The Diamond Box - The Facts

The Diamond Box - The Facts

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According to an RJC auditor, suppliers just require to promise that they carry out strong human civil liberties due diligence, yet do not offer any type of evidence for this. Neither does the Code of Practices call for jewelersor various other downstream companiesto have traceability or chain of safekeeping of their gold or rubies. The Code of Practices is also weak in other substantive areas, as an example, on aboriginal peoples' rights and on resettlement.


For instance, in March 2017, the RJC had 342 participants that had not (yet) completed the audit process that certifies conformity with the Code of Practices. Additionally, business can sign up with at any degree of their procedures. As an example, a small subsidiary workplace of a large jewelry firm could obtain RJC membership, without including the remainder of the firm's entities.


The Code of Practices does not call for companies to openly report on the concrete actions they have taken to conduct due diligencea core need of the OECD Guidance (diamond earrings). Its coverage obligations are unclear and do not discuss due persistance or the requirement for companies to report on the actions they have taken to determine, evaluate, and minimize threats in their supply chains

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A second RJC requirement, the Chain-of-Custody Standard, promotes traceability and is much more extensive, yet adherence to it is optional for RJC participants. By early 2018, only 48 of over 1,000 participant business had accredited entities under the standard, including 13 jewelry experts. The Chain-of-Custody Standard needs firms to develop documentary proof of business purchases along the supply chain and to verify they are not creating adverse influences in conflict-affected and risky locations.


Rather, companies are enabled to pick some "entities" under their control for qualification, leaving other entities of a business uncertified. While this may enable for business to slowly switch to even more accountable sourcing methods, the present technique likewise lugs the threat that a whole firm takes pleasure in the reputational benefit when most of procedures is not in conformity with the requirement.


All RJC member companies have to go through an audit to demonstrate that they are compliant with the Code of Practices, and to receive certification. Those business that pick to acquire certification for the Chain-of-Custody Requirement need to undergo a separate audit. Audits are based largely on a review of the company's written policies and documentation, and sees to a "representative collection" of centers.

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It is not a comprehensive exam concerning whether the firm in fact implements or complies with its plans throughout its operations. Large read here companies may have operations in numerous nations, and rely on numerous suppliers, yet still might receive RJC qualification based on check outs to just a couple of facilities under its straight control without any assessment of several others.


Although audits are intended to consist of questions on a broad variety of human rights, auditors are not always certified civils rights professionals. Once the auditors complete their report, they just send a recap report of the audit to the RJC, not the full audit record, which is shared only with the company




While labor abuses are widespread in the market, artisanal mines supply earnings for countless workers and hundreds of mining areas. Human being Rights Watch believes that the precious jewelry industry should aim to ensure that their efforts to alleviate supply chain human legal rights threats do not lead them to merely 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 boost working conditions.


The OECD Charge Diligence Assistance acknowledges this and is advertising cost-sharing within the market. By doing this, all companies along the supply chain share the monetary concern. A number of campaigns have arised that can help jewelers map their gold and diamonds to mines of beginning, and extra properly source from the artisanal sector.

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Regarding 600 adult miners have actually been signed up at six mine websites; kids can not sign up. Accreditation of certain mines against liable sourcing requirements can provide jewelers with better guarantee that the gold or rubies they buy from those mines are not tainted by human rights abuses. Nongovernmental organizations such as Solidaridad and effect can play an essential duty in supporting mines to enhance techniques so they have the ability to comply with the requirement; this might include steps to tackle kid labor, boost ecological conduct, accessibility finance, and establish direct contact with purchasers.


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2 standardscertify artisanal and small-scale cash cow that satisfy human civil liberties, labor legal rights, and environmental standardsthe Fairmined Criterion and the Fairtrade Gold Standard. Both call for third-party audits of private mines. The Fairmined Criterion was introduced by the Alliance for Liable Mining (ARM) in 2014. Depending upon the consumer's certificate with Fairmined, the gold might be fully deducible to the mine of beginning, or may be blended with various other gold.




This quantity is simply a little portion of the gold utilized every year by numerous of the firms taken a look at in this record. Since early 2018, 8 mines in four countries (Bolivia, Colombia, Mongolia, and Peru) were certified, with an additional 20 mining organizations working towards qualification. The Fairmined Gold Requirement is currently developing a brand-new "market access" requirement that looks for to assist artisanal golden goose at the same time towards complete qualification.

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It is administered under the umbrella of Fairtrade International, and permits jewelers to trace their gold back all the means to the mine of origin. Fairtrade's first licensed mines remained in Peru. Over the last few years, the Fairtrade Structure, Solidaridad, and various other NGOs carried out a program of training and assistance to artisanal and small-scale gold miners in Africa, and in early 2017, licensed an artisanal golden goose in Uganda.

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