The Diamond Box - The Facts

The Diamond Box - The Facts

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What Does The Diamond Box Mean?

According to an RJC auditor, distributors just need to pledge that they perform strong civils rights due persistance, yet do not give any kind of evidence for this. Neither does the Code of Practices call for jewelersor other downstream companiesto have traceability or chain of custodianship of their gold or rubies. The Code of Practices is additionally weak in other substantive areas, for instance, on indigenous peoples' rights and on resettlement.


In March 2017, the RJC had 342 members that had not (yet) completed the audit procedure that licenses compliance with the Code of Practices. Additionally, business can join at any type of degree of their operations. As an example, a tiny subsidiary workplace of a large jewelry firm can make an application for RJC subscription, without including the remainder of the company's entities.


The Code of Practices does not call for companies to openly report on the concrete steps they have taken to conduct due diligencea core requirement of the OECD Advice (engagement rings). Its reporting obligations are vague and do not state due diligence or the need for firms to report on the steps they have actually required to determine, evaluate, and reduce risks in their supply chains

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A second RJC requirement, the Chain-of-Custody Standard, advertises traceability and is extra rigorous, yet adherence to it is optional for RJC participants. By early 2018, only 48 of over 1,000 participant firms had actually licensed entities under the criterion, including 13 jewelers. The Chain-of-Custody Criterion needs companies to establish docudrama evidence of company purchases along the supply chain and to verify they are not triggering adverse effects in conflict-affected and high-risk locations.


Instead, business are allowed to select some "entities" under their control for qualification, leaving other entities of a business uncertified. While this might enable firms to progressively change over to even more accountable sourcing techniques, the present technique likewise carries the risk that a whole business appreciates the reputational advantage when the bulk of operations is not in conformity with the requirement.


All RJC member companies have to undertake an audit to show that they are compliant with the Code of Practices, and to obtain certification. Those business that choose to obtain certification for the Chain-of-Custody Standard have to undertake a separate audit. Audits are based mostly on a review of the business's composed plans and paperwork, and sees to a "depictive set" of centers.

The Ultimate Guide To The Diamond Box

It is not an extensive exam concerning whether the firm really carries out or follows its policies throughout its procedures. Huge business may have operations in multiple nations, and rely on numerous suppliers, but still may receive RJC qualification based on brows through to only a couple of facilities under its straight control without any kind of assessment of lots of others.


Although audits are expected to consist of questions on a broad series of civils rights, auditors are not constantly qualified human legal rights experts. As soon as the auditors complete their report, they just submit a summary record of the audit to the RJC, not the full audit record, which is shared only with the business




While labor misuses are prevalent in the field, artisanal mines supply revenue for countless employees and countless mining neighborhoods. Civil rights Watch thinks that the jewelry market must aim to make sure that their initiatives to minimize supply chain civils rights threats do not lead them to merely omit all artisanal suppliers from their supply chains as the "course of the very least resistance." Rather, they should sustain initiatives to formalize and professionalize artisanal mines and enhance working conditions.


The OECD Due Persistance Advice identifies this and is promoting cost-sharing within the industry. That means, all firms along the supply chain share the monetary burden. A number of campaigns have emerged that can assist jewelry experts trace their gold and rubies to mines of beginning, and extra sensibly source from the artisanal market.

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About 600 adult miners have been registered at 6 mine websites; kids can not sign up. Accreditation of particular mines versus accountable sourcing standards can supply jewelers with greater assurance that the gold or diamonds they buy from those mines are not tainted by civils rights misuses. Nongovernmental organizations such as Solidaridad and IMPACT can play a vital duty in supporting mines to enhance methods so they have the ability to abide with the requirement; this might include actions to deal with child labor, boost ecological conduct, access finance, and develop direct contact with purchasers.


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Two standardscertify artisanal and small gold mines that adjust to human legal rights, labor civil liberties, and ecological standardsthe Fairmined Standard and the Fairtrade Gold Standard (black diamond jewellery). Depending on the client's permit with Fairmined, the gold may be completely traceable to the mine of origin, or might be blended with various more other gold.




This quantity is simply a little portion of the gold used yearly by several of the companies taken a look at in this record. As of very early 2018, eight mines in 4 nations (Bolivia, Colombia, Mongolia, and Peru) were certified, with an additional 20 mining organizations working in the direction of accreditation. The Fairmined Gold Requirement is presently developing a new "market entry" criterion that seeks to aid artisanal cash cow in the process towards complete qualification.

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It is carried out under the umbrella of Fairtrade International, and permits jewelry experts to trace their gold back completely to the mine of origin. Fairtrade's very first licensed mines remained in Peru. Over the last couple of years, the Fairtrade Foundation, Solidaridad, and other NGOs performed a program of training and assistance to artisanal and small-scale gold miners in Africa, and in very early 2017, licensed an artisanal cash cow in Uganda.

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