Technological advances have led to an increase in demand for raw minerals needed to manufacture electronic devices and equipment used by individuals and businesses around the world. One of the most familiar electronic devices may be a smartphone. As technology companies [such as Apple] frequently release new versions of smartphones during the technology development process, the demand for raw materials has traditionally grown to keep pace with manufacturing. This has led to the purchase of suspicious materials from technology companies and placed the ethical issues of "conflict minerals" in the spotlight.
The term "conflict minerals" refers to any substance extracted from a mine located in an active conflict zone. One of the most serious conflict areas in the world is the Democratic Republic of the Congo [DRC]. It is also one of the most abundant resources of many resources, such as gold, tin, antimony and tungsten, which are critical to electronics manufacturing. Mines in the Democratic Republic of the Congo are usually controlled by militia, which considers the majority of the population [usually subjected to theft, murder and rape] as an extension of the local lucrative resources. As the demand for electronic products grows steadily, a resource-rich country should begin to prosper. However, the valuable resources in the Democratic Republic of the Congo can only benefit local militias and exacerbate the chaos.
Since electronics manufacturers do not have a reliable way to determine the exact source of resources from conflict zones, ethical decisions may have to stop all items purchased from those locations. However, this may only further inflict innocent workers into poverty and encourage material dealers who continue to purchase conflict minerals directly from the militia to be dishonest and may claim that they are responsibly mined.
Before 2010, there were ambiguities in the way technology companies procured the original minerals used to make electronic components in smartphones. Large and diverse companies claim that due to their size and global reach, they lack awareness of some unethical business practices, such as the procurement of conflict minerals.
In 2010, the Dodd-Frank Reform Act came into force and required the US Securities and Exchange Commission [SEC] to determine a system that would require listed companies to report whether their supply chain provided any conflict minerals. However, in 2013, the National Manufacturers Association, which represents a large number of companies, and the American Chamber of Commerce argued in the federal court that the claim violated the company's right to freedom of expression. They won their case, although most companies have not met the requirements because they want to examine every mine in the supply chain and the complex relationship between the mine and the smelter.
After the report request was overturned, a large number of companies in the electronics industry, especially Apple, Intel and Microsoft, established the Conflict-Free Smelter Program [CFSP], which actively implemented smelter audits to determine whether they purchased conflict minerals. Metals from audited mines are tracked by tamper-proof, marked and monitored bags, and CFSP is only suitable for tracking materials. The plan also requires smelters to audit mines that purchase materials or to lose business from a group of companies associated with CFSP. Intel claims that they are not only actively involved in the program, but also help some smaller smelters to fund their audit work in the absence of resources to comply with CFSP requirements.
Bribery and local corruption remain an inevitable problem, although the establishment of a system is the first necessary step to eliminate the use of conflict minerals in the electronics industry. More importantly, the number of conflict minerals that may enter the estimated supply chain is limited. Landmines operated by militia may have been discovered. If more companies join the operation, they will be completely eliminated.
Often, radical organizations help the public to pay attention to both direct and indirect unethical behavior with a view to promoting change. Unfortunately, Dodd-Frank's disclosure requirements may force this change, but now it is decided by a group of companies responsible for it and strives to make its supply chain conflict-free. It is optimistic that other companies in the industry will be accused of doing the same. thing. If the situation around the world improves, companies can operate ethics more easily, regardless of the size of the business and the scope of the global impact.
Orignal From: Global sourcing can lead to ethical issues
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