It may seem a strange notion to give the private sector a role in
conflict prevention or resolution, but multinational corporations
(MNCs) do have some characteristics that make them good partners in
a well-designed strategy for peace and stability. By focusing on
their core competencies, their presence in a conflict region can
help to provide prosperity for rebuilding society and its
institutions, and improved respect for human rights. This book is
not a song of praise for MNCs in general. There is a litany of
examples of companies that feel no shame in profiting from
conflicts by trading weapons or illegal resources, that prolong war
by supporting one or other of the parties, or that are only in a
war-torn country because the lawlessness suits them well. Even
companies that refrain from such criminal activities cannot be
envisaged as potential peace-builders if they profit unscrupulously
from cheap labour or cheap subcontractors. Instead, this book is
about corporations that are disposed to ethical, responsible
entrepreneurship: companies that balance their desire for profit
with compliance with international business and human rights
standards and with a genuine investment in local workers,
environmental protection, social development and stability.
Worldwide about 60,000 MNCs work in over 70 conflict regions. They
operate in regions where social unrest is harshly repressed, where
outright fighting takes place, or where civil war has recently
ended. Whatever the attitude of multinationals and whatever their
area of business, they influence conflicts or are themselves
influenced by conflicts. Even if they do not directly invest in or
trade with a conflict region, they always risk being associated
with those conflicts. The Profit of Peace examines how
multinationals can use their core business competencies to promote
peace and stability in conflict regions and what role - if any -
business has in diplomacy. To investigate these questions the
authors interviewed CEOs and high-level managers of multinationals
working in 'challenging' countries such as Afghanistan, Burma and
Rwanda. The interviewees provided extraordinarily candid views on
both the practical and ethical issues that occur when operating
under extremely volatile circumstances. The lessons learned by
these managers make the book invaluable for any manager working for
a large company in a region of unrest. Two vital elements emerged.
Firstly, the ability to manage cultural differences is a key factor
for success. Without a keen sense of the differences in management
styles, in perceptions of ethics and morality, and in the values
behind political opinions, every peace effort is doomed to fail.
Secondly, ethically correct decisions do not necessarily lead to
ethically correct results. It was not the objective of the authors
to judge which of the parties in conflict regions are right or
wrong. Rather, they wanted to find out what kind of attitude at the
end of the day contributes most effectively to conflict prevention
or stabilisation of a region. In other words, in this book
corporate responsibility is measured by the results and not by the
intentions. All of the CEOs interviewed for this book were well
aware of the fact that their companies operating in conflict
regions would always influence the conflict one way or another.
This awareness in itself is quite extraordinary, and it shows that
the indifferent comment "business is business" by and large belongs
to a past era. Also extraordinary was that the managers allowed
such a frank look into their sanctuary, since this candour makes
them all the more vulnerable to criticism. Through the information
from the interviewees and from other managers who have experience
in conflict regions, the book outlines the ingredients for an
approach that can best lead to a solution of conflicts and to
greater stability. It will only be in the long run that we will be
able to establish how successful the new profession of 'business
diplomat' can be, but in the meantime the daily practices of MNCs
show that they can work on 'the profit of peace'. This book is
based on investigative journalism and contains many examples of
best practices worldwide. It will be essential reading for
practitioners, policy-makers and students involved with corporate
social responsibility, peace studies, development studies and
stakeholder management.
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