Conflict Minerals: Survey Reveals Cost of Conflict Minerals Compliance

Oct 27, 2014 | PCBDesign007
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The first year of conflict minerals reporting has come and gone, but how much did it cost? What lessons have we learned? A comprehensive Tulane University survey of 2013 issuers shows average costs per issuer, identifies qualitative measures issuers are currently using, and identifies common supply chain practices.

The survey results indicate an overall cost of $709 million. On average, issuers dedicated 2.7 employees--either part-time or full-time--to their conflict minerals compliance efforts. The procurement, supply chain, and quality departments were identified as the departments primarily responsible for conflict minerals compliance. Management and legal departments were distant followers. When asked about procuring external resources, 75% of respondents reported they hired a consultant to assist in their compliance efforts. Several issuers also hired lawyers to assist. A company’s IT needs were generally outsourced, however, 37% of respondents reported they did not have any software needs.