CIBJO Special Report 2015 (Coloured Stones)

Coloured Stone Commission
Ethical sourcing regimes should be designed to benefit
local communities, and not primarily marketing interests
By Nilam Alawdeen, President
CIBJO Coloured Stone Commission
Ethical sourcing and responsible jewellery
are fast becoming the new buzzwords in a
niche but growing segment of the luxury
products market.
In its purest form of practice, this is a highly
commendable phenomenon, and something to
be encouraged. Companies in other business
sectors, such as the coffee industry, pioneered
the approach, also using it as a marketing tool
in their appeal to consumers.
Ethical sourcing along the supply chain can
take different forms and approaches. These
include:
• preserving natural environmental
conditions, particularly when mining;
• ensuring a good working environment,
minimum age of employees, reasonable
working hours, proper terms of labour,
strict health and safety conditions, and
fair compensation;
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• proper accounting methods and payment
of local taxes;
• sharing of profits among partners and
workers;
• contributing towards the local community, in
areas such as child care, health, education,
housing, and assisting the handicapped
and elderly;
• and ensuring that funding and profits are
not diverted towards anti-social activities,
such as terrorism.
Similar objectives, different circumstances
It is approximately 15 years since the
diamond industry helped establish the system
known as the “Kimberley Process,” in order to
address the issue of ethically sourced and funded
rough merchandise. It has come a long way,
and, although it is obviously not 100 percent
enforceable nor enforced, it is an initiative where
there once was none.
Now the turn has come for the coloured stone
industry to begin a similar initiative. But, although
our objectives are alike, we face vastly different
challenges.
My intention in pointing out this fact is not
to seek excuses, but rather to describe the
very different circumstances under which we
operate. There are very significant differences
between the diamond and coloured gemstone
industries, particularly when it comes to the
size of companies that control the major share
of mining, processing, cutting and polishing.
The relatively larger companies operating in the
diamond business provide that sector with a clear
advantage in regulating itself.
The coloured stone industry is perhaps one
of the most fragmented, small business-based
industries in existence. There are perhaps very few
viable industries left with such a concentration of
small-scale miners, cutters and dealers providing
a livelihood to millions, and contributing towards
the major share of the output of the sector.
Any system that is introduced needs to protect
the structure of the industry. If it does not, not
only the industry, but its stakeholders in the
producing countries will be harmed.
Nilam Alawdeen, President of the CIBJO Coloured
Stone Commission.
Social welfare versus marketing interests
After nurturing and profiting from the existing
supply chain for more than 100 years, this newfound
interest among companies operating in the
jewellery consumer markets in the welfare of the
producing countries raises suspicions in the minds
of many.
In its altruist form, this interest is certainly to
be respected and encouraged. But ethical sourcing
can be done to benefit local communities, without
necessarily generating publicity.
However in many cases the primary objective
appears to be using ethical sourcing as a marketing
tool, where the goal is more to increase sales,
rather than looking out for the welfare of local
communities. The energies and finances spent in
publicising such efforts are in many cases more
than what appears to have been invested in actual
grassroots welfare.
Approaches need to be localised
Reports have been published to the effect that
there are major problems across the coloured
gemstone industry supply chain that need to be
attended to, and consequently controls have to be
established.
I am of the view that the majority of the
coloured gemstone industry is conducting an
ethical business. There surely are some elements
that need to be improved, but they undoubtedly
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Emmanuel Piat, Vice President of CIBJO’s
Coloured Stone Commission.
are a minority. We should not be trying to fix all
that is already good.
The socially responsible involvement of the
coloured gemstone sector is especially prevalent in
countries where mining and cutting has been taking
place for centuries. Appropriate norms, traditions
and rules were already in place, taking good care
of people and the environment, before it became
fashionable to do so. This should not be ignored. It
has to be acknowledged and respected.
Furthermore, just as there is no traffic rule that
can be universally applied, since conditions differ in
many countries, approaches have to be localised.
Policies have to be made in consultation with local
industry and governments, otherwise it will appear
to be a repeat of what took place in countries
that experienced colonial rule, where rulings were
resented for no other reason than that they were
imposed.
Time also has to be given for solutions to be
accepted and realised. A top-down-only approach
will be counterproductive.
With the proper approach and intentions, I am
sure that the industry will welcome suggestions for
improvement.
Disclosure must be universally applied
In the same breath, there are things that should be
applied and enforced universally. One is treatments
Charles Abouchar, Vice President of CIBJO’s
Coloured Stone Commission.
to natural gemstones, which have to be disclosed.
There are no excuses for manufacturers and
retailers in consuming countries not to insist
that their suppliers disclose treatments, and in
turn they bear the responsibility to disclose the
same to their clients.
Anything less than proper disclosure is
unethical and will lead to a consumer’s lack of
confidence in the jewellery industry.
The integrity of lab reports is another
issue that needs to be addressed. Trusted by
consumers, they are being used for marketing
purposes by the trade. At face value that is a
positive development, but we are increasingly
encountering reports about labs that give
divergent results and/or opinions.
What is of particular concern is the lack of
harmonisation of lab reports where it comes to
determination of origin, treatments, and the use
of commercial terms such as “Pigeon Blood” or
“Royal Blue.”
The demands of the trade to use such
reports as marketing tools, coupled with lack of
harmonisation on the part of the labs creates a
potentially dangerous situation. We already know
that in many cases this has led to cancellation of
sales and lowered the credibility of the industry
and lab reports in the eyes of the consumer.
The CIBJO Coloured Stone Commission
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will discuss the paramaters of the complicated
relationship between the trade and the laboratories
at the upcoming congress in Brazil, and seek to
achieve greater clarity.
Within the colored gemstone community,
CIBJO as the world’s only industry rule-making
body, along with ICA, the International Coloured
Gemstone Association, are in the unique position
of being able to bring together all stakeholders to
discuss these important issues. Together, the two
organisations bear the responsibility of coming up
with a consensus.
At the CIBJO Congress in Brazil, I hope we can
further the discussion on these important issues
and receive views and suggestions from all the
different points of view.
In addition we will, as always, have updates to
make to the contents of the Gemstone Blue Book,
and we will work to harmonize its contents further
with the other CIBJO documents.
ALL RIGHTS RESERVED
© CIBJO, The World Jewellery Confederation 2015
www.cibjo.org
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