Ensure Responsible Sourcing
Today's consumers are not just well-informed, but socially and environmentally conscious as well. Knowing how to respond to questions and concerns is essential to building customer trust.
Conflict Diamonds
One of the most important challenges our industry faces is conflict diamonds. Sometimes referred to as “blood diamonds,” conflict diamonds are seized in war-torn areas to fund anti-government military actions. These diamonds are the currency of fighters opposed to legitimate governments – those recognized by the UN. International security policies, such as the Kimberley Process and the System of Warranties, have succeeded in reducing conflict diamonds to less than 1% of the world's diamond supply.
What is the Kimberley Process?
The Kimberley Process, implemented by the U.N. in 2002, promotes the trading of diamonds from legitimate sources. Each shipment of rough diamonds transported across an international border must be in a tamper-proof container accompanied by a government-validated certificate assuring it originated from conflict-free sources. Shipments can only be exported to a participating country. Certificates must be resistant to forgery, uniquely numbered and dated with a description of contents. Today, 74 governments are bound by the Kimberley Process, ensuring that more than 99% of the world's diamonds are certified from conflict-free sources.
What is the System of Warranties?
To provide consumers with even greater confidence, the World Diamond Council has extended the Kimberley Process with a “System of Warranties” (SOW), under which every buyer and seller of polished diamonds and diamond jewelry must state on all invoices that the diamonds have been purchased from legitimate sources and are not involved in funding conflict.
If your suppliers lack the required statement on their invoices, you should ensure that they can provide the statement and that it is backed by the necessary chain of warranties. This is your protection that the diamonds you have been sold are legitimately sourced.
Communicating Your Commitment to Responsible Trading
It is important to convey to customers the major safeguards that have been implemented to stop the trade in conflict diamonds. Every retailer should communicate to those who inquire that the international diamond industry:
- Only buys and sells diamonds from legitimate sources
- Condemns illegal diamond trading practices, such as conflict diamonds
- Promotes responsible supply chain management
- Is working to promote sustainable economic development throughout the industry
To demonstrate your commitment, everyone in your store must be prepared to explain these initiatives and promote how they are integrated into your business. All the information you need to train your staff is offered free at diamondfacts.org.
We recommend that every jeweler prepare a written policy statement that can be given to those consumers who request information on this topic. Certainly, you should join the huge group of retailers who are displaying their policy on legitimate diamond sourcing prominently on their website.
Journalists and members of consumer watchdog organizations sometimes ”mystery shop“ to be sure that local stores are in compliance and knowledgeable about this issue. That is why being prepared and educated is essential for everyone who works in your store.
Diamonds Build a Better World
While it is important to communicate your commitment to responsible trading practices, it is equally so to celebrate the many economic benefits that diamonds bring to producer nations in Africa and beyond. Diamond mining and manufacturing create livelihoods for millions of people, making significant contributions toward prosperity around the world. The revenue generated by the diamond industry not only increases the standard of living in many developing nations, but also funds essential government services such as health and education.
Assure that your sales team is fully versed on the economic role that diamonds play in producer nations and is able to relate those benefits with confidence and enthusiasm to customers who may enquire.
Addressing Conflict Diamonds at the Retail Counter
Jewelers have taken many steps to implement their commitment to legitimate sourcing and to promote their policies to consumers.
“When customers inquire what we're doing about conflict diamonds and how they can trust our inventory, we tell them about the Kimberley Process and how we support it,” notes Charles Fieramosca, a long-time leader in diamond retailing. “We describe the certification we require, and that our suppliers must guarantee the diamonds they provide are conflict-free. We tell our customers, ‘We're actively involved and concerned about this issue, just like you.' We make our living selling diamonds; we don't want the world getting bad information about them.”
For more information on:
The Kimberley Process, please visit www.kimberleyprocess.com
The System of Warranties and the role diamonds play in developing nations, please visit www.diamondfacts.org
A sample request to suppliers to obtain their written compliance with the System of Warranties, please visit www.diamondfacts.org/pdfs/industry/LetterToSuppliers.pdf
Summary
- In case a consumer has questions, your entire staff must be prepared to show thorough knowledge of conflict diamonds, the Kimberley Process and the System of Warranties.
- Your suppliers must prove they source diamonds legitimately by providing you with written assurances of compliance. This is a mandatory industry practice; you can download a sample supplier request letter at diamondfacts.org.
- Communicate your commitment to customers through written statements that you provide in store and on your website.
- Educate your staff on the economic benefits the diamond industry provides to producer nations in case customers ask whether diamonds are good for the developing world.
Be prepared to explain your policy on legitimate diamond sourcing to concerned consumers.
