November 2006 Council for Responsible Jewellery Practices, Ltd. www.responsiblejewellery.com email@example.com
The Council’s Mission To promote responsible Ethical, Social and Environmental practices throughout the diamond and gold jewellery supply chain, from mine to retail.
Spot the difference Spot the differences
Making it Work November 2005 Conflict… "Why the Kimberley Process Must Do More to Stop Conflict Diamonds" Déjà Vu October 2004 Broken Vows March 2004 "Exposing the "Loupe" Holes in the Diamond Industry's Efforts" For a Few Dollars More April 2003 "Diamond Industry Still Failing to Deliver on Promises" Conflict Diamonds May 2000 "How Al Quaeda Moved Into the Diamond Trade"
10 February 2006 Conflict…
Jewelry industry loses its sparkle, as children continue to cut and polish! (…) India, the world’s biggest diamond and gemstone cutting centre polishes 70% of world’s diamond yield. NGOs estimate that children account for 10% of diamond polishers. Financial Times, June 2002 … and child labour
Integrity issues 21 December 2005 8 March 2006
Impact on industry • Luxury sector where reputation of product is critical • Increased reputation risk impacting the public’s trust (product integrity, business integrity and consumer confidence) • Increased regulatory demands by governments (e.g. AML) • Retail jewellers are the face of accountability
From mine to retail: The axes of risk COMMERCIAL MEMBERS Refining International mining Gold Smelting Small scale mining Retail Semi-finishedproduct manufacturing Finishedproductmanufacturing Rough trading Polished trading International mining Trading Whole- sale Diamonds Small scale mining Preparing Cutting Polishing
Key Challenges • Supply chain characteristics • Individual sector cultures • Establishing a pattern of cooperation among competitors • Industry politics • Building critical mass while managing anti-trust risk • Managing stakeholder engagement • Multiplicity of competing codes and standards • Current lack of agreed standards and verification as pertains to mining • The temptation of making promises you may be unable to fulfill • Complacency • Lack of ownership • Etc.!