Pension funds: guarantors of international legality in Western Sahara? Evidence from Norway and Sweden

Natural resources have been defined by the Sahrawi Arab Democratic Republic, Polisario Front, and a number of non-governmental organisations not only as an essential part of the Western Sahara conflict, but also as a battlefield that has attracted the interest of the international community. This article explores how the ethical trade guidelines of two large institutional investors - the Norwegian and Swedish pension funds - have affected the behaviour of companies that export and exploit the natural resources of Western Sahara. The results of applying a triad-network model suggest that as pension funds have more instruments of influence, their strategy becomes more effective. Moreover, investments that follow ethical trade guidelines play a key role in pressuring companies to modify objectionable behaviours.