Sunlight for the Heart of Darkness: Conflict Minerals and the First Wave of SEC Regulation of Social Issues

Abstract

This article discusses Section 1502 of the Dodd-Frank Act (the "conflict minerals" provision). It describes the rise in expectations for corporations regarding human rights generally, Section 1502 as an exemplar of the most recent facet of that trend, i.e., the use of U.S. securities laws to regulate "social criteria," and steps companies should take to meet these increased expectations. It argues that Section 1502 is best understood not as investor protection or foreign policy, but rather as another mechanism adopted to raise the cost to corporations of failing to meet human rights expectations.

Keywords: Dodd-Frank, Section 1502, conflict minerals, corporations, human rights, socially-responsible investing