Tuesday, July 27, 2010

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.

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