80% Of Companies Don't Know If Their Products Contain Conflict Minerals
Publisher: Harvard Business Review
Author(s): Yong H. Kim and Gerald F. Davis
Date: 2017
Topics: Extractive Resources, Governance
Countries: Congo (DRC)
Manufacturing used to be highly vertically integrated in the U.S. For example, Ford’s River Rouge plant not only assembled cars but also made its own steel, glass, fabrics, power, and cement on-site. But since outsourcing has become an increasingly common approach to cutting costs, many producers now rely heavily on globally dispersed supply chains. For example, Apple works with at least 200 suppliers and 242 smelters and refineries across the world. There are similar stories in the electronics industry, pet food, pharmaceuticals, and even national security. It’s no wonder so many consumers have no idea where their favorite brands come from.