Conflict Minerals in the Democratic Republic of Congo. Dylan Scudder
Cooperatives
Without solving the security issue, long-term progress will be difficult. That is why it is important for the MNCs and NGOs to support political stability. Step one is for the MNCs and NGOs to cooperate with the local authorities to build a government and police force that people can trust. This is one way to reduce guerrilla fighting and criminal activity.
Then SD can design an economic model that serves local people, delivers the coltan required for business and reduce environmental damage. Village-based cooperatives would manage the local extraction of coltan and sell directly to the MNCs. MNCs and NGOs would invest in improved extraction techniques, education and training.
Searching for a Win-Win
With five options to consider, you arrange a conference call that includes SD headquarters in California, the South Kivu team and your team in ←15 | 16→Kinshasa. The advantages and disadvantages of each option are vigorously discussed.
Option A—Leave South Kivu
The risk of working in South Kivu is too high because of the environmental and child labor issues, and because violence will probably continue in the region. Moving to a new location would make employees happier because they would not have to worry about the company being criticized all the time.
Some feel that changing locations may reduce shareholder confidence in SD’s ability to maintain a reliable supply of coltan. Also, if other MNCs leave the area, the local economy will surely suffer.
Option B—Active Stakeholder Engagement
Some participants argue that improving communication with its stakeholders is the only action SD should take. They are especially worried about the effect of media stories about the child labor situation, and Andreas Brandt’s gorilla movie. The media reaction will undoubtedly be negative if SD fails to do anything concrete. Its reputation and share price will certainly suffer as a result.
Option C—A Coltan Industry Review
SD does not have enough reliable information about its suppliers. Rather than hastily taking action, SD should cooperate with NGOs and government authorities to do a detailed study of the situation. SD could also cooperate with other MNCs on this. The best way to protect the company’s reputation would be to improve the status of all MNCs in the region.
This would also be a better way to improve staff morale. Critics of this approach complain that merely studying the situation avoids solving the problems.
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Option D—Preserve and Protect
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