National Association of Goldsmiths' Proactive Stance on Ethical Issues in Trade

Back in 1894 when the NAG was founded, its objectives, along with nearly every other trade body in the land, were best described as protectionist - designed to protect the status quo, and to deal with ‘threats' to trade, whatever the consequences. But attitudes have changed, awareness has risen sharply and internationalisation has ensured that nobody can claim ignorance of the world and its processes. Nor can they escape the very real effect that western consumption has had on the environment and the lives of workers in developing countries.

The foundations of this awareness were laid in the 70's and 80's when Greenpeace alerted the world to the environmental havoc being wreaked on the Amazon rainforest by international big business. Three decades later it is clear that it was those early warnings that put environmental stewardship, ethics and latterly Corporate Social Responsibility (CSR) on the international business agenda.

In common with other retailers our CSR issues tend to focus on the supply chain. In the clothing trade, high profile revelations of sweatshops and child labour resulted in the termination of many contracts with manufacturers in developing countries. Sometimes this has lead to the accusation that some businesses are merely fulfilling CSR compliance criteria to avoid criticism, rather than displaying true CSR vision – so called ‘green-wash'. However, a number of (mostly high profile) retailers have subsequently begun to adopt a more constructive approach; preferring to help overseas suppliers to develop acceptable labour conditions, and only terminating contracts if suppliers continually fail to make improvements.

Also, as the media, non-governmental organisations (NGO's) and consumer interest in CSR continues to grow many retailers are providing CSR reports alongside traditional financial reports. Whilst sceptics voice the view that retailers are not responsible for protecting consumers from the consequences of their own stupidity, sloth or greed – arguing that this is one for the politicians. This is to misunderstand, or deny the unique position retailers hold. They are, like it or not, the interface between consumers and the supply chain. An increasingly informed customer expects answers to his or her concerns about authenticity and ethics – and looks to us to supply them.

So, what are we doing about it? In our own sector we generally think of the Kimberley Process as the most prominent, and arguably first, in a long line of initiatives that has forced us to think about the effect of our actions on others, and from the outset NAG has had a pivotal role in ensuring jewellers are aware of their obligations. There have been many more since then, and the No-Dirty-Gold (NDG) campaign is the latest to prick our collective conscience. We at NAG have worked closely with the Catholic Agency For Overseas Development (CAFOD) in the UK in promoting the NDG campaign. Which calls on mining companies to meet basic standards in their operations, including respect for human rights as outlined in international conventions and law; safe working conditions; and no dumping of mine wastes into the ocean, rivers, lakes or streams.

The Government's strategic CSR framework envisages international, sustainable developments that also include: human rights, trade and investment, poverty eradication, environmental protection, and corruption. In pursuit of this aim NAG and twelve other companies from a cross-section of the diamond and gold jewellery business, came together in 2005 to form the Council for Responsible Jewellery Practices (CRJP). As founder members we are committed to promoting responsible business practices in a transparent and accountable manner throughout all areas of the industry. In 2009 the fruits of three years labour will bring forth a system of warranties, backed up by auditing, that will create a community of trust from mine to retail.

The NAG are also longstanding members of CIBJO, The International Jewellery Confederation, which holds special advisor status under the United Nations Department of Economic and Social Affairs (ECOSOC), and last November I was in Geneva, when CIBJO committed to the UN millennium development goals, in addition to its own comprehensive Code of Ethics.

International and strategic thinking is one thing, but we are great believers in practical local actions. As a consequence we have used the pages of our own magazine, The Jeweller, to educate the industry about the CSR debate, running articles by respected activists like Greg Valerio, and our latest venture has been to tie up with Green Achiever as a means by which businesses can demonstrate their environmental credentials.

Michael Hoare, Chief Executive National Association of Goldsmiths

‘Sustainability and the Gold Industry': World Gold Council

As the global advocate for gold, the World Gold Council (WGC) is committed to playing a key role in the development of a responsible gold mining industry. WGC and its members are committed to the principles of the International Council on Mining and

Metals (ICMM), see:

[w] www.icmm.com/icmm_principles.php .

These principles seek continual improvement in sustainable development performance. WGC is a member of the ICMM and, where relevant, follows the same principles in the way it conducts its own business. The ICMM has committed corporate members to implement the ICMM

Sustainable Development Framework:

[w] http://www.icmm.com/sd_framework.php including leading global standards, public reporting, independent assurance and sharing good practice.

WGC and its members also support the International Cyanide Management Code, see:

[w] www.cyanidecode.org a voluntary industry program that promotes the responsible management of cyanide used in gold mining,

enhancing the protection of human health and reducing the potential for environmental impacts.

World Gold Council is also an active member of the Council for Responsible Jewellery Practices (CRJP):

[w] www.responsiblejewellery.com The CRJP's objective is to promote responsible ethical, social and environmental practices throughout the diamond and gold jewellery supply chain, from mine to retail:

[w] http://www.responsiblejewellery.com/what.html

Both ICMM and CRJP contribute to the Initiative for Responsible Mining Assurance (IRMA), a multistakeholder group including WGC members, trade partners and NGOs, which aims to develop a process for the identification of responsible mining standards and a governance model for the assurance system. The WGC fully supports the aims of IRMA. WGC provides a forum for education and dialogue that helps to address the range of sustainability issues faced by the industry, our membership and society at large. By expanding our membership we facilitate a broader participation by the gold mining industry in addressing these issues.

It is important to take into account the broader positive economic and social benefits gold mining brings to many developing countries. A WGC report issued in 2005, entitled a “Touch of Gold”, demonstrated how gold has

become one of the most important exports for heavily indebted poor countries and illustrated the benefits that gold mining brings to developing countries, see:

[w] www.trustingold.com/content/view/59/98

The World Gold Council is committed to its advocacy of sustainable development throughout the gold industry, and will continue to support improvements and education regarding the social, environmental, human and ethical

aspects of our industry.

Matthew Graydon, World Gold Council [w] www.gold.org [w] www.goldbulletin.org [w] www.utilisegold.com

Ethical Jewellery – A Consumer Concern? Ipsos Mori Provide the Consumer Statistics

Following the Birmingham Assay Office's Great Debate on whether ‘the global jewellery industry will deliver an ethically responsible supply chain in line with consumer demand' held on 3 September at Earl's Court, one of the panellists, Jenny Dawkins, Head of Corporate Responsibility

Research at Ipsos MORI, reviews the evidence on consumer views.

Over the last 30 years we have seen a transformation of consumer views about business. Our British public

opinion research shows that in the 1970s, the public agreed by two to one that the profits of large companies help make things better for everyone. Now opinion has reversed, and almost twice as many people disagree than agree. People are reassessing the role of companies, and simply making profits is no longer seen as enough.

The growth in ethical consumerism, or

‘consumers with a conscience' has seen soaring sales of fair trade goods, alongside a renewed focus on working conditions in the apparel industry, for example. We are seeing people placing rising importance on responsibility when purchasing – in 2007, 40% of the British public had bought a range of ethical products, gradually increasing from a 2005 low of 33%. The public also has high expectations of companies

managing their supply chain, with around nine in ten agreeing that

companies have a responsibility to check that each of their suppliers around the world is behaving properly.

So how does this affect the jewellery industry? Ethical issues in the jewellery industry are not as high profile among consumers as for some other

industries, and our research suggests that only around 2% of the British public have bought conflict-free diamonds in the past year (or recognise that they have done so). But although it isn't top-of-mind, that doesn't mean that consumers don't care about the ethical sourcing of jewellery once the issue is explained to them. CAFOD research from 2006 suggests that a third of the British public would choose to shop at a retailer which they knew was

concerned about how its gold is produced. Furthermore, two-thirds of the public agree that gold mining

companies should be responsible for limiting any environmental damage caused by their operations.

Certainly consumer expectations are high – and people probably aren't aware of the complexities involved in achieving ethical sourcing within the industry. But the issue isn't likely to disappear – with popular films taking up the topic, continuing NGO campaigns and now Walmart's move to launch their ‘Love, Earth' traceable jewellery line, public awareness is only set to increase. There are, of course, huge reputational risks for the industry if it

ignores the demands for ethically responsible sourcing – and the pressure is probably more acute given the emotionally-charged, high value, high significance purchases that jewellery items often represent. The Great

Debate event showed there is an industry-wide desire to deal with the issue – it's no small task, but the majority of the audience were optimistic that this determination will deliver an ethically responsible supply chain. Now for the hard part…!

Jenny Dawkins Head of Corporate Responsibility Research Ipsos MORI Reputation Centre [e] jenny.dawkins@ipsos.com [w] www.ipsos-mori.com

‘A golden opportunity to help the developing world' Writes CAFOD's Sonya Maldar

CAFOD, the Catholic Agency for Overseas Development, launched its ‘Unearth Justice' campaign in 2006 to raise awareness of the

problems which gold mining causes in the developing world. Mining companies have a huge impact on the lives of some of the world's poorest people – around 70% of gold mined comes from the

developing world. CAFOD is concerned that too often the communities most directly affected by gold- experience the social and environmental costs at first hand, but see few of the

economic benefits.

Increasing demand for ‘clean' gold Consumers and retailers have a responsibility to get involved in the debate about how gold is mined. It also makes business sense to address the problem of ‘dirty' gold. Consumers in the UK are becoming more concerned about the environmental and social costs of the goods they buy. This shift towards ethical products includes jewellery. An opinion poll conducted on behalf of CAFOD found that over one in four (28%) of those asked said that they would buy Fairtrade gold, even if it meant paying more. So far over 45 000 CAFOD supporters have signed our petition calling for jewellers to take action and we receive frequent requests from people asking where they can buy ethically sourced gold.

The complexity of the gold supply chain means that at present it is very difficult to trace where gold has been mined and almost impossible for retailers to be confident that their gold meets ethical requirements like the No Dirty Gold ‘Golden Rules'. That's why an industry-wide approach is needed. To increase the pressure for change, CAFOD is asking leading jewellery retailers in the UK to publicly commit to the ‘Golden Rules' and then working with suppliers and mining companies to ensure that the industry adopts tougher standards. By joining those companies, such as F. Hinds and Beaverbrooks, who have already signed up to the Golden Rules to clean up mining practices, jewellers can increase the pressure for change.

Industry initiatives need ‘teeth'

The Council for Responsible Jewellery Practices (CRJP) formed in 2005 has the potential to drive up standards within the gold industry. Its membership includes mining companies, refiners and jewellery retailers but communities directly affected by gold and diamond mines are not represented. With the Council now developing standards for mining companies, it is vital that these are robust and meet the Golden Rules.

The National Association of Goldsmiths is a member of the Council and has a real opportunity to push for the Golden Rules to be at the heart of the CRJP's mining standards.

Unearth Justice is not calling for a boycott of gold, but offering an opportunity for leading jewellers to drive change within the gold industry. We now want to see more retailers making a public commitment to the Golden Rules.

CAFOD is asking jewellery retailers to:

Sign up to the campaign sourcing policy and publicly endorse the Golden Rules Write to their suppliers to make them aware of the Golden Rules and ask where they are sourcing gold Work with the Council for Responsible Jewellery Practices to ensure that standards currently being developed for gold mining companies meet the requirements of the Golden Rules Work with other jewellers and NAG to put pressure on gold-mining companies to produce gold in line with the Golden Rules.

Gold mining is a mixed blessing for the developing world – for this to change, local communities, governments, mining companies, manufacturers, jewellers and consumers all have a role to play.

For more information, see CAFOD's website:

[w] www.cafod.org.uk/unearthjustice

Sonya Maldar Extractives Policy Analyst, CAFOD [e] smaldar@cafod.org.uk [w] www.cafod.org.uk/unearthjustice

FairTrade Foundation Guidance

The FairTrade Foundation is afraid that although handicrafts, jewellery, and other household goods have long been part of the wider Fair Trade movement, it is unlikely that Fairtrade standards will be developed for these products in the foreseeable future. Fairtrade Certification and its system of minimum pricing were designed for commodity products such as coffee and bananas. It is technically difficult to adapt this model of standardised minimum pricing to crafts and other products made by small-scale artisans, which are each unique and have highly varied production processes and costs.

Companies and consumers interested in these products should visit:

[w] www.ifat.org

This is the website of the International Fair Trade Association (IFAT), the global network of Fair Trade Organizations whose members include producer co-operatives and associations, export marketing companies, importers,

retailers, national and regional Fair Trade networks and financial institutions, dedicated to the Fair Trade movement.

The range of products certified to carry the FAIRTRADE Mark originally focused on tropical commodities such as tea, coffee and cocoa. It has since expanded to include fresh and dried fruits, nuts and spices, alcoholic beverages, cut flowers, and cotton products. The full product range and general availability can be found on our web site at:

[w] http://www.fairtrade.org.uk/products/default.aspx

benchpeg readers may be interested to know that we are currently investigating the viability of Fairtrade gold

standards. However we have not yet taken the decision on whether Fairtrade Labelling can provide a solution. We need to explore how the principles are best applied, what tangible change we think we could bring, and whether this would deliver against consumer aspirations for ethical gold, before we can proceed. The first findings from the pilot studies in Latin America (Peru, Bolivia, Colombia and Ecuador) will be presented to the ARM and FLO

(Fairtrade Labelling Organisation) boards in mid-08.

A final decision will be made in December, when the FLO make their decision based on the findings of the pilots and consultations with existing producers. If they do agree that, we anticipate at least another year's work on the standards, supply chain, miner support and auditing mechanisms would be required before Fairtrade Labelled gold would become a reality.

Please also note it's just Fairtrade certified gold that we are working towards at present, not certification of the

jewellery manufacture process. December 2008, when the FLO board will make a formal decision on whether or not to proceed based.

The Fairtrade Foundation [w] www.fairtrade.org.uk

Similar Items

1. Cred™ Jewellery: A Pioneering Jewellery Company
2. Council for Responsible Jewellery Practices Sets Up Framework for Ethical Practice Compliance
3. Oro Verde® Colombian Project in World Challenge 2008 Final
4. Images of Jewellery Scammer Obtained
5. Event Organiser, Winchester Action on Climate Change (WinACC) - Winchester