The Color of Responsibility: Ethical Issues and Solutions in Colored Gemstones. The mining and processing of colored stones, a multibillion- dollar industry, spans 4. Despite the industry’s high profile, an ethical, sustainable mine- to- market supply chain for these materials has still not been achieved, impacting the physical environment and quality of life for laborers. The history, issues, challenges, and efforts to rectify this lack of transparency and traceability are explored. The history of a piece can provide romance and character to a purchase or gift. As a result, human rights and environmental issues related to the gem and jewelry industry supply chain are gaining attention among producers and customers worldwide.
Yet diamonds are far from the only gem material requiring responsible sourcing. Due to its broad scope, the colored stone industry, estimated to be a US$1. Cross et al., 2. 01. Responsible Ecosystems Sourcing Platform, 2. This view of the recently discovered ruby deposit in Zahamena National Parkin Madagascar demonstrates conditions at a small- scale mining site. Photo by Vincent. Pardieu/GIA. Industry observers have noted that this sprawling and largely unregulated industry presents issues that are similar to other small- scale extractive industries: forced and child labor, other types of criminal activity, environmental damage, and health and safety concerns (Valerio, 2. Cartier, 2. 01. 0; Connell, 2. They assert that these problems have been endemic in the colored stone industry, especially in artisanal small- scale mining (ASM) performed by individuals or small groups of people using rudimentary tools (figure 1). The concerns related to small- scale mining are pervasive with colored stones, 7. UNICRI, 2. 01. 3). As the United States’ $7. Gassman, 2. 01. 5), end customers are increasingly aware of the ethical impact of what they buy (Braunwart et al., 2. As a result, more consumers are asking questions about the origins of pieces and basing their purchases on the answers they receive (Shor and Weldon, 2. Millennials, the young adults born since the early 1. Studies show that this generation is particularly inclined to take factors such as fair trade status, sustainability, and human rights into account before making a purchase (Carter, 2. As a generation, they consider their purchase a personal investment in a brand that represents their own values, and they are a force to be reckoned with: By 2. US$1. 4 trillion annually on retail purchases (Young, 2. With these consumer interests developing alongside an environment of heightened scrutiny over responsible practices, both new and established colored stone suppliers are examining their relationships to the mining, cutting, and production sectors. Some industry leaders have long been concerned with corporate social responsibility, yet a combination of public awareness and the desire to self- govern the industry rather than be subjected to top- down legislation has been the greatest motivation to change. Firms engage in corporate social responsibility (CSR) because they consider that some kind of competitive advantage accrues to them. Governments and non- governmental organizations (NGOs) are feeling the impetus to create initiatives and voluntary standards that will foster social and environmental change within the entire industry—mining, cutting, trade, jewelry manufacture, and retail. As these standards take root, individual companies and organizations are launching community development and education efforts to improve the standard of living of miners, cutters, and their families. As part of a panel on responsible practices at GIA in April 2. Eric Braunwart, president and founder of colored gemstone wholesaler Columbia Gem House, noted, “I think we can come up with a new narrative, and that narrative is based around responsible sourcing, and helping everyone along the supply chain.” This paper considers aspects of that supply chain in the context of current trends in corporate social responsibility (CSR) within the gem and jewelry industry. It also reviews some of the risks and challenges encountered by those endeavoring to ethically source colored gems. Usually grouped together, artisanal and small- scale mining of precious metals, gem materials, and industrial minerals is conducted in more than 8. Antarctica (ASM- PACE, 2. Traditionally, there has been no official definition of “artisanal mining”; the term was understood to mean the removal of material by individuals or groups using little to no mechanization. This type of mining often occurs where large- scale mining is illegal, physically inaccessible, or financially impractical. In 2. 01. 3, the Organisation for Economic Co- operation and Development (OECD) published a definition of ASM pertaining to gold extraction (republished in 2. Formal or informal mining operations with predominantly simplified forms of exploration, extraction, processing, and transportation. ASM is normally low capital intensive and uses high labour intensive technology. For example, it is common for work groups of 4–1. At the organisational level, groups of 3. This is especially true for alluvial mining, where stones and gravels from riverbeds are sifted for gems (figure 2). The material is generally close to the surface, allowing for easy retrieval. Agricultural workers seeking work outside of a given farming season often supplement their income through alluvial mining. Figure 2. Alluvial mining often involves the retrieval, washing, and sorting of gem materials from gravels, as with this processed tsavorite from Lemshuko, Tanzania. Photo by Robert Weldon/GIA. According to the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (2. There is, however, no reliable figure for the number of people involved in small- scale colored stone mining. A 2. 00. 7 report from the International Labour Organization (ILO) notes that colored stone extraction is often a family affair, with school- aged children of both genders participating in sifting and sorting. The Rising Popularity of Colored Gemstones. Colored gemstones were especially popular prior to the mid- 2. Great Depression and World War II that diamonds took center stage in engagement and wedding jewelry (Matsangou, 2. Efforts by De Beers, which formed in 1. A Diamond Is Forever” campaign (Sullivan, 2. In recent years, colored stones have seen a resurgence. This enthusiasm is due in large part to greater access to material from remote areas, as well as the stronger advertising and promotion of these gems (R. This promotion largely results from the efforts of multinational companies such as London- based Gemfields, which has invested heavily in marketing and promotional campaigns. Gemfields has accomplished this through various channels, from signing Hollywood actress Mila Kunis to a three- year contract to represent their brand (Carr, 2. King, 2. 01. 6). Their efforts dovetailed with the overproduction and subsequent weak demand for diamonds (Boehm, 2. What’s a responsible business to do in the face of a Trump presidency? This has been a live question for months now, and growing more challenging with each day that.With this greater availability and marketability, more designers are turning to colored stones. This has allowed jewelry consumers to purchase pieces that offer a distinctive look for less money (R. The rise in colored stone popularity coincides with the industry’s recent attempts to improve the lives of the miners and cutters who are the very foundation of the trade. Corporate Social Responsibility vs. While there is an impulse to use the terms “corporate social responsibility” (CSR) and “fair trade” interchangeably, the two have distinct meanings. According to Visser (2. CSR encompasses “the formal and informal ways in which business makes a contribution to improving the governance, social, ethical, labour and environmental conditions of the developing countries in which they operate, while remaining sensitive to prevailing religious, historical and cultural contexts.” Simply put, it is a company- led commitment, worked into its business plan or mission, to safeguard social values, community relations, and the environment. The CSR movement has gained traction among many industries since its inception in the 1. Sustainable development, the preservation of natural resources for future generations, is usually a central tenet of CSR. This is often mistaken for philanthropy and designated as a public relations effort rather than the core mission of a business (Nieuwenkamp, 2. CSR involves responsible sourcing and due diligence from corporations who create policies for their own work and also influence their business partners to do the same to ensure a “clean” supply chain (see box A). Fair trade, a post–World War II social movement that has its origins in missionary programs and political and humanitarian groups (Fair Trade Federation, 2. Secondarily, it creates a relationship between disadvantaged producers (in the case of ASM activity, mine workers) and consumers by following set guidelines for production, sourcing, and manufacturing, creating expectations among end- customers. The fair trade movement also focuses on raising awareness about trade imbalances and abuses of power, while creating policies that promote equitable trade (World Fair Trade Organization, n. Several different organizations exist to certify a product and designate it a “fair trade” item; issuing organizations have guidelines and audits that lead to certification and permission to use the fair trade designation. For instance, Fairtrade International has a list of standards pertaining to pricing, trade, hired labor, and prohibited materials (among others) that must be met before they will issue their logo to a producer (Fairtrade International, 2. While a company may include CSR goals as part of their mission, this does not mean their products will be issued fair trade certification. Many of the colored gemstones currently in circulation would not qualify as “fair trade” for one simple reason: time in the marketplace. Cartier and Pardieu (2.
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