Corporate Complicity in Apartheid System Exposed: Due Diligence in Finance a Must in Occupied Palestinian Territory

November 30, 2023

The Devastating Humanitarian Crisis and Corporate Accountability

As the world grapples with the humanitarian crisis unfolding in Gaza and the West Bank, a crucial issue has come to the forefront: corporate complicity in war crimes and potential genocide. Despite the ongoing armed conflict, corporations operating in occupied Palestine have failed to uphold their human rights due diligence obligations, contributing to the perpetuation of an apartheid system.

The United Nations’ Recognition of Apartheid

The United Nations has long recognized the existence of an apartheid regime in the occupied Palestinian territory, labeling it a crime under international law. However, multinational corporations continue to operate with impunity, profiting from the illegal settlement economy and perpetuating the oppression of Palestinians.

Corporate Accountability in the Wake of Escalating Violence

Since the recent escalation of violence in Gaza and the West Bank, corporate accountability has become more pressing than ever. The International Court of Justice has determined that there is a plausible risk of Israel committing genocide against Palestinians in Gaza, while the UN Human Rights Council has called for a three-way arms embargo on Israel.

The Importance of Due Diligence

As corporations operating in occupied Palestine continue to fuel the conflict through their activities and supply chains, it is imperative that they take responsibility for their actions. The OECD Guidelines for Multinational Corporations and the UN Guiding Principles on Business and Human Rights emphasize the importance of conducting due diligence to prevent adverse human rights impacts.

Third States’ Role in Upholding International Law

Third states must also take effective measures to uphold international law and regulate corporations domiciled in their jurisdiction for their involvement in potential violations across Palestine. Home states have a legal imperative to enforce accountability, as emphasized by the UNGPs.

Civil Society’s Critical Role

Civil society has a critical role to play in holding corporations accountable, including through direct actions, boycotts, and divestment campaigns. SOMO collaborates with local and international organizations to promote corporate accountability in Palestine and globally.

The Call for Immediate Action

As the world demands an end to the humanitarian crisis unfolding in occupied Palestine, it is essential that corporations operating in the region take immediate action to uphold their human rights due diligence obligations.