Conflict Diamonds
UPDATE: Kimberley Process and industry self-regulation
A major milestone occurred in January 2003, when a joint government, international diamond industry and civil society initiative known as the Kimberley Process was introduced to stem the flow of conflict diamonds. The Kimberley Process Certification Scheme (KPCS) is a voluntary system that imposes requirements on participants to certify that shipments of rough diamonds are conflict-free. In response to pressure from NGOs, the diamond industry also implemented a system of self-regulation to support the Kimberley Process, to provide consumers with additional assurances. This voluntary self-regulation covers the entire diamond supply chain, from mine to point of sale (not just rough diamonds), and requires the industry to implement a code of conduct to prevent the buying and selling of conflict diamonds. It also provides for a system of warranties, underpinned through verification by independent auditors of individual companies and supported by internal penalties set by industry, which is designed to help to facilitate the full traceability of rough diamond transactions by government authorities. However, it can only be considered effective in assuring that conflict diamonds have not entered the legitimate trade if all sectors of the diamond industry effectively implement the system of warranties. More importantly, the system must be audited or verified independently, and monitored by appropriate government agencies. In the United States, the KPCS is enforced by the Clean Diamond Trade Act, also introduced in 2003, which requires annual reviews of the standards, practices and procedures of any entity in the US that issues KP certificates for the export of rough diamonds. Though some progress has been made, we are concerned that weaknesses may still exist in both implementation and oversight, creating loopholes which could allow conflict diamonds to enter the United States.
On September 18, 2004, Amnesty carried out a nationwide Day of Action where activists like you helped survey retailers in local communities around the country to find out what they were doing to keep conflict diamonds out of their stores. These results were combined with data that Amnesty and Global Witness compiled through a survey of top-level industry management, diamond suppliers and trade associations. The results were reported in the report Déjà vu – diamond industry still failing to deliver on promises, which was presented to the World Diamond Council in October.
Though several companies have introduced conflict diamond policies at the headquarters level describing their intention to support the Kimberley Process and the self-regulation, we remain concerned that the promises being made in such policies are not being kept, and that the retail sector is not providing sufficient assurances to consumers that the diamonds they are selling are conflict-free.
In particular, there are two issues raised by our survey which continue to concern us:- LACK OF CONSUMER AWARENESS ABOUT CONFLICT DIAMONDS.
When asked whether consumers inquired about conflict diamonds, 83% of responding jewelers answered rarely or never – and this was often given as an excuse for not having a conflict diamonds policy in place. - LACK OF INDUSTRY TRANSPARENCY WITH THE PUBLIC.
Most salespeople we encountered while carrying out our survey were unable to provide sufficient assurances to the public that their diamonds were conflict free, in the form of written policies and warranties.
Further to that, Global Witness, in their report, The Key to Kimberley describes troubling weaknesses in US Government oversight of the Kimberley Process, and problems with statistics reporting which have the potential to undermine the system’s credibility if they are not rectified. Effectivegovernment oversight is necessary to monitor compliance with the Clean Diamond Trade Act, and to ensure that the diamond industry self-regulation is working to keep conflict diamonds out of circulation.
Take action on Valentine's Day, February 14
Valentine’s Day is just around the corner, and if past years are any indication, lots of money will be spent buying diamonds as a symbol of love and devotion. But buyer beware - some diamonds could be tied to armed conflict and other human rights abuses!
How can people shopping for diamonds be sure the diamond they want to purchase is conflict-free? They can use the new buyer's guide, prepared by Amnesty International and Global Witness. The guide explains what conflict diamonds are and provides consumers with all the right questions to ask the next time they are out buying a diamond.
We need your help getting this guide into the hands of potential diamond buyers across the country! Valentine’s Day is a great time to plan a public awareness raising event in your community or at your school. Use the guide to educate people about this important issue and what they can do to prevent the trade in conflict diamonds. Of course, Valentine’s Day is just the start – we hope you will continue to use this new guide throughout the year.
The guide will be available starting February 9. Contact the Corporate Action Network (CAN) now at corpaction@aiusa.org to place your advance order and learn more about how you can raise awareness about conflict diamonds this Valentine's Day.