Sneaked into the Dodd-Frank Act are a pair of provisos that aim to harness the Securities and Exchange Commission’s reporting requirements to promote corporate social responsibility and the rule of law. Section 1502 is the “conflict minerals” law that requires manufacturers using gold, tin, tungsten, and tantalum from the Congo region to avoid those mined by exploited workers [see "Gut Check"]. Section 1504 is the “Publish What You Pay” law. As interpreted, it requires every energy or mining company listed in the United States to disclose every tax, fee, royalty, or other payment above $100,000 to any state or state-controlled entity on earth. The goal is to combat corruption and break the “resource curse” that blights so many nations seemingly blessed with natural wealth.
Even before publication, Publish What You Pay inspired debate in Canada, Australia, Korea, Peru, and above all the European Union. As EarthRights International’s Jonathan Kaufman suggested to the SEC, section 1504 is helping “to crystallize a global norm of transparency.” The same may be said of section 1502 and the ethical sourcing of minerals from conflict zones.
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