Here’s something you didn’t expect from CES 2014.

Way to go, Intel.

Elementum
All Things SCM

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By @KalvinFadakar

Oh CES. You wonderful curse, you. There’s no other event in the world that can collectively outdate every gift I received over Christmas quite like you. I’d scream, but I’m in too much awe of the future you paint. I can almost see the money disappearing from my checking account as you broadcast tomorrow’s technology: A 3D printer that makes sweets, a drone that I can personally own (take that, Amazon), even smart socks—yes, smart socks. And you’re laden with celebrities—like Katie Couric, Cecily Strong, and Sarah Silverman. Shoot, you even featured Michael Bay’s greatest explosion to date. The only thing missing? A little heart. But that’s no longer the case thanks to Intel.

A different kind of announcement.

On Tuesday, the world’s largest chipmaker made a pledge that most wouldn’t expect from an event like CES: All microprocessors shipped in 2014 will be conflict free. Translation? Intel will avoid sourcing materials for its factories from areas of the world plagued by human rights abuses and armed conflict. A key area is the Eastern Congo—a place that has endured nearly two decades of fighting between the government, rogue soldiers, and different ethnic groups.

The issue is a longstanding one, and has spread concern that foreign purchases of minerals from mines held by armed groups are fueling the conflict. Since most electronic devices contain either gold, tantalum, tin, or tungsten (it’s ok, I didn’t know that either), the industry has been heavily reliant on mining the area. In other words: Intel’s proclamation is a bold one.

“The minerals are important, our industry relies on them, but they’re not as important as the people mining them.” –Brian Krzanich, Intel CEO

Doing it the right way.

Now here’s the most commendable part: Instead of avoiding minerals from the region as a whole—which would have been the easy answer—the company implemented an audit of the entire supply chain. It’s taken Intel four years of work to define the specific sources in which these metals come from. And while the process was expensive in terms of travel and manpower, it’s had very little impact on product costs. The best part? It saved thousands of people the chance to earn a living.

A gold miner inspecting a rock in northeastern Congo (Reuters)

A new level of accountability.

Intel is the first major U.S. technology company to declare such a promise about its products. And they’re not stopping there. They’ve pledged to continue audits and resolve any future issues that are found. This effort entails mapping their supply chains from end to end, in order to create familiarity with the sourcing practices of all their suppliers. In doing so, CEO Brian Krzanich invited the entire industry to join in on the movement.

“As you begin to put these factories around the world, you begin to think about the impact on the supply chain and the potential issues you could be causing.”

Surprised by your interest in the supply chain world? Learn more at news.elementum.com.

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