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According to an RJC auditor, vendors just require to pledge that they carry out solid human rights due diligence, however do not give any evidence for this. Neither does the Code of Practices need jewelersor various other downstream companiesto have traceability or chain of custody of their gold or diamonds. The Code of Practices is likewise weak in various other substantive locations, for example, on indigenous peoples' civil liberties and on resettlement.


As an example, in March 2017, the RJC had 342 members who had not (yet) finished the audit process that accredits conformity with the Code of Practices. Furthermore, companies can join at any kind of level of their operations. A small subsidiary office of a large jewelry company could apply for RJC subscription, without consisting of the remainder of the firm's entities.


Ultimately, the Code of Practices does not call for firms to openly report on the concrete actions they have taken to conduct due diligencea core requirement of the OECD Guidance. Its coverage responsibilities are vague and do not mention due persistance or the need for companies to report on the steps they have actually taken to identify, assess, and minimize dangers in their supply chains

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A 2nd RJC requirement, the Chain-of-Custody Criterion, promotes traceability and is extra extensive, yet adherence to it is optional for RJC members. By very early 2018, only 48 of over 1,000 participant companies had licensed entities under the requirement, consisting of 13 jewelers. The Chain-of-Custody Requirement calls for companies to develop docudrama evidence of service transactions along the supply chain and to verify they are not creating unfavorable effects in conflict-affected and risky areas.


Instead, firms are allowed to choose some "entities" under their control for qualification, leaving other entities of a business uncertified. While this might permit firms to slowly switch to more liable sourcing techniques, the current method also brings the danger that a whole company appreciates the reputational benefit when most of operations is not in conformity with the criterion.


All RJC participant companies need to undertake an audit to demonstrate that they are compliant with the Code of Practices, and to receive accreditation. Those firms that pick to obtain certification for the Chain-of-Custody Requirement need to undertake a separate audit. Audits are based primarily on an evaluation of the firm's written policies and documentation, and check outs to a "depictive collection" of centers.

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It is not a comprehensive examination regarding whether the business really carries out or follows by its plans throughout its procedures. For example, big firms might have procedures in multiple nations, and rely upon numerous providers, however still may get RJC accreditation based upon sees to just a few centers under its straight control without any kind of exam of several others.


Although audits are expected to include questions on a wide array see of civils rights, auditors are not always certified civils rights experts. When the auditors complete their report, they only send a recap report of the audit to the RJC, not the full audit report, which is shared just with the firm




While labor abuses are prevalent in the market, artisanal mines provide revenue for millions of workers and hundreds of mining areas. Civil rights Watch thinks that the precious jewelry industry should make every effort to ensure that their efforts to minimize supply chain human civil liberties dangers do not lead them to merely exclude all artisanal providers from their supply chains as the "course of least resistance." Instead, they must sustain efforts to formalize and professionalize artisanal mines and enhance functioning problems.


The OECD Due Diligence Support recognizes this and is promoting cost-sharing within the market. That method, all companies along the supply chain share the financial problem. A variety of campaigns have actually emerged that can help jewelers trace their gold and diamonds to mines of origin, and a lot more sensibly resource from the artisanal field.

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About 600 adult miners have actually been registered at six mine sites; kids can not sign up. Certification of certain mines versus responsible sourcing standards can offer jewelry experts with better assurance that the gold or diamonds they acquire from those mines are not tainted by human legal rights misuses. Nongovernmental companies such as Solidaridad and influence can play an essential role in supporting mines to enhance techniques so they have the ability to abide by the standard; this may include steps to tackle child labor, enhance environmental conduct, gain access to financing, and develop direct contact with purchasers.


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Two standardscertify artisanal and small-scale gold mines that adhere to human legal rights, labor legal rights, and ecological standardsthe Fairmined Criterion and the Fairtrade Gold Criterion (G Shock Watches). Depending on the consumer's certificate with Fairmined, the gold might be totally deducible to the mine of beginning, or might be blended with other gold.




This quantity is just a little fraction of the gold used every year by several of the companies analyzed in this report. As of very early 2018, 8 mines in 4 countries (Bolivia, Colombia, Mongolia, and Peru) were accredited, with an additional 20 mining organizations working in the direction of qualification. The Fairmined Gold Requirement is presently establishing a brand-new "market entrance" standard that looks for to aid artisanal cash cow in the process towards full qualification.

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It is provided under the umbrella of Fairtrade International, and enables jewelers to map their gold back completely to the mine of beginning. Fairtrade's very first licensed mines were in Peru. Over the last couple of years, the Fairtrade Structure, Solidaridad, and various other NGOs carried out a program of training and support to artisanal and small gold miners in Africa, and in very early 2017, accredited an artisanal gold mine in Uganda.