As annual shareholder meetings reached their peak in April, one agenda item is clear: the SEC’s Dodd-Frank Section 1502 rule is in full implementation mode the entire organization, from Sourcing Managers to Board Members are concerned about one thing: Conflict Minerals puts global brands at uncertain risk.
Original Equipment Manufacturers and Suppliers (OEM/OES) are at a unique level of “double threat” risk with potential violations looming on either side of the manufacturing tier.
Key customers, or global brands demand conflict free products. At the same time, OEM’s must tackle the complexity that comes along with Conflict Minerals Compliance, sourcing due diligence, reporting requirements and potential auditing. All of which can lead to startling exposure for OEM’s and the global brands that they supply to – the “double threat” that translates into loss of business.
