Here are 3 more reasons you should not not ignore conflict minerals legislation (catch up on the first two in the first part of this article):
3. Corporate Social Responsibility (CSR) – As a corporation, there are times to think beyond profit. Unless there is a designated social responsibility chapter in your organization, there will be little room for improvement in the long run. When it comes to DRC and the conflict minerals legislation, non-compliance would mean that a corporation is simply shirking their social responsibility. The ripple effects of the violence in the region would eventually be felt even in the developed nations. It is the indiscriminate looting of the rich natural resources, questionable smuggling rings, continued atrocities on local populace and the relentless violent atmosphere that simply makes this a significant social issue.
4. Direct Supply Chain Route – Minerals shipped out of the Congo are typically sent to Asia through various shady and circuitous routes. Within the entire operation, there is not one stage that is 100% reliable. Once the minerals reach Asia, they are then sent to various facilities and used in telecommunication and electronic products and then shipped all over the world. While this process leaves room for a significant profit margin, you have to stop and think, at what cost? For one, continuing this supply channel will lead to more conflicts in the DRC. Secondly, this may be the nudge needed to begin evaluating and proposing a more direct supply chain route that can then lead to more domestic jobs.
5. Act Now or Repent – Harsh as it sounds, if companies continue to resist the conflict minerals legislation, repentance could be in their immediate future. The law has newly passed, which means there will be a period of time where they work out the kinks. Make suggestions rather than protesting and resisting. See the bigger picture. With increasing awareness of the conflict in the DRC, there will be more laws coming into effect to contain this violence. Ignoring the problem will not make it go away. If companies don’t act now to work on recreating their supply chain, they could soon face a total ban of operations. Focusing on profits today could result in a complete shutdown tomorrow.
Need help refining your company’s Conflict Minerals sourcing strategy? Download this free guide to learn key facts and information about the Conflict Minerals provision, and how LiveSource can optimize your compliance program.
MetalMiner welcomes Adam Cleveland as a guest contributor from MFG.com, which offers LiveSource – a cloud-based eSourcing tool that combines the power of advanced supplier management with the global reach of the world’s largest manufacturing marketplace.
*Editors’ Note: Any/all viewpoints in guest articles are not necessarily held by MetalMiner.