Demonstrate commitment to responsible business practices both internally to employees, and publicly to stakeholders.

A policy is required to demonstrate commitment to responsible business practices for all parts of the business. It should be documented and communicated to employees in addition to being made publicly available.

Senior management should continuously monitor and document the implementation of the policy and procedures along with the performance throughout the business. A formal performance review should be undertaken and documented to identify any gaps that occur between the policy and the business practices. This review should take place frequently throughout the year, potentially as part of the board meetings, and any suggested changes should be either deemed unnecessary or implemented not only in the specific entity but also in any other relevant parts of the business.

The entity should identify issues relevant to the RJC Code of Practices Membership through their own operations, or, through involvement in community initiatives and communicate their policies or positions along with any actions that were taken or objectives to their stakeholders.

Entities must implement effective policies and adequate procedures to prohibit involvement in bribery in all business practices and transactions that are carried out by them, or on their behalf by Business Partners. They will not offer, accept or countenance any payments, gifts in kind, hospitality, expenses or promises as such that may compromise the principles of fair competition or constitute an attempt to obtain or retain business for or with, or direct business to, any person; to influence the course of the business or governmental decision-making process.

Entities will provide systems for the reporting and investigation of allegations of attempted bribery or inappropriate gifts within their organisation and will apply the appropriate sanctions for bribery and attempted bribery in all forms. This will include clear communication to their workers that they will not suffer retaliation for such reports or refusing to pay a bribe or facilitation payment even if this action may result in the entity losing business.

Where entities have not yet been able to eliminate facilitation payments, they will implement appropriate controls to monitor, oversee and fully account for all facilitation payments made. They will work to ensure that they are of limited nature and scope, with an ultimate objective to eliminate all facilitation payments.

Compliance is required with national, and where appropriate international, legislation and regulations with respect to money laundering, terrorism financing, bribery, corruption, smuggling, embezzlement, fraud, racketeering, transfer pricing and tax evasion.

If entities and/or facilities are not included in any other financial accounts (for example, but not limited to, those of a parent company), they will need annual independently audited financial accounts, and will need to demonstrate that the audit was carried out by a properly qualified auditor to international accounting standards and that the appointment of the auditor was free of any bias or influence.

Financial auditors should be alerted to applicable national legislation imposing special anti-money laundering/combating the financing of terrorism compliance rules on dealers in precious stones or high value goods.

Entities must demonstrate that they are fully informed of all relevant legislation and regulations regarding bribery and facilitation payments in all relevant jurisdictions ensuring policies are developed and clearly explained to the relevant employees.

The definition of ‘Conflict Gem Stone Diamonds’ agreed by the Kimberley Process must be adopted. That definition is as follows:

‘Rough diamonds used by rebel movements or their allies to finance conflict aimed at undermining legitimate governments, as described in relevant United Nations Security Council (UNSC) resolutions insofar as they remain in effect, or in other similar UNSC resolutions which may be adopted in the future, and as understood and recognised in United Nations General Assembly (UNGA) Resolution 55/56, or in other similar UNGA resolutions which may be adopted in future.’

The World Diamond Council proposed system of warranties must be adopted and all buyers and sellers of both rough and polished diamonds must make the following affirmative statement on all invoices:

‘The diamonds herein invoiced have been {sourced}* purchased from legitimate sources not involved in funding conflict, in compliance with United Nations Resolutions and corresponding national laws {where the invoice is generated}**. The seller hereby guarantees that these diamonds are conflict free and confirms adherence to the WDC SoW Guidelines.’

* {sourced} - may be used by companies that do not purchase from open market, but source and aggregate diamonds from production facilities that are owned/partly owned by them {where the invoice is generated} - may be used by companies if they specifically want to reference the country of invoice issuance

The rules of the Kimberley Process and the requirements of the World Diamond Council shall be effectively communicated to the relevant workers involved in the buying and selling of rough diamonds and/ or the buying and selling of polished diamonds and/ or diamond jewellery.

In addition, each company trading in rough and polished diamonds is obliged to keep records of Kimberley Process Certificates and warranty invoices received, and the warranty invoices issued, when buying or selling diamonds. This flow of certificates and warranties in, and certificates and warranties out, must be audited and reconciled on an annual basis by the company’s/entity’s/facility’s own auditors. If asked by a duly authorised government agency, or Third Party Auditor, these records must be able to prove that the company/entity/facility is in compliance with the Kimberley Process.

The company/entity/facility must have a system or process in place to maintain awareness of and comply with applicable national and international sanctions that prohibit transactions or trade involving diamonds with sanctioned individuals, entities or organisations.

The company must comply with the System of Warranties Guidelines which include adherence to the protection of human rights, labour rights, anti-corruption practices and anti-money laundering, and must complete a self-assessment once a year. The company must also include the SoW warranty statement, which contains a commitment that buyers and sellers adhere to the updated System of Warranties Guidelines, with the wording of the statement in full.

Entities will establish and implement product security policies and procedures within the premises and during shipment to protect against product theft, damage or substitution.

Entities will prioritise the security and well-being of employees, visitors and other relevant business partners when establishing product security measures to prevent product theft, damage or substitution.

All businesses should ensure that diamond or gold jewellery products sold by members to end consumers will be compliant with the applicable regulations for product health and safety.

FULL DISCLOSURE:

Full disclosure is the complete and total release of material information about gold, a diamond or other stone and the material steps it has undergone prior to sale to the purchaser. The vendor must make all reasonable efforts to ensure this information is disclosed at all times during the selling process. Full disclosure of all material facts must take place whether or not the information is specifically requested and regardless of the effect on the value of the item being sold.

It is recommended that the nomenclature standards defined in the International Standard on ‘Jewellery – Consumer confidence in the diamond industry’, ISO 18323:2015 (E) are adhered to ensure clear and accurate labelling on how to describe diamonds, treated diamonds, synthetic diamonds, composite diamonds and imitations of diamonds. Entities can elect to certify against the ISO 18323 standard.

Selling includes offering for sale, exposing for sale, displaying in such a manner as to lead to a reasonable belief that the product so displayed is intended for sale. For avoidance of doubt this includes the accepted industry practice of ‘memo’, the practice of consigning goods, normally polished, to clients for pre-arranged periods for potential sale.

A synthetic diamond must only and always be disclosed as ‘synthetic diamond’, ‘man-made’, ‘laboratory created’, ‘laboratory-grown’ or ‘artificial’ and the description must be equally as conspicuous and immediately preceding the word ‘diamond’.

Any terms that are designed to disguise the fact that a stone is synthetic diamond or that mislead the consumer in any way must not be used. For example the terms ‘natural, ‘real’, ‘genuine’, ‘precious’, ‘cultured’, ‘cultivated’ and ‘gem’ must not be used to describe a synthetic diamond.

Names of firms, manufacturers or trademarks are not to be used as descriptors for synthetic diamonds, unless such names are clearly succeeded by the terms ‘synthetic diamond’, ‘man-made’ or ‘artificial’, as above. For example, a business trading as Acme may describe its synthetic diamonds as ‘Acme synthetic diamonds’ but not as ‘Acme diamonds’.

Treatment means any process, treatment or enhancement changing, interfering with and/or contaminating the natural appearance or composition of a diamond other than the historically accepted practices of cutting and polishing. It includes colour (and decolourisation) treatment, high pressure high temperature (HPHT) treatment, fracture filling, laser drilling and irradiation treatment and coating.

Programmes and/or procedures, including risk assessments, should be established to address compliance with the BPPs by business partners such as contractors, sub-contractors, suppliers, clients, agents and security providers that are directly involved in the mining, handling, manufacture and sale (or purchase as applicable) of gold, diamonds and/or diamond or gold jewellery. Due diligence that may have been undertaken on areas such as human rights and forced labour can be incorporated into the risk assessment. Evidence of commitment to responsible business practices through certification such as SA8000, ISO14001 and RJC certification could be taken in to consideration when addressing the reputational risk posed by a relationship with a business partner.

Companies/Entities/Facilities will need to demonstrate that they have taken appropriate action to satisfy the requirement to use Best Endeavours to ensure the commitment of non-Substantial contactors to comply with the BPPs (the Best Endeavours Requirement).

Such actions must include providing relevant Contractor entities with a copy of the BPPs as well as information on the practical implementation of the BPPs (for example, copies of the BPP Requirements and the BPP Workbook). Other appropriate actions could include, but are not limited to:

Each relevant Company/Entity/Facility will need to provide written evidence of the actions it has taken to satisfy the Best Endeavours Requirement.

Each relevant Company/Entity/Facility will have access to the results of their Substantial Contractors’ verification visits and if required, must be able to demonstrate working actively to assist in implementing any required corrective action.

Companies/Entities/Facilities will need to confirm if they make claims or statements to consumers or other businesses on practices in their supply chain and the origin or source of diamonds, synthetic diamonds, gold and/or platinum through the use of descriptions or symbols. Advertising, marketing and other sales-related documentation should be used to establish if this section is relevant.

Companies/Entities/Facilities will need to confirm if they make claims or statements to consumers or other businesses on practices in their supply chain and the origin or source of diamonds, synthetic diamonds, gold and/or platinum through the use of descriptions or symbols. Advertising, marketing and other sales-related documentation should be used to establish if this section is relevant.

Any and all provenance claims made by the Company/Entity/Facility must be disclosed on the BPP SMART System Group Profile Page.

Each relevant Company/Entity/Facility shall maintain appropriate record keeping procedures, and verify that the criteria or requirements are met.

A manager should be responsible for ascertaining which employees require training on the Provenance Claim(s), these employees respond to product enquiries and should be aware of their accountabilities demonstrating a full understanding of the Provenance Claim(s) made. All documentation related to training shall be maintained, including but not limited to: written procedure, training materials and training register.

Interested parties should have access to a complaints or grievance mechanism.