Frequently Asked Questions
What was the process for developing the draft Principles and Code of Practices?
The Council has used national law (or relevant state or local law) as the fundamental basis for the development of the Code of Practices. This is in recognition of the fact that business must respect the legal framework of the country in which it is operating. However, where no appropriate law exists, and there is a clear public interest in a standard being applied to Members operating in those countries, the Council has based Code provisions on appropriate, consistent and proportionate broadly accepted global standards or industry best practice (for example, the ILO Conventions, the Kimberley Process Certification Scheme) that must be adhered to by the relevant Member.
What makes this initiative different from others?
The Council for Responsible Jewellery Practices draws its membership from all phases of the diamond and gold supply chain, including the financial community. The finalised Implementation Model will offer a common aspirational standard that all within the industry can work towards such that responsible business practices are implemented from mine to retail. The Implementation Model will seek to cover the key aspects of responsible business practices, including business ethics, human rights and labour standards, environmental performance and community standards. Therefore, this initiative can be seen as unique in its combined breadth of issues coverage and in its relevance to multiple phases of the supply chain.
Why is the focus limited to diamonds and gold only?
The Council recognises the scope and scale of the challenges affecting the diamond and gold jewellery sectors. Existing Members view the diamond and gold jewellery industry segments as an appropriate first priority for activities aimed at improving responsible business practices within the jewellery industry, especially since serious challenges have already risen in those sectors.
In the future, the Council hopes to build on this first effort and enlarge its scope to encompass other elements of the precious jewellery supply chain, where there is scope for the development of a responsible practices framework.
Back to Top
How will the Implementation Model fit with existing industry standards and initiatives?
It is envisaged that the monitoring process will acknowledge internationally recognised initiatives such as the Kimberley Process Certification Scheme and ISO standards, as evidence of performance in defined areas of the Principles. The Implementation Model will cross-reference the requirements of other initiatives. It will therefore build upon existing standards and will reinforce implementation of key industry initiatives. The final model will the a subject of public and industry consultation.
How is Council run?
The Council is run by a rotating Board elected from the membership that is structured so as to be representative of the industry and which will be advised by a number of management committees and issues-based stakeholder working groups. All Council Members have the chance to stand for election to the Board. In January 2006, the CRJP hired a Chief Executive Officer and Programme Director who run an operational and administrative Secretariat.
How will the Council ensure the transparency of its activities?
As a minimum, the Council will also provide an annual, publicly available report on its activities and Members' progress. The Council also releases a regular newsletter to interested parties.
Is the Council imposing Western Standards on developing / emerging economies?
The Principles and Implementation Model will take, as their core, compliance with applicable national law as well as internationally agreed standards. This is not about imposing Western standards on others, but about driving improvement in an industry according to standards agreed to by governments internationally, representing both developed and developing nations.
Will it be too onerous for the smaller participants to comply with the Principles?
The Principles and Code of Practices will be applied taking into account industry diversity through an implementation process yet to be developed. Members will be able to agree with their independent monitors on areas of the Implementation Model that are not applicable to their business, according to guidance set by the Council. The Council will set an achievable required level of conformance at the start of the initiative, with a requirement to demonstrate continuous improvement. In this way the Principles should not be too onerous for small businesses. The Council will consult with smaller participants in order to assess their response to the draft Code of Practices and Implementation Model.
How will the Council make sure it understands all the issues?
The Council will convene stakeholder working groups in order to advise it in relation to key issues relevant to achieving its mission. Stakeholder working groups will advise the Board and/or management committees. The Council will also commission research and engagement activity as necessary to ensure that it keeps abreast of, and can respond to, emerging issues as they arise, on behalf of the industry. Ongoing stakeholder consultation will have a central role in informing the Board on key issues and helping to finalise the draft Code of Practices and Implementation Model to define appropriate standards to drive responsible business practices within the industry.
Will it be too onerous for the smaller participants to comply with the Principles?
The Principles will be applied taking into account industry diversity through an implementation process yet to be developed. Members will be able to agree with their independent monitors on areas of the implementation model that are not applicable to their business, according to guidance set by the Council. The Council will set an achievable required level of conformance at the start of the initiative, with a requirement to demonstrate continuous improvement. In this way the Principles should not be too onerous for small businesses. The Council will consult with smaller participants in order to assess their response to the draft Principles and implementation model.
How will you ensure that the Council does not act in an anti-competitive way?
The Council takes all of its legal obligations, including those imposed by competition law, extremely seriously. The Council continues to take all necessary steps to ensure that its activities comply with all applicable competition rules. Further, the Council has adopted an Anti-trust Compliance Rules which seek to ensure that the Council and its Members are aware of their competition law obligations and at all times act in accordance with all applicable competition rules.
How much will it cost to be a Member?
Membership fees are set annually by the Board. The current fees are set out in the table below.
| Entity Type | Annual Membership (% relevant turnover) |
|---|---|
| Commercial Member Membership category: |
0.006% |
| Commercial Member Membership category: |
0.004% |
|
Service companies, including financial institutions |
0.004% (with a maximum cap of £20,000) |
| Trade Associations | Flat rate annual fee: £1,500 |
The Council recognises that applicants may have diamond and/or gold commercial activities in more than one part of the supply chain (for example, both diamond manufacturing and retail activities). For the purposes of determining the annual commercial membership fee the applicant must specify at which level of the supply chain it derives the largest proportion of its diamond and/or gold-related turnover.
Method of fee calculation
A key principle of the Council is to be inclusive, encouraging organisations of all sizes to contribute to the overall aim of promoting responsible ethical, social and environmental practices throughout the diamond and gold jewellery supply chain.
To achieve this, annual membership fees for organisations trading for commercial reasons in diamond and/or gold jewellery are calculated as a percentage of their annual Relevant Turnover
Relevant Turnover is defined as the total turnover derived from those parts of the business / entity that are directly involved in the diamond and/or gold jewellery supply chain.
Notes:
- Gold that is a by-product of mining activity must be included.
- Turnover derived from gold and/or diamond non-jewellery products may be excluded.
- The membership year starts on 1 January. Membership fees for Members joining part way through a membership year will be pro-rated.
- There will be a minimum fee of £60.
- The Council reserves the right to challenge and/or request additional information about an applicant's declared relevant turnover figure, so as to ensure consistency of fee payments across the Council's Membership.
- Discretionary supplementary financial contributions to the Council are also welcome.