Three major U.S. business associations have asked a federal court to block a new corporate disclosure requirement that would reduce slavery in central Africa, according to news reports in the Wall Street Journal and Compliance Week.
The U.S. Chamber of Commerce, National Association of Manufacturers and Business Roundtable want the court to overturn the “conflict mineral” rule approved by the U.S. Securities and Exchange Commission (SEC) in August.
Enactment of the rule was a watershed moment for the corporate transparency and anti-slavery movements. It requires companies to investigate their supply chains and disclose if their products contain minerals from conflict areas in the Democratic Republic of Congo (DRC) or surrounding areas. If their products do contain conflict minerals, companies have to report what they’re doing to ensure the profits don’t go to abusive armed groups in eastern Congo.
So-called “conflict minerals” from Congo not only fuel one of history’s deadliest wars. Free the Slaves research has documented that rebel groups and army commanders force Congo residents into slavery at many mining sites.
Congress directed the SEC to develop the new rule as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Four minerals are targeted for corporate disclosure: tin, tungsten, tantalum and gold. All are commonly used to manufacture electronic devices – from cell phones and televisions to computers and high-tech components.
Business groups have complained that complying with the rule will be expensive, but they have not yet disclosed the legal reasoning for their court challenge, according to news reports. The SEC has vowed to defend the rule.
The legal action “pits companies against customers,” according to FTS Programs Director Karen Stauss.
“Consumers and investors more and more want to know that they’re not buying into widespread global slavery and other human rights horrors like those unfolding in DRC,” Stauss says. “It’s a shame that instead of trying to improve their products and their brands — and the world in the bargain – these associations are trying to drive all companies to a lowest common denominator of corporate irresponsibility.”
FTS is pushing for broader accountability standards that would affect all products and raw materials, not just four minerals from central Africa. The SEC rule is an important step for creating a compliance mechanism for American companies.
You can see the impact of conflict-mineral slavery on the children of Africa in our short documentary: Slavery in Your Pocket.
The U.S. Securities and Exchange Commission (SEC) yesterday approved a new rule that requires companies to investigate their supply chains and disclose if their products contain minerals from conflict areas in the Democratic Republic of Congo (DRC) or surrounding areas.
If their products do contain conflict minerals, companies have to report what they’re doing to ensure the profits don’t go to abusive armed groups in eastern Congo.
It’s a watershed moment for the corporate transparency and anti-slavery movements. So-called “conflict minerals” from Congo not only fuel one of history’s deadliest wars. Free the Slaves research has documented that rebel groups and army commanders force Congo residents into slavery at many mining sites.
Congress directed the SEC to develop the new rule as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Four minerals are targeted for corporate disclosure: tin, tungsten, tantalum and gold. All are commonly used to manufacture electronic devices – from cell phones and televisions to computers and high-tech components.
“It’s an historic day, both for Congo and for the movement toward responsible investment at large,” says FTS Programs Director Karen Stauss. “The issuing of the rule will renew the momentum for change on the ground by the DRC mining ministry, local warlords, Congolese civil society and U.N. peacekeepers.”
“At the same time, the finalizing of the rule affirms that the presence of horrific human rights abuses deep within corporate supply chains is and should be a matter of concern to investors – and that affects companies’ bottom lines,” Karen added.
Companies must submit their first annual report to the SEC in May of 2014. You can watch the SEC meeting where the new rule was adopted here.
The SEC rule isn’t as strong as many advocates in the human rights movement would like. For example, there’s a multi-year phase-in period where companies could say they can’t determine if the minerals they use are Congo conflict-free.
But the new regulation is an important step. The anti-slavery movement and socially responsible investor groups support a bill in Congress for companies to investigate their supply chains for all forms of slavery, not just Congo conflict minerals.
The SEC’s new rule creates a precedent for progress.
You can learn more about the impact of Congo slavery, and your connection to it as a consumer, in our short mini-documentary: Slavery in Your Pocket.
This could become an important day in the history of the modern abolition movement. The U.S. Securities and Exchange Commission (SEC) is set to vote on new rules to require companies to investigate their supply chains and disclose if their products contain minerals from conflict areas in the Democratic Republic of Congo (DRC) or surrounding areas.
It could mark a milestone in corporate supply chain transparency. That’s because so-called “conflict minerals” from Congo are often mined by slaves. Free the Slaves has conducted groundbreaking research to document the Congo connection to slavery.
Attention policy wonks: today’s SEC meeting will be streamed live beginning at 10 a.m. EST.
It’s unclear just how stringent the new rules may be, and how quickly they might take effect. Free the Slaves and our colleagues in the human rights movement will be evaluating the SEC decision after it is announced.
It’s important to remember that today’s SEC vote is just a first step in ensuring that all products sold by American companies are slavery-free. Corporate transparency on conflict minerals from Congo can address slavery in electronic products. That’s because the minerals involved – tin, tungsten, tantalum and gold – are commonly used in electronic devices.
But there are many other common products, from clothing to chocolate to cars and beyond—that are often made with slavery-tainted raw materials. Efforts will continue in Congress for a comprehensive solution that builds on the progress made with Congo conflict minerals.
It’s taken a while, but the U.S. Securities and Exchange Commission (SEC) has set a date to vote on rules that could require many companies to disclose if their products include slavery-tainted raw materials.
The well-known Dodd-Frank financial reform act got this ball rolling, by including a lesser-known section called the DRC Conflict Minerals Provision (Section 1502). It requires companies regulated by the SEC to investigate their supply chains and disclose if their products contain minerals from conflict areas in the Democratic Republic of Congo (DRC) or surrounding areas.
This is a milestone in corporate supply chain transparency. So-called “conflict minerals” from Congo are often mined by slaves. Free the Slaves has conducted groundbreaking research to document the Congo connection to slavery.
Now, after more than a year’s delay, the SEC will vote on specific rules that companies must follow to comply with the new law, ensuring that the natural resources of developing nations benefit ordinary citizens rather than corrupt officials or armed groups.
In June, 58 members of Congress issued a bipartisan letter urging the SEC to release the final rules, stating: “The commission has had more than enough time to consider and respond to all of the substantive comments from industry, civil society, investors, and others. This issue is too serious to allow further delay.”
Free the Slaves, along with our partners in the DRC and in the U.S., have repeatedly urged the SEC to release the rules without delay. Our joint statement describes the law as having “enormous potential to transform the conflict in eastern Congo,” and urges that “while the DRC government must take up its responsibility to protect civilians and establish governance and infrastructure, U.S. based companies and consumers also have a crucial role.”
Mark your calendars. The SEC is set to vote on August 22nd.
Congress got tough on companies after the 2008 financial meltdown, enacting the Dodd-Frank Wall Street Reform Act. It included a vital section to combat exploitation in Congo, called the “Conflict Minerals” provision. The law will require companies to disclose whether their products are made with minerals from the conflict zone.
At a House subcommittee hearing on Thursday, representatives will likely hear that it is hard for companies to comply with the Conflict Minerals law. You can help balance the debate. Call Congress to be sure they hear how hard life is for Congolese people.
Despite nearly a decade of official peace, the Congolese still endure extreme human rights abuses. One reason is that an insecure climate allows the army and rebel and militia groups to continue to benefit illegally from the country’s mineral wealth. Congolese people are enslaved in mines and surrounding areas, forced into labor, sex slavery, debt bondage and hazardous child labor. See our investigative report and video.
The Conflict Minerals law has engaged the American public and major U.S. companies in the fight for peace and against corruption in Congo. For the first time, we understand our connection to the devastation and how we can play a part in ending it. As consumers, we can push companies connected to those mines to root out slavery at the source of their supply chains, and apply pressure for peace. Some critics in the U.S. claim the law has had unintended economic consequences. But our Congolese human rights partners, who work every day in mining areas, support the law.
So what can you do? Call members of the subcommittee listed below. For maximum effect, do it today or tomorrow morning.
Here’s what you can say:
I am calling because I understand that there will be a hearing on May 10th on conflict minerals regulations. I am deeply concerned about the conflict in eastern Congo and the role of the illegal minerals trade in fueling modern forms of slavery and other human rights abuses.
Please use your role as a member of the subcommittee to ask company representatives what they are doing to address slavery and the illegal trade in conflict minerals. Urge them to do more for peace in Congo by complying with regulations that will be issued by the Securities and Exchange Commission. Tell them that as consumers, we deserve to know where the minerals in our products are coming from.
Thank you in advance for taking steps to help break the link between the minerals trade in Congo and conflict, slavery and human rights abuse.
Members of the House Financial Services Committee’s International Monetary Policy and Trade Subcommittee:
Michele Bachmann, MN: (202) 225-2331
John Campbell, CA: (202) 225-5611
André Carson, IN: (202)-225-4011
Robert J. Dold, IL: (202) 225-4835
Bill Huizenga, MI: (202) 225-4401
Donald A. Manzullo, IL: (202) 225-5676
Carolyn McCarthy, NY: (202) 225-5516
Thaddeus G. McCotter, MI: (202) 225-8171
Gwen Moore, WI: (202) 225-4572
Gary G. Miller, CA: 202-225-3201
Ron Paul, TX: (202) 225-2831
David Scott, GA: (202) 225-2939
Gwen Moore, WI: (202) 225-4572
Gary G. Miller, CA: 202-225-3201
Ron Paul, TX: (202) 225-2831
David Scott, GA: (202) 225-2939
Thanks for taking action!
