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Why Do Companies Prefer to Engage a CMR Specialist?

Retaining a CMR (Conflict Minerals Reporting) Specialist is becoming management’s preferred solution for achieving compliance excellence. 

 

Conflict Minerals Reporting Specialists are professionals who have the experience and knowledge necessary to cost-effectively perform and document the OECD-recommended CMR tasks. 

 

C-level executives are in a bind when faced with the straightforward question: “How should our company staff the Conflict Minerals Reporting Position?” 

 

The two contradictory decision criteria are:

  1. Minimize Cost;

  2. Maximize CMR Expertise.

Comparing the 5 possible options, it becomes very clear why engaging a Green Status Pro CMR Specialist is the preferred approach.

Option 1: Hire a Conflict Minerals Compliance FTE.

Analysis 

  • The annual cost of a qualified CMR FTE with benefits is 3-5 times the annual contract value of a Green Status Pro CMR Specialist and the workload required of the CMR FTE will be less than 90 days per year. 

Conclusion 

  • A Green Status Pro CMR Specialist easily meets both decision- making criteria – minimize cost and maximize CMR expertise – better than a CMR FTE.

Option 2: Engage a full-service compliance consulting firm that provides RoHS and REACH services in addition to Conflict Minerals Reporting.

Analysis

  • Employing a full-service compliance consulting firm and the company’s Compliance Officer overseeing its work effort is the highest cost option;

  • The company obtains minimal institutional knowledge of its materials compliance requirements and its own procedures.

Conclusion

  • A Green Status Pro CMR Specialist is both significantly less expensive and provides a better source of knowledge transfer to the company for managing the company’s supply chain compliance obligations.

Option 3: Assign the Conflict Minerals compliance responsibility to a current supply chain staff member.

Analysis

  • The typical outcome of assigning the CMR Program to an individual who is not experienced in compliance is the company’s CMR Program becomes a liability due to errors in the reporting procedures and lack of substantiation documentation.

Conclusion 

  • A far superior and less costly approach is to engage a Green Status Pro CMR Specialist to report to a supply chain manager.  The supply chain manager should need to spend less than 20 days per year working in collaboration with the CMR Specialist and the quality of the program should be excellent​.

 

Option 4: Cancel the company’s CMR Program.

Analysis

  • The company will lose access to new sales opportunities that require a company-level CMRT;

  • The lack of a CMR Program communicates to employees, customers, suppliers and investors that the company cannot be relied upon to do the “right thing.” 

Conclusion

  • Cancelling the company’s CMR program is not the low-cost solution it may seem.  The company will doubtlessly incur numerous reputation, investor and sales revenue opportunity costs;

  • Engaging a Green Status Pro CMR Specialist will typically be less expensive than cancelling the company’s CMR Program.

 

Option 5.  Engage a Green Status Pro CMR Specialist reporting to the employee responsible for creating the company’s CMRT.

Analysis

  • A Green Status Pro CMR Specialist will bring the expertise that can only be acquired over time by working with numerous clients in multiple industries surveying thousands of suppliers, private and public, located throughout the world;

  • A Green Status Pro CMR Specialist will have the technology tools that provide the productivity and integrity required to perform the CMR tasks cost effectively and quickly;

  • For SEC Filers, the involvement of a Green Status Pro CMR Specialist should be referenced in their Form SD’s Conflict Minerals Report exhibit to demonstrate the corporation’s commitment to properly reporting its source and use of conflict minerals;

  • Making the Green Status Pro CMR Specialist the face of the company’s CMR program to suppliers, customers and employees will save management from many days of needless distraction.

Conclusion

  • Engaging a Green Status Pro CMR Specialist clearly meets management’s two contradictory criteria:

  1. Minimize Cost;

  2. Maximize CMR Expertise.