In a sane world, Israeli company SodaStream would be a poster child for corporate responsibility. Of the 1,300 staff in its West Bank plant, 450 are Israeli Arabs and 500 are Palestinians. All workers receive equal pay, which in the case of the Palestinians is several times the average salary they would normally make.

Here is a real-life example of coexistence, a place where Israelis and Palestinians, Jews and Muslims, Druze and Christians work together in peace. To boot, they assemble a product that, by turning tap water into...