Intel has created the world’s first ever conflict-free microprocessor, and Intel’s CEO, Brian Krzanich, stopped by NYU to inform students about the company’s new supply chain operation.
The Democratic Republic of the Congo has been suffering from violent conflicts for centuries. Currently rebels are forcing people at gunpoint to mine for minerals in the Congo. These mines are abundant with conflict whereas conflict-free mines have free-choice workers who are paid a minimum wage among other requirements. Intel’s microprocessor uses four minerals abundant in the Congo: tin, tungsten, tantalum, and gold.
Krzanich received a letter from Enough, an NGO focused on human rights. Rather than blaming Intel, Enough focused on outlining the issue in the Congo without including the blame. Krzanich was moved by this letter and decided to take action. He ignored the advice from Intel’s lawyers and gathered a team of engineers to fix this problem.
Over the course of five years, this team of engineers created a conflict-free supply chain for Intel’s microprocessors. This involved deciding on the best solution to the problem outlined by Enough, and then acting on that solution. Although Krzanich found the easy answer of just leaving the area, the engineering team decided they did not want to take money away from the people actually doing good in the Congo.
Intel’s team ended up deciding to seek out a conflict-free solution in the Congo. This involved only sourcing minerals from cruelty-free mines and auditing its smelters to ensure those factories were only using conflict-free minerals. Enough played an influential role in this process, by helping to quickly integrate and connect Intel with the right people and operations in the Congo.
Krzanich is a strong advocate of transparency and believes a company cannot be successful without being transparent. Intel has started an annual list of its “Top 10 Worst Suppliers” in addition to its annual “Top 10 Best Suppliers” list. Intel also provides real time monitoring of its factory’s smoke stacks in New Mexico to further support and promote the importance of transparency.
Intel has honed its focus to become completely conflict-free by 2016 and plans to do so without heavily raising its product prices.
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