ALL ABOUT THE DIAMOND BOX

All about The Diamond Box

All about The Diamond Box

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According to an RJC auditor, suppliers only require to pledge that they carry out solid civils rights due diligence, but do not provide any type of evidence for this. Neither does the Code of Practices require jewelersor other downstream companiesto have traceability or chain of custodianship of their gold or diamonds. The Code of Practices is also weak in various other substantive areas, for instance, on indigenous peoples' civil liberties and on resettlement.


As an example, in March 2017, the RJC had 342 participants that had not (yet) finished the audit process that licenses conformity with the Code of Practices. Furthermore, business can sign up with at any type of level of their operations. A little subsidiary office of a huge fashion jewelry company can apply for RJC subscription, without consisting of the remainder of the firm's entities.


Lastly, the Code of Practices does not call for business to publicly report on the concrete steps they have required to perform due diligencea core demand of the OECD Guidance. Its reporting responsibilities are unclear and do not mention due diligence or the demand for companies to report on the steps they have actually required to identify, evaluate, and minimize threats in their supply chains


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A 2nd RJC criterion, the Chain-of-Custody Requirement, advertises traceability and is a lot more rigorous, yet adherence to it is optional for RJC participants. By early 2018, just 48 of over 1,000 participant business had actually licensed entities under the standard, including 13 jewelers. The Chain-of-Custody Standard needs firms to establish docudrama proof of organization deals along the supply chain and to validate they are not creating adverse influences in conflict-affected and high-risk locations.


Instead, business are permitted to select some "entities" under their control for certification, leaving other entities of a business uncertified. While this might enable for firms to slowly switch to more liable sourcing practices, the present practice also carries the danger that an entire company takes pleasure in the reputational benefit when the majority of operations is not in compliance with the criterion.


All RJC member companies need to undertake an audit to show that they are compliant with the Code of Practices, and to receive accreditation. Those firms that pick to acquire qualification for the Chain-of-Custody Standard have to undertake a different audit. Audits are based mainly on an evaluation of the firm's written plans and paperwork, and visits to a "representative set" of facilities.


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It is not an extensive exam about whether the firm in fact implements or follows its policies throughout its operations. As an example, huge business may have procedures in several countries, and count on lots of providers, however still might receive RJC qualification based on sees to only a few facilities under its straight control with no assessment of many others.


Audits are supposed to consist of inquiries on a wide range of human civil liberties, auditors are not always certified human civil liberties experts (Tissot Watches). When the auditors complete their report, they only submit a recap record of the audit to the RJC, not the complete audit report, which is shared just with the firm




While labor abuses prevail in the market, artisanal mines offer earnings for millions of workers and hundreds of mining communities. Civil rights Watch believes that the jewelry industry must make every effort to make sure that their initiatives to minimize supply chain civils rights dangers do not lead them to just exclude all artisanal providers from their supply chains as the "path of the very least resistance." Instead, they should sustain initiatives to define and professionalize artisanal mines and boost working problems.


The OECD Charge Diligence Advice acknowledges this and is promoting cost-sharing address within the sector. That way, all companies along the supply chain share the monetary worry. A number of campaigns have emerged that can aid jewelers trace their gold and rubies to mines of origin, and extra responsibly source from the artisanal industry.


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Regarding 600 grown-up miners have actually been signed up at 6 mine sites; kids can not sign up. Certification of specific mines versus responsible sourcing requirements can provide jewelers with better assurance that the gold or diamonds they buy from those mines are not tainted by civils rights abuses. Nongovernmental companies such as Solidaridad and influence can play a crucial role in supporting mines to enhance techniques so they have the ability to abide with the criterion; this may consist of steps to tackle youngster labor, boost environmental conduct, access money, and develop direct call with purchasers.


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Two standardscertify artisanal and small gold mines that adjust to human civil liberties, labor rights, and environmental standardsthe Fairmined Criterion and the Fairtrade Gold Criterion (engagement rings). Depending on the client's permit with Fairmined, the gold might be totally traceable to the mine of beginning, or may be blended with other gold.




This quantity is just a little fraction of the gold utilized every year by several of the business taken a look at in this record. Since very early 2018, 8 mines in 4 nations (Bolivia, Colombia, Mongolia, and Peru) were accredited, with an additional 20 mining companies working towards accreditation. The Fairmined Gold Requirement is currently creating a new "market entrance" standard that seeks to aid artisanal golden goose at the same time towards full certification.


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It is carried out under the umbrella of Fairtrade International, and permits jewelers to map their gold back all the way to the mine of beginning. Fairtrade's initial licensed mines were in Peru. Over the last few years, the Fairtrade Structure, Solidaridad, and other NGOs performed a program of training and assistance to artisanal and small-scale gold miners in Africa, and in early 2017, accredited an artisanal golden goose in Uganda.

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