Finlay Enterprises is committed to the ongoing global efforts to stop the trade in conflict diamonds. In January 2003, governments, non-governmental organizations and the diamond industry created an intergovernmental agreement called the Kimberley Process Certification Scheme ("KPCS") to eradicate conflict diamonds from the world’s diamond supply. Finlay participates in a voluntary program of self-regulation to complement the KPCS in cooperation with the leading organizations in the jewelry industry, including the World Diamond Council and Jewelers of America. Through these joint efforts and as announced by Kimberley Process authorities in 2004, well over 99% of the world’s diamond supply is certified to be from sources that are free from conflict. As North America’s finest jewelers, Finlay will continue to do its part to ensure the diamonds we sell are certified from legitimate sources not involved in funding conflict and in compliance with United Nations resolutions.
Since the adoption of KPCS in January 2003 and the signing into law of the Clean Diamond Trade Act in April 2003, Finlay has developed a conflict diamonds compliance program, starting with the revision of its Vendor Code of Conduct to include the Kimberley Process chain of warranties. The revised code specifically requires all Finlay vendors to guarantee that the diamonds and diamond-containing jewelry they provide to Finlay are conflict free. Since the implementation of the revised code, Finlay has consistently received the following warranty from Finlay vendors supplying diamonds and diamond jewelry:
Other significant measures Finlay has instituted include, but are not limited to, requiring our diamond vendors to provide proof of warranty from their sources of diamond merchandise upon request, training store associates on the Finlay conflict diamond program, and auditing our processes for compliance. In 2006 Finlay also required its vendors to recertify their adherence to KPCS.
To learn more about the conflict diamond issue and the efforts Finlay is taking to bar conflict diamonds from its inventory and provide assurances to our customers that the diamonds we sell are from legitimate sources, read the following information.
|OUR CONFLICT DIAMONDS POLICY
We take the issue of conflict diamonds very seriously.
ROLE OF GOVERNMENTS
ROLE OF INDUSTRY
ROLE OF THE RETAILER
The most important contribution jewelers can make within our industry is to deal only with trade suppliers of diamonds and diamond jewelry that comply with Kimberley Process and its warranty system. We follow this policy and have taken concrete, comprehensive steps to sell diamonds that are conflict free:
|FREQUENTLY ASKED QUESTIONS ON CONFLICT DIAMONDS
The questions and answers below will assist you in understanding the conflict diamond issue. We want our shareholders, customers and employees to have confidence that Finlay is using its best efforts to both bar conflict diamonds from its inventory and sell diamonds that are "conflict free".
What are Conflict Diamonds?
Conflict diamonds are diamonds mined in certain African combat zones that have fueled and funded civil war and gross abuses against the civilian population. Such diamonds are estimated to currently account for less than 1% of the world diamond production.
What is the Kimberley Process?
As of 2006, approximately 70 countries have adopted a system to control the export and import of rough diamonds mined from January 1, 2003 onward. Known as the Kimberley Process Certification Scheme (KPCS), it requires that each shipment of rough diamonds--before stones are cut and polished--be in a tamper-resistant container and accompanied by a certificate of origin. At later stages of the diamonds’ journey to market, rough diamonds also carry a certificate describing the shipment’s contents and confirming that the stones are coming from a Kimberley Process participant. Any country declining to participate is effectively barred from the international diamond trade. In addition, the Clean Diamond Trade Act was signed into law by President George W. Bush on April 25, 2003 which codifies many of the provisions of the Kimberly Process. The U.S. Customs and Border Protection is responsible for enforcement at American ports.
What role does the jewelry industry have in protecting the diamond supply?
The most important contribution jewelers can make within our industry is to deal only with trade suppliers of diamonds and diamond jewelry that comply with KPCS. Finlay fully supports this voluntary program of self-regulation.
What is the diamond industry doing to ensure that the self-regulating KPCS program is working?
Finlay Enterprises, along with other industry members, formed the not-for-profit Council for Responsible Jewellery Practices (CRJP) in May 2005 to promote responsible business practices in a transparent and accountable manner throughout the diamond and gold supply chain, including adherence to the Kimberley Process system of warranties. CRJP is creating a practical implementation system that will use independent third-party monitors to credibly demonstrate that the business practices of CRJP members are in compliance with KPCS as well as other key industry initiatives.
What steps has Finlay Corporation taken to safeguard its diamond supply?
Finlay has taken concrete, comprehensive steps to offer for sale diamonds that are "conflict free":
For more information about Finlay’s policies, please visit our website.
Additional information about the Kimberley Process and its system of warranties can be found at the following links: