The Dark Side of Mineral Sourcing : The Responsible Sourcing Practices of Industrial Manufacturing Firms

Abstract: In order to succeed with the Sustainable Development Goals, the mining of minerals will need to not only continue, but increase in the coming years. The extraction of minerals such as gold and cobalt is often associated with human rights violations and the financing of criminal enterprises. This has led to increased pressure on firms to implement effective responsible sourcing practices. While often seen as a major challenge to many firms, if leveraged correctly, responsible sourcing can be turned into significant competitive advantages and increased supply chain visibility. Given the need for more research in this area, the aim of this study is to understand what responsible sourcing practices are used among manufacturing companies so that an approach for responsible sourcing of minerals can be developed. Using a qualitative research design and following a systematic combining approach, interviews with large industrial manufacturers were conducted. Using thematic analysis, this thesis identifies the main drivers, enablers, barriers, and strategies used by manufacturing companies. While the findings show that responsible sourcing is on the agenda for all companies, it is clear that some firms take responsible sourcing more seriously than others. Therefore, it is suggested that firms need to depart from a cost-centric perspective and instead see the benefits and long-term value generated from responsible sourcing. Furthermore, the findings suggest that some companies are becoming increasingly aware of the need to know their supply chain, and how responsible sourcing practices can be beneficial by providing supply chain visibility. However, the current practices are limited because they are an inherently static representation of a dynamic system. The implementation of a supply chain digital twin is therefore presented as a potential way for firms to improve their responsible sourcing practices while at the same time gaining substantial business value.