Fair Trade Jewelry

Introduction:

“Part of me likes to believe that CSR is not only a rhetorical or theoretical exercise, but really is changing the way to do business,”

writes Dr. Barreto in an open letter on the Madison Dialogue list server. Here, she discusses her overview of CSR in the mining sector, as an expert in sustainability and mining.

Special thanks to Dr. Barreto for permission to reprint her comments.

I am very interested in the debate about sustainability in the mining sector and the role/contribution of CSR.

I spent a good part of my career as a researcher working to clarify (or at least trying to clarify) the concept of sustainable development in the mining sector, the ambiguous concept of nonrenewable resources and the implications for advancing the SD framework for the mining sector.

But yesterday, I talked with a colleague in Peru from Cooperaccion, a Peruvian NGO that has an impeccable record working with communities, including the ASM sector. She explained to me the problems that her organization is facing. (See Companion Post)

Part of me would like to believe that situation is an exception and not the rule. Part of me would like to believe that we have more mining companies in the phase one or two of Estelle’s company typology then in phase 0.

Part of me likes to believe that CSR is not only a rhetorical or theoretical exercise, but really is changing the way to do business. Finally, I would like to believe that the old paradigm of business as usual is in the past.

But I know that there too many cases like the one outlined there (at least this is my impression) and, unfortunately, only a very small group of mining companies can be considered in phase one or two of Estelle’s company typology, (again that is my impression).

My first question is what we can do to help and stop this kind of action against organizations like Cooperaccion, that are working towards sustainability in the sector?

My second question is how to create a system that verifies and certifies what is happening in the implementation of CSR that on one hand allows the market to safely provide a premium to the companies that have accomplished these standards and creates a meaningful economic incentive for them and others to join the club?

Until we create a system of verification and certification to translate the rhetoric into practical and market action, we are never going to know what is really happening on the ground in terms of CSR. We will only be left with impressions and beliefs and unverified claims…even when good things are actually being done. This is as bad for companies as it is for communities.

In the meantime, we can make a difference as an individual, organization or as the Madison Dialogue by helping Cooperaccion in its fight against injustice.

Special thanks to Laura Barreto, Phd. International Specialist in Mining and Sustainable Development Strategies, Policy and Law. She is Director of Materials Efficiency Research Group (MERG), located Ottawa, Ontario, Canada.

Tags: Ethical Initiatives, Sustainability, CSR, Transparency, Environment, Change Agents, Mining by Marc Choyt
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Introduction:

Here is a press release illustrating the power of share holders to demand Corporate Social Responsibility (CSR) from Gold Corp Inc. ~ Marc

In an unprecedented move Canadian mining firm Goldcorp Inc. has agreed to conduct an independent Human Rights Impact Assessment in Guatemala at the request of Canadian and Swedish shareholders.

The company has faced criticism regarding the environmental and human rights impacts of its mining operations. The shareholders hope that the assessment will become a benchmark for mining companies operating in high risk countries. The agreement was announced in a statement today.

The statement reads: “The Public Service Alliance of Canada (PSAC) Staff Pension Fund, The Ethical Funds Company, The First Swedish National Pension Fund and The Fourth Swedish National Pension Fund, have reached an agreement with Goldcorp Inc. and have withdrawn a shareholder resolution submitted to the company in March. Goldcorp Inc. has agreed to commission an independent human rights impact assessment of its operations in Guatemala.”

The intention of the assessment is to provide the company with concrete recommendations regarding its implementation of practices, policies and procedures, and the impact of its operations on human rights.

A steering committee is being formed to oversee the assessment process and will include representatives from the company, shareholders and other stakeholders.

Shareholders expect the assessment to be completed in the next 8-12 months, at which time the company will develop a plan for implementing recommendations of the assessment.”

A group of investors has been in dialogue with the company for more than two years, and stepped up engagement efforts in February by conducting a field trip to Goldcorp’s Marlin mine in Guatemala.

The group met with NGOs, indigenous people, government authorities and company representatives in order to get a clearer picture of the complex situation. The trip culminated in a shareholder resolution submitted to the company.

“By taking on a Human Rights Impact Assessment (HRIA), Goldcorp is behaving responsibly and responding to the concerns raised by local stakeholders in Guatemala. Goldcorp is also setting a standard for others in the mining industry - for which they should be commended,” said Bill Brassington of the PSAC Staff Pension Fund, who will represent the investor group in the HRIA steering committee.

“Mining corporations are increasingly operating in high risk areas - both in terms of culture and environment and they need to address these risks in a way that satisfies local stakeholders, as well as investors,” said Peter
Chapman, Executive Director of the Shareholder Association for Research and Education (SHARE) which is providing research and engagement assistance to the PSAC and Meritas Mutual Funds.

“Business recognition of human rights obligations is relatively new,” said Robert Walker, Vice President of Sustainability at The Ethical Funds Company. “And human rights impact assessment is a relatively new concept for promoting human rights. We laud Goldcorp for embracing this tool as a foundation for protecting human rights and addressing community concerns in Guatemala. We look forward to reviewing the results.”

“The outcome of this process could set a precedent for the entire industry and is crucial for Guatemala, since the mining industry has rapidly expanded there. However, after ending 36 years of civil war, the country is extremely
vulnerable. Therefore, mining companies and others have a responsibility to make sure their business operations are sustainable over the long-term, and respect the Maya culture,” said Helene Regnell, Research Director of GES Investment Services, an advisor to the filing First and Fourth Swedish National Pension Funds as well as the Second and Third Swedish National Pension Funds who supported the resolution through their collaborative body, the Ethical Council.

For further information, contact: Bill Brassington, PSAC Staff Pension Fund, Phone: (604) 298-6301, Email: brassrouts@telus.net

Peter Chapman, Executive Director, SHARE, Phone: (604) 408-2456, Email: pchapman@share.ca

Robert Walker, Vice President, Sustainability, The Ethical Funds Company, Phone: (604) 714-3833, Mobile: (778) 772-2142, Fax: (604) 714-3861, Email: bwalker@ethicalfunds.com

Carl Rosén, Chairman, Ethical Council, Phone: +46 31 704 29 00, Mobile: +46 73 940 10 10, carl.rosen@ap2.se

Helene Regnell, Research Director, GES Investment Services, Phone: +46 8787 99 17, Mobile: +46 70 787 01 04, Email: helene.regnell@ges-invest.com

=== EARTHWORKS: Protecting Communities and the Environment

Stephen D’Esposito
President and Executive Director
EARTHWORKS
1612 K St., NW, Suite 808
Washington, D.C., USA 20006
202-887-1872×203
202-887-1875 (fax)
sdesposito@earthworksaction.org
www.earthworksaction.org

Tags: Spin, CSR, Ethical Initiatives, Sustainability, Transparency, Change Agents, Gold, Platinum, Ethics, Environment, Mining by Marc Choyt
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Pam Danizer is author of “Shopping: Why We Love It and How Retailers Can Create the Ultimate Customer Experience.” She writes about the new green luxury customer.

The typical ‘green’ consumer is no longer certain to be a fashion-challenged, granola-crunching wearer of Birkenstocks. Today, the consumer looking to go green is increasingly likely to be an affluent professional woman dressed in an eco-friendly and animal-free Stella McCartney power suit with satin pumps.

And if you want the affluent green-conscious customer’s dollars and loyalty, you need to pay attention to the priorities she finds important when making her selection of luxury goods and services.

Green luxury consumers look for social responsibility before making a purchase

According to Unity Marketing’s latest trend report on luxury, “Green Marketing and the Luxury Consumer,” luxury consumers are concerned about the environmental issues that hit closest to home, citing fuel and energy shortages and the use of renewable energy sources as top concerns.

With gas prices at $4 a gallon ­ and this might be the summer low ­ even the affluent find it hard to ignore the impact of filling your tank a couple of times a week.

However, luxury consumers are also looking beyond their pocketbooks to larger issues, like protecting the environment, global warming and avoiding water and air pollution.

Leaders on these issues are affluent women. In all of the green issues that Unity Marketing studied, women popped as being much more concerned than men.

This is an important signal for luxury marketers to sit up and take notice, as women are often the major shoppers for a family, making the primary decisions about the products and services the family will purchase. For luxury consumers, an increasing number are looking to a company’s environmental practices before making a purchase.”

Luxury marketers take action: You need to think of the long term and going green should be part of the plan

A lot of marketers are skeptical about the green trend. They don’t know whether it has legs or is just a passing fad for the moment. I am convinced that this issue is only going to gain momentum in the future, with the affluent consumers in particular taking the lead as early adopters of green living.

So the call is for luxury brands to connect with their customers who are increasingly green aware and eco-conscious by making green marketing a part of their strategy. Luxury marketers can learn by studying trend-setters who are creating a dedicated following among green-living luxury consumers.

For example, only a few years ago designer Stella McCartney with her no-animal policy was considered very much on the fringe of fashion. Today she is front and center as a luxury designer of fashion-forward and environmentally-sound style.

Donna Karan is also at the forefront of the green movement through her Urban Zen initiative which combines a philanthropic foundation along with a retail arm that distributes a line of natural and organic fashions.

Saks Fifth Avenue is another trend-setter in the green marketing category. From converting their extravagant Fifth Avenue Christmas display to LED lights which drastically reduced energy consumption to their ‘Green House — Home of Eco Smart Style’ online initiative where website visitors can shop for eco-friendly designer fashion, home furnishings and jewelry made from recycled metals, the company is putting efforts behind helping their affluent customers live responsibly.

Another interesting initiative for Saks is a new sales area just introduced in five of its stores called ‘The Beauty of Living Well.’ The sales areas are devoted to what Saks terms ‘natraceutical’ skin care products. What is intriguing about this new concept is that it is intended as a platform to expand into other healthful living products, including nutritional products and supplements.

My advice to luxury marketers is not to wait, but start to plan for green marketing initiatives that will connect with the priorities of their increasingly green-aware consumers. This trend isn’t going away. On the contrary, it will only grow and luxury consumers will expect their favorite luxe brands to go green along with them.

Unity Marketing’s Luxury Trend Report, “Green Marketing and the Luxury Consumers”, provides marketers data and ideas to plan their green marketing strategies

To find out more about the luxury trend report and to order a copy, click this link .

Tags: Fair Trade, Sustainability, Transparency, Change Agents, Ethics, Environment, Editorial by Marc Choyt
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INTRODUCTION:

This is the urgent action appeal referenced by Dr. Barrito in the previous post. Special thanks to Julia Caudros of the organization, CooperAcción for informing us of this injustice.

With great concern I have come to learn about the news that 35 Peruvians, defenders of human rights and of the environment, municipal authorities, legal, technical and leading advisers of communities and community rondas, have been legally accused of terrorism for expressing their ideas, defending their rights and promoting a Local Referendum so that the population could express, freely, their opinion on the development of mining activities in their area.

Since 2003 the mining company Majaz S.A., today Rio Blanco Copper S.A., (of the British company Monterrico Metals PLC, whose major shareholder is the Chinese Consortium Zijin – Xiamen Zijin Tongguan Investment Development Co. Ltd.) have been promoting the Mining Project Rio Blanco located in the districts of Ayavaca and Carmen de la Frontera in northern Peru.

As you may know last September 16, the Local Referendum was carried out in the districts of Ayavaca and Pacaipampa in the province of Ayavaca and in the district of Carmen de la Frontera in the province of Huancabamba, both located in the northern region of Piura. More than 50 per cent (17,976 voters) of the electorate of these three districts took part in this civic event and 97% of them expressed their rejection of mining activities in their territories.

The accusations of terrorism seeks to discredit those that exercise lawfully and peacefully the defense of rural communities’ rights; those that defend the moorlands and cloud forests where a mining project intends to develop but who choose for a model of development based on agriculture and eco-tourism. This act of accusations also seeks to intimidate the whole society for the mere fact of expressing their disagreement with certain politics that wishes to silence its citizens.

We consider these accusations to be an outrage against those that act within the boundaries of the law and exercise their civic rights that the Peruvian Constitution protects. We request the Government and the national authorities of Peru, take action in order to avoid the violation of rights and fundamental liberties, by rejecting the denunciation and reinstalling the Round Table of Dialogue, - paralyzed by the leave of the Cabinet President- and in this way seek a peaceful means to end the conflict in the area.

Join us in our act of solidarity!

How to help:

Send the letter to the electronic directions (addresses) that are indicated by copy to CooperAcción’s mail.

Send to:

Dr. Alan García Pérez
Presidente de la República del Perú
Palacio de Gobierno
Plaza Pizarro, Jr. De la Unión s/n
Lima 1 – PERU (511) 311 4200 (511) 311 4711 secretariageneral@presidencia.gob.pe

Dr. Jorge Del Castillo Gálvez
Presidente del Consejo de Ministros
Av. Manco Cápac 879, Miraflores
Lima 18 – PERU (511) 610 9800 (511) 610 9680 mtalledo@pcm.gob.pe

Dra. Beatriz Merino
Defensora del Pueblo
Jr. Ucayali 388
Lima 1 - PERU (511) 426 78000 (511) 4267889 gbocanegra@defensoria.gob.pe
mlevano@defensoria.gob.pe

Dr. Luis Gonzáles Posada
Presidente del Congreso de la República
Plaza Bolívar s/n
Lima 1 – PERU (511) 311 7777 (511) 3117703 lgonzales@congreso.gob.pe

Ing. Juan Valdivia
Ministro de Energía y Minas
Av. Las Artes Sur 260, San Borja
Lima 41 – PERU (511) 475 0065
(511) 618 8700 (511) 224 4490 jvaldivia@minem.gob.pe

Dr. Luis Alva Castro
Ministro del Interior
Plaza 30 de Agosto s/n, San Isidro
Lima 27 – PERU (511) 225 0202
(511) 225 0402
(511) 225 7234 desmin@mininter.gob.pe

Copy to:
cooperaccion@cooperaccion.org.pe

If you wish more information on the case please see the following websites:
www.cooperaccion.org.pe

www.redmuqui.org.pe

www.minesandcommunities.org

Tags: Transparency, CSR, Sustainability, Environment, Toxins, Gold, Ethics, Mining by Marc Choyt
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George Rodriguez is the National Sales Manager for Hoover and Strong, the manufacturer of Harmony Metals, which are 100% recycled.

It was two years ago when I first I spoke with George about my company’s interest in recycled precious metals. At that point, the demand was weak. But the momentum has really changed, particularly over the last year.

More than most people, he can see how the jewelry sector is trending toward ecologically responsible precious metals. I asked him these questions via email.

Special thanks to George for taking time to get back to me.

********************************************************************

INTERVIEW

MC: Is this interest in recycled precious metal products catching really on?

GR: Yes, there has been a ground swell of interest for all things green. For us in the jewelry industry that deals with metals and gems it’s important that jewelers take note. Harmony Metals was introduced to manufactures at the recent MJSA show in New York and was proof of the great interest in Harmony recycled metals and ethical gems.

All levels of jewelers were interested in our program from designers and small manufacturers to top retail chains. Although traffic was down at the MJSA, Hoover & Strong faired well with its new brand. So yes the green movement is happening.

MC: Can you give me some specific examples of how this movement for recycled gold, recycled silver and recycled platinum is gaining momentum ? What is the difference now, versus, six months ago or a year ago?

GR: I believe the movement began a couple years ago with the No Dirty Gold Campaign, last year with the Madison Dialog and a few independents stating the importance of saving the planet. The jewelry industry has taken precious metals and gemstones out of the earth for a long time with little regard to the planet, its pollutions to water and ground, the people in unsafe mining conditions, taking away precious resources with no benefits to the communities and future.

However, the green movement is coming in from all sides. Leaders such as Al Gore who won the Noble Prize for his contribution on global warning, the many advances on technologies for fuels, and building materials to hundreds of ideas to re-cycle. The green movement is in the news weekly. So yes, the green movement is happening.

MC: Are those switching over to recycled precious metal mainly small manufacturers, large or a mixture of both? What’s the trend?

GR: The early adopters’ are always the independents and small manufactures, as they are more agile and can quickly change with trends. It takes large retailers much more effort and expense. This is a good opportunity for independents to promote how they differ, before the chains adapt. I can’t judge the dollar amounts to the Harmony Metals movement but I can say companies and consumer activists are coming together to protecting the environment. They want to switch to re-cycle metals and be a part of this important issue. We are witnessing the birth of a greater need than just to make money, we are looking to solve serious problems with mining of precious metals and to bring solutions to an industry that needs all the help it can muster.

MC: Can you give me any idea of how much has the Harmony Brand increased your over all sales?

GR: The beauty of our actions is that we don’t need new metals to produce products. Since we have up graded our refining division to be state of the art and improving our internal operations, Hoover & Strong is able to champion less destructive resources. We have been able to re-cycle gold, silver, platinum and palladium successfully without having to order any metals directly from the mines. We also partner to other vendors for a small part of our line to insure they too are following the proper guidelines and keep Harmony Metals to its highest standards.

MC: Has your initiative created any friction among those who are not going for more ecologically responsible processing?

GR: Some companies have not seen the green movement as a new venture or have taken any steps towards saving the planet. It’s only a matter of time before they realize we are all responsible to do our part.

MC: If I am a jeweler not using recycled metals and I want to switch to you, how much more will I have to pay?

GR: If a jeweler decides to use Harmony Metals it will cost them nothing extra to do so and that for all of our 30,000 products made from recycled gold, platinum, palladium and silver.

MC: Any thing else you’d like to add?

GR: For 96 years Hoover and Strong has operated by its core values of integrity, helpfulness, innovativeness, responsibility, quality and family. Our Harmony Brand is just an extension of these values and our responsibility for our earth’s precious commodities.

Tags: Ethical Initiatives, Resources & Suppliers, CSR, Transparency, Change Agents, Editorial by Marc Choyt
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The Manufacturing Group of the Madison Dialogue has determined principals and now begins the process of setting standards.

Catalina writes,

“We do not think the Madison Dialogue list should be developing standards. It should continue to do what it was set up to do, that is to serve as a forum for discussion, including feedback on standards that are currently being developed by standard setting organizations such as ARM for small scale mining and IRMA for large scale mining.”

She points out the necessity that this next process take place within a larger international community where all stakeholders are represented.

This post was on the Madison Dialogue list serve. Special thanks to Catalina for permission to reprint her post.

****************************************************

The MD list serve, meetings and working groups represent a great opportunity for discussion and debate on ethical sourcing, trading and manufacturing of minerals. The Association for Responsible Mining, ARM, joined the MD with an understanding that this was “a cross-sector initiative established to promote communication and collaboration among companies, civil society groups and others seeking to encourage –

Best practices,
Sustainable economic development,
- and verified sources of responsible gold, diamonds and other minerals”

Over the past weeks we have been concerned with the growing expectation on some of the working groups that somehow the Madison Dialogue is an appropriate space to develop standards and accompanying verification systems.

We do not think the Madison Dialogue list should be developing standards. It should continue to do what it was set up to do, that is to serve as a forum for discussion, including feedback on standards that are currently being developed by standard setting organizations such as ARM for small scale mining and IRMA for large scale mining.

The MD is not an organization; we believe it does not have the capacity or the governance structure to lead a legitimate standard setting process. We are of the view that organizations and institutions need to take responsibility for standards setting to ensure legitimacy and accountability.

We would like to invite you read the ISEAL Code of Good Practice for Setting Social and Environmental Standards, which clearly describes procedures to ensure that standard-setting practices are credible and effective.

In very general terms, compliance with the code means:

The standard will not create unnecessary barriers to trade;
The standard-setting process is transparent and open to interested stakeholders;
The standard has clear objectives, and criteria that meet those objectives;
There is meaningful participation by those stakeholders that are directly affected by the implementation of the standard; and
There is a balance of input in the discussion and in the decision-making on the standard.

In accordance with this code, we believe the questions that one must ask in determining the appropriateness of a body to set standards and develop verification systems includes the following:

What are the procedures?
What is the decision making process?
Who will lead the consultation processes?
Who will respond to complains or questions?
Are the interested parties represented?
Are the miners represented?
How will we ensure the participation of interested groups who do not have access to Internet or who do not speak English?
Who will test the standards on the ground?
Who will implement them?

We would recommend that the Madison Dialogue might be a useful place to have this discussion and perhaps reach some agreements as to the appropriate methods and approaches to standard setting and implementation. We welcome this space for consultation, sharing information and discussion and will continue to participate under such philosophy.

Tags: CSR, Ethical Initiatives, Sustainability, Best Practices, Transparency, Jewelry Manufacturing, Ethics, Change Agents, Madison Dialogue by Marc Choyt
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Senior diamond editor for the JCK Magazine, Robert Bates, writes an interesting post about diamond cutting in China after his recent visit there. I have been grateful to Rob’s support of my work and for keeping in touch with me over the past few months.

Here’s Rob’s post:

http://www.jckonline.com/blog/870000287/post/370026837.html

Tags: Best Practices, CSR, Ethical Initiatives, Transparency, Environment, Diamonds, Jewelry Manufacturing, Ethics, Editorial by Marc Choyt
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Introduction:

John Hardy Jewelry has always been deeply rooted in environmental responsibility as well as an abiding love of Bali. Last year, John and Cynthia sold the company and immediately started a visionary international school, called Green School, located between Ubud and Denpassar in Bali. My brother, Brad Choyt, was hired as Green School’s Director.

[Read more →]

Tags: Transparency, CSR, Change Agents, Environment, Interviews, Ethics, Editorial by admin
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This document is a result of a dialog between members of the Madison Dialogue manufacturing group. This current document is the revised version of a previous principle document. You can read the actual dialogs

Principles represent the broad overarching ethos.

Our next step will be to create standards. A standards document will allow us

[Read more →]

Tags: Ethical Initiatives, Fair Trade, Sustainability, CSR, Transparency, Jewelry Manufacturing, Ethics, Change Agents, Madison Dialogue by Marc Choyt
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The Manufacturing Committee is developing fair trade standards for international manufacturing.

The first part of this process is the development of broad, overarching principles. From that, specific standards can be developed.

In this dialogue, minimally edited, participants discuss the issue of child labor principles based on

[Read more →]

Tags: CSR, Ethical Initiatives, Fair Trade, Sustainability, Best Practices, Transparency, Jewelry Manufacturing, Ethics, Environment, Change Agents, Madison Dialogue by Marc Choyt
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