Post on 20-Dec-2015
1
Jennifer MalkinWiam Hasanain
Apr 25th, 20071
Clear Conscience JewelryClear Conscience Jewelry
Bill GallagherLori Bonn Gallagher
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Overview1. Lori Bonn
2. Charge/Scope
3. Methodology
4. Jewelry Market
5. Consumer
6. CSR & The Jewelry Industry
7. Industry Recommendations
8. Lori Bonn Recommendations
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Lori Bonn Design, Inc.
• Founded in 1991
• Northern California based designer, manufacturer and distributor of jewelry.
• Distribution: specialty retailers, department stores and catalogs.
• Growth goal: tripling revenue in next 5 years
• Clear Conscience Jewelry 2004
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ScopeExplore social, environmental & ethical issues facing the entire jewelry
industry from mine to retail and efforts currently underway to address them.
Evaluatecurrent efforts and recommend a process for Lori Bonn and the
industry toenhance social responsibility.
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Methodology
Lori BonnDesigns
Primary: - Company visit - Interviews with
principals and staff
Secondary: - Review of
company literature
Consumer Demand
Primary: - Designed online
survey
Secondary: - Reviewed LOHAS
and Jewelry consumer study
Jewelry Industry and CSR Issues
Primary: Interviews with 25+ stakeholders- 1 Mining company- 3 Stone dealers- 3 Manufacturers- 3 Jewelry design companies- 4 Retailers- 1 Industry Association- 2 Fair Trade Certifiers
Secondary: - Industry websites - Analyst reports,- Current standards- Research publications
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Executive SummaryIssues
• Growth in consumer demand, NGO pressure
• Mining concerns drive the agenda (and research), but entire value chain is of concern
• Retailers feeling pressure, but value chain is murky.
• Fractured efforts by segment, size
• Social responsibility vs. Fair Trade
• Scarcity of responsible sources.
Industry Recommendations
• Lay the Groundwork
• Address Gaps
• Deep collaboration
• Transformation
Lori Bonn Recommendations
• Compliance and Involvement
• Extend Reach
• Company Transformation
• Beacon for Others
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Jewelry Anatomy
Diamond
Colored Gem
Metal
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Journey Behind the Jewelry
• Environment
• Indigenous Issues
Mine
• Forced Labor
• Child Labor
• Environment
• Health & Safety
• Wages
• Resettlement, Dependency
Sort Distribute,
& Trade
• Working conditions
• Child labor
• Wages
• Lack Accountability
• No common definitions
Leach With
Cyanide
Cut& Polish
Manufacture Retail
• Smuggling
• Pricing
• Stone Mixing
• Working conditions
• Child labor
• Wages
Met
als
• Environment • Energy
Consumption
• Air Pollution
Explore
Smelt& Refine
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Consumer
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Consumer
There is a growing demand for Socially Responsible Jewelry.
Fair Trade Products
0%
10%
20%
30%
40%
50%
60%
70%
80%
Y N Y N Y N Y N
Consumer Types
167M Consumers
77%
50M Consumers
23%
LOHAS Regular
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Broad Overview of CSR & Jewelry industry
• Growth in consumer demand, NGO pressure
• Mining concerns drive the agenda (and research), but entire value chain is of concern
• Retailers feeling pressure, but value chain is murky.
• Fractured efforts by segment, size
• Social responsibility vs. Fair Trade
• Scarcity of responsible sources.
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Efforts Underway - Standards
Standards
Mining - Industry Standard Initiatives: Extractives- Industries Transparency Initiative (EITI)- Initiative for Responsible Mining
Assurance (IRMA)- International codes of note: Framework
for Responsible Mining
Diamonds - Kimberly Process Certification Scheme. - Council for Responsible Jewelry
Practices (CRJP)
Gold - No Dirty Gold, CRJP (gold)
Fair Trade Efforts
Artisanal Mining Development oriented:- PartnershipAfrica Canada- Diamond Development Initiative (DDI)- ARM (metals)– relationships with
producers and others…
Gold- Zero Standard
Colored Gems- Columbia Gem House Fair Trade
Protocol
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Industry Recommendations
Lay Groundwork
0-1 year
Deep Collaboration
3-5 years
Transformation
5-10 years
•Research supply chain gaps•Retailer analysis and education •Quantify and stimulate demand •Build up credibility•Shore up supply
•Maximize industry participation•Increase accountability •Reframe discussion•Communicate and coordinate efforts•Share sources and create a network
•Relationships between companies and communities •Industry standards for all segments
•Standards Fair Trade•Monitoring system
Address Gaps
1-3 years
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Lori Bonn Recommendations
Compliance
& Involvement
0-1 year
Company Transformation
3-5 years
Beacon for Others
5-10 years
• Implement code of practices• Support (not lead) development of
network • Philanthropy
• Determine CSR Strategy• Develop code of practices• Comply with Kimberly Agreement • Source from responsible companies • Increase involvement through formal
partnerships
• Develop fair trade jewelry line • Communicate story to consumer
• Fair Trade Jewelry Company• Recognized leader
Extend Reach
1-3 years
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Next Steps
Compliance Involvement
Review existing standards
Establish code of practices
Interview gem suppliers
Assess No Dirty Gold signing
Explore responsible sourcing options
Establish baseline and track
back
Review implementation guidelines for Kimberly Process
Attend June meeting in Las Vegas
Attend Fall meeting in DC
Rapaport Fair Trade Diamond and Jewelry Association
Ethical Metals
Converse with industry leaders
CRJP
Dene Design
Lucina Designs
Ethical Metals
Columbia Gem House
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Thanks!
Value to us:• First hand how information can impact
decision of consumer• Difficult for one player to make a difference• Appreciation of complexity of Jewelry
market and knowing all the pieces and players.
Value to firm:• Raised profile through interviewing process• Deliverable to field on behalf of Clear
Conscience• Sustainable sourcing and partnership
options
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Clear Conscience Jewelry
Jennifer MalkinWiam Hasanain
Apr 25th, 200717
Bill GallagherLori Bonn Gallagher