Ethical Sourcing & Chain of Custody Flashcards

What does the term 'chain of custody' mean in the diamond trade?

Answer: A documented trail tracking a diamond from mine to retail sale

Chain of custody refers to the documented sequence of possession that tracks a diamond from its point of origin through every stage to the final sale.

Which international body administers the Kimberley Process Certification Scheme?

Answer: A tripartite body of governments, industry, and civil society

The KPCS is administered by a tripartite structure comprising governments, the diamond industry (represented by the World Diamond Council), and civil society organizations.

A retailer receives diamonds with a warranty statement attached to the invoice. What does this warranty primarily confirm?

Answer: The diamonds are conflict-free to the best of the seller's knowledge

The System of Warranties uses invoice declarations to confirm that diamonds are conflict-free based on personal warranties from the seller.

Which practice helps a jewelry retailer verify that their diamond suppliers comply with the Kimberley Process?

Answer: Conducting supplier audits and requesting KP compliance documentation

Retailers should audit suppliers and request documentation showing adherence to KPCS requirements as part of due diligence.

The term 'conflict diamond' as defined by the Kimberley Process refers specifically to diamonds used to fund:

Answer: Rebel movements seeking to undermine legitimate governments

The KP defines conflict diamonds as rough diamonds used by rebel movements to finance wars against legitimate governments.

Why do some human rights organizations criticize the Kimberley Process as insufficient?

Answer: It does not address diamonds linked to government-sponsored violence or labor abuses

Critics argue the KP's narrow definition of conflict diamonds ignores abuses committed by state actors and does not cover labor or environmental violations.

What is the role of the World Diamond Council's System of Warranties in day-to-day retail transactions?

Answer: It extends KP assurances through the polished supply chain via invoice warranties

Since KP certificates only cover rough diamonds at national borders, the System of Warranties extends conflict-free assurances through the polished diamond supply chain via invoice declarations.