In October 2023, the French Supreme Court, in its confirmatory judgement, ruled that Lafarge France and four of its former executives should stand trial for financing of terrorism in Syria. This landmark declaration is arguably the first time in international business history that an MNC and its executives will be charged for terrorism financing in their home country for their alleged actions in a host country. This was the outcome of a legal challenge instituted in France by 11 former employees of the company in Syria and their supporters who alleged that Lafarge paid circa $15.3 million to some jihadist groups, including the Islamic State. This was to facilitate the continued production and distribution of cement from their factory located in the northern part of the country during the early days of the war up until 2015, when the factory was closed. This judgement brought to the fore the increasing dangers faced by MNCs (and their executives)  operating in conflict areas.

Inspired by the above landmark ruling and with funding from the Leiden University Global Fund, two Leiden University professors (Chibuike Uche, ASCL and Irma Mosquera Valderrama, Law), and three of their international colleagues  (Ayodeji Olukoju, University of Lagos), Paul Kamau (University of Nairobi), and Abel Ezeoha (Alex Ekwueme Federal University Ndufu-Alike) commenced the process of developing a framework for the operations of MNCs in conflict areas (The LEIDEN Protocol). The first draft of this protocol will be presented by the team during the said seminar to representatives of  MNCs, academia, governments, and non-governmental organisations in the Netherlands for their critique and input.

Specifically, the Protocol will focus on the following summarised proposals, which they believe will help protect the long-term interest of MNCs operating in conflict territories. This, they also believe, will be in line with the long-term interest of the host jurisdictions of such MNCs:

• LEGALITY of MNC operations in host territories should be guided by the higher of home or host country standards.
• ETHICAL standards adopted by MNCs in host jurisdictions should be the higher of home or host country standards.
• INDIGENOUS and foreign staff safety should be governed by uniform standards in host jurisdictions.
• DELINKING of host country operations from headquarters oversight during conflict must be accompanied by divestment.
• ENTANGLEMENT of MNCs in host country politics should be discouraged.
• NEUTRALITY of MNCs in international politics and conflicts.

The hosting of this seminar on the LEIDEN protocol in Leiden is historic. The Dutch East India Company was a pioneer in the development of MNCs, and Leiden University is the oldest University in the Netherlands.

This event takes place within the framework of the LGF Seed Fund 2024.

Image: Cour de Cassation, Paris (2 April 2014)”, by Daniel Vorndran (DXR), CC BY‑SA 3.0