The Diamond Box - The Facts

The Diamond Box - The Facts

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According to an RJC auditor, suppliers only need to pledge that they carry out solid civils rights due persistance, but 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 safekeeping of their gold or rubies. The Code of Practices is additionally weak in various other substantive locations, for instance, on native peoples' rights and on resettlement.


As an example, in March 2017, the RJC had 342 participants that had not (yet) finished the audit procedure that certifies compliance with the Code of Practices. In addition, companies can join at any type of level of their operations. A tiny subsidiary workplace of a huge fashion jewelry firm can use for RJC subscription, without consisting of the rest of the firm's entities.


The Code of Practices does not call for business to openly report on the concrete actions they have actually taken to carry out due diligencea core requirement of the OECD Advice (Tissot Watches). Its reporting obligations are vague and do not point out due diligence or the need for firms to report on the actions they have actually required to determine, evaluate, and reduce dangers in their supply chains

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A second RJC criterion, the Chain-of-Custody Requirement, advertises traceability and is a lot more strenuous, but adherence to it is optional for RJC participants. By early 2018, just 48 of over 1,000 member firms had licensed entities under the criterion, consisting of 13 jewelers. The Chain-of-Custody Criterion requires business to establish docudrama evidence of company deals along the supply chain and to validate they are not triggering negative effects in conflict-affected and high-risk locations.


Instead, firms are allowed to pick some "entities" under their control for certification, leaving various other entities of a firm uncertified. While this may permit firms to gradually change over to even more responsible sourcing practices, the current practice likewise lugs the threat that an entire business appreciates the reputational advantage when most of operations is not in compliance with the criterion.


All RJC participant companies have to go through an audit to demonstrate that they are compliant with the Code of Practices, and to obtain qualification. Those business that pick to get accreditation for the Chain-of-Custody Standard have to undergo a different audit. Audits are based primarily on an evaluation of the firm's created policies and paperwork, and check outs to a "representative collection" of centers.

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It is not an extensive examination regarding whether the company really carries out or complies with its plans throughout its procedures. For instance, big firms might have procedures in multiple countries, and depend on numerous suppliers, yet still might receive RJC accreditation based upon sees to just a few facilities under its straight control with no exam of numerous others.


Although audits are meant to include concerns on a broad variety of human civil liberties, auditors are not always certified civils rights experts. As soon as the auditors complete their record, they only send a summary record of the audit to the RJC, not the complete audit report, which is shared just with the company




While labor misuses are prevalent in the industry, artisanal mines give earnings for millions of workers and countless mining neighborhoods. Civil rights Watch believes that the jewelry market ought to aim to ensure that their initiatives to reduce supply chain civils rights threats do not lead them to simply omit all artisanal providers from their supply chains as the "path of the very least resistance." Instead, they must sustain initiatives to formalize and professionalize artisanal mines and enhance working conditions.


The OECD Charge Persistance Support identifies this and is advertising cost-sharing within the sector. That way, all business along the supply chain share the financial burden. A number of campaigns have emerged that can assist jewelry experts trace their gold and diamonds to mines of origin, and extra responsibly source from the artisanal field.

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Regarding 600 adult miners have been registered at 6 mine websites; youngsters can not register. Accreditation of specific mines against liable sourcing requirements can supply jewelry experts with better guarantee that the gold or rubies they buy from those mines are not tainted by civils rights misuses. Nongovernmental companies such as Solidaridad and effect can play an essential duty in supporting mines to enhance techniques so they are able to abide with the criterion; this might consist of steps to deal with child labor, improve ecological conduct, access financing, and develop straight call with buyers.


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Two standardscertify artisanal and small gold mines that adhere to human rights, labor legal rights, and environmental standardsthe Fairmined Criterion and the Fairtrade Gold my response Criterion (Seiko Watches). Depending on the consumer's license with Fairmined, the gold may be totally traceable to the mine of origin, or might be blended with other gold.




This amount is just a small fraction of the gold used annually by several of the companies analyzed in this report. As of very early 2018, 8 mines in 4 countries (Bolivia, Colombia, Mongolia, and Peru) were licensed, with an additional 20 mining organizations functioning towards certification. The Fairmined Gold Standard is currently creating a brand-new "market entrance" requirement that seeks to help artisanal cash cow in the procedure in the direction of complete certification.

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It is carried out under the umbrella of Fairtrade International, and permits jewelry experts to map their gold back completely to the mine of origin. Fairtrade's first licensed mines remained in Peru. Over the last few years, the Fairtrade Structure, Solidaridad, and other NGOs conducted a program of training and assistance to artisanal and small gold miners in Africa, and in very early 2017, accredited an artisanal golden goose in Uganda.

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