Big Business : NGOs Strike Back !

Jerusalem has been in construction since 2004, building its new tramway line. The goal is to put an end to the heavy street traffic and to link the eastern part of the city to the western part. But in the holy city, the project is not really blessed by everyone.

Actually, it is strongly criticized. The line is intended to link Jerusalem to the Israeli settlements in the west bank. A problematic initiative which could violate international law.

Around the world, pro-Palestinian NGO’s are voicing their concern. French companies Veolia and Alstom didn’t consider this political and diplomatic aspect of the deal when they decided to work on the project. Now, a campaign to boycott both companies has been launched. And Veolia may already have lost contracts in northern Europe. At the beginning of the year, Veolia lost a 1.9 billion euros contract to manage Stockholm’s tramway. It also lost contracts in Ireland, the UK and even in France. The Swedish pension fund AP7 scrapped Alstom from its portfolio … without confirming that it did this because of the controversy in Jerusalem. Nevertheless, that project has turned into bad publicity for both companies.

Well adapted and efficient. Following a complaint by the NGO “France Palestine Solidarity”, on April 15th , for the very first, time a French court said it was able to hear the case.

These days, business is no longer just business. Companies have to think long term perspectives and take into consideration the socio-political realities of their markets. Companies no longer have any choice, they have to avoid conflicted situations and anticipate social and environmental issues. They have to identify all the participants involved in their project. Increasingly they seek advice from consultants.

According to the Israeli press, Veolia is trying to get out of the Jerusalem tramway project. Alstom has been less boycotted and hasn’t changed its position. But there could still be consequences to come, especially if the French court says the companies’ participation in building Jerusalem’s tramway is illegal.

A report by Virgine Herz and Mounia Ben Aïssa