This article provides important information about mining companies, the usage of blockchain technology, social corporate responsibility, and
Question:
This article provides important information about mining companies, the usage of blockchain technology, social corporate responsibility, and the conflict generated to clean up the supply chain of minerals. Human rights groups have put pressure on companies to improve better practices in the multimillionaire mining industry and control the precedence of minerals. Minespider is a startup that has develop blockchain, a new technology used to track shipments of minerals as they move from mines to the factories, creating files that are attached to gold ingots, pallets and truckloads with code labels. By doing this, companies have proof that the minerals they are using in their production come from a peaceful place and not from a mine whose profits flow to criminals or terrorists. There are more companies using blockchain technology to help track metals and other commodities. For example, For Motor has partnered with another company to track cobalt, which is used in batteries that provide power to laptops and electric cars. As the article mentions, "Being able to prove the origin of a diamond will become increasingly valuable," says Ola Sodermark, an analyst at Kepler Cheuvreux in Stockholm. "Customers want to know whether a stone has been sustainably produced." This means that investors are becoming more aware of provenance issues and are implementing corporate social responsibility actions on their supply chain operations. The startup is still working on developing a system that will allow them to use blockchain in a larger scale by attaching unique identifiers to pallets of ingots and minerals. The system will provide specific data about the shipment of the mineral, weight, purity, photos and signatures of the people who handled the mineral. Minespider is also working with some countries in Africa to develop a new blockchain-based system that will allow companies to electronically pay gold miners and improve working conditions associated with more formal production.
There are three important concepts discussed in the article that are related to supply chain management literature. Sustainability and social corporate responsibility are two linked topics mentioned in the article since companies are becoming more aware of the provenance of minerals and raw materials used in their production processes. Society is putting pressure on companies to incorporate more environmental and long-term solutions for all the participants in the mining industry. The supply chain in the mining industry is being positively affected by the new use of blockchain technology, adding value to the suppliers and manufacturers.
1. How can the mining industry be affected by using this new technology?
2.If blockchain provides benefits for all the participants in the industry, why it has not been used at a large scale? What are the risks for the companies?3. Is sustainability and corporate social responsibility more important than generating profits in the mining industry?
International Management Managing Across Borders And Cultures Text And Cases
ISBN: 9780133062120
8th Edition
Authors: Helen Deresky