BlackBerry? BloodBerry? BlackBerry? BloodBerry? Why the Confusion?

INTEL and APPLE have been targeted for their denial and inaction with respect to their use of conflict minerals in their products. It looks like the maker of the main competitor to APPLE's iPhone has also joined the party. Enter Research in Motion, the maker of the BlackBerry.

In the second quarter, BlackBerry spent $719,000 on lobbying. A portion of these funds were on the trade of conflict minerals. Conflict minerals include tantalum, tin, tungsten and gold, and are use to make electronics components. Research in Motion has spent considerably more on lobbying in the first two quarters than in similar quarters in the past.

Why Lobby to Use Blood Minerals?

That is actually not a fair question. Research in Motion does not WANT to use conflict minerals in their BlackBerries. Few companies choose to use blood minerals. The issue is that they choose NOT to choose not to use conflict minerals.

Since 1999, the electronics companies have known they were treading on thin ice. With Obama's signing of the Wall Street Reform and Consumer Protection Act, the industry has run out of time for their lobbyists, committees, studies, etc. to come up with a proposal. Over 10 years was a enough time to have come up with an industry driven alternative.

So Now What?

It seems that the limited efforts by the electronics industry has been too little too late. The power is now in the hands of regulatory authorities in the United Stated who are drafting regulations.

The issue of conflict minerals was likely one of the furthest things from the everyday business decisions for the executive brass. That has now changed. Companies are now being forced to make a corporate decision on how they will react corporately.

Will BlackBerry choose the BloodBerry route? Will APPLE choose the iRape brand over the iPhone?

We'll see.

Supply Chain Reactions to Conflict Minerals Initiatives

Conflict minerals have seen significant coverage in the news following Obama's signing of the reform bill and Global Witness' lawsuit against the UK government. I have found it interesting how silent the industry has been in their response.

The supply chains for tantalum (coltan), tin, tungsten and gold will be greatly effected. The role these minerals have taken in financially supporting violence in conflict areas has been well documented.

I believe one of the reasons why is that until now, the companies have been united in denying any use of conflict minerals. Pretty hard to respond to these rule changes when they have for years denied using conflict minerals altogether.

Industry may be silent at the moment on this issue but they will not be able to remain that way. Consumers are now even asking companies in the electronics industry if their products are conflict free. This includes such well known brands as Intel, Apple, Nintendo, Microsoft and Research in Motion. The direction companies take in response will mark where they position themselves on the issue in the eyes of the public. This is a major decision.

Ok UK. It's Your Turn Now.

Earlier this month we saw Obama's administration pass the reform bill which included language concerning conflict minerals. This was a major milestone for activists as it marks the first step to making the minerals trade from DR Congo more transparent. The campaign was led by US-based Enough Project and will apply to companies reporting to the Securities and Exchange Commission in the US.

Now, UK-based GlobalWitness have launched their own version of pressure aimed to stop the trade of conflict minerals in central Africa. The NGO will launch legal action against the British government for allegedly failing to refer companies trading Congolese conflict minerals for sanction from the United Nations. A major target is reportedly London-based Amalgamated Metal Corporation (AMC Group) who has repeatedly denied any involvement in conflict minerals despite numerous reports to the contrary.

The trade in coltan/tantalum, tin, tungsten and gold help fund the ongoing armed violence in DR Congo. DR Congo is one of the world's poorest nations and has seen millions of its citizens die from the years of war.