Responsible sourcing of raw minerals from conflict regions could be achieved if firms were to collaborate and if there was more pressure from consumers.
Research by Constantin Blome, Professor of Operations Management at the University of Sussex, has found that simple measures such as companies developing and sharing lists of certified smelter and refineries could make a big impact in the global drive to stop profits from mineral trade falling into the hands of armed groups.
More than five years after international efforts to reduce trade in conflict resources through the the Dodd–Frank Wall Street Reform and Consumer Protection Act (US) and the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (global), Professor Blome’s research on ‘Stopping conflict minerals with the OECD Guidance for responsible mineral supply chains: Status Quo in Europe’ reveals not only that few firms are fully implementing the OECD Guidance, but why.
Certainly, cost is not an issue. The study found that while the cost of implementing the guidance is higher for small firms, the average cost is 0.0002% of annual sales. Moreover the research found that firms will benefit if they source minerals responsibly by enhancing their reputation, improving investor relationships and better risk management.