ICC & Ithaca Impact: New Guide for Responsible Business in Challenging Contexts
In times of conflict, geopolitical contest, political unrest, or systematic human rights violations, companies are expected to act decisively and responsibly. However, navigating these complexities requires more than just good intentions.
In collaboration with the International Chamber of Commerce (ICC), Ithaca Impact has co-developed the ICC Guidance on Responsible Business in Challenging Contexts, offering businesses a roadmap for ethical decision-making when faced with stay-or-leave dilemmas.
“The underlying assumption is that
companies want to conduct their business responsibly but don’t always know how. ”
The Responsible Business in Challenging Contexts guidance helps executives and operational teams plan their actions with respect to human rights and international standards. It provides practical insights into assessing risks, engaging stakeholders, and balancing legal, reputational, and social impact considerations.
In contexts experiencing or prone to armed conflict, inter-group, or widespread violence, the guide recommends that companies:
Understand no company, no actor, is neutral. In every decision, either a company is contributing to peace, or to conflict. Ensure decisions are guided by trustworthy information free from inherent biases or ill-intent from bad actors.
Consider the company’s actual and potential impact on the conflict. Conduct a Heightened Human Rights Due Diligence assessment informed by robust context assessment and conflict sensitivity analysis, to understand geopolitical and shifting local conflict drivers and dynamics.
Establish early warning indicators for all identified risks related to conflict. Agree scenarios with triggers which define tolerance levels for decisions and actions, such as red lines for departure. Look beyond risk mitigation to peace-positive outcomes.
Utilise internal cross-team working groups to guide the company’s planning and response. Include conflict, geopolitical, legal, risk, human rights, gender and stakeholder engagement expertise. Seek specialist advice as needed.
Establish a Community Reference Panel early and build relationships within the country with knowledgeable local actors including community representatives, civil society organisations and local businesses.
Understand direct and indirect consequences. When responding to a rapidly evolving crisis in unstable environments, assess whether the company’s presence is or has been contributing to adverse human rights or societal impacts, and whether it could be complicit in human rights abuses or violations of international humanitarian law by those in power.
Ithaca Impact’s Managing Director, Dr Elizabeth Armstrong, says of the guide,
“The central message for companies is to invest in preparedness, more so than previously. Understand the operational context. Know the impact the company is having. And, establish a strategic and tactical blueprint to respond responsibly to challenges.”
Crises can take many shapes, and it’s not always feasible to prepare for every scenario. The ICC Responsible Business in Challenging Contexts guide provides a framework for businesses that find themselves in challenging situations, and offers further guidance based on best practices scenarios.
Want to secure your legacy as a responsible business? We’re here to help—reach out for a no-obligation call today or join our Conflict Smart Program.