Conflict Minerals: Influencing the Supply Chain for Public Purpose

Gold, tungsten, tantalum, and tin are essential to a wide array of today's products. Industries ranging from electronics to health care to defense rely on these minerals. A sizable portion of these minerals are sourced from Democratic Republic of the Congo (DRC) where funds raised from mining these minerals have fueled a decades-long civil war. Thus these minerals from the DRC are referred to as "conflict minerals." Global supply chains have been designed to use DRC sources based on economics and logistics; although, there are alternative sources. Some U.S. policymakers sought limit the conflict in the DRC by reducing the flow of conflict minerals. Initial Congressional action was unsuccessful; however the policy was incorporated into section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) in 2010. The legislation required the Securities and Exchange Commission (SEC) to establish a reporting requirement for publicly traded corporations using conflict minerals in their supply chains. These corporations could also certify their supply chains as DRC conflict-free through an independent private sector audit. The primary focus of the case is on how supply chains can be modified by public policies to achieve desired social outcomes. The case can also be used to teach the policymaking process.

• Strategy