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According to an RJC auditor, vendors just need to promise that they carry out solid civils rights due diligence, but do not give any kind of proof for this. Neither does the Code of Practices call for jewelersor other downstream companiesto have traceability or chain of protection of their gold or diamonds. The Code of Practices is also weak in various other substantive areas, for instance, on indigenous peoples' rights and on resettlement.In March 2017, the RJC had 342 members that had not (yet) finished the audit process that certifies conformity with the Code of Practices. In enhancement, companies can sign up with at any degree of their operations. For instance, a little subsidiary office of a big fashion jewelry firm might make an application for RJC subscription, without including the remainder of the firm's entities.
Finally, the Code of Practices does not need firms to publicly report on the concrete steps they have taken to perform due diligencea core demand of the OECD Assistance. Its coverage commitments are unclear and do not state due diligence or the requirement for firms to report on the actions they have required to identify, examine, and alleviate threats in their supply chains
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A 2nd RJC standard, the Chain-of-Custody Standard, promotes traceability and is more extensive, however adherence to it is optional for RJC members. By early 2018, only 48 of over 1,000 member companies had actually accredited entities under the criterion, consisting of 13 jewelry experts. The Chain-of-Custody Criterion calls for companies to establish docudrama evidence of company purchases along the supply chain and to validate they are not causing unfavorable effects in conflict-affected and risky areas.
Instead, companies are permitted to select some "entities" under their control for certification, leaving other entities of a firm uncertified. While this might permit for firms to gradually change over to more liable sourcing methods, the present practice additionally brings the threat that a whole company delights in the reputational advantage when the majority of procedures is not in conformity with the requirement.
All RJC participant business need to undergo an audit to show that they are compliant with the Code of Practices, and to receive certification. Those companies that choose to obtain accreditation for the Chain-of-Custody Criterion have to undergo a different audit. Audits are based mainly on an evaluation of the company's created policies and documentation, and sees to a "depictive set" of centers.
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Although audits are supposed to include inquiries on a broad variety of human legal rights, auditors are not constantly qualified civils rights specialists. When the auditors finish their record, they just send a summary report of the audit to the RJC, not the full audit record, which is shared only with the firm
While labor misuses are widespread in the industry, artisanal mines offer earnings for millions of workers and countless mining neighborhoods. Civil rights Watch thinks that the jewelry industry need to make every effort to make certain that their initiatives to mitigate supply chain human rights threats do not lead them to just omit all artisanal distributors from their supply chains as the "course of the very least resistance." Instead, they should sustain efforts to formalize and professionalize artisanal mines and boost functioning conditions.
The OECD Due Diligence Assistance recognizes this and is advertising cost-sharing within the market. In this way, all companies along the supply chain share the monetary concern. A variety of efforts have emerged that can help jewelry experts map their gold and diamonds to mines of origin, and much more sensibly source from the artisanal sector.
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2 standardscertify artisanal and small-scale gold mines that adapt to human rights, labor rights, and ecological standardsthe Fairmined Standard and the Fairtrade Gold Requirement (Seiko Watches). Depending on the customer's license with Fairmined, the gold may be totally deducible to the mine of beginning, or might be blended with various other gold.
This amount is just a small fraction of the gold used every year by numerous of the companies examined in this record. Since very early 2018, 8 mines in four countries (Bolivia, Colombia, Mongolia, and Peru) were certified, with an added 20 mining organizations working in the direction of qualification. The Fairmined Gold Criterion is currently establishing a new "market entry" requirement that looks for to aid artisanal golden goose while doing so towards complete accreditation.
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