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Trust Is Key for Ethical Dealing, Say Suppliers
Amid efforts to boost transparency in the industry, a dealer’s integrity is a priceless resource.
Jun 19, 2019 7:16 AM
By Joyce Kauf
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RAPAPORT... Transparency is a growing goal for wholesalers, but there’s
another “T” word that may be even more important: trust. In an industry defined
by long-abiding relationships, assurances of ethical sourcing depend heavily on
a seller’s reputation for integrity.
Opening up
Transparency is now a “definite trend,” according to Eric
Mor, president of New York-based wholesaler Abe Mor Diamond Cutters. There is
public concern, especially among millennials, about an industry associated with
“blood diamonds,” he notes, th
“Thirty years ago, it used to be just family members, and
now we are bringing in brain-power and Wall Street money,” he says. “We’re
opening up, but we’re still so insular.”
David Rakower, president of New York-based manufacturer
Joseph Asher Collection, also hails the move toward greater openness.
“Transparency is de rigueur; everyone is trying to be transparent,” he says. He
cites the Kimberley Process (KP), as well as the written and oral guarantees in
place to ensure that everyone from producers to retailers is complying with
ethical standards.
Is it sustainable?
For all those efforts, however, it’s difficult to verify a
stone’s source indisputably, says Mor. “Our suppliers sign pledges that their
diamonds are sourced ethically, but frankly, without advances in technology,
such as blockchain or photographing the diamond from the rough to the final
product, there is really no way to absolutely ensure that every step of the way
is ethical.”
The same is true for recycled diamonds — or as Mor prefers
to call them, “reclaimed” diamonds.
“It’s definitely hip right now to buy things that are
environmentally friendly,” he observes. While he occasionally receives requests
for reclaimed diamonds, he believes retailers need to make consumers aware that
such diamonds exist, as customers “are not going to ask for them unless they
are advertised.”
That said, it’s not always possible to confirm that such
diamonds are indeed recycled. “Short of showing the old Gemological Institute
of America (GIA) cert or other paperwork, there is really no way to prove that
the diamond has been reclaimed and entered the market,” he says.
Maintaining a good name
As such, many wholesalers consider trust to be the driving
factor in an industry traditionally known as a “handshake business.”
“As a supplier, the most important thing we can do is
establish a trusting relationship and [strengthen] those relationships we have
both up- and downstream,” asserts Rakower. “We are going to regulate ourselves
to ensure that when we produce and/or sell things, we do that with the
knowledge that we have our reputations at stake.”
Indeed, he declares, “we don’t hide behind anything. We put
our name on our products.”
Of course, that doesn’t stop less savory players from trying
to gain traction. “We get from two to five calls as well as several emails a
week from all kinds of dubious suppliers. We ignore those calls,” says Mor. “It
isn’t all that hard for someone to find illegal sources. We only do business with
people we trust.”
‘A very strong chain’
It takes a joint effort from parties throughout the pipeline
to ensure ethical sourcing, says Rakower. “We have a personal responsibility to
do the right thing. If everyone in the chain stands up and does the right
thing, we’ll have a very strong chain.”
Of course, there are other benefits to sourcing stones
responsibly. “Besides being the right thing to do, being ethical is a smart
business move — more so for our industry,” states Mor. “The most exciting part
is the potential to market our transparency to consumers and shine a light on
all the good the industry does. But at the end of the day, market forces will
drive the change. Being transparent will pay off.”
Getting certified
One of the ways companies can get their ethical-sourcing
credentials is by joining the Responsible Jewellery Council (RJC) — and the
organization has high standards for entry.
“It was quite intense,” says Andrew Rickard, vice president
of operations at RDI Diamonds, recalling the extensive audits required for
membership. The certification recognizes a company’s commitment to responsible
business practices, and RDI — a wholesaler in Rochester, New York — took this
proactive step to reinforce its values of transparency and integrity.
“You’re essentially going through the rigorous process to
prove that your product is done in an ethically sourced way with people who are
trusted resources,” Rickard elaborates — in other words, that “you are doing
things above board.”
Occasionally, clients question him about the company’s
sourcing policies, and he views it as an opportunity to explain the RJC’s
goals. “Clients gain a different perspective once they understand what
certification entails and how comprehensive — and difficult — it was. There is
a newfound respect for what we’re doing...to mitigate those risks.”
Still, nothing is “1,000%” foolproof, he acknowledges.
“There is always the fear that one bad player can damage your reputation. There
are so many parts of the chain — and only so much that is in your control.”
This article was first published in the June 2019 issue of Rapaport Magazine.
Image: A natural diamond in kimberlite. (Shutterstock)
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Tags:
Abe Mor Diamond Cutters, David Rakower, Eric Mor, Gemological Institute of America, GIA, Joseph Asher Collection, Joyce Kauf, Kimberley Process, KP, Responsible Jewellery Council, RJC
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