the janus head of the socially responsible corporation

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1
Women, Law, and the Global Economy
Professor Elvia R. Arriola
Fall Semester 2006
THE JANUS HEAD OF THE SOCIALLY RESPONSIBLE CORPORATION:
CAN CATERPILLAR LEGITIMATELY CLAIM TO BE SOCIALLY
RESPONSIBLE WHILE CONTINUING TO SELL BULLDOZERS TO THE
ISRAELI MILITARY WHICH USES THEM TO VIOLATE HUMAN
RIGHTS?
By Matthew Miller
Z109511@niu.edu
mattmiller@excite.com
Submitted in fulfillment of the NIU College of Law Graduation Writing
Requirement
2
TABLE OF CONTENTS
I. INTRODUCTION…………………………………..……………………2
II. THE ISRAELI OCCUPATION OF PALESTINIAN LANDS: THE
EFFECT ON WOMEN, DESTRUCTION OF HOMES, AND
BUILDING OF THE ILLEGAL SECURITY WALL..……………….…6
A. The Occupation’s Devastating Effect on Women:
Homelessness, Domestic Violence, and the Suppression of the
Women’s Movement..................................………………..............…...8
B. The Destruction of Homes and Building of the Security Wall in
The Occupied Territories: A Human Rights and International
Law Analysis…………...………………………………………………13
III. CATERPILLAR INC: A CONTEMPORARY AND
HISTORICAL PERSPECTIVE……………..……………..…………...17
A. Global Powerhouse: A Contemporary Profile of Caterpillar
Incorporated……………….………….…………………………..17
B. A Brief History of Caterpillar and its Transition to a
Multinational Corporation…...…………...……………………….18
IV. CORPORATE SOCIAL RESPONSIBILITY…..……...……………....19
A. Defining Corporate Social Responsibility……..…………………20
B. A Socially Responsible Corporation: Caterpillar’s Own Words…22
V. THE DEATH OF RACHEL CORRIE……………………………….…24
A. Rachel’s Story: Her Life and The Events Leading Up To
Her Death…………………………………………………………..24
B. The Aftermath of Rachel Corrie’s Death: World Media Attention,
Shareholder Discontent, Law Suits, and Caterpillar’s Response…..25
VI. CONCLUSSION………………………………………………………..27
I. INTRODUCTION
I woke up at the sound of the army shooting and I ran off inside the camp
with the children; other times when the army shot we ran away and
waited until the shooting stopped to come back. But this time the tanks
3
came up against the houses with the bulldozers. When they left there
was only rubble and dust left in the place of our houses.1
----Suhaila Ahmad Salim Barhoum, a Palestinian widow
We avoid those who violate the law or fail to comply with the sound
business practices we promote.2
----Caterpillar’s Worldwide Code of Conduct
Caterpillar accepts the responsibilities of global citizenship. Wherever
we conduct business or invest our resources around the world, we know
that our commitment to financial success must also take into account
social priorities.3
----Caterpillar At A Glance
Caterpillar Incorporated, a multinational fortune 100 company, prides itself
on being a socially responsible corporation. Caterpillar cites its commitment to being
socially responsible in the company’s code of conduct and in other public literature.4
However, Caterpillar’s business dealings with the Israeli military tell a different
story. A story of the destruction of olive trees and homes, of violations of human
rights and international law, all of which directly contradict Caterpillar’s public
image of being socially responsible.5
See Amnesty International’s report Israel and the Occupied Territories: Under the rubble: House
demolition and destruction of land and property, May 2004 at 20. (AI Index: MDE 15/033/2004).
Available at: http://web.amnesty.org/library/eng-isr/index
2
Caterpillar’s Worldwide Code of Conduct at 21. Available at: http://www.cat.com (last visited Oct.
23, 2006).
3
See Caterpillar’s Website (where Caterpillar emphasizes its commitment to being socially
responsible). Available at:
http://www.caterpillar.com/about_cat/social_responsibility/social_responsibility.html
4
See e.g., Caterpillar’s Worldwide Code of Conduct at 21. Available at: http://www.cat.com (last
visited Oct. 23, 2006) (stating that Caterpillar does not associate with those that violate the law and is
a global citizen and responsible member of the world community).
5
See, Amnesty International’s report Israel and the Occupied Territories: Under the rubble: House
demolition and destruction of land and property, May 2004. (AI Index: MDE 15/033/2004)(which
describes the destruction of Palestinian civilians’ homes and agricultural lands) Available at:
http://web.amnesty.org/library/eng-isr/index; Sarah Williams, Has International Law Hit the Wall?
An Analysis of International Law in Relation to Israel’s Separation Barrier, 24 Berkeley J. Int’l L.
1
4
Since Israel’s occupation of the Palestinian Territories of the West Bank and
Gaza Strip in 1967, the Israeli military has used Caterpillar bulldozers to pursue a
policy of forced eviction through the destruction of homes, roads and the agricultural
land of Palestinian civilians.6 Additionally, Caterpillar’s bulldozers played a key role
in the construction of Israel’s separation wall which has been held by the
International Court of Justice to violate international law.7 These actions have
received widespread criticism from the world community, but little public attention
in the United States.
However, following the much publicized killing of American peace activist
Rachel Corrie by an Israeli military Caterpillar D9 bulldozer, the targeting of
Palestinian civilians by the Israeli military received national media attention in the
United States.8 After the killing of Rachel Corrie, photos of Caterpillar D9
bulldozers destroying homes could be seen in every major newspaper and on every
192, 198 (2006) (describing how on July 9, 2004, the International Court of Justice issued an advisory
opinion declaring the Separation Barrier was being built in violation of international law); and
Caterpillar’s Worldwide Code of Conduct (where Caterpillar states in its publicly available document
that it is a socially responsible corporation). Available at: http://www.cat.com (last visited Oct. 23,
2006).
6
See, Amnesty International’s report Israel and the Occupied Territories: Under the rubble: House
demolition and destruction of land and property, May 2004 at 1, 8, and 13. (AI Index: MDE
15/033/2004).(describing how U.S. made Caterpillar bulldozers are used by the Israeli military to
destroy Palestinian civilian homes as a punitive measure in violation of international law). Available
at: http://web.amnesty.org/library/eng-isr/index; Brian Farrell, Israeli Demolition of Palestinian
Houses as a Punitive Measure: Application of International Law to Regulation 119, 28 Brooklyn J.
Int’l L. 871 (2003)(the author explains how the destruction of civilian homes by the Israeli military as
a punitive measure violates the Fourth Geneva Convention and the International Covenant on Civil
and Political Rights); and Caterpillar: The Alternative Report, War on Want at 3, 4. (March
2005)(describing how Caterpillar bulldozers are the primary weapon used by the Israeli military to
demolish houses in the occupied territories). Available at: http://www.waronwant.org
7
See, Sarah Williams, Has International Law Hit the Wall? An Analysis of International Law in
Relation to Israel’s Separation Barrier, 24 Berkeley J. Int’l L. 192, 198 (2006) (describing how on
July 9, 2004, the International Court of Justice issued an advisory opinion declaring the Separation
Barrier was being built in violation of international law).
8
See e.g. Ini, Gilead. Idealist Rachel Corrie was misled, Seattle Post-Intelligencer, April 4, 2006;
and Shattan, Ruhama. “A Tribute to Rachel Corrie, Thanks for showing us what “peace” really
means.” Wall Street Journal. March 16, 2004.
5
major news network in the United States. However, the U.S. news media often
portrayed the story in a manner that was favorable to Israel. 9 As with most news
stories, public interest soon faded and the story was quickly forgotten. Meanwhile,
Palestinian homes continued to be demolished and Palestinian women and children
continued to be left homeless or killed.
The Caterpillar D9 tractor, which weighs 53.8 tons, stands as tall as a doubledecker bus, and can easily demolish a house, orchard, or olive grove, has served in
the vanguard of the Israeli military’s occupation of the West Bank and Gaza Strip.10
For example, Caterpillar D9 bulldozers served as the Israeli Military’s primary
weapon in the massacre of the Jenin refugee camp where the bulldozers
indiscriminately destroyed all homes in their path, without warning to those that
resided within them: killing men, women and children and leaving uncounted others
homeless. 11
While the mass-destruction of homes and agricultural land affect all
Palestinians, women in Palestine find their situation particularly harrowing. In the
midst of the chaos stemming from the Israeli occupation and the coinciding
destruction of anything that provides a social or economic anchor for the Palestinian
people, women’s rights and the advancement of women within the traditionally
patriarchal Palestinian society are issues which become neglected afterthoughts.12
9
Ibid. (Articles in the Seattle Post-Intelligencer and Wall Street Journal both portrayed Rachel Corrie
as a radical who tried to defend people who were involved in acts of terrorism against Israel.)
10
See, Caterpillar: The Alternative Report, War on Want at 3. (March 2005). Available at:
http://www.waronwant.org (Last visited on Dec. 4, 2006).
11
Ibid at 6.
12
See, Nadia Moustafa Elrashidi, Palestinian Women Under Occupation: Basic Analysis of their
Status, MIFTAH at 2, 3. Available at: http://www.Miftah.org/Display.cfm?DocId=7966&Category
Id=21.
6
This continues to have many negative implications which adversely affect the health
and welfare of Palestinian women and their children.
To be fair, neither Caterpillar nor its employees are directly involved in the
eradication of the Palestinian way of life. Nor does Caterpillar directly exploit
Palestinians by requiring them to work in dehumanizing and sexist work conditions
similar to those that are common in the maquiladoras of Mexico.13 Caterpillar’s
involvement in the subjugation of the Palestinian people by the Israeli Military is
indirect. Caterpillar has provided the Israeli military with bulldozers, the tools by
which the Israeli military has been able to build the separation wall, destroy
Palestinian agricultural lands and demolish countless Palestinian homes. Caterpillar
has demonstrated complicity in the subjugation of the Palestinian people by the
Israeli Government much the same way a gun dealer who sells firearms to a known
bank robber is complicit in the robber’s crime. Is it really socially responsible to sell
a product to a nation when you know it will be used by that nation to violate human
rights and international law?
This essay does not attempt to demonstrate that Caterpillar is an “evil”
corporation. Rather, this paper will attempt to expose Caterpillar’s hypocrisy in
claiming to be socially responsible when the company’s actions starkly contrast the
definition of corporate social responsibility; a definition that Caterpillar has chosen
to publicly appropriate and claims to emulate.14
13
See generally, Elvia R. Arriola, Voices from the Barbed Wires of Despair: Women in the
Maquiladoras, Latina Critical Legal Theory, and Gender at the U.S.-Mexico Border, 49 DePaul L.
Rev. 729 (2000).
14
See generally, Caterpillar’s Worldwide Code of Conduct. Available at: http://www.cat.com (last
visited Oct. 23, 2006).
7
Using a gender perspective, this essay seeks to analyze whether a
multinational corporation such as Caterpillar can legitimately claim that it is socially
responsible when, through the conduit of globalization, it sells bulldozers to the
Israeli Government while knowing that the bulldozers are being used to violate
international law and commit human rights violations; violations which have had
and continue to have a devastating effect on the health, welfare and economic
stability of Palestinian Women.
II. THE ISRAELI OCCUPATION OF PALESTINIAN LANDS: THE EFFECT
ON WOMEN, DESTRUCTION OF HOMES, AND BUILDING OF THE
ILLEGAL SECURITY WALL
It is difficult to understand the complexity of the present situation in the Gaza
Strip and the West Bank without at least a rudimentary understanding of the region’s
history. After the fall of the Ottoman Empire following World War I, the British
ruled Palestine under a League of Nations mandate. Under the British mandate
system, Palestine experienced massive immigration from Europe of Jews who
sought to escape anti-Semitism in Europe.15 Those immigrants also sought to heed
the calling of the Zionist movement, which had convinced the British government
that Jews needed a homeland in Palestine.16
By 1936, the mandate system began to break down. Violence between Arabs
and Zionist military groups broke out as a result of Jewish immigration.17 The
15
Stacy Howlett, Palestinian Private Property Rights in Israel and the Occupied Territories, 34
Vand. J. Transnat’l L. 117, at 124-28 (January, 2001).
16
17
Ibid
Ibid
8
British announced that they wanted a single state of Palestine which would be
governed in such a way that would ensure that the essential interests of the Arab and
Jewish communities would be safeguarded.18 In response to this proclamation, the
Jews in Palestine began organizing an army to expel the British.19 The British
mandate ended after British forces, in response to Jewish military action, decided to
leave Palestine.20 The State of Israel was proclaimed on May 14, 1948.21On May
15th, almost immediately after the State of Israel was proclaimed, war between the
armies of the Arab nations of Egypt, Lebanon, Transjordan, Syria and the state of
Israel broke out, from which Israel emerged victorious.22
Following the 1948 war, more than 800,000 Palestinians were expelled or
fled from Israel and became refugees in neighboring countries, the West Bank or the
Gaza Strip.23 Following the 1967 Arab-Israeli war between Israel and the Arab
nations of Egypt, Syria and Jordan, also known as the Six Day War, Israel occupied
the Palestinian territories of the West Bank and Gaza Strip.24 Israel has maintained
its military occupation of the West Bank and Gaza Strip into the present day, a
period of occupation lasting for almost forty years. Presently, 3,500,000 Palestinians
live in the West Bank and Gaza Strip under Israeli military occupation.25
Since the Israeli occupation of the Gaza Strip and West Bank, the Israeli
military has drawn the attention of the United Nations and many non governmental
18
Ibid at 126
Ibid at 127
20
Ibid
21
Ibid at 128
22
Ibid
23
Amnesty International’s report Israel and the Occupied Territories: Under the rubble: House
demolition and destruction of land and property, May 2004 at 4. (AI Index: MDE 15/033/2004).
Available at: http://web.amnesty.org/library/eng-isr/index
24
Ibid
25
Ibid
19
9
agencies concerned with human rights violations. The non governmental
organizations, as well as the United Nations, have documented and publicly
condemned the Israeli army’s use of Caterpillar bulldozers to commit human rights
violations and violate international law in the occupied territories.26 For example, the
United Nations Relief and Works Agency (UNRWA) documented that between
October 2000 and October 2003, more than 2,150 Palestinian homes in the occupied
territories were destroyed by the Israeli military.27
A. The Occupation’s Devastating Effect on Women: Homelessness, Domestic
Violence, and the Suppression of the Women’s Movement.
House demolitions have resulted in entire families becoming homeless. Most
house demolitions are carried out with little or no advance notice and without
pausing to allow the families to salvage their personal belongings. 28 Consequently,
these families are dispossessed of their homes, clothes, food, furniture and other
personal property.29
26
See e.g., Caterpillar: The Alternative Report, War on Want at 4-6, 10(March 2005)(citing U.N.
reports and a letter from U.N. Special Rapporteur to Caterpillar). Available at:
http://www.waronwant.org (Last visited on Dec. 4, 2006); See generally, Amnesty International’s
report Israel and the Occupied Territories: Under the rubble: House demolition and destruction of
land and property, May 2004. (AI Index: MDE 15/033/2004). Available at:
http://web.amnesty.org/library/eng-isr/index
27
See e.g., Amnesty International’s report Israel and the Occupied Territories: Under the rubble:
House demolition and destruction of land and property, May 2004 at 18, 19 (AI Index: MDE
15/033/2004)(citing the UNRWA report). Available at: http://web.amnesty.org/library/eng-isr/index
28
Eileen Kuttab, Social and Economic Situation of Palestinian Women, 1990-2003, Economic and
Social Commission for Western Asia at 4. Available at:
http://www.escwa.org.1b/information/publications/edit/upload/womcarl.pdf
29
Ibid.
10
Most Palestinian women do not work outside the home and the running of
the house is their primary responsibility.30House demolition destroys the place from
which Palestinian women derive most of their self worth within society, and where
they spend the majority of their time.31 Additionally, after the demolition of their
house, women bear the majority of the responsibility for rebuilding the home.32
Therefore, Palestinian women are particularly affected by forced eviction and the
destruction of their homes.
However, in the majority of cases, families whose homes have been
demolished cannot afford to rebuild and are forced to move in with relatives.33 Since
women spend the majority of their time in the home, they suffer the most effects of
having to live in someone else’s home, where they no longer have a say in the
administration of their family’s space and must abide by someone else’s rules.34In
addition to being dispossessed of their homes, the women have been displaced from
their positions of authority within their own family unit.
Along with the loss of control and self worth that accompanies living in
someone else’s home, the loss of privacy and space often places a strain on family-
Amnesty International’s report Israel and the Occupied Territories: Under the rubble: House
demolition and destruction of land and property, May 2004 at 9. (AI Index: MDE 15/033/2004).
Available at: http://web.amnesty.org/library/eng-isr/index
31
Ibid.
32
Ibid.
33
See, Eileen Kuttab, Social and Economic Situation of Palestinian Women, 1990-2003, Economic
and Social Commission for Western Asia at 4 (stating that with little or no means to rebuild their
houses, families must seek shelter with friends and family). Available at:
http://www.escwa.org.1b/information/publications/edit/upload/womcarl.pdf; and Amnesty
International’s report Israel and the Occupied Territories: Under the rubble: House demolition and
destruction of land and property, May 2004 at 9 (stating that in most cases families cannot afford to
pay for alternative accommodation and are forced to live with their extended family) (AI Index: MDE
15/033/2004). Available at: http://web.amnesty.org/library/eng-isr/index
34
Amnesty International’s report Israel and the Occupied Territories: Under the rubble: House
demolition and destruction of land and property, May 2004 at 9. (AI Index: MDE 15/033/2004).
Available at: http://web.amnesty.org/library/eng-isr/index
30
11
relationships. Arguments between husbands and wives increase and mothers often
feel undermined in their maternal role of caring for their children.35 These concerns
and their impact are reflected in the testimony to the Women’s Centre for Legal Aid
and Counseling (WCLAC), Ramallah, West Bank, by a woman whose home was
demolished:
“That was the beginning of a new type of suffering. Staying in my
parents’ old house has robbed me of my freedom-I have to take their
feelings constantly into account….I also have to keep the house
spotless; it is not our home so we have to be considerate. I feel
constantly tense, desperately needing a private place for my family…
I have become so depressed that I cannot eat, and this depression has
had an effect on my husband and children.”36
Accompanying increased feelings of isolation and depression among
Palestinian women, the stressful situation of inadequate housing has been
demonstrated to lead to an increased rate of domestic violence and abuse.37 A poll of
1,100 women conducted by the Palestinian Women’s Society for Development
showed that during the last Intifada (struggle), where the Israeli military intensified
its policy of forced eviction and house demolition, domestic abuse increased by 86.6
percent.38However, an 86.6 percent increase in domestic abuse is considered a
conservative estimate when compared to the estimate provided by the director of the
Family Defense Society in the occupied territories who has stated that documented
incidences of domestic violence have risen 157 percent since the last Intifada.39
35
Ibid at 10.
Ibid
37
Ibid. (Stating that domestic violence is higher during a forced eviction).
38
See, Nadia Moustafa Elrashidi, Palestinian Women Under Occupation: Basic Analysis of their
Status, MIFTAH at 10. Available at: http://www.Miftah.org/Display.cfm?DocId=7966&Category
Id=21.
39
Ibid at 11.
36
12
The negative impact of Israel’s occupation on the lives of women is not
limited to the individual effects associated with the destruction of homes. In the
midst of the chaotic world of oppression from occupation, societal patriarchy is
reinforced and the women’s rights movement is repressed.40
Since 1965, measures to improve the status of women in Palestinian society
have been consistently deferred to a later stage in the national liberation struggle.41
The occupation has reinforced patriarchal norms in Palestinian society by limiting
the mobility of women outside the home. Because of the danger associated with the
military occupation by Israel, many families are afraid to allow their daughters to
leave home without being accompanied by a male relative.42As a result of the danger
associated with the occupation and the limitations on mobility placed on women by
their families, women have experienced an increased rate of unemployment
and43girls have been pulled out of schools44
Whether the true motive of placing restrictions on a woman’s mobility
outside of the home is to protect or control the woman, the outcome is the same;
40
See, Nadia Moustafa Elrashidi, Palestinian Women Under Occupation: Basic Analysis of their
Status, MIFTAH at 1. Available at: http://www.Miftah.org/Display.cfm?DocId=7966&Category
Id=21.
41
See generally, Nadia Moustafa Elrashidi, Palestinian Women Under Occupation: Basic Analysis of
their Status, MIFTAH. Available at: http://www.Miftah.org/Display.cfm?DocId=7966&Category
Id=21; and Eileen Kuttab, Social and Economic Situation of Palestinian Women, 1990-2003,
Economic and Social Commission for Western Asia. Available at:
http://www.escwa.org.1b/information/publications/edit/upload/womcarl.pdf.
42
Nadia Moustafa Elrashidi, Palestinian Women Under Occupation: Basic Analysis of their Status,
MIFTAH at 2. Available at: http://www.Miftah.org/Display.cfm?DocId=7966&Category Id=21.
43
See, Eileen Kuttab, Social and Economic Situation of Palestinian Women, 1990-2003, Economic
and Social Commission for Western Asia at 15 (stating that unemployment among women has
increased because of the repercussions associated with the second intifada). Available at:
http://www.escwa.org.1b/information/publications/edit/upload/womcarl.pdf; and Nadia Moustafa
Elrashidi, Palestinian Women Under Occupation: Basic Analysis of their Status, MIFTAH at 1, 2
(stating that the employment rate of women has fallen from15.8 per cent to 10.5 per cent since the
beginning of the first intifada). Available at:
http://www.Miftah.org/Display.cfm?DocId=7966&Category Id=21.
44
Nadia Moustafa Elrashidi, Palestinian Women Under Occupation: Basic Analysis of their Status,
MIFTAH at 5. Available at: http://www.Miftah.org/Display.cfm?DocId=7966&Category Id=21.
13
women have diminished freedom of movement and the ability to mobilize as a
viable political force is hampered.
The building of the Separation Wall using Caterpillar tractors only
exacerbates the limitations placed on Palestinian women’s freedom and ability to
mobilize as a viable political force. The barrier when completed will be 670
kilometers in length, penetrating 22 kilometers into Palestinian territories at some
points.45 In the process of building the Separation Wall, over 454, 541 olive trees
have been destroyed.46This has a particularly detrimental effect on Palestinian
women because agriculture is often the only source of livelihood for most
Palestinians. Additionally, for women, this barrier adds to decreased mobility and
increased isolation from education, social networks and economic activity and has
resulted in many families refusing to allow their daughters to marry men from towns
and villages even a few kilometers away that are separated by the security wall.47
B. The Destruction of Homes and Building of the Security Wall in the Occupied
Territories: A Human Rights and International Law Analysis.
I had no mercy for anybody. I would erase anyone with the D9…When I
was told to bring down a house, I took the opportunity to bring down
some more houses…They were warned by loudspeaker to get out of the
house before I came, but I gave no one a chance. I didn’t wait. I didn’t
give one blow and wait for them to come out. I would just ram the house
with full power, to bring it down as fast as possible.
---Moshe Nissim, Israeli Caterpillar D9 operator
recounting his 75-hour long rampage in Jenin
45
Sarah Williams, Has International Law Hit the Wall? An Analysis of International Law in Relation
to Israel’s Separation Barrier, 24 Berkeley J. Int’l L. 192, 197 (2006).
46
Caterpillar: The Alternative Report, War on Want at 4 (March 2005) Available at:
http://www.waronwant.org (Last visited on Dec. 4, 2006).
47
See e.g., Nadia Moustafa Elrashidi, Palestinian Women Under Occupation: Basic Analysis of their
Status, MIFTAH at 8 (stating that many families are afraid to allow their daughters to marry men in
villages that are west of the barrier for fear they will never see them again). Available at:
http://www.miftah.org
14
In the Occupied Territories, two sets of complementary legal frameworks
apply: international human rights law and international humanitarian law.48
Israel’s conduct as the occupying power in the West Bank and Gaza Strip
must comply with provisions of international humanitarian law, applicable to
belligerent occupation, such as the Hague Convention (IV) respecting the Laws and
Customs of War on Land, and the Fourth Geneva Convention regarding the
Protection of Civilian Persons in Time of War.49
International humanitarian law provides the strongest argument against
housing demolitions.50 Generally, humanitarian law applies in situations where
armed conflict is taking place. The conventions signed at the Hague in 1907
represent one of the most significant developments in international law.51 Such laws
represented one of the first attempts to create rules pertaining to the authority of an
army over an occupied State.52 It is universally agreed that the Hague Regulations
apply to the occupied territories and the Israeli Supreme Court confirms this.53
The Hague Conventions state that the occupant’s power is de facto in nature
and military occupation does not give sovereignty to the occupying power.54The
Hague Conventions further state that the occupier’s power is temporary and they
Amnesty International’s report Israel and the Occupied Territories: Under the rubble: House
demolition and destruction of land and property, May 2004 at 50. (AI Index: MDE 15/033/2004).
Available at: http://web.amnesty.org/library/eng-isr/index
49
Ibid.
50
Brian Farrell, Israeli Demolition of Palestinian Houses as a Punitive Measure: Application of
International Law to Regulation 119, 28 Brooklyn J. Int’l L. 871, 904 (2003).
51
Stacy Howlett, Palestinian Private Property Rights in Israel and the Occupied Territories, 34
Vand. J. Transnat’l L. 117, 135-36 (January, 2001).
52
Dan Simon, The Demolition of Homes in the Israeli Occupied Territories, 19 Yale J. Int’l L. 1, 19
(1994).
53
Ibid.
54
Stacy Howlett, Palestinian Private Property Rights in Israel and the Occupied Territories, 34
Vand. J. Transnat’l L. 117, 134-37 (January, 2001).
48
15
may not bring in its own population and must leave the existing population in the
occupied territory as it finds it.55The demolition of Palestinian homes, and the
building of the Separation Wall, all carried out with Caterpillar D9 bulldozers,
violate these provisions.
The Fourth Geneva Convention places specific requirements on the
occupying force to provide a minimum level of humanitarian protection for the
existing population.56 These prohibitions include but are not limited to a prohibition
on collective punishment and wholesale seizure of property.57In particular, Article
53 of the Fourth Geneva Convention states,
“Any destruction by the Occupying Power of real or personal
property belonging individually or collectively to private persons,
or to the State, or to other public authorities, or to social or cooperative
organizations, is prohibited, except where such destruction is rendered
absolutely necessary by military operations.”58
It is the language in the Fourth Geneva Convention that provides the
exception for military necessity, which Israel has used to justify the wholesale
destruction of Palestinian homes.59
In both Israel and the occupied territories, Israel is bound by international
human rights laws and international human rights treaties to which Israel is a state
party.60 The most relevant human rights treaty to the situation in the occupied
55
Ibid.
Ibid.
57
Ibid.
58
See e.g., Brian Farrell, Israeli Demolition of Palestinian Houses as a Punitive Measure:
Application of International Law to Regulation 119, 28 Brooklyn J. Int’l L. 871, 924-25 (2003).
59
See generally, Ibid.
60
Amnesty International’s report Israel and the Occupied Territories: Under the rubble: House
demolition and destruction of land and property, May 2004 at 50. (AI Index: MDE 15/033/2004).
Available at: http://web.amnesty.org/library/eng-isr/index
56
16
territories, that Israel is a party to, is the International Covenant on Economic, Social
and Cultural Rights (ICESCR). The ICESCR provides,
“The States Parties to the present Covenant recognize the right
of everyone to an adequate standard of living for himself
and his family, including adequate food, clothing and housing…..
States Parties will take appropriate steps to ensure the realization
of this right.”61
The UN Committee on Economic, Social and Cultural Rights (CESCR), the
expert body which monitors states’ implementation of the ICESCR has stated that
the right to housing encompasses the right to live somewhere in peace, security and
dignity, as well as the right to adequate housing.62
For decades following the 1967 Israeli occupation of the West Bank and
Gaza, the Israeli military has pursued a policy of forced eviction. It utilized the
demolition of civilian homes as a punitive response to offenses committed by
Palestinians living under Israeli military occupation in those territories. 63
According to the United Nations, the Israeli army destroyed a total of 4,170
Palestinian homes between September 2000 and December 2004.64It is estimated
that since 1967, almost 12,000 Palestinian homes have been demolished, leaving
70,000 people homeless and traumatized.65 The usual reason given by the Israeli
military for the demolitions has been punitive action against those Palestinians
61
Ibid at 52.
Ibid.
63
Brian Farrell, Israeli Demolition of Palestinian Houses as a Punitive Measure: Application of
International Law to Regulation 119, 28 Brooklyn J. Int’l L. 871, 871 (2003).
64
John Dugard, Report of the Special Rappoteur of the Commission on Human Right, 7 December
2004 (on the situation of human rights in the Palestinian territories occupied by Israel since 1967).
UN Doc E/CN.4/2005/29. Available at: http:// un.org.
65
Caterpillar: The Alternative Report, War on Want at 4 (March 2005). Available at:
http://www.waronwant.org (Last visited on Dec. 4, 2006).
62
17
whose villages harbor people that have taken part in armed actions against Israeli
soldiers stationed in the West Bank and Gaza.
However, the CESCR, in its General Comment 4 on the right to adequate
housing, has clarified that it:
“…considers that instances of forced eviction are prima facie
incompatible with the requirements of the Covenant and
can only be justified in the most exceptional circumstances.”66
Additionally, the Committee makes clear that forced eviction and house
demolition as a punitive measure also violate the Geneva Conventions prohibiting
the displacement of people and the destruction of private property. 67It is clear that
Israel’s use of Caterpillar bulldozers to demolish Palestinian homes violates
international law.
III. CATERPILLAR INC: A CONTEMPORARY AND HISTORICAL
PERSPECTIVE
A. Global Powerhouse: A Contemporary Profile of Caterpillar Incorporated.
Caterpillar is one of thirty companies whose stock is tracked in the Dow
Jones Industrial Average.68 Caterpillar or “Cat”, as it is commonly known, is a
fortune 100 Company ranked number one in its industry.
Amnesty International’s report Israel and the Occupied Territories: Under the rubble: House
demolition and destruction of land and property, May 2004 at 55. (AI Index: MDE 15/033/2004).
Available at: http://web.amnesty.org/library/eng-isr/index
67
Ibid 55-56.
68
Caterpillar Inc., Wikipedia at 1. Available at: http://en.wikipedia.org/wiki/Caterpillar_Inc.
66
18
With a history stretching back 100 years, Caterpillar Incorporated, a
powerhouse of industry, is a multinational corporation with its world headquarters
located in Peoria, Illinois. Caterpillar is a leading player in the diesel engine and
power generation markets, with engine sales accounting for approximately one-third
of the company’s total sales and revenue.69 Caterpillar is also the world’s leading
manufacturer of construction and mining equipment, as well as industrial gas
turbines.70
Caterpillar is a remarkable American business success story, having
sustained an annual compounded growth rate of 7.65 percent each year since 1929.71
In 2004, Caterpillar posted sales and revenues of $30.25 billion and a record profit
of $2.03 billion.72 Caterpillar is deeply involved in the global marketplace; forty-four
per cent of its sales are to overseas customers and Cat products are sold in nearly
200 countries.73 Additionally, Cat has over one hundred and fifty-seven dealers in
other countries and manufacturing plants in over fifty-eight other nations, making
Cat a truly global corporation.74
B. A Brief History of Caterpillar and its Transition to a Multinational Corporation.
The story of Caterpillar Incorporated’s ascension to the status of a
multinational fortune 100 Company began over 100 years ago and is one of humble
Caterpillar’s Company Profile at 1. Available at: http://www.cat.com.
Ibid.
71
Ibid.
72
Ibid.
73
Caterpillar Inc., Wikipedia at 3. Available at: http://en.wikipedia.org/wiki/Caterpillar_Inc. .
74
Ibid.
69
70
19
beginnings. In 1904, Benjamin Holt, after noticing that wheeled tractors often got
stuck in damp mud, designed self-laying tracks.75 Self-laying tracks allowed tractors
to move freely in muddy terrain and were a revolutionary design that ultimately led
to the formation of Caterpillar Tractor Co.76 Caterpillar was formed April 15, 1925
with the merger of Holt Manufacturing Company of Stockton, California and the
C.L. Best Gas Traction Company of San Leandro, California, forming Caterpillar
Tractor Co.77
After the companies merged, Caterpillar went through many changes and
eventually adopted the diesel engine as the engine of choice for their tractors.78
Additionally, Caterpillar created a separate branch, which produced diesel engines
for sale as a separate product from their tractors.79Caterpillar products found fame
through their extensive use by the U.S. Navy “Seabees” during World War II to
build airfields during the Pacific Theatre.80 Following World War II, Caterpillar
experienced rapid growth and launched its first business venture outside the United
States in 1950, starting Caterpillar’s evolution into a multinational corporation.81
For the next thirty years, Caterpillar experienced rapid growth until the
worldwide recession of the early 1980s nearly bankrupted it.82The worldwide
recession of the 1980s forced Caterpillar to diversify its product line, to streamline
75
Ibid at 2.
See, Caterpillar’s Company Profile. Available at: http://www.cat.com; and Caterpillar Inc.,
Wikipedia at 1-2. Available at: http://en.wikipedia.org/wiki/Caterpillar_Inc.
77
Caterpillar’s Company Profile. Available at: http://www.cat.com
78
Caterpillar Inc., Wikipedia at 2. Available at: http://en.wikipedia.org/wiki/Caterpillar_Inc.
79
Caterpillar’s Company Profile at 1. Available at: http://www.cat.com
80
Caterpillar Inc., Wikipedia at 2. Available at: http://en.wikipedia.org/wiki/Caterpillar_Inc.
81
Ibid.
82
Ibid at 4.
76
20
its manufacturing process, and expand into the financial services and insurance
industries.83
Presently, Caterpillar’s product line comprises more than 300 different
models of earthmoving machines, diesel engines, and gas turbines.84 Caterpillar
currently sells its products to over 200 nations including Israel which has over onehundred D9 bulldozers in operation by its armed forces.85
IV. CORPORATE SOCIAL RESPONSIBILITY
The beginnings of what has come to be termed Corporate Social
Responsibility began with the emergence of the multinational corporation in the
1960s and 1970s.86However, the business theory of Corporate Social Responsibility
did not gain widespread popular support from the global business community until
the late 1990s and early 2000s.87 During the late 20th century, multinational
corporations started experiencing widespread anti-corporate sentiment expressed via
the media in programs exposing sweatshop conditions in manufacturing plants,
reporting corporate scandals such as Enron, Tyco, and WorldCom, as well as, the
massive anti-globalization protests at meetings of the World Trade Organization.88
Caterpillar’s Company Profile at 1. Available at: http://www.cat.com
Ibid at 2.
85
See e.g., Caterpillar’s Company Profile at 2. Available at: http://www.cat.com; and Caterpillar:
The Alternative Report, War on Want at 3 (March 2005)(stating 100 D9 tractors are currently in use
by the Israeli military). Available at: http://www.waronwant.org (Last visited on Dec. 4, 2006).
86
James K. Rowe, Corporate Social Responsibility as Business Strategy, at 4 (eScholarship
Repository 2006). Available at: http://repositories.cdlib.org/cgirs/reprint/CGIRS-Reprint-2005-08.
87
See generally, Ibid at 17-23.
88
See e.g., Joseph E. Stiglitz, Globalization and its Discontents, (2003) (stating that meetings of the
World Trade Organization have experienced increased public protest).
83
84
21
The adoption of Corporate Social Responsibility via a code of conduct has
been corporations’ favored business response to anti-corporate sentiment.89
Businesses did so to avoid criticism and to stem growing frustration with corporate
abuses.90 Every major corporation now has a code of conduct, or at least makes
mention of its commitment to social responsibility, in its public literature and on its
website.91
A. Defining Corporate Social Responsibility.
What does corporate social responsibility mean? Corporate social
responsibility has a number of potential definitions. Corporate social responsibility is
defined by Business for Social Responsibility, a global non-profit funded by
corporations as, “achieving commercial success in ways that honor ethical values
and respect people, communities, and the natural environment”.92 Other means of
defining it include, “addressing the legal, ethical, commercial and other expectations
society has for business, and making decisions that fairly balance the claims of all
key stakeholders.”93 Additionally, Jeremy Moon, Professor of Corporate Social
Responsibility at Nottingham University, defines business social responsibility as,
“the voluntary contribution of finance, goods or services to
community or governmental causes. It excludes activities directly
related to the firms’ production and commerce. It also excludes
89
James K. Rowe, Corporate Social Responsibility as Business Strategy, at 19 (eScholarship
Repository 2006). Available at: http://repositories.cdlib.org/cgirs/reprint/CGIRS-Reprint-2005-08.
90
Ibid.
91
Ibid.
92
Business for Social Responsibility, Corporate Social Responsibility, at 1. Available at:
http://www.bsr.org/AdvisoryServices/CSR.cfm
93
Ibid.
22
activity required under legislation or governmental direction.”94
However, according to free market advocates such as the renowned
economist Milton Friedman, the sole “social responsibility” of corporations involves
using its resources to engage in activities designed to increase profits, so long as the
corporation stays within the rules of the game by not breaking laws or engaging in
unfair competition.95According to this train of thought, a corporation’s actions are
measured by profit and its adherence to the law, not by whether the corporation has
honored ethical values and respected people, communities, and the natural
environment.
Understanding that sharply divergent views on what constitutes corporate
social responsibility exist, it seems that what constitutes corporate social
responsibility is a matter of interpretation and adoption. However, it is fair to judge
Caterpillar’s commitment to social responsibility by the very standards it
purportedly adopts. Business for Social Responsibility, the global non-profit which
has as its client Caterpillar Inc., and is funded and endorsed by a multitude of other
major multi-national corporations has chosen to adopt a definition of corporate
social responsibility. That definition contrasts the profit motivated definition
espoused by Milton Friedman.96 It is logical to judge Caterpillar by the definition of
94
See, James K. Rowe, Corporate Social Responsibility as Business Strategy, at 2-3 (eScholarship
Repository 2006)(citing Professor Jeremy Moon’s definition of corporate social responsibility).
Available at: http://repositories.cdlib.org/cgirs/reprint/CGIRS-Reprint-2005-08.
95
See generally, Milton Freidman, The Social Responsibility of Business is to Increase its Profits,
The New York Times Magazine, September 13, 1970. Available at:
http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-busin...
96
See e.g., Business for Social Responsibility, Corporate Social Responsibility, at 1 (stating a
definition of corporate social responsibility that emphasizes sustainability and a commitment to
honoring ethical values and respecting people). Available at:
http://www.bsr.org/AdvisoryServices/CSR.cfm
23
corporate social responsibility that it actually sponsors.97 That definition of corporate
social responsibility is, “achieving commercial success in ways that honor ethical
values and respect people, communities, and the natural environment”98
B. A Socially Responsible Corporation: Caterpillar’s Own Words.
Caterpillar is regularly recognized for its leadership in corporate
responsibility.99
---Caterpillar’s Website
As individuals and as a company, we contribute significant time
and resources to promoting the health, welfare, and economic stability
of our communities around the world.100
---Caterpillar’s Worldwide Code of Conduct
Caterpillar Corporation makes its Worldwide Code of Conduct available for
public viewing on the company’s website and states that the Code of Conduct is the
most important document Caterpillar produces.101Additionally, Caterpillar states that
the Code of Conduct defines what the company stands for and believes in,
documenting the uncompromisingly high ethical standards the company has
upheld.102Within its Code of Conduct, Caterpillar states that it has achieved its
worldwide leadership position by upholding its reputation for acting with the highest
97
See e.g., Business for Social Responsibility, Advisory Services: Transportation Industry, at 1
(Listing Caterpillar Inc. as a member/client of Business for Social Responsibility). Available at:
http://www.bsr.org/AdvisoryServices/Industries/Transportation.cfm
98
Business for Social Responsibility, Corporate Social Responsibility, at 1. Available at:
http://www.bsr.org/AdvisoryServices/CSR.cfm
99
Caterpillar’s Company Profile at 1. Available at: http://www.cat.com
100
Caterpillar’s Worldwide Code of Conduct at 28. Available at: http://www.cat.com (last visited
Oct. 23, 2006).
101
Ibid at 1.
102
Ibid.
24
values and principles.103 Caterpillar further states that as a company it strives to
contribute toward a global environment in which all people can work safely and live
healthy, productive lives, now and in the future.104
While Caterpillar states that it insists that its host countries honor their
agreements, including those relating to rights and properties of citizens of other
nations and that the company strives to contribute toward a global environment in
which all people can work safely and live healthy lives, this simply is not the case. 105
As section five of this paper will demonstrate, Caterpillar has adamantly
refused to take any responsibility for continuing its sale of bulldozers to Israel when
confronted with the fact that Israel uses Caterpillar bulldozers to commit human
rights violations and violate international law. This response by Caterpillar directly
contradicts Caterpillar’s public statement that it “accepts the responsibilities of
global citizenship” and “insists that countries it does business with honor the rights
and property of citizens of other nations.”106
V.
THE DEATH OF RACHEL CORRIE
A. Rachel’s Story: Her Life and the Events Leading up to Her Death
Rachel Corrie was raised in Olympia Washington in a fairly normal upper
middle class family. While in her senior year of college she joined the International
103
Ibid.
Ibid at 24.
105
Ibid at 24, 28.
106
See, Caterpillar’s Website (where Caterpillar emphasizes its commitment to being socially
responsible). Available at:
http://www.caterpillar.com/about_cat/social_responsibility/social_responsibility.html; and
Caterpillar’s Worldwide Code of Conduct at 28. Available at: http://www.cat.com (last visited Oct.
23, 2006).
104
25
Solidarity Movement (ISM), an organization which recruits civilians from around
the world to participate in acts of non-violent resistance against the Israeli
occupation of the West Bank and Gaza Strip.107Following her graduation, Rachel
traveled to the Middle East to participate in ISM-organized demonstrations and to
block house demolitions.108
On Sunday, March 16, 2003, Rachel was killed by a Caterpillar D-9
bulldozer specially built to demolish houses.109 Rachel died as she attempted to
prevent the military from destroying homes in the Rafah refugee camp in the
occupied territories.110Witnesses to Rachel’s death described it as a deliberate
killing. Richard Purssell, an activist who witnessed Rachel’s death, stated:
“She was standing on top of a pile of earth. The driver cannot have
failed to see her. As the blade pushed the pile, the earth rose up. Rachel
slid down the pile. It looks as if she got her foot caught. The driver
didn’t slow down; he just ran over her. Then he reversed the bulldozer
back over her again.”111
Other activists stated that Rachel had been wearing a brightly colored jacket
and along with other activists had been waiving at the bulldozer and shouting for it
to stop, but the driver ignored them.112Doctors at al-Najar hospital listed Rachel’s
107
Wikipedia, Rachel Corrie. Available at: http://en.wikipedia.org/wiki/Rachel_Corrie.
See e.g., Chris McGrael and Duncan Campbell, Israeli Army Bulldozer Crushes U.S. Peace
Protester in Gaza Strip, The Guardian, March 17, 2003 (stating that Rachel Corrie was in Gaza
seeking to block house demolitions). Available at: http://www.guardian.co.uk/print/0,,4626616103681,00.html; and Rachel Corrie, Wikipedia. Available at: http:/www.wikipedia.org
109
Katherine Viner, Let Me Fight My Monsters, The Guardian, April 8, 2005. Available at: http://
arts.guardian.co.uk/print/0,,5166131-110428,00.html
110
See, Israel: Caterpillar Should Suspend Bulldozer Sales, Human Rights Watch at 2. Available at
http://hrw.org/english/docs/2004/11/22/isrlpa9711_txt.htm
111
Chris McGreal and Duncan Campbell, Israeli Army Bulldozer Crushes U.S. Peace Protester in
Gaza Strip, The Guardian, March 17, 2003. Available at:
http://www.guardian.co.uk/print/0,,4626616-103681,00.html
112
Ibid
108
26
official cause of death as skull and chest fractures.113 The Israeli military described
the death as a “very regrettable accident.”114
B. The Aftermath of Rachel Corrie’s Death: World Media Attention, Shareholder
Discontent, Law Suits, and Caterpillar’s Response.
The tragic death of Rachel Corrie became a major media story throughout the
world. A blond twenty-something American female peace activist had been killed by
the Israeli military. Rachel’s “international white person privilege” as she phrased it,
had not protected her, and the world was shocked.115Rachel’s death was covered by
every major news network and every major newspaper around the world.
In April 2004, in response to the negative publicity following Rachel’s
killing by an Israeli D9 Caterpillar bulldozer, a group of Caterpillar’s own
shareholders introduced a resolution criticizing the end use of the company’s
products in Israel. The resolution questioned whether the company’s acquiescence to
Israel’s use of the equipment against civilians violated the company’s code of
conduct.116 However, this resolution failed to gain the votes needed for it to be
adopted.117
113
Ibid
Ibid
115
Katherine Viner, Let Me Fight My Monsters, The Guardian, April 8, 2005. Available at: http://
arts.guardian.co.uk/print/0,,5166131-110428,00.html
116
See, Israel: Caterpillar Should Suspend Bulldozer Sales, Human Rights Watch at 2. Available at
http://hrw.org/english/docs/2004/11/22/isrlpa9711_txt.htm
117
Caterpillar Inc., Wikipedia at 3. Available at: http://en.wikipedia.org/wiki/Caterpillar_Inc.
114
27
On, March 15, 2005, Rachel Corrie’s family filed a lawsuit against
Caterpillar Inc. in the U.S. District Court for Washington State.118 In the lawsuit, the
Corrie’s argued that Caterpillar violated the Geneva Convention and American
torture laws when it continued sales of their D9 bulldozer to Israel after being aware
that the bulldozers were being used to violate international human rights laws. 119 In
response, Caterpillar vigorously defended itself and filed a motion to dismiss for
failure to state a claim due to the political question and act of state doctrines arguing
that there was no legal basis to hold Caterpillar liable in damages for selling a legal,
non-defective product to the government of Israel among other arguments.120The
U.S. District Court for Washington State ultimately dismissed the Corrie’s suit on all
counts.121
In addition to being sued, Caterpillar has denied any responsibility for its
actions in multiple letters to groups such as Human Rights Watch, the International
Solidarity Movement, and the United Nations.122
VI.
118
CONCLUSION
Suzanne Goldenberg, Bulldozer Firm Sued Over Gaza Death, The Guardian, March 16, 2005.
Available at: http://www.guardian.co.uk/print/0,,5149122-103681,00.html
119
Ibid.
120
See e.g., Corrie v. Caterpillar Inc., 2005 U.S. Dist. LEXIS 31631, at 2.
121
Corrie v. Caterpillar Inc., 2005 U.S. Dist. LEXIS 31631, 6-11.
122
See e.g., Israel: Caterpillar Should Suspend Bulldozer Sales, Human Rights Watch at 1
(Referencing a letter CEO James Owens wrote in response to a Human Rights Watch letter stating
that Caterpillar did not have the practical ability or legal right to determine how Cat products are used
after they are sold). Available at: http://hrw.org/english/docs/2004/11/22/isrlpa9711_txt.htm;
andCaterpillar: The Alternative Report, War on Want at 10, 11 (March 2005)(citing a letter from
CEO Jim Owens to the International Solidarity Movement stating that Cat can’t determine how their
products are used after they are sold.)and (stating that Caterpillar has not replied to a letter from U.N.
Special Rapporteur Jean Ziegler which was critical of Caterpillar’s sales to Israel.). Available at:
http://www.waronwant.org (Last visited on Dec. 4, 2006).
28
It is clear that the demolition of Palestinian civilians’ homes by the Israeli
military violates international law. It is clear that those actions have negatively
impacted the lives of the Palestinian people and Palestinian women in particular.
With the public criticism of the United Nations and groups such as Amnesty
International, the introduction of a shareholder resolution, and a lawsuit, Caterpillar
can not claim that it is unaware of how its bulldozers are being utilized and of the
devastating consequences associated with their use.
This essay has shown that despite Caterpillar’s claim that it is a socially
responsible corporation, Caterpillar has flagrantly denied any culpability in the role
its products have played in the continued oppression of the Palestinian people.
Caterpillar has had many opportunities to accept responsibility for its role in
the illegal activities of the Israeli military and discontinue sales to Israel, yet chooses
not too. Ultimately, Caterpillar cannot legitimately claim to be a socially responsible
corporation while continuing to sell bulldozers to the Israeli military.
29
Matthew Miller
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