Conflict minerals are minerals mined in conditions of armed conflict and human rights abuses, notably in the eastern provinces of Democratic Republic of the Congo. The minerals under close watch are Tantalum, Tin, Tungsten (3T’s) and Gold. These type of minerals are used in a wide range of products some more obvious such as jewellery, electronics, and automobile to less obvious such as clothing, footwear, fashion accessories.

In 2010, President Obama passed a new law to encourage companies to disclose their use of conflict minerals. Companies are required to file reports with the SEC under the Exchange Act, placing suppliers under a microscope to ensure full end-to-end compliance.

Some other countries or government bodies such as The European Union, Canada, and Australia, have taken steps to address concerns about conflict minerals. Some of these are only in the proposal stage, while others have passed legislation. However, no country has passed a rule quite like the SEC’s conflict mineral rule.

However, due to heightened expectations from stakeholders, consumers, NGO’s and human rights activists, governments such as The European Union and companies that don’t legally have to comply are beginning to feel the pressure, globally. This is forcing governments outside of the U.S. to adhere to international obligations, whilst fulfilling their duty under the European human rights law to ensure businesses do not cause or contribute to human rights abuses.

Today, there continues to be uncertainty regarding the legality and consequences faced by those who do not have full compliance in their supply chain regarding conflict minerals. Truth is, consumers are becoming more aware of their ethical and social responsibilities and when large brands and companies fail to adopt a conflict minerals program into their supply chain operations, they continue to fund the violence and abuse that remains in the DRC and surrounding countries, resulting in the damaging of a brand’s integrity. The pressure to be complaint towards conflict minerals seem to be coming from all angles. Whether it is compulsory or not, companies globally need to look deeper into the supply chain, remain compliant and work towards managing a fully transparent, regularly audited supply chain in order to succeed in today’s consumer-led social ecosystem.