FASHION FOR POSITIVE CHANGE
Corporate Integrity in the World of Luxury
Current Legislation
In the UK, The Human Rights Act 1998 - Article 4 states that “no one shall be required to perform forced or compulsory labour” (Equality & Human Rights Commission, 2021). This has been included as it applies to the topic of naturally-mined diamonds and the human rights violations that occur in diamond-rich countries, where the treatment of workers would not be legal in the UK.
“Fashion businesses sit at the centre of a web of supply chain connections which often hide human rights and environmental problems. A flurry of due diligence legislation is underway to unpick these issues, for example the Corporate Sustainability Due Diligence Directive (CS3D), which scraped through the EU parliament last year, will require companies both based in the EU and selling into it to be accountable for these human rights and environmental impacts both within and outside Europe, and to have dedicated action plans” (Harding, 2024). On 15 March 2024, the European Union Council voted to adopt this legislation.
Similarly, in the USA there is talks for the Social Accountability Act, “If passed, the bill would require companies to pay more attention to their social and environmental impact in their supply chains” (Hudson, 2024).
(Kimberley Process, n.d.)
The Clean Diamond Trade Act & The Kimberley Process Certification System (KPCS)
As of the 29th of July 2003, The Clean Diamond Trade Act in the USA requires “rough diamonds imported or exported from the United States be controlled through the Kimberley Process” (U.S. Customs and Border Protection, n.d.).
The Kimberley Process was established in 2003 to prevent the flow of conflict diamonds entering the diamond supply chain by an United Nations mandate. The KP is active in 85 countries currently (under 59 participants). Under the KPCS, “States implement safeguards on shipments of rough diamonds and certify them as conflict free” (Kimberely Process, n.d.).
Under terms of the KCPS participants must:
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“Satisfy ‘minimum requirements’ and establish national legislation, institutions and import/export controls.
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Commit to transparent practices and to the exchange of critical statistical data.
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Trade only with fellow members who also satisfy the fundamentals of the agreement.
Certify shipments as conflict-free and provide the supporting certification” (Kimberley Process, n.d.).
(Kimberley Process, 2022)
The United Nations (UN) Sustainable Development Goals (SDG’s)
The 17 Sustainable Development Goals (SDG’s) set by the United Nations (UN) in 2015, give objectives for all of its members to work towards. Majority of the goals play a role in some form within the diamond industry. In partnership with the United Nations Global Compact, the RJC (Responsible Jewellery Council) also accelerates the progress of the agenda and the 17 goals within the jewellery and watches industries.
(United Nations, 2015)
Goal 17: Partnerships for the Goals
Multilateralism is important to solve world problems, which can be done by the application of the SDG’s. Goal 17 is “to revitalise the global partnership for sustainable development” (United Nations, 2015). We see this through the implementation of the Kimberley Process, where UN participants are helping remove conflict diamonds from the global supply chain. As a result, the need for civil war in pursuit of diamonds is no longer justifiable as the conflict diamonds will not be purchased by the industry.
To summarise the issue with the KPCS, if the diamond does not fund armed forces, there is a loophole where it can be considered ‘conflict-free’, which doesn’t apply to a variety of other humanitarian issues. A plethora of companies and voices within the industry are calling for the KCPS to cover a wider definition of unsustainable practices used to acquire diamonds. According to MiaDonna, over the last 6 years, an estimated 60 million carats of conflict diamonds are still entering the international market from Africa, Brazil, Russia and India; then being purchased by unassuming customers (MiaDonna, n.d.).
According to industry-expert Mike Fried, “this narrowly-focused certification process makes it perfectly legal to sell diamonds tainted by violence, child labour, poverty, and environmental atrocities… Diamonds certified as ‘conflict-free’ by the Kimberley Process does not take those that have mined them, nor their surrounding communities and environments, into consideration ” (Fried, 2023).
(United Nations, 2015)