IDEAS home Printed from https://ideas.repec.org/a/gam/jresou/v8y2019i1p26-d200859.html
   My bibliography  Save this article

Jumping the Chain: How Downstream Manufacturers Engage with Deep Suppliers of Conflict Minerals

Author

Listed:
  • Steven B. Young

    (School of Environment, Enterprise and Development (SEED), University of Waterloo, Waterloo, ON N2L 3G1, Canada)

  • Shannon Fernandes

    (School of Environment, Enterprise and Development (SEED), University of Waterloo, Waterloo, ON N2L 3G1, Canada)

  • Michael O. Wood

    (School of Environment, Enterprise and Development (SEED), University of Waterloo, Waterloo, ON N2L 3G1, Canada)

Abstract

Global manufacturing firms are engaging distant suppliers of critical raw materials to participate in responsible sourcing. Downstream firms are concerned about risks in mineral supply chains of violent conflict, human rights violations, and poor governance, but they are limited in seeing their suppliers. Descriptive data on 323 smelters and refiners of tantalum, tin, tungsten, and gold (the “conflict minerals”) were complemented by interviews with downstream firms in the electronics industry. Results provided a narrative of supplier engagement, describing tactics used to identify “deep suppliers” at chokepoints in metals supply and to persuade producers into joining due diligence programs. Top-tier firms collaborate through a standards program to overcame barriers of geography and cultural distance in supply chain management beyond the visible horizon. Curiously, manufacturers do not need line-of-sight transparency to lower-tier suppliers. Rather, top-tier firms are “jumping the chain” to engage directly with “deep suppliers” who may—or may not—be their own actual physical suppliers. The research contributes empirical evidence to understanding multi-tier supply chains, examines how power is exercised by top-tier firms managing suppliers, and provides insights on supply chain transparency. Responsible sourcing, based on due diligence guidance and standards, is becoming expected of companies that are involved in supply chains of raw materials.

Suggested Citation

  • Steven B. Young & Shannon Fernandes & Michael O. Wood, 2019. "Jumping the Chain: How Downstream Manufacturers Engage with Deep Suppliers of Conflict Minerals," Resources, MDPI, vol. 8(1), pages 1-24, January.
    • Handle: RePEc:gam:jresou:v:8:y:2019:i:1:p:26-:d:200859
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2079-9276/8/1/26/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2079-9276/8/1/26/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Blengini, Gian Andrea & Nuss, Philip & Dewulf, Jo & Nita, Viorel & Peirò, Laura Talens & Vidal-Legaz, Beatriz & Latunussa, Cynthia & Mancini, Lucia & Blagoeva, Darina & Pennington, David & Pellegrini,, 2017. "EU methodology for critical raw materials assessment: Policy needs and proposed solutions for incremental improvements," Resources Policy, Elsevier, vol. 53(C), pages 12-19.
    2. Saleem H. Ali & Damien Giurco & Nicholas Arndt & Edmund Nickless & Graham Brown & Alecos Demetriades & Ray Durrheim & Maria Amélia Enriquez & Judith Kinnaird & Anna Littleboy & Lawrence D. Meinert & R, 2017. "Mineral supply for sustainable development requires resource governance," Nature, Nature, vol. 543(7645), pages 367-372, March.
    3. Erjie Ang & Dan A. Iancu & Robert Swinney, 2017. "Disruption Risk and Optimal Sourcing in Multitier Supply Networks," Management Science, INFORMS, vol. 63(8), pages 2397-2419, August.
    4. Suzanne Benn & Damien Giurco & Paul James Brown & Renu Agarwal, 2014. "Towards Responsible Steel: Preliminary Insights," Resources, MDPI, vol. 3(1), pages 1-16, March.
    5. Virginia Haufler, 2009. "The Kimberley Process Certification Scheme: An Innovation in Global Governance and Conflict Prevention," Journal of Business Ethics, Springer, vol. 89(4), pages 403-416, March.
    6. Bleischwitz, Raimund & Dittrich, Monika & Pierdicca, Chiara, 2012. "Coltan from Central Africa, international trade and implications for any certification," Resources Policy, Elsevier, vol. 37(1), pages 19-29.
    7. Saleem H. Ali & Damien Giurco & Nicholas Arndt & Edmund Nickless & Graham Brown & Alecos Demetriades & Ray Durrheim & Maria Amélia Enriquez & Judith Kinnaird & Anna Littleboy & Lawrence D. Meinert & R, 2017. "Correction: Corrigendum: Mineral supply for sustainable development requires resource governance," Nature, Nature, vol. 547(7662), pages 246-246, July.
    8. Craig R. Carter & Dale S. Rogers & Thomas Y. Choi, 2015. "Toward the Theory of the Supply Chain," Journal of Supply Chain Management, Institute for Supply Management, vol. 51(2), pages 89-97, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peter Buchholz & Arne Schumacher & Siyamend Barazi, 2022. "Big data analyses for real-time tracking of risks in the mineral raw material markets: implications for improved supply chain risk management," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 35(3), pages 701-744, December.
    2. Gudrun Franken & Philip Schütte, 2022. "Current trends in addressing environmental and social risks in mining and mineral supply chains by regulatory and voluntary approaches," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 35(3), pages 653-671, December.
    3. Lucia Mancini & Philip Nuss, 2020. "Responsible Materials Management for a Resource-Efficient and Low-Carbon Society," Resources, MDPI, vol. 9(6), pages 1-14, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marc Schmid, 2021. "The Revised German Raw Materials Strategy in the Light of Global Political and Market Developments," Review of Policy Research, Policy Studies Organization, vol. 38(1), pages 49-75, January.
    2. Jan Macháček & Martin Schlossarek & Philemon Lindagato, 2022. "The Livelihood of Artisanal and Small-Scale Miners and Awareness of the Use of 3T Minerals in Rwanda—A Case Study in the Rutsiro District: A Qualitative Assessment," IJERPH, MDPI, vol. 19(19), pages 1-14, October.
    3. Rachidi, Ntebatše R. & Nwaila, Glen T. & Zhang, Steven E. & Bourdeau, Julie E. & Ghorbani, Yousef, 2021. "Assessing cobalt supply sustainability through production forecasting and implications for green energy policies," Resources Policy, Elsevier, vol. 74(C).
    4. Endl, Andreas & Tost, Michael & Hitch, Michael & Moser, Peter & Feiel, Susanne, 2021. "Europe's mining innovation trends and their contribution to the sustainable development goals: Blind spots and strong points," Resources Policy, Elsevier, vol. 74(C).
    5. Rivera, Nilza & Guzmán, Juan Ignacio & Jara, José Joaquín & Lagos, Gustavo, 2021. "Evaluation of econometric models of secondary refined copper supply," Resources Policy, Elsevier, vol. 73(C).
    6. Song, Huiling & Wang, Chang & Lei, Xiaojie & Zhang, Hongwei, 2022. "Dynamic dependence between main-byproduct metals and the role of clean energy market," Energy Economics, Elsevier, vol. 108(C).
    7. Liang, Yanan & Kleijn, René & Tukker, Arnold & van der Voet, Ester, 2022. "Material requirements for low-carbon energy technologies: A quantitative review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 161(C).
    8. Guzmán, Juan Ignacio & Karpunina, Alina & Araya, Constanza & Faúndez, Patricio & Bocchetto, Marcela & Camacho, Rodolfo & Desormeaux, Daniela & Galaz, Juanita & Garcés, Ingrid & Kracht, Willy & Lagos, , 2023. "Chile: On the road to global sustainable mining," Resources Policy, Elsevier, vol. 83(C).
    9. Le Boulzec, Hugo & Delannoy, Louis & Andrieu, Baptiste & Verzier, François & Vidal, Olivier & Mathy, Sandrine, 2022. "Dynamic modeling of global fossil fuel infrastructure and materials needs: Overcoming a lack of available data," Applied Energy, Elsevier, vol. 326(C).
    10. Tomer Fishman & Rupert J. Myers & Orlando Rios & T.E. Graedel, 2018. "Implications of Emerging Vehicle Technologies on Rare Earth Supply and Demand in the United States," Resources, MDPI, vol. 7(1), pages 1-15, January.
    11. Dino, Giovanna Antonella & Cavallo, Alessandro & Faraudello, Alessandra & Piercarlo, Rossi & Mancini, Susanna, 2021. "Raw materials supply: Kaolin and quartz from ore deposits and recycling activities. The example of the Monte Bracco area (Piedmont, Northern Italy)," Resources Policy, Elsevier, vol. 74(C).
    12. János Szanyi & Ladislaus Rybach & Hawkar A. Abdulhaq, 2023. "Geothermal Energy and Its Potential for Critical Metal Extraction—A Review," Energies, MDPI, vol. 16(20), pages 1-28, October.
    13. Zhong, Qiumeng & Zhang, Zhihe & Wang, Heming & Zhang, Xu & Wang, Yao & Wang, Peng & Ma, Fengmei & Yue, Qiang & Du, Tao & Chen, Wei-Qiang & Liang, Sai, 2023. "Incorporating scarcity into footprints reveals diverse supply chain hotspots for global fossil fuel management," Applied Energy, Elsevier, vol. 349(C).
    14. Alessandro Cavallo & Giovanna Antonella Dino, 2022. "Extractive Waste as a Resource: Quartz, Feldspars, and Rare Earth Elements from Gneiss Quarries of the Verbano-Cusio-Ossola Province (Piedmont, Northern Italy)," Sustainability, MDPI, vol. 14(8), pages 1-15, April.
    15. Dou Shiquan & Xu Deyi, 2023. "The security of critical mineral supply chains," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(3), pages 401-412, September.
    16. Zhang, Jintao & Su, Taoyong & Meng, Li, 2024. "Corporate earnings management strategy under environmental regulation: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 90(C), pages 154-166.
    17. Margarita N. Ignatyeva & Vera V. Yurak & Alexey V. Dushin & Irina G. Polyanskaya, 2021. "Assessing challenges and threats for balanced subsoil use," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 17904-17922, December.
    18. Elisabeth Christen & Klaus S. Friesenbichler & Alexander Hudetz & Claudia Kettner-Marx & Ina Meyer & Franz Sinabell, 2021. "Außenhandel und nachhaltige Entwicklung in Österreich. Befunde auf der Grundlage von vorliegenden Quellen," WIFO Studies, WIFO, number 69290, January.
    19. Femke J. M. M. Nijsse & Jean-Francois Mercure & Nadia Ameli & Francesca Larosa & Sumit Kothari & Jamie Rickman & Pim Vercoulen & Hector Pollitt, 2023. "The momentum of the solar energy transition," Nature Communications, Nature, vol. 14(1), pages 1-10, December.
    20. Matheus L. C. M. Henckens, 2022. "The Energy Transition and Energy Equity: A Compatible Combination?," Sustainability, MDPI, vol. 14(8), pages 1-22, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jresou:v:8:y:2019:i:1:p:26-:d:200859. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.