Business as usual in Palestine?

Posted in category:

Statement

Written by:

Written by: Lydia de Leeuw

Written by: Aintzane Márquez

Published on: 11 December 2023

Note: Page last updated on 14 April 2026.

In Palestine, over decades of brutal occupation, annexation, and forced displacement, corporations have become part and parcel of a system that oppresses and kills Palestinians and unlawfully exploits their natural resources.

In July 2024, the International Court of Justice determined that Israel’s military occupation of and settler presence in the occupied Palestinian territory is unlawful and must be ended. The Court made clear that all States must “take steps to prevent trade or investment relations that assist in the maintenance of the illegal situation created by Israel”. It also concluded, as did Amnesty International(opens in new window) , and SOMO’s Palestinian partner organisation Al-Haq(opens in new window) , that Israel maintains a system of apartheid, which is also a crime under international law. Within this context of unlawful occupation and apartheid, a genocide has now unfolded. On 26 January 2024, following a case brought by South Africa against Israel, the International Court of Justice determined (opens in new window) that there is a plausible risk of Israel committing genocide against the Palestinians in Gaza, including through killings, starvation, and denial of medical and other humanitarian supplies. The current siege imposed on Gaza comes after decades of movement restrictions and 19 years of an unlawful blockade(opens in new window) imposed on the territory.

Israel’s crimes are enabled and exacerbated by multinational corporations(opens in new window) , whose involvement in human rights abuses has been well documented. Corporate complicity in acts of war crimes and potential genocide must be promptly addressed.

Atrocities Inc.: How corporations enable Israel’s crimes against Palestinian

Since 2020, the United Nations has maintained a database(opens in new window) listing businesses operating in illegal Israeli settlements in violation of international law. Regrettably, the countries where these businesses are based, including the United States, the United Kingdom, the Netherlands, Luxembourg, and France, have yet to enact effective measures to hold their corporations accountable.

Questions have been raised about the potential complicity of certain sectors, including the arms industry(opens in new window) and the tech sector(opens in new window) , in atrocity crimes in Gaza. In March 2024, the UN Human Rights Council adopted a resolution(opens in new window) calling upon states to impose a three-way arms embargo, ceasing the “sale, transfer and diversion of arms, munitions and other military equipment to Israel” and to refrain from “the export, sale or transfer of surveillance goods and technologies and less-lethal weapons, including ‘dual-use’ items” when there are reasonable grounds to suspect that they might be used in violations or abuses.”

In the context of any armed conflict, companies and investors are required to apply heightened human rights due diligence in line with international standards(opens in new window) to avoid adverse impacts from their operations, supply chains, and investments. This due diligence should be proportionate to the scale and severity of risks their operations and business interests pose to human rights, ensuring they neither contribute to nor profit from the conflict. Corporate actors (both companies and their senior leadership) may face legal liability(opens in new window) under domestic legal regimes if they become involved or their conduct is connected to crimes under international law, including genocide, war crimes, and crimes against humanity.

SOMO’s investigations

In collaboration with partner organisations, SOMO investigates, exposes, and helps bring legal cases to end the corporate impunity that characterises the business-as-usual approach of many multinationals operating in occupied Palestine. Corporations actively support Israel’s illegal settlement economy, help maintain the illegal occupation of Palestinian territory, and enable Israel’s commission of atrocity crimes against the Palestinian people.

Corporate involvement in Israel’s crimes against the Palestinians spans across different sectors, including the arms industry, energy sector, tourism, technology, and the unlawful exploitation of Palestinian natural resources such as stone, gas, and agricultural products.
 

Corporate accountability now! And how?

• Companies operating in the context of an armed conflict are subject to scrutiny under international humanitarian law and international criminal law, as well as normative standards such as the UN Guiding Principles on Business and Human Rights and OECD Guidelines for Multinational Enterprises. They must be aware of the impact of their activities on conflict dynamics and avoid unintentional support of conflict, including through logistical or financial means. This obligation also extends(opens in new window) to preventing actions and refraining from activities that could contribute to breaches of international criminal law(opens in new window) , such as forced displacement and acquiring assets through pillage(opens in new window) . The OECD Guidelines for Multinational Corporations(opens in new window) make clear that companies should consider responsibly disengaging from business relationships tied to conflicts. This particularly applies when they lack leverage to prevent or mitigate adverse impacts. The guidelines also stress the importance of considering credible assessments of potential adverse human rights impacts of its disengagement and addressing those adverse impacts accordingly. 

• Third states must take effective measures to uphold international law, prevent genocide in Gaza, and effectively regulate corporations domiciled in their jurisdiction for their involvement in potential violations across Palestine. The role of states in enforcing accountability is not just crucial but a legal imperative. The UNGPs explicitly emphasise(opens in new window) states’ duty to implement mechanisms that address business responsibilities in conflict-affected areas​. Hence, home states – the state in which a corporation is based – must play a role in holding corporations accountable for upholding human rights, especially since Israel is unwilling and Palestine is unable to do so. To uphold international law vis-a-vis companies domiciled elsewhere, effective measures could include prohibiting trade, financial transactions, or other forms of economic engagement with corporations and entities that are complicit in human rights abuses.
• Civil society has a critical role to play towards holding corporations to account. For example, labour unions and allies have coordinated direct actions(opens in new window) , obstructing the supply of weapons to Israel amidst its military campaign against the civilian population in Gaza. SOMO collaborates with local and international organisations to hold corporate actors accountable for their role in international crimes perpetrated in Palestine. Through our civil society helpdesk, The Counter, we assist organisations promoting corporate accountability in Palestine and globally. 

Posted in category:

Statement

Written by:

Written by: Lydia de Leeuw

Written by: Aintzane Márquez

Published on: 11 December 2023