Supply Chain Woes

Do you know where your supply chain leads? According to a new Amnesty International report mentioned in Forbes, tech giants like Apple and Microsoft have been linked to child mining of cobalt in the Democratic Republic of the Congo. This isn’t new, though. Over the past five years, there have been building collapses and extensive use of child or sweatshop labor throughout industries from shrimp to clothing and now tech. A large part of this comes about through improper auditing and lax management of suppliers and overall supply chain.

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Cobalt Mining by children in the DRC

For the most part, any large multinational corporation will hire auditors, essentially creating a burgeoning industry. However, for the most part these auditors will dig only as far as the company wants them to go. There’s a general belief that as long as the problem can be ignored, it might as well not exist. However, as consumers become not only more aware of the products that they are buying, but where they are starting to come from, this is becoming an untenable proposition.

Simply put, the age where a company could excuse itself from blame with a half-hearted apology and claiming that they had no knowledge of the sourcing of suppliers is over. Even today, many still equate Nike with sweatshop labor. While this sourcing of cobalt from child miners will probably not destroy or even make a large dent in the profits of Microsoft or Apple, it goes to show how prevalent it is for large companies to truly have little control over their suppliers.

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Sooner or later, consumers will wonder what goes into it

So what can companies do? Well, instead of using private company-hired auditors, use one’s from neutral third-parties who will have incentive to dig deep and examine the entire supply chain, all the way back to ingredient sourcing. Then, actually use the data instead of sitting on it or making small claims. Consumers respond much better to company actions than words. Multinational corporations have the power to demand better labor treatment and environmental care from their suppliers, and they need to use it.

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