Why Conflict Minerals Reporting May Be Good for Business

by NAVEX Global
Contact

If your company files with the SEC and uses components that contain tin, tantalum, tungsten or gold (3T&G) sourced in the Democratic Republic of Congo (DRC) or adjoining countries, yours is one of thousands of U.S. companies required to file their first annual conflict minerals report on June 2. Despite the recent ruling by a federal court that has thrown some doubt as to whether the reporting requirements will change, or whether the deadline may be pushed back, organizations should nonetheless be ready to file.

Background

The ongoing, extremely violent war for control of the mineral-rich African region is often funded by the sale of 3T&G, which is why 3T&G came to be designated as conflict minerals. Governments and NGOs around the world have enacted measures to stem the flow of money to the groups responsible for the war and to stop a multitude of human rights abuses that take place at mines run by them. To reroute buyers of 3T&G from the war-connected groups to mines and smelters not connected to the violence and abuse is thought to be the most effective means for those outside the DRC to help solve the problem.

Penned into the Dodd-Frank Act’s Section 1502, the conflict minerals reporting requirement aims to foster responsible sourcing, i.e., for companies to trace the conflict minerals in their supply chains back to the smelters and mines to make sure they are not purchasing conflict minerals. The new reporting requirements are intended to channel U.S. companies’ purchasing power to abuse- and conflict-free mineral sources.

Three Hidden Opportunities in Conflict Minerals Reporting

It can be hard to see more reporting requirements as a good thing. But many companies have already taken the initiative to develop programs and standards for compliance that raise the value of their companies’ intangible assets, like reputation and supply chain transparency, while complying with a global effort to change the dynamic of human exploitation and extreme violence.

Below are three ways companies are leveraging the new conflict minerals reporting requirement to help bolster and protect their organizations:

1) Demonstrating Sector Leadership & Reaping the Reputational Rewards

Complying with the SEC reporting requirements can set your company up for market differentiation as the ethical brand that offers “conflict-free” options to consumers. In every sector, leaders will emerge to pioneer efforts, develop new standards and, in the process, establish themselves as leaders in the conflict minerals area.

2) Getting a Jump Start on Due Diligence 

As environmental and social responsibility continue to play a greater role in companies’ success, supply chain due diligence that looks forward to product sunsetting and back to the source of materials is only going to become more important. Any methods and standards developed to address conflict minerals reporting requirements can be transferred and adapted to other supply chain areas and will help make your brand stand out—in a good way.  

3) Reducing Third Party Supply Chain Risk

Conflict minerals due diligence requires a deep dive into your supply chain, and it requires patience to follow the trail to the source. When you succeed, you come away with not only greater transparency in your own supply chain, but in your suppliers’ supply chains, as well. Establishing methodology and standards is a great way to streamline due diligence efforts and make reporting easier. The standards and methodology can then be applied to other areas of your supply chain.

In a new whitepaper, “Conflict Minerals Reporting Compliance: Seven Imperatives For Chief Compliance Officers,” NAVEX Global offers insights on steps compliance professionals should take to ensure they meet the reporting requirements, while strengthening their ethics and compliance program. We also provide examples of companies who have gone above and beyond the requirements—and are reaping the benefits of doing so.

Written by:

NAVEX Global
Contact
more
less

NAVEX Global on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.