The Diamond Box - The Facts

The Diamond Box - The Facts

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According to an RJC auditor, distributors only require to promise that they carry out strong civils rights due diligence, yet do not give any type of proof for this. Neither does the Code of Practices call for jewelersor other downstream companiesto have traceability or chain of safekeeping of their gold or diamonds. The Code of Practices is also weak in other substantive locations, for instance, on native peoples' civil liberties and on resettlement.


In March 2017, the RJC had 342 members that had not (yet) completed the audit procedure that accredits conformity with the Code of Practices. Additionally, companies can sign up with at any degree of their procedures. A little subsidiary workplace of a huge fashion jewelry company might apply for RJC membership, without including the rest of the firm's entities.


The Code of Practices does not call for companies to publicly report on the concrete steps they have actually taken to perform due diligencea core need of the OECD Advice (engagement rings). Its reporting obligations are obscure and do not state due persistance or the requirement for business to report on the actions they have required to identify, assess, and alleviate dangers in their supply chains

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A second RJC criterion, the Chain-of-Custody Criterion, advertises traceability and is much more rigorous, but adherence to it is optional for RJC participants. By very early 2018, just 48 of over 1,000 member business had actually licensed entities under the requirement, consisting of 13 jewelry experts. The Chain-of-Custody Requirement calls for business to develop documentary proof of service purchases along the supply chain and to confirm they are not causing unfavorable influences in conflict-affected and high-risk areas.


Instead, companies are allowed to pick some "entities" under their control for certification, leaving various other entities of a company uncertified. While this may allow for companies to gradually switch over to even more liable sourcing techniques, the existing technique likewise brings the danger that a whole company appreciates the reputational advantage when most of operations is not in conformity with the standard.


All RJC participant firms need to go through an audit to show that they are compliant with the Code of Practices, and to receive certification. Those companies that choose to acquire certification for the Chain-of-Custody Standard need to undergo a different audit. Audits are based primarily on a review of the firm's written policies and documentation, and visits to a "depictive collection" of centers.

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It is not an in-depth exam about whether the business really implements or follows its policies throughout its operations. Large companies might have procedures in numerous nations, and rely on many providers, but still may get RJC accreditation based on sees to just a few centers under its straight control without any kind of assessment of several others.


Although audits are intended to consist of questions on a wide variety of civils rights, auditors are not always certified civils rights professionals. Once the auditors finish their record, they just send a summary report of the audit to the RJC, not the complete audit record, which is shared just with the firm




While labor abuses prevail in the market, artisanal mines supply income for numerous employees and hundreds of mining neighborhoods. Civil rights Watch believes that the jewelry market must strive to make sure that their initiatives to alleviate supply chain human legal rights dangers do not lead them to merely leave out all artisanal distributors from their supply chains as the "path of least resistance." Rather, they must sustain initiatives to formalize and professionalize artisanal mines and improve working conditions.


The OECD Fee Persistance Assistance acknowledges this and is advertising cost-sharing within the market. In this address way, all firms along the supply chain share the financial problem. A number of campaigns have actually arised that can help jewelers trace their gold and diamonds to mines of beginning, and more properly resource from the artisanal industry.

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Regarding 600 adult miners have actually been registered at 6 mine websites; kids can not sign up. Certification of specific mines versus accountable sourcing criteria can supply jewelers with higher assurance that the gold or rubies they buy from those mines are not tainted by civils rights abuses. Nongovernmental organizations such as Solidaridad and IMPACT can play a crucial role in supporting mines to enhance methods so they have the ability to abide by the criterion; this may include actions to take on kid labor, improve ecological conduct, gain access to money, and establish direct contact with buyers.


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Two standardscertify artisanal and small-scale golden goose that adhere to human rights, labor legal rights, and environmental standardsthe Fairmined Requirement and the Fairtrade Gold Criterion. Both need third-party audits of specific mines. The Fairmined Standard was introduced by the Alliance for Responsible Mining (ARM) in 2014. Depending upon the consumer's license with Fairmined, the gold might be totally deducible to the mine of beginning, or may be combined with other gold.




This amount is just a tiny fraction of the gold made use of every year by numerous of the firms examined in this report. As of early 2018, eight mines in 4 countries (Bolivia, Colombia, Mongolia, and Peru) were accredited, with an extra 20 mining companies working towards qualification. The Fairmined Gold Requirement is currently developing a new "market entry" criterion that looks for to help artisanal cash cow while doing so in the direction of complete accreditation.

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It is administered under the umbrella of Fairtrade International, and permits jewelry experts to trace their gold back completely to the mine of beginning. Fairtrade's first licensed mines were in Peru. Over the last few years, the Fairtrade Structure, Solidaridad, and various other NGOs conducted a program of training and support to artisanal and small gold miners in Africa, and in very early 2017, licensed an artisanal gold mine in Uganda.

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