A cross-industry conversation may provide a bridge to jewelry ethics

By Robert Weldon

Not until the Madison Dialogue Ethical Jewelry Summit held in Washington, D.C., Oct. 25-26, has there been a forum in which so many global players of the jewelry industry could come together to discuss issues surrounding what its founders call "ethically produced jewelry."

The summit, which took place at the World Bank Headquarters, included stakeholders from various segments both inside and outside the gemstone and jewelry supply chain. Aside from small-scale miners of gemstones and metals from around the world, there were non-governmental organizations (NGOs), companies that represent third party verification, jeweler organizations and major jewelers present. (Note: For a full list of participating organizations and individuals, visit www.madisondialogue.org.)

The participants came together out of their concern for the environmental and societal effects of mining raw materials in source countries. They also believe that proactive involvement in these issues will have a positive effect on the public's perception of finished jewelry.

The Madison Dialogue aims to improve mining conditions in source countries to ensure a sustainable product. This Kenyan is a small-scale miner for tsavorite garnet. Photo by Robert Weldon

Keeping the Jewelry Buyer in Mind
While the Madison Dialogue, an industry-only event, did not have consumer representation, they were on everyone's mind. The success of the jewelry business depends on whether or not the ultimate customer purchases jewelry. Gaining insights into how they perceive the business is crucial.

We know they want to know whether the gems set in the jewelry they buy are natural or synthetic, treated or imitations. But studies, such as the 2006 Millennial Cone Study, show a growing number care about what gem mining does to the environment and want to know if the gems they buy are mined in an environmentally conscious manner. Gold miners face similar criteria and expectations.

Finally, the public increasingly wants assurance that the people mining materials in impoverished areas are working safely and can earn a living wage from their labor. All of these actions along the supply chain have an impact on their perception of the jewel's value.

These are not new challenges for consumer products as we enter 2008; the clothing, coffee, fur and food industries have already faced and addressed similar issues successfully giving the public a greater choice of ethical products. The concept of fair trade or corporate responsibility, however, remains vague in the jewelry industry, and choices of fair trade gemstones or ethically produced jewelry are presently few – though growing. Some gem dealers practice their own brand of corporate responsibility and fair trade. In the future, a more formalized set of standards for these efforts will include third party verification. It is simply not enough for a company or organization to say it is doing good things in source countries.

Dialogue Flavor
Small-scale miners represented at the Madison Dialogue spoke about the challenges and difficulties of going it on their own, while large-scale mine representatives offered glimpses of some of their social and environmental initiatives.

"We need rights of concession in our countries. Often we are labeled as 'difficult' because we make demands. And often we are cheated because we have little education about the product we are looking for," explained Jonny Sasirwe, a mining representative from Uganda.

Manuel Reinoso, a metals miner from Peru, said that even though Peruvian laws protect artisanal miners, they expect more. "We want greater dialogue with mining companies, and [fair] prices for what we produce. We want access to better mining technology. We want our children to have it better than we do," he said.

Large-scale mining companies were also represented. Simon Gilbert of De Beers Group is collaborating with NGO Partnership Africa Canada on a major corporate responsibility project at Mwadui, Tanzania. "The needs are huge from all perspectives, often outweighing expectations," he said.

"We seek to alleviate poverty and accelerate and formalize socioeconomic development, and we are moving forward positively. But we must take into consideration a corporation's needs to earn profits."

Martin Rapaport of the Rapaport Group, New York City, is leading fair trade initiatives of his own in Africa. He stressed that "poverty alleviation" in source countries was the critical goal, but agreed that money remains the market force that will make things happen in developing countries.

"Business has the ability to create jobs and contribute to poverty alleviation," he said, but noted that there are financial implications for companies that don't behave responsibly. "Companies that don't have a product that conforms to fair trade expectations by the consumer will lose that consumer."

Matthew Runci of Jewelers of America, who also represented the Council for Responsible Jewellery Practices at the meeting, noted that the development of performance standards was necessary. "Such guidelines will improve performance in mining sectors; and dialogue will also increase market access to the artisanal mining sector," he said.

"We wish to sell something beyond the value of the product," explained retailer Greg Valerio of CRED Jewellery, U.K. "This is an opportunity for action by the jewelry industry that so completely relies on the extraction industry."

Madison Dialogue Statement
Attendees agreed that the unprecedented cross-sector initiative produced a number of bridges they hope will lead to better understanding between them. Others felt that once concrete principles and standards are agreed to (in future phases of the Madison Dialogue), more sustainable, and ethical, jewelry business practices will follow. For now, the Madison Dialogue's steering committee is being expanded and diversified. Members have split into working groups to focus on specific issues affecting metals, diamonds, gemstones and manufacturing. The committee has yet to decide on future meeting sites or dates.

The meeting's participants agreed to a final declaration for the 2007 summit, which reads: "We believe there is an opportunity to make a difference in the lives and communities of artisanal/small-scale miners and other marginalized workers worldwide, by developing and implementing robust standards for the production of ethical and fair trade metals, diamonds, gems and jewelry. We also encourage governments, where needed, to develop policies and regulations that protect these miners, workers and their communities."