly participating in the hostilities. where to situate their premises and operations or whether to relo- Recognizing the inherent difficulties in making such a determina- cate as the dynamics of the surrounding conflict change. tion in practice, international humanitarian law provides that in case of doubt as to whether a person is a civilian or a combatant, that person is to be considered a civilian.

Business enterprises’ property such as factories, offices, vehicles, land and resources are considered civilian objects and thus also

benefit from the protection against deliberate and indiscriminate 2 Article 48 Additional Protocol I; Article 13 Additional Protocol II. attacks. However, if business property is used for military purposes, 3 Articles 51(4) and (5) of Additional Protocol I. 4 Article 51(3) Additional Protocol I; Article 13(3) Additional Protocol II. it becomes a military object and risks being legitimately attacked 5 Article 52 Additional Protocol I. 17 by parties to the conflict. The test for determining whether busi- 6 Article 51(5)(b) Additional Protocol I. CICR_Business&IHL 22.08:Mise en page 2 21.11.06 11:24 Page 18

RIGHTS AND PROTECTIONS

International humanitarian law also grants legal protection to civilians deprived of their liberty. In addition to laying down minimum conditions and standards of treatment in detention, all persons deprived of liberty enjoy the right to be informed of the reasons for their detention 9 and to challenge the legality of their captivity. A host of more specific legal protections apply to different types of detention that may occur during armed conflict 10 – including ICRC visits to persons detained in relation with the conflict. What additional protections do the personnel of business enterprises enjoy?

If a business enterprise’s staff are charged with criminal offences Direct attack is by no means the only threat to the personnel of linked to the armed conflict, a sentence can be handed down only business enterprises operating in conflict zones. These persons, by a court offering the essential guarantees of independence and whether locals or expatriate, may face many other serious threats impartiality.11 The accused also have a right to be informed with- to their physical integrity as a result of armed conflict. out delay of the particulars of the offence alleged against them. Moreover, collective punishment and convictions for acts that did International humanitarian law provides a series of specific pro- not constitute crimes at the time of their commission are prohib- tections for civilians in times of armed conflict. As civilians, the ited. Even in a context of armed conflict, the accused enjoy the personnel of business enterprises enjoy legal protection against presumption of innocence, the right to attend court and the right violence to their life, health and physical or mental well-being. to appeal.12 In particular murder, torture in either mental or physical form, corporal punishment, rape and mutilations are all strictly prohibited.7 Neither expatriate nor local personnel may be taken hostage by parties to an armed conflict.8

7 See Article 3 common to the Geneva Conventions of 1949; Article 32 Geneva Convention IV; Article 75(2) Additional Protocol I; Article 4(2) Additional Protocol II. 8 See Article 3 common to the Geneva Conventions of 1949; Article 34 Geneva Convention IV; Article 75(2)(c) Additional Protocol I; Article 4(2)(c) Additional Protocol II. 9 See Article 75(3) Additional Protocol I. 10 See Articles 42, 43, 78 – 82 Geneva Convention IV and generally Geneva Convention III. 11 See Article 84 Geneva Convention III; Article 71 Geneva Convention IV; Article 75(4) Additional Protocol I; Article 6(2) Additional Protocol II. 12 For judicial guarantees during armed conflict see Articles 82 – 108 Geneva Convention III; 18 Articles 71 – 78 Geneva Convention IV; Article 75(4) Additional Protocol I; Article 6 Additional Protocol II. CICR_Business&IHL 22.08:Mise en page 2 21.11.06 11:24 Page 19

BUSINESS AND INTERNATIONAL HUMANITARIAN LAW

One of the major risks faced by business enterprises in times of armed conflict involves the misappropriation or looting of assets and investments. The risks are particularly pronounced where an

armed conflict creates a climate of hardship, scarcity of resources NEELEMAN/ICRC and collapse of local law enforcement mechanisms such as police BENNO and courts. What additional protections do the assets of business enterprises enjoy?

International humanitarian law states that private property must be respected.13 It is, for example, prohibited to confiscate private property. The prohibition covers the premises and investments of business enterprises, as well as housing for their personnel, to the extent that they are privately owned.

Under limited circumstances however, an occupying power may be entitled to seize the property of business enterprises, provided it is returned and compensation paid at the end of the armed conflict.14 An occupier may also use a certain portion of State property to offset costs of administering the occupied territory.15 Beyond these limitations, unlawful appropriation of business assets during armed conflict or occupation will amount to pillage, which is considered a war crime.16

13 Article 46 Hague Regulations; Article 33 Geneva Convention IV. 14 Articles 52 and 53 Hague Regulations. 15 Article 55 Hague Regulations. 19 16 Article 33(2) of Geneva Convention IV, Article 47 Hague Regulations. CICR_Business&IHL 22.08:Miseenpage221.11.0611:24Page20

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CICR_Business&IHL 22.08:Mise en page 2 21.11.06 11:24 Page 21

As stated above, there may be situations where business enterprises have to hire for their protection the same State or rebel forces that are participating in conflict. Business enterprises that hire security or military forces who do not respect the rules of international In countries plagued by armed conflict or by high levels of humanitarian law while engaged in armed conflict may, under lawlessness, business enterprises are often compelled to set up certain circumstances, be legally liable for assisting the commis- security systems. They may be required by local law to contract sion of violations of international humanitarian law, even if they their security services from the government. They may have to did not intend the violations to occur and if the offences were not hire private security companies. Or in particular circumstances, perpetrated on their behalf. Indeed, because attacking civilians they may choose to resort to rebel forces or other armed groups violates the most basic principle of international humanitarian to fulfil security roles. Problematically, in some instances, the same law, companies that knowingly engage or collaborate with groups forces contracted to maintain security of a business enterprise involved in such actions may run the risk of criminal and civil take part in surrounding conflicts and at times violate interna- liability. In any event, engaging military protection from forces tional humanitarian law in the process. that do not respect the laws of war is incompatible with an under- taking to promote international humanitarian law. What does international humanitarian law say with regard to managing the security of business

operations? Business enterprises must be aware that they face another risk when operating in conflict zones: if armed forces initially contracted to Ordinarily, security personnel retained by business enterprises protect the facilities of business enterprises subsequently used those must operate in accordance with domestic law as well as with facilities to launch, or defend against, military actions, the infra- international law enforcement standards.17 These standards per- structure and personnel implicated in supporting such military mit security personnel to use force only when strictly necessary actions would become military targets. and in a manner that is proportional to the threat faced. To the extent that this is within their control, business enterprises should In addition, business enterprises should take note that they are ensure that security forces protecting their personnel and assets limited in the types of weapons that can be used to ensure their operate in accordance with domestic law and these standards. security in times of conflict. Anti-personnel landmines, for example, are explicitly banned in all situations by the Ottawa Convention 19 It is possible that business enterprises operating in zones of because of their indiscriminate effects on civilians. They also armed conflict may be drawn into the conflict. In such circum- obstruct economic development and reconstruction. Other weapons stances their property may become a military objective and the that may cause superfluous injury or unnecessary suffering are security personnel defending it also. If this happens and business also prohibited. operations are attacked by parties to the armed conflict, the use of force is then regulated by international humanitarian law and the applicable rules are different. For example, international humanitarian law does not prohibit the use of lethal force, providing it is directed against combatants and does not violate other relevant rules of international humanitarian law (local law may impose additional limitations). International humanitarian law also stipulates that during armed conflict enemies who surrender may not be killed, the wounded must be provided with medical treatment and persons deprived of their liberty must be treated humanely.18 Torture, inhuman treatment, rape and summary executions are 17 See Article 3 of the Code of Conduct for Law Enforcement Officials, adopted by strictly prohibited under all circumstances. Again, business UN General Assembly Resolution 34/169 of 17 December 1979. enterprises must ensure that the security forces guarding their 18 Common Article 3 Geneva Conventions; Article 40 Additional Protocol I; Article 75 Additional Protocol I. employees and assets operate in compliance with the rules of 19 Ottawa Convention on the Prohibition of the Use, Stockpiling, Production and Transfer 21 international humanitarian law. of Anti-Personnel Mines and on their Destruction, 1997. CICR_Business&IHL 22.08:Mise en page 2 21.11.06 11:24 Page 22

OBLIGATIONS AND RISKS

Are there rules relating to the acquisition of assets in situations of conflict?

Business enterprises which operate in conflict zones must apply heightened managerial care to ensure that they are not acquiring resources and property without the freely given consent of the owner. They may otherwise be accused of taking part in pillage.

International humanitarian law prohibits pillage, i.e. the unlawful taking of private property for personal or private use. Pillage is not limited to the acquisition of assets by force. In the past, courts have considered the acquisition of assets by entering into contracts as pillage when the agreement was based on threats, intimidation, pressure, or a position of power derived from the surrounding armed conflict. In other cases, transfer of company shares based on fear, management of a business enterprise for the benefit of individuals other than the owners and knowingly receiving goods obtained against the will of the true owner were all found to constitute pillage. Thus, when operating in a conflict environment, business enterprises should be extremely careful about the circumstances under which they acquire assets. TESY COUR

MD/FMS, CHUNG REUTERS/POOL/DAN

22 CICR_Business&IHL 22.08:Mise en page 2 21.11.06 11:24 Page 23

BUSINESS AND INTERNATIONAL HUMANITARIAN LAW

Business enterprises operating in situations of armed conflict face particular challenges related to the labour conditions of their workforce. Some companies have been found responsible for having benefited from the labour of civilians, prisoners of war or concentration camp detainees to carry out work that did not meet minimum standards.

What does international humanitarian law say about labour conditions?

Although international humanitarian law does not prohibit States from compelling certain categories of persons (persons deprived of their liberty or the civilian population of occupied territories) to carry out certain types of work, it does not grant this right to private actors and, in any event, it prohibits uncompensated or abusive labour. It lays down minimum working conditions and It may happen that a business enterprise operating in a zone places limitations on the types of work that such individuals can of armed conflict benefits from a workforce provided and organized by the authorities. In such situations the managers 20 be asked to carry out. The precise conditions and limitations of the business enterprise should apply heightened managerial depend on the nature of the armed conflict and the status of the care to identify risks and prevent abuses of this workforce. persons concerned. As a general rule however, they exclude work that is connected with the armed conflict, unhealthy, dangerous or humiliating. International humanitarian law also lays down On the issue of labour, the protections in international humani- detailed provisions dealing with working conditions, duration of tarian law are less comprehensive than those found in the labour, pay, and right to compensation for occupational accidents International Labour Organization Forced Labour Convention and medical supervision. (No. 29) of 1930 – also relevant in times of armed conflict – which prohibits forced labour of civilians in most situations. Business enterprises must, therefore, ensure that no forced labour is associated in any way with their operations.

20 See Articles 49 - 55 Geneva Convention III; Articles 40, 51 and 95 Geneva Convention IV; 23 Article 5(1)(e) Additional Protocol II. 39801_CICR_Business&IHL_reprint:Mise en page 2 23.11.06 15:08 Page 24

OBLIGATIONS AND RISKS

What does international humanitarian law say on displacement? Business operations sometimes involve obtaining access to resources and establishing transport routes in ways that may affect a civil- The taking of private property without due legal process and fair ian population’s residential or agricultural land. Securing such compensation may amount to pillage (see above). Moreover, inter- access within conflict zones has at times involved the intervention national humanitarian law stipulates that, in situations of occu- of warring parties who evicted residents by force. pation or in times of civil war, civilians cannot be forcibly relocated except in limited circumstances and only temporarily when their security or imperative military reasons so demand.21 In this sense, the expulsion of civilians by armed groups acting on behalf of a business enterprise cannot be justified. In fact, if such practices were closely linked to an armed conflict, they could give rise to significant legal liabilities, both criminal and civil.

Business enterprises may have an impact on the environment in a variety of ways, whether directly through their operations or Business enterprises may be implicated in violating these rules by indirectly through the way their products or services are used. On selling armed forces the means necessary to carry out attacks that the other hand, conflicts often have an undesirable impact on the cause severe damage to the environment. Therefore, business enter- environment. Heightened managerial care with regard to envi- prises supplying products – such as chemical or biological weapons, ronmental issues is therefore required from business enterprises or exfoliants – that can cause such damage during armed conflict operating in conflict zones. may face legal proceedings. Are there any rules protecting the environment in times of conflict? Business enterprises may also be held responsible for violations of international humanitarian law perpetrated against the environ- International humanitarian law contains rules intended to limit ment by providing services. Advising armies on how to engineer damage to the environment. For instance, it specifically prohibits massive oil spills as part of an armed conflict, assisting in the forms of warfare that may be expected to cause widespread, long- development of weapons that cause widespread, long-term and term and severe damage to the natural environment.22 Further - severe damage to the environment or providing armed forces with more, the rules of international humanitarian law for determining the means to do so would be plainly inconsistent with an under- whether something is a military target also protect the environ- taking to promote international humanitarian law. ment. Incidental environmental consequences of an attack against a military target must also be considered and weighed against the military benefit of destroying the target in question. Moreover, attacking forests or other kinds of plant cover by incendiary weapons is prohibited, except when such natural elements are used to cover, conceal or camouflage combatants or other military objectives, or are themselves military objectives.

24 21 Article 49 Geneva Convention IV and Article 17(1) Additional Protocol II. 22 Article 35(3) Additional Protocol I. CICR_Business&IHL 22.08:Mise en page 2 21.11.06 11:24 Page 25

BUSINESS AND INTERNATIONAL HUMANITARIAN LAW CVETKOVIC/ICRC MILOS

Armed conflicts feed on the availability of weapons. Business enterprises involved in the manufacture and trade of weapons consequently face particular challenges linked to their role in the way conflicts are fought. Business enterprises involved in the manufacture and trade of weapons may indeed play a part in exacerbating violations of international humanitarian law.

What are the specific risks associated with the manufacture and trade of weapons?

Several international humanitarian law treaties prohibit the development, production and transfer of specific weapons. Manufac- turers or suppliers may, for example, be liable for trading weapons such as anti-personnel landmines or biological and chemical weapons, including poisonous gases. In fact, a number of these treaties also compel States to take appropriate measures to control

arms transfers and ensure that individuals who engage in illegal A business enterprise that supplies a party to an armed activities are criminally prosecuted. conflict with chemicals that were used in the past to commit violations of international humanitarian law is exposing itself to the risk of legal liability. The same would apply to a business Production and trade in weapons other than those explicitly pro- enterprise supplying a party to an armed conflict with devices hibited might also give rise to legal liability where the trader know- known to be part of weapons that have been used in the past ingly supplies weapons to end-users who use them to violate to commit violations of international humanitarian law. international humanitarian law. Considerations based on international humanitarian law are also relevant for products not traditionally used as weapons, provided that the manufacturers or suppliers know that the product is to be used to perpetrate war crimes. An understanding of international humanitarian law and an interest in the conduct of potential purchasers are essential to the risk management of manufacturers and suppliers of weapons and facilitate greater respect for international humanitarian law. 25 CICR_Business&IHL 22.08:Mise en page 2 21.11.06 11:24 Page 26

OBLIGATIONS AND RISKS

In addition to the risk of becoming a military target, business enterprises operating in conflict zones are exposed to the surrounding conflict dynamics. Not only their operations, but also their personnel, products or services may become part of the ongoing conflict. In the worst-case scenario, any of these could result in or facilitate violations of international humanitarian law. Business enterprises therefore run legal risks, whether based on criminal responsibility for the commission of or complicity in war crimes or on civil liability for damages. The nature, implica- tions and extent of these risks are of particular importance to business enterprises operating in conflict zones. What are the risks of liability under international

humanitarian law? Some countries have passed national legislation that permits business enterprises to be held responsible for the commission of, International humanitarian law states that not only perpetrators, and complicity in, war crimes. Moreover, the managers of busi- but also their superiors and accomplices may be held criminally ness enterprises may face prosecution in a personal capacity. The responsible for the commission of war crimes. Of these forms of fact that a manager acted on behalf of a business enterprise does commission, complicity is likely to be the most relevant to business not provide any sort of immunity from prosecution for interna- enterprises. tional crimes. In addition, because all States have an obligation to investigate and prosecute certain war crimes irrespective of where An accomplice is someone who provides practical assistance, moral the acts occurred, business enterprises or their managers may face support or encouragement that has a substantial effect on the proceedings in countries other than those in which they operate. commission of a war crime. The accomplice must have had some Business enterprises should therefore not discount the possibility knowledge that providing the assistance or support would facil- of legal proceedings simply because the country where they are itate the crime. operating is unlikely to conduct criminal investigations or inca- pable of doing so. The risk of corporate and individual responsibility for crimes perpetrated in the context of an armed conflict is thus an element of growing importance in a business enterprise's assessment of the range of risks associated with its activities dur- An arms dealer who sells weapons to a client knowing that ing an armed conflict. the weapons are to be used to commit war crimes is complicit in the crimes, regardless of whether he or she shares the client’s motivations. Similarly, the provision on a commercial basis Finally, business enterprises and their managers also face the risk of logistical support that is likely to facilitate the commission of civil liability. While criminal law seeks to punish individuals for of violations of international humanitarian law may attract war crimes, civil liability allows victims to seek compensation for legal liability. damages. More particularly, civil liability enables individuals claiming to have suffered as a result of the wrongdoing of a business enterprise, for example, to seek compensation from national courts. Civil litigation is increasingly perceived as being a viable way of redressing violations of international humanitarian law by business enterprises, as civil cases can be brought directly by individual victims and the standard of proof is lower than that required in a criminal trial. 26 CICR_Business&IHL 22.08:Mise en page 2 21.11.06 11:24 Page 27 39801_CICR_Business&IHL_reprint:Mise enpage223.11.0615:08Page28

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