The double-edged sword of telecommunications

06-06-2011 | Communication technologies provide an opportunity for improved education and democracy. However it can also be used to censor, monitor and trace individual users. In the hands of repressive governments this technology can be used to facilitate human rights abuses. Triodos Bank therefore carefully monitors the behaviour of communication companies on their involvement in such human rights abuses.

The dilemma

Telecommunications and the Internet in particular, play an important role in opening up access to information, and the opportunity for people to express their thoughts and ideas. In recent times, mobile phones, Internet access and social media networks have contributed to the spread of ideas and the organisation of democracy movements and protests in many countries.

However, non-democratic governments may use censorship- or intercept-technology to monitor people expressing themselves against their regime. The recent revolutions in Tunisia and Egypt proved that governments actively try to deprive their population from information by shutting down Internet and mobile phone networks. When the Egyptian government shut down the Internet at a time of local protest earlier this year, it also used existing communication networks to send pro-government text. For example, Vodafone’s operations in Egypt could not stop the Egyptian Government’s actions because of its terms of contract with the government. To complicate things, the Egyptian Government also controls the technical infrastructure in the country. Ultimately however, the pro-democracy revolutions may not have occurred nor would they have achieved the momentum they did, without the access to these same services that were used to oppress freedom of expression. Mobile technology becomes then a double edged sword.

Another example is the Internet search company Google, which regularly appears in the media because of its censoring of political or anti-government websites on behalf of regimes such as China. Yet, without the services of Google, access to any information in those countries would be difficult, if not impossible. Importantly, Google has instituted a number of measures to make as much information as possible available to its users. For example, it warns them when information is being censored, and assesses any request from governments. Google tries to use its power and influence to change the situation in China, a country that has strict Internet censorship laws and maintains a list of banned sites that are blocked.

Not all companies are alike however. Cisco Systems, the software company, has been repeatedly criticised by civil society for selling Internet surveillance technology to the Chinese government, aiding the imprisonment of thousands of Chinese dissidents. Another example is Motorola, whose operations in Israel helped implement perimeter surveillance systems around illegal Israeli settlements and military camps in the occupied West Bank. This electronic fence radar system acts as a virtual fence, enabling the government to maintain its occupation and prohibits the free movement of Palestinians living in nearby communities.

It’s a fact that there is the potential for human rights abuse when telecommunications and surveillance technology is misused or applied for unlawful purposes. However we cannot ignore the technology’s legitimate purpose, which is used in almost all countries to combat terrorism, child pornography, drug trafficking, and other criminal activities, as well as defence.

Triodos Bank viewpoint

Triodos balances access to communication against potential infringements on human rights. When controversies occur, we critically assess them on a case-by-case basis and engage with the company involved. In general, if a company provides specific, tailor-made services or equipment that clearly helps governments to repress and violate human rights, we will not include them in our sustainable investment universe. We will look more favourably upon companies when the technology has a legitimate purpose, or if the company provides services available for all, thereby enabling access to communication and information. Ideally, we would like to see that these communication companies carefully assess the contracts and agreements they have with governments, develop clear guidelines for how to act in times of conflict, and work collaboratively with international organisations and government bodies.

Triodos Bank has included a number of telecommunication companies in its sustainable investment universe because we consider that they are pro-active in their efforts to improve the positive effect and to minimize the negative effects. Companies include Vodafone, Nokia, and Google. We have also rejected a number of telecommunication companies based on violations of human rights, for example Cisco and Motorola. 

Note: The issues explored in this article are relevant for sustainable investments on the stock market. Triodos Bank believes that our socially responsible investments are a powerful means of promoting our values and working for greater sustainability, while enabling us to offer a complete range of attractive investment options to customers who choose to invest on the stock market.