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Transcript

Nintendo and Conflict Minerals

Every business is in the business of politics. Today’s example? Nintendo.

How can a video game producer become a political target? Oh, the possibilities are endless.

  • political content in games

  • portrayal of violence in games

  • patent infringements.

But today, let’s take a look at conflict minerals sourcing.

In 2018, Nintendo faced criticism for its supply chain practices, particularly for its sourcing of minerals from conflict zones. Of course, this is a problem because the mining and sale of these minerals often fund armed groups and contribute to human rights abuses.

Specifically, Nintendo came under fire for:

  • not improving supply lines to avoid sourcing minerals from conflict areas.

  • failing to adequately pressure suppliers to ensure minerals come from conflict-free zones.

These are the types of issues many global businesses face.

And increasingly, these businesses face scrutiny from activists and consumers on these issues.

To Nintendo’s credit, it has responded to the criticism.

If we go back to 2012, it received a score of zero from the Enough Project, which accused Nintendo of “basically refusing to acknowledge the issue or demonstrate they are making any sort of effort on it.”. Nintendo wasn’t alone on that list. Canon, Nikon, Sharp and many other electronic companies were facing similar pressure.

Fast forward to 2024 and Nintendo has achieved a 99% conformity rate with conflict mineral law and has shifted its approach from avoiding suppliers in covered countries to ethically sourcing from these regions.

Which is a tough act to balance: avoiding conflict minerals and supporting legitimate economic activity in affected regions is no easy feat.

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