Diamond mining giant De Beers has called for an expanded mandate for the World Diamond Council (WDC) and for a review and increase in its resource capability.
Speaking at the WDC’s annual meeting in Jerusalem, on Thursday, De Beers managing director Gareth Penny said the council has accomplished a great deal and has gained international credibility and respect and remains the most effective and appropriate organisation to represent the whole industry, right along the diamond value chain.
However, he said, in spite of recent successes, many challenges remain.
“The conflict diamonds issue, for example, has not left us and it would be complacent and dangerous for anyone to believe that it has,” Penny said.
He added that to succeed the WDC partnership must hold a widely shared understanding about what constitutes a true partnership. Each of the partners must have a common vision of the future and expectations must be managed.
“The WDC partnerships cannot be a patchwork quilt of well-meaning intentions and ideas. It requires nurturing, compromise and re-assessment. The time for consideration, realignment and action is now. The WDC must be truly representative of the industry and the people and countries in which we conduct business. It must be transparent and accountable to all those who participate in it,” he said.
“In addition, the WDC must seek to expand its mandate beyond conflict and the resource capability of the WDC must be reviewed and where possible increased. It has to be in a position to address issues arising from the governance of our industry, its business ethics, environmental concerns and be able to demonstrate awareness of the issues facing the communities in which the industry operates — anywhere in the world,” he continued.
Penny added that no sector or individual company could carry the burden of financing and supporting the WDC indefinitely.
“Of course support should be based on size and ability to pay. However, if we don’t contribute in an equitable way, we cannot reasonably expect to have a voice in how our industry evolves and interacts with the world around us,” he said.
He added that the WDC was essential to the continued success of the international diamond industry.
Penny also said the diamond jewellery competes in an increasingly hostile environment where the consumer is becoming more sophisticated, better informed and more demanding, particularly on issues that impact reputation.
“Like the consumer, we too must be more demanding. We must demand only the highest standards of ethical behaviour from our colleagues, our suppliers and everyone else we do business with. Turning a blind eye to where our diamonds come from will no longer be overlooked or tolerated by society,” he said.
“Quality is no longer just a physical manifestation of the products purchased by consumers. Quality and value are now also measured against where the product comes from, who manufactured it and how. Given the level of competition we face today, you can be assured that if we don’t check the source of our diamonds and don’t manage our individual reputations, someone else will,” Penny said.
“Our experience from the conflict diamond issue and the industry response highlights the need to be prepared by developing demanding standards and living by them. Compliance with the Kimberley Process and strict adherence to the system of warranties are not options, but should form the very minimal base from which to conduct our businesses — at every stage of the diamond value chain,” he said.
The WDC consists of representatives from diamond manufacturing and diamond trading companies. It was set up in July 2000 to examine ways to reduce the number of conflict diamonds entering the diamond market. At almost the same time national governments also took steps to eradicate trade of conflict diamonds by drawing up the Kimberley Process which governs how diamonds are obtained and traded. ‒ I-Net Bridge