How Carlyle supports human rights abuses

In September 2007, Carlyle announced that one of Abu Dhabi's government funds was paying $135billion into the private equity firm in exchange for a 7.5% ownership stake.  Speaking for himself and his partners, David Rubenstein said, "We feel this is an affirmation of the global business model we have created." He added, "We are honored to have them as long term partners."¹

But the investment by Abu Dhabi raises some serious concerns about how the human rights practices of that country, characterized as "problematic" by the United States state department, could affect Carlyle's business decisions. (For more see Carlyle Human Rights Overview; The Implications of The Carlyle Group’s Partnership with Abu Dhabi)

Abu Dhabi:

• Takes advantage of immigrant workers, paying them low wages and maintaining authority through threats of deportation. According to the U.S. State Department's country report, workers who strike can be deported, and the UAE's Ministry of Labor issued a directive to ban employment of workers who instigate strikes.²
• As of 2006, the UAE was failing to comply with minimum standards for the elimination of human trafficking.³
• A 2005 study by UAE University reported that as many as 66% of all women permanently residing in the UAE have been subjected to domestic abuse and courts have found that men have the positive legal right to beat their wives as a form of discipline.⁴ 

Carlyle Group:

• Carlyle-owned Dunkin' Donuts depends on immigrant workers, but the company is among the first to voluntarily participate in a program to investigate workers' immigration status.⁵
• Carlyle-owned Frontier Drilling has been accused of partnering with a Korean company to work under a contract with the Burmese Junta-controlled Myanmar Oil and Gas Enterprise.⁶
• According to David Rubenstein, specific Carlyle funds will not invest in Israeli companies.⁷