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{"id":4305,"date":"2019-10-24T10:44:13","date_gmt":"2019-10-24T10:44:13","guid":{"rendered":"https:\/\/www.duediligenceguidance.org\/?page_id=4305"},"modified":"2019-10-24T10:44:13","modified_gmt":"2019-10-24T10:44:13","slug":"manufacturers","status":"publish","type":"page","link":"https:\/\/www.duediligenceguidance.org\/manufacturers\/","title":{"rendered":"5 step framework \u2014 manufacturers"},"content":{"rendered":"<div class=\"slider-bk\"><div class=\"white\" style=\"background:rgba(0,0,0,0); border:solid 0px #f0f0f0; border-radius:5px; padding:8px 8px 8px 8px;\">\n<div id=\"assembly_slider\" class=\"owl-carousel sa_owl_theme owl-pagination-true\" data-slider-id=\"assembly_slider\" style=\"visibility:hidden;\">\n<div id=\"assembly_slider_slide01\" class=\"sa_hover_container\" style=\"padding:5% 5%; margin:0px 0%; \"><h5 style=\"text-align: left;\"><span style=\"color: #f37550!important;\"><img loading=\"lazy\" decoding=\"async\" style=\"float: left; margin-right: 20px;\" src=\"https:\/\/www.duediligenceguidance.org\/wp-content\/uploads\/2018\/11\/Step_1-mini.png\" alt width=\"75\" height=\"88\">Manufacturers \u2014 Step&nbsp;1<\/span><\/h5>\n<h3 style=\"text-align: left;\"><span style=\"color: #f37550!important;\">Establish strong management systems<strong><br><\/strong><\/span><\/h3>\n<ul>\n<li style=\"text-align: left;\">Adopt a policy for respon\u00adsible supply chains of minerals.<\/li>\n<li style=\"text-align: left;\">Assemble an internal team to oversee supply chain due dili\u00adgence. Ensure that the neces\u00adsary budget resources are assigned and that a senior manager is ulti\u00admately accountable.<\/li>\n<li style=\"text-align: left;\">Communicate company policy, actions and expec\u00adta\u00adtions related to respon\u00adsible sourcing to suppliers. Companies should incor\u00adpo\u00adrate these expec\u00adta\u00adtions into supplier contracts and consider other ways to support the capa\u00adbil\u00adi\u00adties of suppliers to fulfill respon\u00adsible sourcing expectations.<\/li>\n<li style=\"text-align: left;\">Establish an internal system of trans\u00adparency, infor\u00adma\u00adtion collec\u00adtion, and records of supply chain due dili\u00adgence processes, find\u00adings and resulting deci\u00adsions. In partic\u00adular, main\u00adtain records on the iden\u00adtity of smelters &amp; refiners, or any other suppliers at points of trans\u00adfor\u00adma\u00adtion where the mineral is processed to reach commer\u00adcial market quality, once this infor\u00adma\u00adtion is collected in Step&nbsp;2.<\/li>\n<\/ul><\/div>\n<div id=\"assembly_slider_slide02\" class=\"sa_hover_container\" style=\"padding:5% 5%; margin:0px 0%; \"><h5 style=\"text-align: left;\"><span style=\"color: #82a9c4!important;\"><img loading=\"lazy\" decoding=\"async\" style=\"float: left; margin-right: 20px;\" src=\"https:\/\/www.duediligenceguidance.org\/wp-content\/uploads\/2018\/11\/Step_2-mini.png\" alt width=\"75\" height=\"88\">Manufacturers \u2014 Step&nbsp;2<\/span><\/h5>\n<h3 style=\"text-align: left;\"><span style=\"color: #82a9c4!important;\">Identify, assess, and prioritise risks<br><\/span><\/h3>\n<ul>\n<li>Identify your company\u2019s suppliers and collab\u00ado\u00adrate with them to iden\u00adtify the key points of trans\u00adfor\u00adma\u00adtion in the supply chain where the mineral is processed to reach commer\u00adcial market quality (e.g. smelters or refiners for metals).<\/li>\n<li>Engage with the key points of trans\u00adfor\u00adma\u00adtion (e.g. smelters or refiners for metals). Obtain prelim\u00adi\u00adnary infor\u00adma\u00adtion on the country of origin and the transit and trans\u00adporta\u00adtion routes used between the mine and refiners, or other point of trans\u00adfor\u00adma\u00adtion to iden\u00adtify any rele\u00advant <a href=\"\/risks\/\">red flags<\/a>.&nbsp;<\/li>\n<li>Assess whether smelters and refiners have conducted all neces\u00adsary due dili\u00adgence steps for any <a href=\"\/risks\/\">red-flagged<\/a> supply chains that have been, or should have been, iden\u00adti\u00adfied (e.g. by reviewing the above may be best achieved through an industry scheme or other collab\u00ado\u00adra\u00adtive initiative.<\/li>\n<li>If, due to the complexity of your supply chains, you are having diffi\u00adculty iden\u00adti\u00adfying the refiners or other points of trans\u00adfor\u00adma\u00adtion in your supply chain, while your efforts are ongoing you may iden\u00adtify through such industry schemes or collab\u00ado\u00adra\u00adtive initia\u00adtives the refiners or other points of trans\u00adfor\u00adma\u00adtion that meet the require\u00adments of this Guidance in order to source from.<\/li>\n<li>If relying on find\u00adings from an industry schemes or collab\u00ado\u00adra\u00adtive initia\u00adtives, review those find\u00adings to ensure they are cred\u00adible, up-to-date, and cover risks specific to your supply chain.<\/li>\n<\/ul><\/div>\n<div id=\"assembly_slider_slide03\" class=\"sa_hover_container\" style=\"padding:5% 5%; margin:0px 0%; \"><h5 style=\"text-align: left;\"><span style=\"color: #f37550!important;\"><img loading=\"lazy\" decoding=\"async\" style=\"float: left; margin-right: 20px;\" src=\"https:\/\/www.duediligenceguidance.org\/wp-content\/uploads\/2018\/11\/Step_3-mini.png\" alt width=\"75\" height=\"88\">Manufacturers \u2014 Step&nbsp;3<\/span><\/h5>\n<h3 style=\"text-align: left;\"><span style=\"color: #f37550!important;\">Manage risks<br><\/span><\/h3>\n<ul>\n<li>Inform senior manage\u00adment of the risks iden\u00adti\u00adfied (e.g. iden\u00adtify priority suppliers; iden\u00adtify smelters and refiners and assess their rela\u00adtive risk levels and corre\u00adsponding due dili\u00adgence actions; docu\u00adment any infor\u00adma\u00adtion gaps; and clarify the chain of custody).<\/li>\n<li>Identify and track which suppliers respond to infor\u00adma\u00adtion requests and which do not. Follow up with suppliers and esca\u00adlate unco\u00adop\u00ader\u00ada\u00adtive suppliers to senior management.<\/li>\n<li>Disengage from suppliers asso\u00adci\u00adated with smelters or refiners that may be contributing to conflict or to the most serious human rights impacts (as defined in Annex II of the OECD Guidance).<\/li>\n<li>Manage risks of support to public or private secu\u00adrity forces, bribery, money laun\u00addering, and tax evasion by asking suppliers to put in place measur\u00adable risk-mitigation actions intended to promote progres\u00adsive perfor\u00admance improve\u00adment within a reason\u00adable timescale.<\/li>\n<li>Improve internal risk assess\u00adment systems over time by tracking imple\u00admen\u00adta\u00adtion and risk-mitigation measures.<\/li>\n<li>If the refiner cannot be iden\u00adti\u00adfied, adopt a risk manage\u00adment plan to be able to even\u00adtu\u00adally demon\u00adstrate signif\u00adi\u00adcant measur\u00adable improve\u00adments to your efforts to do&nbsp;so.<\/li>\n<\/ul><\/div>\n<div id=\"assembly_slider_slide04\" class=\"sa_hover_container\" style=\"padding:5% 5%; margin:0px 0%; \"><h5 style=\"text-align: left;\"><span style=\"color: #82a9c4!important;\"><img loading=\"lazy\" decoding=\"async\" style=\"float: left; margin-right: 20px;\" src=\"https:\/\/www.duediligenceguidance.org\/wp-content\/uploads\/2018\/11\/Step_4-mini.png\" alt width=\"75\" height=\"88\">Manufacturers \u2014 Step&nbsp;4<\/span><\/h5>\n<h3 style=\"text-align: left;\"><span style=\"color: #82a9c4!important;\">Audit control point<br><\/span><\/h3>\n<p>Support an audit of the smelter, refiner, and\/or other key points of trans\u00adfor\u00adma\u00adtion&nbsp;by:<\/p>\n<ul>\n<li>providing finan\u00adcial resources for inde\u00adpen\u00addent third-party audits of refiners and smelters<\/li>\n<li>becoming members of industry programmes or promoting smelter and refiner partic\u00adi\u00adpa\u00adtion in audit programmes<\/li>\n<li>peri\u00adod\u00adi\u00adcally assessing the quality of industry-led vali\u00adda\u00adtion programmes or inde\u00adpen\u00addent audits of the smelters or refiners that choose to partic\u00adi\u00adpate in such schemes.<\/li>\n<\/ul><\/div>\n<div id=\"assembly_slider_slide05\" class=\"sa_hover_container\" style=\"padding:5% 5%; margin:0px 0%; \"><h5 style=\"text-align: left;\"><span style=\"color: #f37550!important;\"><img loading=\"lazy\" decoding=\"async\" style=\"float: left; margin-right: 20px;\" src=\"https:\/\/www.duediligenceguidance.org\/wp-content\/uploads\/2018\/11\/Step_5-mini.png\" alt width=\"75\" height=\"88\">Manufacturers \u2014 Step&nbsp;5<\/span><\/h5>\n<h3 style=\"text-align: left;\"><span style=\"color: #f37550!important;\">Communicate and report on due diligence<br><\/span><\/h3>\n<ul>\n<li>Report publicly on your company\u2019s due dili\u00adgence efforts for respon\u00adsible supply chains of minerals from conflict-affected and high-risk areas each&nbsp;year.<\/li>\n<li>Reports should focus on the key find\u00adings from the risk assess\u00adment and actions taken by the company to address iden\u00adti\u00adfied risks (e.g. manage\u00adment systems estab\u00adlished; steps taken to iden\u00adtify smelters and refiners in the supply chain; risk assess\u00adment method\u00adology imple\u00admented; assess\u00adments conducted to iden\u00adtify smelter and refiner risks and corre\u00adsponding due dili\u00adgence measures in line with the OECD Guidance; steps taken to manage risks; and efforts made to monitor and track perfor\u00admance for risk mitigation).<\/li>\n<li>Disclose infor\u00adma\u00adtion with due regards taken of busi\u00adness confi\u00adden\u00adtiality and other compet\u00adi\u00adtive concerns (i.e. price infor\u00adma\u00adtion and supplier relationships).<\/li>\n<\/ul><\/div>\n<\/div>\n<\/div>\n<script type=\"text\/javascript\">\n\tjQuery(document).ready(function() 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