Corporations shouldn't profit from brutal conflict. #StopPillage (2024)

Corporations shouldn't profit from brutal conflict. #StopPillage (1)

So pillage is a war crime?

The laws of war, also known as international humanitarian law, have long protected property against pillage during armed conflict. In the 1863 Lieber Code, which established the law of war for Union forces in the American Civil War, “all pillage or sacking, even after taking place by main force […were] prohibited under the penalty of death, or such other severe punishment as may seem adequate for the gravity of the offense.” In the Hague Regulations of 1907, two provisions categorically stipulate that “the pillage of a town or place, even when taken by assault, is prohibited,” and that “pillage is formally forbidden.”

After the end of World War Two, the Geneva Conventions of 1949 again reaffirmed that “pillage is prohibited.” These provisions bind all states. Codification of pillage as an offense in the Rome Statute of the International Criminal Court, and in the statutes of the International Criminal Tribunal for Rwanda and the Special Court for Sierra Leone establish the prohibition as also binding upon non-state actors.

But what is the definition of pillage?

According to guidelines used by the International Criminal Court (ICC), pillage occurs when a perpetrator takes property from the legitimate owner for his or her private or personal use, without consent, in an armed conflict. Essentially, pillage is theft under the cover of war.

The requirement that the taking be perpetrated for the pillager’s “private or personal use” is controversial and likely only applies, if at all, to the ICC. Numerous cases brought after the Second World War successfully targeted representatives of companies that seized goods to support the Nazi or Japanese war effort; and jurisprudence in the International Criminal Tribunal for the Former Yugoslavia and in the Special Court for Sierra Leone also dispenses with any “private or personal use” limitation.

Have people been prosecuted for pillage?

In 2012, Charles Taylor, former president of Liberia, was convicted of war crimes charges that included aiding and abetting pillage during the civil war in Sierra Leone. In 2015, Belgian-American Michel Desaedeleer was arrested and charged with war crimes for pillage and enslavement in connection with trafficking in “blood diamonds,” also during the Sierra Leone civil war.

In 2016, meanwhile, an International Criminal Court Trial Chamber convicted Congolese opposition leader Jean-Pierre Bemba of responsibility as a commander for crimes against humanity and war crimes—including pillage—committed by his armed group in the Central African Republic in 2002-2003. Although Desaedeleer died in custody in Belgium while awaiting trial, Bemba’s convictions were overturned on appeal.

But what about companies or corporations?

Numerous businessmen and other officials, including representatives of companies such as IG Farben, Krupp and Dresdner Bank were convicted of pillaging goods from Nazi-occupied territory to support the German war effort and/or for more directly commercial ends. No business representatives have been prosecuted for such activity since the late 1940s. Nor have companies (as distinct from businessmen) ever been prosecuted for pillage.

Why revive prosecutions for corporate pillage?

Because pillaged natural resources are often among the principal sources of funding for regional conflict. Since the end of the Cold War, the illegal exploitation of natural resources has become a prevalent means of financing conflict in countries ranging from Angola and Afghanistan to Liberia, Burma, Sierra Leone, and the Democratic Republic of the Congo. The armed groups who perpetrate pillage rely on supposedly legitimate businesses and middle-men to turn pillaged goods into hard cash on the international markets.

In Cambodia, in the 1980s, rain forest timber shipped to Thailand provided funding for a decade long civil war. In Sierra Leone in the 1990s, rebel leaders traded the country’s diamonds for weapons, fueling a brutal conflict that left tens of thousands dead or maimed. Illicit trafficking of coltan, gold, diamonds, and copper continues to sustain hostilities in the Democratic Republic of the Congo.

The sale of pillaged natural resources fuels war. Businesses that knowingly buy, process and trade in these pillaged goods are all accessories to the war crime of pillage. They should be prosecuted as such.

Corporations shouldn't profit from brutal conflict. #StopPillage (2024)

FAQs

Are corporations legally obligated to make a profit? ›

Just to be very clear: modern corporate law does not require profits at the expense of everything else, and maximizing profits or shareholder value is not the same thing as serving shareholders' best interest.

What are 5 disadvantages of corporations? ›

Here are some disadvantages to forming your business as a corporation:
  • A corporation is a distinct legal entity. The business is governed by a board of directors. ...
  • Double-taxation. Corporations pay taxes on profits distributed to shareholders. ...
  • More complicated to form. ...
  • More requirements. ...
  • Higher costs.

How can a company survive when it isn't making profit? ›

No business can survive for a significant amount of time without making a profit, though measuring a company's profitability, both current and future, is critical in evaluating the company. Although a company can use financing to sustain itself financially for a time, it is ultimately a liability, not an asset.

Why should a corporation not do anything and everything to maximize owners' wealth? ›

However, shareholder wealth maximization can be a negative if it encourages questionable behavior and decisions at the expense of society, the environment, and the company's own long-term sustainability.

Do corporations exist for purpose or profit? ›

Today, the standard answer is that a corporation's purpose is to benefit its shareholders – academics speak of the “shareholder primacy norm,” and many talk of corporate managers' task as “shareholder wealth maximization.” Even apparently selfless corporate acts, such as charitable donations, are justified as ...

Do corporations have any responsibility beyond making a profit? ›

Corporate Social Responsibility (CSR) refers to a company's voluntary actions aimed at improving society, the environment, and the well-being of stakeholders beyond its immediate financial gains.

What is a major disadvantage of a corporation? ›

Answer and Explanation:

Double taxation can be considered the major disadvantage of the corporation. It refers to the fact that income generated by the corporation is taxed both at the corporate and personal level.

What are 4 disadvantages of the corporate form of ownership? ›

Before incorporating your business, you should be aware of these potential disadvantages: There is a lengthy application process, you must follow rigid formalities and protocols, it can be expensive, and you may be double taxed (depending on your corporation structure).

What are corporations owned by? ›

Shareholders. Shareholders are the owners of a corporation. They receive a share of profits from the business, often in return for an investment of money or labor. Ownership is represented by common or preferred shares issued by the corporation.

What company has never made a profit? ›

Reddit has never turned a profit in nearly 20 years, but it just filed to go public anyway | CNN Business.

Has Amazon never turned a profit? ›

Although it was founded back in 1994, Amazon didn't actually make a profit until 2001. But the company has been a major online retailer for years. Read on to find out how businesses can succeed even when they're not profitable.

How long can a business be unprofitable? ›

The IRS will only allow you to claim losses on your business for three out of five tax years. If you don't show that your business is starting to make a profit, then the IRS can prohibit you from claiming your business losses on your taxes.

Are companies legally required to make a profit? ›

But this belief is utterly false. To quote the U.S. Supreme Court opinion in the recent Hobby Lobby case: “Modern corporate law does not require for-profit corporations to pursue profit at the expense of everything else, and many do not.”

Are corporations legally obligated to make money? ›

There are no legal requirements for for-profit companies to maximize returns to shareholders.

What are the bad things about large corporations? ›

In a regulated market, however, companies can gain unfair advantages. They get involuntary support via subsidies, use tariffs to cripple competition, and they lobby to try and get more government support or even misinform consumers. Under crony capitalism, corruption reigns supreme and it benefits only one side.

What is the legal obligation of a corporation? ›

Corporations must pay federal tax, employment tax, and often state income tax. For entrepreneurs, understanding tax laws is critical. The IRS website is a valuable resource for information on income tax and employment tax. Remember, failing to comply with tax obligations can lead to serious consequences.

Do corporations have to make money? ›

Bottom Line. A company can get by on high revenues and low or non-existent profits if investors believe that it will become profitable in the future.

Is a corporation always for-profit? ›

A corporation may be formed by an individual or group with a shared goal and can be a for-profit or not-for-profit entity. Corporations possess many of the same legal rights and responsibilities as individuals.

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