TheCorporateCounsel.net

February 25, 2014

Survey Results: Conflict Minerals

I have just posted these recent survey results on conflict minerals:

1. We are a downstream company (ie. uses minerals in design/manufacture) required to conduct a “reasonable country of origin inquiry” (RCOI) and our process is:
– Engage 1st-tier suppliers with questionnaire; review responses; check any smelters identified against independent verified lists; no further action if no reason to believe from responses received (even if less than 100% response rate) that the conflict minerals may have originated in the covered countries – 65%
– Engage 1st-tier suppliers with questionnaire; review responses; check any smelters identified against independent verified lists; for unresponsive suppliers, perform further engagement (including 2nd-tier and above) – 25%
– No direct engagement with suppliers; rely solely on smelters identified on independent verified lists – 0%
– Outsource entire process to 3rd-party service provider & rely on their conclusions – 0%
– Other – 10%

2. We are a downstream company that sends questionnaires to 1st-tier suppliers and they’re non-responsive/unable to answer completely and our next step is:
– Nothing, we’re done – and will disclose that we have no reason to believe that conflict minerals may have originated in the covered countries – 3%
– Further engage 1st-tier supplier (eg. calling, e-mails) but not 2nd-tier supplier, etc. – 82%
– Further engage 1st-tier supplier, 2nd-tier supplier, etc. – 10%
– Other – 5%

3. If you choose “a” in #2 above, would you consider the company to have satisfied its RCOI obligation:
– Yes – 24%
– No – 38%
– Depends on what others are doing – 14%
– Not sure – 24%

4. Are you taking measures to ensure that your RCOI covers new products manufactured by the company up until December 31st:
– Yes, we have controls to monitor for new products with conflict minerals on a real time basis – 22%
– Yes, we have controls to monitor for new products with conflict minerals on a quarterly basis – 11%
– Yes, we have controls to monitor for new products with conflict minerals on a semi-annual basis – 16%
– Yes, we perform our RCOI once per year as of December 31 – 24%
– No, we perform our RCOI earlier in the year and do not worry about scanning for new products through December 31 – 27%

5. Has your company adopted a conflict minerals policy:
– Yes, we are adopting one responding to the new rule – 51%
– Yes, we had one prior to the new rule – 0%
– Yes, we had one prior to the new rule, but have updated it for the new rule – 0%
– No, but we’re considering it – 33%
– No, and we don’t plan to – 15%

6. If your company had to perform Step 3 of the new rule, how long did it take (soup-to-nuts)
– 0-3 months – 4%
– 3-6 months – 19%
– 6-9 months – 23%
– 9-12 months – 23%
– More than 12 months – 31%

Please take a moment to anonymously participate in our “Quick Survey on Proxy Drafting Responsibilities & Time Consumed” and “Quick Survey on D&O Questionnaires and Director Independence.” And here is an Akin Gump blog about the recent oral arguments in the appeal of the conflict minerals case.

Webcast: “The SEC Staff on International Issues”

Tune in today for the webcast – “The SEC Staff on International Issues” – to hear Paul Dudek, Chief of Corp Fin’s Office of International Corporate Finance, Alex Cohen of Latham & Watkins and Nick Kronfeld of Davis Polk discuss the latest rulemakings and interpretations on the international front.

Your Conflict Minerals Toolkit! January-February Issue of The Corporate Counsel

Dave & the gang did a yeoman’s job for the January-February issue of The Corporate Counsel that was just mailed, putting together a group of sample documents to go along with their analysis of complying with the new conflict mineral rules. The issue includes:

– Memorandum on Conflict Minerals Compliance
– Framework for the Analysis
– Conflict Minerals Policy
– Form SD and Conflict Minerals Report

Act Now: Get this issue rushed to when you try a 2014 No-Risk Trial today.

– Broc Romanek