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Case Study
THE ROLE OF MULTINATIONAL
CORPORATIONS IN THE DEMOCRATIC
REPUBLIC OF CONGO
• Since 1996, the DRC has been undergoing a
conflict that has cost an estimated 5.4 million
innocent lives. According to a number of reports ,
multinational corporations play an important role
in continuing the conflicts that have led to mass
atrocities in the DCR.
• In 2001 for instance, the UN commissioned made
a report in which 85 companies were named for
having ―violated international standards of good
corporate behavior.
Illegal exploitation of the mineral and forest
resources of the Democratic Republic of the
Congo took place at an alarming rate.
Corporations from around the world have
sought to profit from exploiting the DRC‘s
natural resources on the cheap – particularly
COLTAN, a mineral used to produce cell
phones, laptops and video game consoles.‖
On the Ugandan, MLC and RCD-ML side, rebel
leaders and/or Ugandan military officials
created new companies and businesses using
prête-noms. Most, if not all, of these
companies are privately owned by individuals
or a group of individuals.
Afrimex, a British company had paid money to
a rebel group responsible for serious human
rights violations. In return, the rebel group
allowed Afrimex to extract minerals from
mines under its control - mines in which
forced labor and life-threatening conditions
were present
• The official statistics provided by these
countries' governments - which many human-
rights observers believe hide large amounts of
black-market trading - show that Uganda and
Rwanda dramatically increased the export of
Coltan following their occupation of
northeastern Congo.
In 1999 and 2000 a sharp increase in the world
prices of tantalum occurred. Part of that new
production involved rebel groups and
unscrupulous business people and government
people
• who forcing farmers and their families to leave
their land,
• chasing people off land where Coltan was found
• forcing them to work in artisanal mines
In 2008
"Last year's foreign direct investment into the DRC was
the highest in the history of U.N. records on trade and
investment“
The latest UN report indicates that companies are
carefully avoiding any investigations that might reveal
the truth; further, corporate and government
management refuses to perform sufficient due
diligence regarding their suppliers, thus failing to meet
minimum standards of ethical business conduct.
Human consequences
• Appalling levels of hunger, disease, and death,
and to countless abuses of human rights
• Attacked civilians, killing, injuring and raping
thousands of persons
• Sexual violence remains a cause of major
concern
Conclusion
The conflict minerals problem is complicated
and the suffering of DRC and its people is
immense.
MNC GOVT Violation

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Role of Multinational Corporations in DRC Conflict

  • 1. Case Study THE ROLE OF MULTINATIONAL CORPORATIONS IN THE DEMOCRATIC REPUBLIC OF CONGO
  • 2. • Since 1996, the DRC has been undergoing a conflict that has cost an estimated 5.4 million innocent lives. According to a number of reports , multinational corporations play an important role in continuing the conflicts that have led to mass atrocities in the DCR. • In 2001 for instance, the UN commissioned made a report in which 85 companies were named for having ―violated international standards of good corporate behavior.
  • 3. Illegal exploitation of the mineral and forest resources of the Democratic Republic of the Congo took place at an alarming rate. Corporations from around the world have sought to profit from exploiting the DRC‘s natural resources on the cheap – particularly COLTAN, a mineral used to produce cell phones, laptops and video game consoles.‖
  • 4. On the Ugandan, MLC and RCD-ML side, rebel leaders and/or Ugandan military officials created new companies and businesses using prête-noms. Most, if not all, of these companies are privately owned by individuals or a group of individuals.
  • 5. Afrimex, a British company had paid money to a rebel group responsible for serious human rights violations. In return, the rebel group allowed Afrimex to extract minerals from mines under its control - mines in which forced labor and life-threatening conditions were present
  • 6. • The official statistics provided by these countries' governments - which many human- rights observers believe hide large amounts of black-market trading - show that Uganda and Rwanda dramatically increased the export of Coltan following their occupation of northeastern Congo.
  • 7. In 1999 and 2000 a sharp increase in the world prices of tantalum occurred. Part of that new production involved rebel groups and unscrupulous business people and government people • who forcing farmers and their families to leave their land, • chasing people off land where Coltan was found • forcing them to work in artisanal mines
  • 8. In 2008 "Last year's foreign direct investment into the DRC was the highest in the history of U.N. records on trade and investment“ The latest UN report indicates that companies are carefully avoiding any investigations that might reveal the truth; further, corporate and government management refuses to perform sufficient due diligence regarding their suppliers, thus failing to meet minimum standards of ethical business conduct.
  • 9.
  • 10. Human consequences • Appalling levels of hunger, disease, and death, and to countless abuses of human rights • Attacked civilians, killing, injuring and raping thousands of persons • Sexual violence remains a cause of major concern
  • 11. Conclusion The conflict minerals problem is complicated and the suffering of DRC and its people is immense. MNC GOVT Violation