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Conflict Minerals: A PR Opportunity

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Wale Bakare
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Supply Network Guru
Re: effective or not?
Wale Bakare   6/22/2013 6:58:25 PM
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Why do you think difficult to reach a concord in some important issues like that? Conflict of interests?

Douglas Alexander
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Re: effective or not?
Douglas Alexander   6/14/2013 10:36:38 AM
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@Flyingscot...yes. I think the smaller, non-public companies will not be immediately impacted. Now, does this mean that the very sneaky public companies will fund non- public entities to front their conflict mineral laden exports? I'm sorry, but I think that may be the case for some corporations who already are trying to fly under the government radar with other practices. When you consider how much tin is used on semiconductor lead frames alone, then the incidence of CM usage is almost universal across all industry sectors with control circuitry powering most electronic equipment. Might this become an impetus to not take a company public? I don't think so, but it may inject a delay in an IPO.

SP
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Supply Network Guru
Re: effective or not?
SP   6/14/2013 7:44:07 AM
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1:30 ratio says it all. That is one of the major issue electronics industry is facing, laws and rules are different globally, so its so difficult to come to common conclusion.

FLYINGSCOT
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Supply Network Guru
effective or not?
FLYINGSCOT   6/14/2013 6:15:10 AM
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With a ratio of reporters to non reporter of 1:30 it makes one wonder how effective the legislation will be.  However I suppose the non reporters will be much smaller companies in general.

R.J.Matthews
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Stock Keeper
Re: Has it really come to this?
R.J.Matthews   6/13/2013 6:23:07 PM
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Yes we are very lucky really came acros this the other day.

http://www.dailymail.co.uk/news/article-2336245/Think-job-stinks-Spare-thought-sulphur-miners-Indonesia-scramble-volcano-search-valuable-mineral.html

 

Douglas Alexander
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Re: Has it really come to this?
Douglas Alexander   6/13/2013 1:16:55 PM
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@R.J. 
Dhaka, June 11 (IANS) Bangladesh's income per capita leaped to $923 in the outgoing 2012-13 fiscal year ending this month though remained far beyond reach with respect to the country's goal of graduating to a middle-income status by 2021. So if the clothing workers were only making 25 Pounds a month, they were so far below the average income level that you are right. Just as conflict diamonds have to do with labor practices, conflict clothing and the public's response should become a factor in responsible buying practices. Americans have it so good when it comes to disposable income and our buying options. This week I asked my 5 year old granddaughter to promise me that when she grows up she will be a conscientious consumer. We had just finished watching a YouTube depiciting 5 year olds crushing and carrying rocks for a cement factory in India. I am teaching her via a supply chain game I created. (Earlier article).


R.J.Matthews
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Stock Keeper
Re: Has it really come to this?
R.J.Matthews   6/13/2013 6:11:47 AM
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Good point there have been several scandels in the EU involving the supply chain recently and mining in general is being looked at more. I think it is only a metter of time till rules are brought in here that will cover a lot of businesses including American business.

http://www.guardian.co.uk/business/2013/mar/26/tesco-market-share-horsemeat-revelations

http://news.sky.com/story/1084619/bangladesh-disaster-primark-payouts-for-victims

http://www.globalpost.com/dispatch/news/afp/130612/eu-tightens-rules-mining-payments-governments

 

Douglas Alexander
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Re: Has it really come to this?
Douglas Alexander   6/12/2013 7:25:08 PM
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@Tom...My point exactly. It is bad company press for the investment community if word gets out that they, as perhaps institutional investors, are supporting a company that helps promote child labor or much worse sexual abuse and regional wars. Look at the flak Catapillar received when news got out that they were supplying special armored tractors to Israel to bulldoze down private homes in Palestine. A company has to look clean and green if they want to compete for investment capital. The companies that move the quickest on CM conformance will be seen as "socially responsible." They may end up marking thier products to let the buying public know they are really good guys. Maybe a motto like, "Do no harm" will be popular. It worked for Google and look how popular they are. 

R.J.Matthews
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Stock Keeper
Re: Has it really come to this?
R.J.Matthews   6/12/2013 7:15:26 PM
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Tom Murphy i know where you are coming from but it has come to this really. There are a lot of people who do support action conflict minerals on moral grounds but if there were enough of them there would have been rules in place already.

You do have grandstanding politicians and some leaders of industry trying to pick up easy votes or support by moaning about regulations on American industry and saying charity begins at home and so on. So the argument of short term unenlightened self interest versus long term enlightened self interest does have to be made.

The joke is the regulations would pay for themselves just on future cut backs to aid on the ground that has to be sent in to keep the situation deteriorating.

The UN biggest force is in the DRC and America is the biggest contributor to the UN.

A lot of aid is also being sent in.
http://www.globalhumanitarianassistance.org/countryprofile/democratic-republic-of-congo

Then there is the upside if things can be improved there.

http://www.worldbank.org/en/news/opinion/2013/02/10/congo-moves-on-from-lost-years

"And yet it has great opportunities to create significant growth and jobs thanks to these very same abundant natural resources, huge tracts of fertile land, a large population, and a commanding location in the centre of the continent."

"Only 10 percent of its huge area of arable land is farmed, and only 13,000 hectares are irrigated against a potential of four million hectares."

"The DRC is currently importing at least 30 percent of its food needs, when proper farming of its land could feed a billion people. With 100,000MW of hydropower generation capacity, the DRC has 15 percent of the world hydropower generation potential but only nine percent of the population has access to electricity, and even then it is not always reliable."

So how about aid not trade with a country that could be the bread basket of Africa and supply most of its electricity. Then if the mineral trade is cleaned up there that could help Africa and the world.

If things can be improved there, there are going to be massive benefits to world and American trade.

Not surprised by some politicians fighting conflict minerals progress as they are probably only concerned with getting the votes they need to get elected next time not about the long term future of Africa or America.

You would think the arguments for progress would occur to the National association of manufactures but i guess they do not have any vision to see possibilities a couple of step ahead or are afraid of upsetting some of their members.

It is good to see that EBN has raised the issue, which is enlightened of them, but i suppose the nature of supply chain issues is always looking several steps ahead and seeing how things can be done better.

If only everyone thought the same way!

 

 

Tom Murphy
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Has it really come to this?
Tom Murphy   6/12/2013 4:54:43 PM
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Those socially conscious fund managers you mention in the story point out, rather eloquently, the real reasons not to use conflict minerals -- rape, murder and mayhem.  That should be enough.  Anyone who expects good PR on top of that really needs to re-examine their priorities.  And anyone who opposes CMs just for PR is too cynical for me to comprehend.



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