@Risk

Focused on supplier risk issues for business leaders

Did Gibson Guitars Import Endangered Rosewood?

November 18, 2009

Gibson guitarsHere’s some “breaking news” that every business with a supply chain needs to pay attention to:

The U.S. Fish and Wildlife Service is investigating Nashville-based guitar manufacturer Gibson for importing endangered species of rosewood from Madagascar.

Under the newly-amended Lacey Act, all U.S. importers must exercise “due care” to ensure that timber, and other products, coming into the country are sourced legally.

But, in today’s complicated global marketplace, where supply chains are becoming increasingly fractured and complex, how can you ensure that your raw materials are in compliance and that your products are being manufactured as responsibly as possible?

It’s an enormous challenge, to be sure. But, to put it bluntly, there is no other option. You cannot afford to be indifferent. You cannot afford to “work on it” some other time.

Gibson released a statement that says the company is “fully cooperating” with the investigation:

“Gibson Guitar is fully cooperating with agents of the United States Fish & Wildlife Service as it pertains to an issue with harvested wood. Gibson is a chain of custody certified buyer who purchases wood from legal suppliers who are to follow all standards. Gibson Guitar Chairman and CEO [Henry Juszkiewicz] sits on the board of the Rainforest Alliance and takes the issue of certification very seriously. The company will continue to cooperate fully and assist our federal government with all inquiries and information.”

Without question, given a situation like this, your company needs to fall back on impeccable supply chain management, multi-modal risk strategies, and (of course) a qualified PR department.

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