The Diamond Box - The Facts

The Diamond Box - The Facts

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According to an RJC auditor, suppliers only require to pledge that they perform solid human legal rights due persistance, yet do not offer any kind of evidence for this. Neither does the Code of Practices require jewelersor other downstream companiesto have traceability or chain of wardship of their gold or rubies. The Code of Practices is also weak in various other substantive locations, as an example, on native peoples' civil liberties and on resettlement.


In March 2017, the RJC had 342 participants who had not (yet) finished the audit procedure that accredits compliance with the Code of Practices. On top of that, firms can sign up with at any level of their operations. A little subsidiary workplace of a huge precious jewelry company can use for RJC membership, without consisting of the rest of the company's entities.


Lastly, the Code of Practices does not require companies to openly report on the concrete actions they have taken to conduct due diligencea core need of the OECD Assistance. Its reporting obligations are obscure and do not mention due persistance or the need for companies to report on the actions they have required to determine, evaluate, and reduce threats in their supply chains

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A second RJC standard, the Chain-of-Custody Requirement, advertises traceability and is more strenuous, yet adherence to it is optional for RJC members. By early 2018, just 48 of over 1,000 member companies had actually licensed entities under the standard, consisting of 13 jewelry experts. The Chain-of-Custody Criterion calls for firms to develop docudrama proof of business deals along the supply chain and to verify they are not creating damaging effects in conflict-affected and risky areas.


Instead, companies are permitted to select some "entities" under their control for certification, leaving various other entities of a company uncertified. While this may permit companies to gradually switch to more liable sourcing techniques, the existing method also carries the risk that a whole business appreciates the reputational benefit when most of procedures is not in compliance with the criterion.


All RJC member firms need to go through an audit to demonstrate that they are compliant with the Code of Practices, and to receive certification. Those companies that pick to acquire certification for the Chain-of-Custody Requirement have to go through a different audit. Audits are based largely on an evaluation of the company's written plans and paperwork, and visits to a "depictive collection" of centers.

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It is not an extensive evaluation regarding whether the company really carries out or follows its policies throughout its procedures. Big firms may have procedures in multiple countries, and count on lots of vendors, yet still might receive RJC qualification based on check outs to only a couple of centers under its straight control without any type of examination of lots of others.


Audits are expected to consist of concerns on a broad variety of human legal rights, auditors are not always certified human civil liberties specialists (moissanite rings). Once the auditors complete their record, they just submit a recap record of the audit to the RJC, not the full audit record, which is shared only with the firm




While labor abuses prevail in the industry, artisanal mines provide earnings for countless workers and countless mining areas. Civil rights Watch believes that the jewelry market need to strive to make sure that their efforts to mitigate supply chain civils rights threats do not lead them to just omit all artisanal vendors from their supply chains as the "course of least resistance." Instead, they should support initiatives to formalize and professionalize artisanal mines and enhance functioning problems.


The OECD Due Persistance Support acknowledges this and is promoting cost-sharing within the sector. This way, all business along the supply chain share the monetary concern. A variety of initiatives have actually arised that can help jewelry experts trace their gold and rubies to mines of beginning, and much more responsibly source from the artisanal sector.

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About 600 adult miners have been registered at six mine websites; youngsters can not sign up. Accreditation of certain mines versus responsible sourcing standards can give jewelers with better assurance that the gold or diamonds they buy from those mines are not polluted by civils rights abuses. Nongovernmental organizations such as Solidaridad and influence can play a vital function in sustaining mines to improve methods so they are able to adhere to the criterion; this may consist of steps to deal with youngster labor, boost environmental conduct, access financing, and develop direct call with buyers.


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Two standardscertify artisanal and small golden goose that adapt civils rights, labor legal rights, and environmental standardsthe Fairmined Standard and the Fairtrade Gold Criterion. Both call for third-party audits of specific mines. The Fairmined Criterion was presented by the Partnership for Accountable Mining (ARM) in 2014. Relying on the consumer's certificate with Fairmined, the gold may be totally traceable to the mine of origin, or might be combined with various other gold.




This quantity is simply a tiny fraction of the gold utilized each year by numerous of the firms analyzed in this record. Since very early 2018, eight mines in four nations (Bolivia, Colombia, Mongolia, and Peru) were accredited, with an added 20 mining companies functioning in the direction of certification. The Fairmined Gold Criterion is presently developing a brand-new "market entrance" criterion that looks for to aid artisanal cash cow while doing so towards full qualification.

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It is administered under the umbrella of Fairtrade International, and enables jewelers to map their gold back completely to the mine of origin. Fairtrade's initial licensed mines remained in Peru. Over the last few years, the Fairtrade Structure, Solidaridad, and various other NGOs carried out a program useful link of training and assistance to artisanal and small gold miners in Africa, and in early 2017, certified an artisanal cash cow in Uganda.

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