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Memo Finalchangesnotaccepted
Memo Finalchangesnotaccepted
Memo Finalchangesnotaccepted
This memo is being sent in order to inform our team members of changes to the supply chain for our
first party hardware, including Surface and Xbox products. Due to increasing concerns with our supply of
gold components being obtained from immoral and illegal sources, we will be shifting away from our
conventional sources to suppliers that better fit with our company ethos. The purpose of this memo is to
inform the team of the new supply chain priorities, the reasons for the shift, recommendations for
specific changes, and the expected long-term effects.
Summary:
The majority of our first-party hardware containing gold sourced from immoral and illegal sources is a
violation of our values as a company and poses a significant threat to our public image. Because of this,
we will be shifting our supply chain towards more ethical sources. These new sources can include
recycled gold, gold mined in the United States and other developed nations, or reducing the use of gold
in our products. While there are many logistical challenges and risks involved with altering our supply
chain, our moral responsibility and the long term benefits of more ethical sources of gold outweigh the
cost of the changes.
Changes/Recommendations:
We will be shifting our supply of gold away from our conventional suppliers and towards more moral
and sustainable sources. A primary change will be increasing our use of gold sourced from recycling. The
supply of electronic waste is steadily increasing and is therefore a reliable and relatively economical
source of gold. This new source is much more conscious of environmental impact, and it is easier to
verify worker conditions. We will also be increasing our use of gold mined in the United States,
Germany, and other developed nations with strong regulation. Lastly, we will put increased resources
into developing hardware with reduced gold use, such as replacing certain components with aluminum,
copper, and silver.
Increase use of recycled gold. The supply of electronic waste is steadily increasing and is
therefore a reliable and relatively economical source of gold.
Increasing use of gold mined in the United States, Germany, and other developed nations with
strong regulation.
Put increased resources into developing hardware with reduced gold use, such as replacing
certain components with aluminum, copper, and silver.
Our new supply chain direction will also balance out in the long term. While it is currently cheaper to
obtain gold from conventional sources, the growing amount of electronic waste will provide a
sustainability advantage over mined gold. Furthermore, there is a substantial savings in shipping cost as
most mined gold currently originates from South America, whereas most electronic waste recycling
takes place in Asian countries such as India and China, which is much closer to our factories. Similarly,
while our initiative to reduce the use of gold in our products may require costly research and
development, the rapidly increasing value of gold will likely result in net savings in the long term if we
are able to replace some gold components with other conductors such as silver, copper, and aluminum.
Conclusion:
Our organization is one of the largest in the world in terms of market capitalization, it is therefore our
responsibility to adhere to our values and do everything we can to ensure we do not contribute to
abuses of any kind. The changes we need to make are challenging for sure, but by shifting our supply
chain away from immorally obtained gold and towards more sustainable sources, we can ensure the
sustainability of our company. If anyone has further concerns, questions, or suggestions, they are
encouraged to send them to me.