Industry reps tell retailers: Prepare for NGO conflict-diamond survey
December 22, 2006
New York—Jewelers of America (JA), the Jewelers Vigilance Committee (JVC) and the
World Diamond Council (WDC) are urging retailers to be prepared for a conflict-diamond survey now being fielded by Global Witness and Amnesty International.
The survey is an update to the non-governmental organizations' (NGOs) 2004 survey titled
Déjà Vu: Diamond Industry Still Failing to Deliver on Promises.
In a letter to retailers, Cecilia Gardner, general counsel of the WDC and president of the JVC, wrote how letters from the NGOs have been sent to a variety of retailers across the country with a Jan. 5 survey-compliance deadline, and that mystery shopping is currently underway.
"Clearly, as an industry, we must use this opportunity to communicate the facts about our adherence to safeguards in place which protect the legitimate diamond supply," she stated in the letter. "As the final link to the consumer, you play a critical role in conveying the systems you have put in place in your establishments that comply with these industry safeguards."
Among these safeguards: the insistence that diamond suppliers have system-of-warranty statements on all invoices assuring diamonds are from conflict-free sources, and sample invoices if available; steps the retailer has taken to obtain these statements, including letters to suppliers; the measures the retailer has to ensure that diamond and diamond-jewelry inventory is covered by these warranty statements; and the program initiated to educate staff on safeguards.
The WDC is encouraging retailers to participate in the survey.
"I know that retailers across America have taken great efforts to ensure that they do their part in eradicating conflict diamonds," Gardner said in a statement from the WDC. "Responding to the NGO survey is a great opportunity to ensure that industry facts, not fiction, are being reported to the world."
She also said it will be important for the NGOs to report the results in a responsible and fair manner that reflects the positive efforts made by retailers and the industry.
In addition to contacting retailers, JA's
President and CEO Matthew Runci sent a letter to Global Witness and Amnesty International expressing disappointment over certain aspects of the survey.
"Some of the questions in your letter are likely to blindside many retailers, since the questions ask for assurances on practices retailers are not required to undertake as part of the System of Warrantees," he wrote.
In particular, he pointed to the following questions from the groups:
* What actions have you taken to prevent diamond smuggling from the Ivory Coast?
* What are your policies for ensuring that your suppliers are responsibly sourcing diamonds?
* What are your independent auditing measures?
Runci states that neither the Kimberley Process (KP) nor the System of Warrantees requires retailers to take steps on these matters. He advises retailers to address the questions by making the following points:
* The WDC represents all retailers and suppliers in the KP's increased scrutiny of Ivory Coast diamond smuggling into Ghana, and that retailers support and encourage these efforts.
* Retailers and their suppliers comply with the System of Warrantees so they can be assured suppliers are sourcing diamonds responsibly.
* The System of Warrantees does not currently require independent audits of retailers, but does require suppliers to have independent audits performed by their own auditors, as clearly stated in "The Essential Guide to the Kimberley Process."
Runci concluded his letter to the NGOs by stating that with the complexities of the diamond supply chain, the best way to combat conflict diamonds and support the KP has been to work together at all levels, with the WDC representing these efforts.
"Your letter misleads retailers by implying that they should be individually fulfilling other and additional 'responsibilities' that are not part of its role in the Kimberley Process or the System of Warranties," he said. "Your questions will confuse many retailers and serve only to undermine the unified system that the trade initiated at the time the Kimberley Process was approved."
Runci goes on to write that JA, as a representative of 11,000 U.S. retailer-member stores, is willing to work with Global Witness and Amnesty International to develop achievable measures to improve the effectiveness of the KP and System of Warrantees, and that asking individual retailers to work on these efforts won't be effective and is, in fact, counterproductive.
"Only by working in concert with the rest of our supply chain can we assure real change," he wrote.
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