Go to content

Søk

Ombudsman for CSR

The consumption by Norwegians of metal used in electronic equipment may have financed parts of the war in DR Congo and indirectly contributed to rape and abuse.

The conflict in Eastern Congo flared up again just before Christmas 2008, and according to the UN, the number of refugees is increasing. Since the beginning of the year 100,000 people have fled from South Kivu, and in the past two months alone 100,000 people have fled from North Kivu. Human Rights Watch have documented at least 90 cases of rape of women and children and a great number of other serious cases of abuse during the same period. Behind the violence are rebel groups and the Congolese Army". An Ombudsman for Corporate Social Responsibility (CSR) could contribute to limiting the income of the armed groups.

Incomes from minerals and conflict

One of the drivers of the conflict is the large mineral deposits that exist in the eastern Congo. It is estimated that armed groups, including units from Congo’s Army earn as much as one billion Norwegian Crowns (around US$ 167 million) annually from sales of tin, gold, coltan and tungsten. The metal that brings the highest income is tin. Around 5% of the world’s tin production comes from Eastern Congo, and approximately 1/3 of this is used in electronic products.

In the Bisie mine in Walikale in Eastern Congo, the mineral cassiterite, which tin comes from, is mined by hand in small-scale mining. This is very dangerous and extremely hard work, in addition to which, the work is very badly paid. The workers earn between one and five dollars a day, but this is nonetheless better than most other available options. The ore is then carried for two days in sacks that weigh 50 kilos, out of the jungle to a small airstrip, before being flown to Goma. It then finds its way via Mombasa or Dar-es-Salaam to Asian smelting works and from there to the producers of electronic products. Bisie is under the control of the 85th brigade of Congo’s army (FARDC), and the brigade illegally collects tax on the minerals before they reach Goma. This brigade operates on its own and it no longer takes orders from Kinshasa. Over the years, this particular mine has been the source of much conflict and unrest.

Kivu is not the only place where minerals and associated revenues lead to conflict, even though the consequences in Eastern Congo are especially appalling. Similar problems are found in many places in the world. In Tanzania the gold companies are in conflict with the local population which has had to move to make room for the activity. In North Mara, northeast in Tanzania, a number of people have been shot without this having become subject for investigation. In Katanga, in the southern Congo, cobalt is mined. Cobalt is used in batteries, mainly in mobile phones. In Katanga there is no armed conflict but people have few rights and working conditions are very poor. We saw one example of this with the Financial Crisis. When the demand for cobalt fell, the Chinese companies packed their bags more or less overnight. Left behind are ghost factories and people without jobs.

A way out of poverty

There is no doubt that natural resources can provide large incomes for poor countries either through taxes and investments or work. The large mines often provide few jobs and in most places, low taxation because of generous depreciation rules. In Tanzania the companies so far have almost exclusively paid only the resource tax of 3 percent.

Small-scale mining has thus a large potential for becoming a way out of poverty for many people. Even today it generates more income than traditional activities such as agriculture, and is one of the only alternatives in rural areas. The income from the mines is distributed to many people in the local community and contributes to development. With better environmental and working conditions, salaries and training, this type of mining activity has great potential.

An Ombudsman for CSR

In order for natural resources and mining to becoming a source of welfare and not of conflict, more knowledge is required. Today the electronics industry does not know where the metal used in products comes from. It is likely that some of it will find its way into the European and Norwegian markets. As end users of these products and metals each and every one of us has a responsibility.

It is very difficult for journalists or others seeking information to find out in which products the minerals end up. This information is classified as confidential business information. It is therefore necessary to set up an independent Ombudsman with a mandate to gain insight into such secrets and to investigate actual cases where companies are accused of serious human rights breaches or environmental destruction. For ten years Norwegian Church Aid has challenged the government to establish such an office, but did not win support for this in the Stortingsmeldingen (Proposition to the Storting (Norwegian Parliament)) on Corporate Social Responsibility that was published earlier this year.

The Norwegian Government positive to an Ombudsman

The government wants an international scheme, but will not take the initiative on its own. The reason is fear that Norwegian business and industry will lose their competitive edge. In their comments on the proposition on social responsibility a joint Foreign Affairs Committee propose undertaking a study on an Ombudsman scheme. In his reply to the Foreign Affairs Committee, Foreign Minister Jonas Gahr Støre had reservations. He will follow up the recommendations, but is worried about new regulations and bureaucracy.

The discussion should not be necessary. The need for an Ombudsman for CSR is obvious, and it is an arrangement that works well in other fields. It would also be to the advantage of the companies, which would have the chance of being cleared of wrongdoing, should they be wrongly accused. By taking the initiative, Norway would create pressure for corresponding schemes in other countries and create a momentum for and the contents of an international solution.

The companies have a special responsibility

At the same time Norwegian companies should examine their own value chain on their own initiative. Norwegian Church Aid has, together with Ethical Trading Initiative Norway, challenged the electronics industry to do just this. In situations where this is too demanding the sector should join forces to do joint schemes. In some cases tracing and certification may be a possibility. The experience with the Kimberly process on the control of diamonds shows that the arrangement has strengthened formalisation and control of the trade between countries and formal trade. The informal national trade, especially in developing countries, has been less successful. Thus it can not replace the companies’ individual responsibility to gain an overview of the value-chain.

Measures must not affect the poor

Norwegian Church Aid does not want to stop the trade with the Eastern Congo, but wants to know were the minerals come from, how they are produced and who profits from this. If we get information on this we as consumers will be able to lay down conditions. In eastern Congo this might mean that minerals will no longer be bought in a situation whereby the income goes to armed groups, and that at the same time the legal trade from the area will be supported and the informal trade be formalised as far as possible. Trade that is obviously linked to armed groups should be stopped.

Today there is an extreme situation in Eastern Congo where people’s most pressing need is for security and peace. This requires more soldiers and more resources from the UN forces. In the next phase the incomes to the armed groups must be cut off and these incomes redirected to the local population and the state. Then one of the drivers in the conflict would be removed and positive perspectives would be open up for eastern Congo. This would make it easier to implement the other measures that are necessary in order to improve conditions for the population in Eastern Congo, including massive support for raped women and judicial processes where the perpetrators are brought to justice.

  • Written by: Kjetil Abildsnes, Adviser on Development Policy Issues, Norwegian Church Aid. Contact information:  

References:

 

Published: 20.05.2009

Press contacts

Are you a journalist and would like to know more about Norwegian Church Aid's work or policy? Get in touch with our press team:

24hr press hotline:
Tel: (+47) 932 42 493, e-mail: