From Sudan to Stockholm: Legal developments in responsible business conduct

By Jos Meester

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Ian Lundin arrives at district court / via Reuters

In short

The Lundin trial in Sweden showcases that the legal framework on corporate involvement in war crimes is changing.
Company executives may face criminal liability and sizeable fines if they fail to respond adequately to human rights violations.
Approaches to responsible business conduct need to be improved.

This policy brief discusses the legal developments surrounding responsible business conduct, with a particular focus on the criminal prosecution of corporate actors for war crimes. It explores the developments in the case of Lundin Energy, whose CEO and chairman of the board are on trial in Sweden for allegedly aiding and abetting war crimes in Sudan. This case tests new legal interpretations of corporate accountability for war crimes, inspired by precedents in other cases in other European countries. If this case sets new precedents, it may impact investments in fragile and conflict-affected states. Corporations may need to adopt more proactive approaches to identify risks other than those based on the Ruggie Principles, extending beyond standard human rights due diligence.

The policy brief concludes that as courts increasingly leverage their universal jurisdiction and raise criminal liability in cases related to war crimes, companies may need to adapt their policies to local conditions (rather than adopting a compliance focus) and conduct in-depth political economy analyses to guide their conduct. Policymakers might support this shift by providing additional guidance for investors on the risks and approaches adapted to fragile contexts. Additionally, adapting policy and legal guidelines might be required to level the playing field for responsible business conduct, ensuring that companies stemming from different national contexts face similar legal exposure.

Read the full policy brief.