In the first brief in this research series, Economic and Policy Supply Chain: The “Non-Invisible Hand”, we covered the increasing importance for procurement organizations of looking at economic and policy issues focused on the “Non-Invisible Hand” as we termed it. As we continue our analysis, we will turn our attention to the role not only of specific legislation (such as Dodd-Frank or specifically, Conflict Minerals) on procurement organizations, but also a major policy shift that has already taken place that mandates ethical sourcing compliance.
This shift is important. With Conflict Minerals regulations, we have essentially moved into a new era of mandated ethical sourcing that is legislated and required. It is no longer a “best-practice”, something that is “good to do” or a means of improving the marketability of products. For the first time in North America, this legislation has effectively established that Federal lawmakers have a role in defining humanitarian policy by requiring specific supply chain compliance and sourcing activities.
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