abusesaffiliationarrow-downarrow-leftarrow-rightarrow-upattack-typeburgerchevron-downchevron-leftchevron-rightchevron-upClock iconclosedeletedevelopment-povertydiscriminationdollardownloademailenvironmentexternal-linkfacebookfiltergenderglobegroupshealthC4067174-3DD9-4B9E-AD64-284FDAAE6338@1xinformation-outlineinformationinstagraminvestment-trade-globalisationissueslabourlanguagesShapeCombined Shapeline, chart, up, arrow, graphLinkedInlocationmap-pinminusnewsorganisationotheroverviewpluspreviewArtboard 185profilerefreshIconnewssearchsecurityPathStock downStock steadyStock uptagticktooltiptwitteruniversalityweb
Article

1 Mar 2011

Author:
Francesca Rheannon, CSRwire

Lesson from Libya: Despotism, Poverty and Risk

The recent sharp rise in food prices was the spark to the flame fanned by decades of tyranny, beginning in Tunisia, spreading to Egypt and now roiling Bahrain, Algeria, Oman, Yemen and Libya…The link between poverty and despotism is clear in Libya…[D]espotic governments don't allow niceties like real labor rights. They also tend to be corrupt…and that creates burdens…for foreign companies doing business with them…The lesson to be drawn is that dictatorship is a risk for companies everywhere -- with globalization, no company or economy is immune from political sins of others…The winds of democracy are blowing strong; companies that want to sail them, rather than get blown over, would do well to make democracy a central indicator of their planning...So what can companies do? One place companies can go for information about anti-democratic regimes is the Business And Human Rights Resource Centre. The complicity section on the organization's website provides guidance on human rights standards, publishes key reports and lays out case studies for analysis. [refers to Occidental Petroleum, Amerada Hess and Chevron Texaco]