The Diamond Box for Dummies

The Diamond Box for Dummies

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According to an RJC auditor, vendors only need to pledge that they conduct solid human civil liberties due diligence, but do not supply any proof for this. Neither does the Code of Practices call for jewelersor various other downstream companiesto have traceability or chain of custodianship of their gold or diamonds. The Code of Practices is likewise weak in various other substantive areas, for instance, on indigenous peoples' legal rights and on resettlement.


For instance, in March 2017, the RJC had 342 participants that had not (yet) completed the audit procedure that certifies conformity with the Code of Practices. Additionally, firms can join at any type of level of their operations. For instance, a small subsidiary workplace of a big precious jewelry firm can get RJC membership, without consisting of the remainder of the business's entities.


The Code of Practices does not need companies to publicly report on the concrete steps they have taken to conduct due diligencea core requirement of the OECD Assistance (Tissot Watches). Its reporting commitments are obscure and do not mention due persistance or the demand for business to report on the steps they have actually taken to recognize, evaluate, and alleviate threats in their supply chains

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A 2nd RJC requirement, the Chain-of-Custody Requirement, promotes traceability and is more extensive, however adherence to it is optional for RJC participants. By early 2018, only 48 of over 1,000 member business had accredited entities under the requirement, including 13 jewelry experts. The Chain-of-Custody Standard requires companies to develop docudrama evidence of business deals along the supply chain and to validate they are not triggering damaging effects in conflict-affected and high-risk locations.


Instead, business are enabled to select some "entities" under their control for accreditation, leaving various other entities of a firm uncertified. While this may allow for business to progressively switch over to even more liable sourcing methods, the current technique likewise lugs the danger that a whole business enjoys the reputational advantage when the bulk of procedures is not in compliance with the standard.


All RJC member firms have to undertake an audit to demonstrate that they are certified with the Code of Practices, and to receive certification. Those firms that choose to get accreditation for the Chain-of-Custody Requirement need to undergo a different audit. Audits are based largely on a testimonial of the firm's created plans and documentation, and sees to a "representative collection" of facilities.

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It is not a comprehensive examination concerning whether the company in fact executes or abides by its policies throughout its procedures. Large business may have operations in multiple countries, and depend on many providers, yet still might receive RJC certification based on visits to just a few centers under its straight control without any exam of many others.


Audits are intended to consist of concerns on a broad variety of human legal rights, auditors are not always certified human legal rights specialists (Seiko Watches). When the auditors complete their record, they only submit a recap record of the audit to the RJC, not the complete audit record, which is shared just with the company




While labor misuses are prevalent in the sector, artisanal mines offer earnings for numerous workers and thousands of mining neighborhoods. Civil rights Watch thinks that the precious jewelry sector need to make every effort to make sure that their initiatives to minimize supply chain human legal rights risks do not lead them to simply leave out all artisanal providers from their supply chains as the "path of the very least resistance." Instead, they need to sustain initiatives to formalize and professionalize artisanal mines and improve working problems.


The OECD Fee Persistance Support recognizes this and is advertising cost-sharing within the industry. In this way, all firms along the supply chain share the financial concern. A variety of efforts have actually emerged that can help jewelry experts map their gold and diamonds to mines of origin, and a lot more properly resource from the artisanal industry.

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Regarding 600 grown-up miners have actually been registered at six mine websites; children can not sign up. Qualification of specific mines versus responsible sourcing standards can give jewelry experts with higher assurance that the gold or rubies they buy from those mines are not tainted by human rights misuses. Nongovernmental organizations such as Solidaridad and effect can play a vital duty in supporting mines to improve techniques so they have the ability to adhere to the standard; this might include steps to take on child labor, boost ecological conduct, accessibility finance, and establish direct call with purchasers.


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2 standardscertify artisanal and small-scale gold mines that adapt to human civil liberties, labor legal rights, and ecological standardsthe Fairmined Criterion and the Fairtrade Gold Standard (tennis bracelets). Depending on the client's license with Fairmined, the gold may be fully traceable to the mine of beginning, or might be blended with various other gold.




This quantity is just a small fraction of the gold used yearly by numerous of the companies checked out in this report. As of early 2018, 8 mines in four countries (Bolivia, Colombia, Mongolia, and Peru) were certified, with an additional 20 mining companies working towards certification. The Fairmined Gold Standard is currently establishing a brand-new "market entry" criterion that looks for to aid artisanal gold mines in the procedure towards full qualification.

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It is provided under the umbrella of Fairtrade International, and allows jewelry experts to map their gold back completely to the mine of origin. Fairtrade's first licensed go to my site mines were in Peru. Over the last couple of years, the Fairtrade Foundation, Solidaridad, and other NGOs conducted a program of training and assistance to artisanal and small gold miners in Africa, and in early 2017, licensed an artisanal gold mine in Uganda.

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