Since its adoption in 2012, the U.S. Securities and Exchange Commission’s (SEC) conflict minerals rule has generated widespread controversy and prolonged litigation. Recent developments suggest that the conflict minerals litigation will continue for some time to come. Meanwhile, as a result of disclosures over the past two years, best practices and reporting trends are emerging. Interestingly, as the rule is litigated, nongovernmental organizations (NGOs), activist groups and other constituencies are encouraging companies to go beyond the minimum reporting requirements of the rule and adopt emergent leading practices in responsible sourcing initiatives.
Background of the Rule
In August 2012, the SEC adopted the final conflict-minerals rule implementing disclosure requirements aimed at reducing armed conflict in the Democratic Republic of Congo and its nine adjoining countries (DRC region). The rule requires companies to conduct a reasonable country-of-origin inquiry for any conflict minerals (gold, tantalum, tin and tungsten) that are necessary to the functionality or production of products that companies manufacture or contract to manufacture. Unless a company has no reason to believe any of its conflict minerals originated in the DRC region, it must then perform due diligence on the source and chain of custody of its conflict minerals.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
