Do you know if your products contain conflict minerals?
If so, then evaluation and mitigation of the business and legal risks of failing to comply with the US Conflict Minerals Law (USCML) must be given a high priority. In the U.S., conflict minerals usage and abuse is gaining visibility both in the press and with enforcement agencies including the SEC and the FBI. With final compliance standards defined by the SEC established, fines and prosecutions for non-compliance are rising rapidly.
The Dodd-Frank Wall Street Reform and Consumer Protection Act establishes what has become known as the US Conflict Minerals Law, and mandates supply chain due diligence and public disclosure related to the source of minerals used in products. Fundamentally, the law contains two closely connected requirements: independent third party supply chain traceability audits, and reporting of audit information to the public and the Securities and Exchange Commission (SEC). Even companies not directly regulated by the SEC are directly impacted by the audit requirements.
It is now critical to understand the importance and visibility of all risks related to the supply chain traceability audits. The audits and their constituent components must be tracked, collected and reported against to demonstrate compliance and avoid potential penalties and prosecutions. The new imperative is to take the challenging and necessary proactive actions to drive compliance with the USCML.
Aravo can help
Aravo enables customers to automate and streamline ongoing USCML oversight of employee, supplier, intermediary and subsidiary relationships. The SaaS-based solution facilitates three key activities as part of an effective USCML compliance initiative: compliance-based supplier selection, relationship management, and compliance monitoring/audit management.
Leveraging Aravo, companies can establish a lower-cost, higher-quality supplier management process through a single system of record for supplier information, automated activity reporting related to supplier compliance, and a consistent and repeatable assessment process.
"We chose Aravo to help us fully implement our USCML compliance initiative to ensure we would not be at risk for an upcoming audit. With Aravo, we have been able to successfully perform our Tier 1 validation, and now have a framework for multi-tier audit reporting that comes from a single compliance repository. We are now in a position to assist our suppliers in adhering to our compliance objectives while feeling assured that our brand is protected from compliance risk."
Chief Compliance Officer, Fortune 100 Company