Reports & Researches

With the issuance of the advisory opinion regarding the illegality of Israel’s colonization of Palestinian territories since 1967, the activities of companies supporting colonial activities in the occupied Palestinian territories have come under scrutiny. While Israeli companies make up the vast majority of those contributing to settlement activities, many global corporations are active in Israeli settlements, working in various fields that contribute to increasing the number of settlements and consolidating their presence.

This involvement raises many questions about the legal responsibility of these companies for their commercial relationships, which reinforce Israel’s violations of the civil, economic, and social rights of the Palestinian people. On the other hand, it also raises questions about the responsibility that falls on these companies according to the local laws of their countries of origin, due to their involvement in business activities that support human rights violations.

The Role of International Companies in Supporting Israeli Settlements and Violating Palestinian Rights

The United Nations Human Rights Council, in its Resolution 31/36 on Israeli settlements in the occupied Palestinian territories, including East Jerusalem, dated March 24, 2016, requested the "UN High Commissioner for Human Rights to take the necessary steps to implement the recommendation in paragraph 117 of the resolution to prepare a database of all business enterprises involved in the activities detailed in paragraph 96 of the aforementioned report, to be updated annually."

The report includes companies involved in activities that impact the civil, political, economic, social, and cultural rights of the Palestinian people in Israeli settlements (A/HRC/22/63),which include the following ten activities:

(a) Supplying equipment and materials that facilitate the construction and expansion of settlements, the wall, and related infrastructure.

(b) Supplying surveillance and identification equipment used in settlements, the wall, and checkpoints directly associated with settlements.

(c) Supplying equipment used in the demolition of homes, properties, agricultural farms, greenhouses, olive groves, and crops.

(d) Providing security services, equipment, and materials to institutions operating in the settlements.

(e) Providing services and facilities that support the maintenance and existence of settlements, including transportation.

(f) Banking and financial operations that assist in the development, expansion, or maintenance of settlements and their activities, including loans for housing and business development.

(g) Using natural resources, especially water and land, for commercial purposes.

(h) Pollution and waste disposal in or near Palestinian villages or the transfer of waste to these areas.

(i) Monopoly over Palestinian financial and economic markets, as well as practices that harm Palestinian institutions, including through movement restrictions, administrative and legal barriers.

(j) Using profits and reinvesting them from fully owned companies[1].

Notably, this database did not only include Israeli companies involved in these activities, but also listed several global companies, especially:

These companies, through the services they provide, contribute directly or indirectly to strengthening settlements and reinforcing the illegal presence of settlers on the occupied Palestinian territories. Consequently, they intensify the violation of the inalienable rights of Palestinians to their land.

The Legal Obligation of Companies Under International Law

International law obliges all companies to respect human rights and international humanitarian law in their business activities, especially the commitment to the United Nations Guiding Principles on Business and Human Rights.

Under International Law

Israeli settlement activities in the occupied Palestinian territories are a flagrant violation of international law, particularly the Fourth Geneva Convention of 1949, which prohibits the occupying power from transferring parts of its civilian population to the territories it occupies.

Furthermore, United Nations Security Council resolutions, such as Resolution 242 and Resolution 2334, affirm the illegality of settlements and call for the immediate cessation of all settlement activities. The advisory opinion issued by the International Court of Justice in 2004 regarding the separation wall in the West Bank reinforces the illegality of the settlements and serves as a confirmation of the international responsibility to protect the rights of the Palestinian people. This was reaffirmed by the advisory opinion of the International Court of Justice on July 19, 2024, regarding the illegality of the occupation.

According to the provisions of international humanitarian law and international human rights law, companies that support or participate in settlement activities may be implicated in serious violations, which require their accountability according to international legal standards. This obliges states to ensure that their national companies comply with international law by imposing restrictions on business activities that contribute to strengthening the occupation and building settlements.

According to Article 8 of the Rome Statute of the International Criminal Court, the transfer, directly or indirectly, by the occupying power of parts of its civilian population into the territories it occupies, or the forcible transfer or displacement of all or parts of the population of the occupied territories within or outside those territories, constitutes a war crime. In this context, companies involved in settlement activities are considered partners in a war crime.

Additionally, companies that engage in or support settlement activities bear legal responsibility under the principle of corporate social responsibility, which stipulates that non-governmental entities (such as companies) can be held accountable for human rights violations if they participate in or contribute to them.

United Nations Guiding Principles

The United Nations Guiding Principles on Business and Human Rights reaffirm that companies must avoid participating in human rights violations and take the necessary measures to ensure they are not involved in such violations in any of their operations.

These United Nations Guiding Principles on Business and Human Rights set a global standard for preventing and addressing the risks of negative impacts related to business activities on human rights. They provide the internationally accepted framework to promote standards and practices concerning business and human rights. The Human Rights Council unanimously endorsed them in its Resolution 17/4 dated June 16, 2011.

Although these principles are important in promoting compliance with human rights standards, they do not have any binding force. In the absence of binding regulations, reliance is placed on the ethical commitment of companies and their attention to global standards, as well as the impact on their public image, global reputation, and consequently their business relationships and economic standing.

Legal Pursuit of Companies

Even though the activities of companies may involve international crimes, international legal mechanisms for prosecution remain inadequate in holding them accountable, given the lack of means to prosecute companies before the International Criminal Court (ICC).

However, there is an option to establish individual criminal responsibility for directors and executives of these companies for their activities that constitute serious crimes under international law, provided their direct involvement in these crimes is proven, and that they failed to meet the due diligence standards imposed by international law. This legal option is based on their roles and powers within the companies involved in human rights violations and their actions on behalf of these legal entities (companies) and for their benefit, in accordance with the Rome Statute.

This option presents a challenge for legal professionals in proving the direct involvement of these individuals in committing or facilitating the commission of these crimes before international courts, especially the ICC, regarding committing or contributing to international crimes.

Another available option in this context is to turn to the local courts of the countries to which these companies belong, by affected Palestinians in the West Bank and the relevant organizations and bodies, against companies whose activities in the settlements violate their rights and directly harm their interests.

This legal pathway requires local laws that allow for the prosecution of companies for their complicity in human rights violations. The effectiveness of accountability in this context depends on the active will for prosecution and the strength of local legislation in this regard.

According to the advisory opinion issued by the International Court of Justice, all states are obliged not to recognize the legality of the situation arising from Israel’s illegal presence on the occupied Palestinian territories and to refrain from providing aid or assistance in maintaining the situation resulting from Israel’s continued presence in the occupied Palestinian territories. This requires the enforcement of laws that prevent participation in or contribution to these violations.

With the growing attention to the ethical aspects of business in many countries, several concepts have emerged, such as corporate social responsibility and the duty of care.

In France, the duty of care that companies are obligated to adhere to requires them to comply with international law, or else they may face accountability before French courts under the Devoir de vigilance law, passed in 2017[2], followed by the proposed European directive in July 2022. This law requires companies to comply with fundamental international standards in their activities concerning the protection of people, the environment, and living organisms.

With the issuance of the advisory opinion by the court, even though it is not legally binding, it presents French companies with a fundamental dilemma: settlement activity is illegal, and thus, their commercial activities aimed at strengthening or expanding settlements are a violation of international law and the duty of care under French domestic law.

According to the French newspaper Le Monde, none of the mentioned French companies, interviewed by the newspaper, intend to change their policies despite the ruling by the International Court of Justice. Additionally, they have not observed any decline in their profits, despite calls from the global Boycott, Divestment, and Sanctions (BDS) movement[3].

Advocacy for Human Rights

Advocacy efforts can be utilized to support and pressure companies, influencing their policies and economic behavior, especially considering the limited and often ineffective legal frameworks available. The severity of settlement activities in the occupied territories and the role of companies in reinforcing and benefiting from these violations require focused and deliberate legal and human rights efforts to ensure an end to settlement-driven commercial practices.

National collective campaigns and pressure on local governments to adopt binding international legal systems, establish accountability for national companies supporting settlements, impose sanctions, and prosecute companies in their national courts are essential steps.

The fear of reputational damage and being associated with international crimes concerns companies, regardless of their size or influence. High-impact boycott campaigns, public movements aimed at severing ties with specific companies, divesting, and imposing sanctions can cause significant financial losses and destabilize a company’s economic standing. Examples include the cases of HP (Hewlett-Packard), Altice, Alstom, and the American company Caterpillar.

High-level advocacy and dialogue led by human rights and legal organizations targeting decision-makers in the countries where these companies operate may lead to the imposition of restrictions and sanctions on their commercial activities. With a conscious and committed international political will aligned with human rights principles, it is possible to impose severe economic constraints on these companies by states, organizations, and trade unions, which would disrupt their operations and threaten significant financial losses. An example of this is the Norwegian government's withdrawal of investments from its government pension fund in 2021 from Motorola due to its involvement in settlement activities.

Organizing advocacy efforts, legal and human rights work, coordinating between local and international human rights initiatives and organizations, and strengthening the efforts of the Boycott, Divestment, and Sanctions (BDS) movement are essential steps to unify efforts in this context and to hold these companies accountable.

Conclusion
The advisory opinion issued by the International Court of Justice regarding the illegality of Israeli settlements in the occupied Palestinian territories since 1967 serves as an important legal reference, placing all concerned parties, including international companies, before their legal responsibilities. The continued support by some companies for settlement activities constitutes a direct violation of international law, particularly the Fourth Geneva Convention of 1949.

Companies that contribute to strengthening and expanding Israeli settlements in the occupied Palestinian territories, whether through the provision of services, equipment, or financial support, expose themselves to international legal accountability. International law obliges these companies to refrain from participating in any activities that violate human rights or support illegal settlements. Moreover, the countries to which these companies belong bear legal responsibility to ensure their compliance with international law.

In this context, adherence to the UN Guiding Principles on Business and Human Rights, as well as respect for international humanitarian law, is a legal obligation that cannot be overlooked.

Extractions:
The involvement of international companies in supporting and consolidating Israeli settlement activities in the occupied Palestinian territories constitutes a blatant violation of international laws, including international humanitarian law and international human rights law. This support not only deepens the suffering and injustice experienced by the Palestinian people but also paves the way for further violations and exacerbates their suffering soon. The international community is obligated to take firm steps to hold these companies accountable and ensure they cease their activities that support the illegal Israeli occupation.

Therefore, we at the Palestinian Human Rights Organization (witness) believe that current realities confirm that these companies directly or indirectly contribute to the strengthening of Israeli settlements, further violating Palestinian rights and undermining efforts to achieve peace and justice in the region. Silence or leniency towards these practices reflects a grave failure on the part of the international community and further complicates the humanitarian and political crisis in the occupied Palestinian territories.

Recommendations
In light of the aforementioned, we at the Palestinian Association for Human Rights (Witness) recommend the following:

• Push for the imposition of economic and commercial sanctions on companies that continue to support settlement activities, including listing them on international sanctions lists.
• Strengthen international efforts to protect Palestinian rights and hold any entity that supports activities violating these rights accountable, with a focus on ensuring the safety of civilians and their resources.
• Enhance corporate compliance with international law and consideration of human rights in their business dealings through effective local legislation that criminalizes their work in settlements.
• Work to empower affected Palestinians to file lawsuits in the local courts of these countries, seeking compensation for damages caused by these companies' activities in settlements.
• Pursue legal action against companies in their home countries and advocate for the passage of laws criminalizing business operations in settlements.
• Launch an international advocacy campaign demanding an end to commercial activities by companies in Israeli settlements and support the efforts of the global Boycott, Divestment, and Sanctions (BDS) movement.

The Palestinian Association for Human Rights (Witness)

Beirut at 05/09/2024