Ethical Sourcing & Chain of Custody Flashcards

A diamond retailer in the US discovers their supplier has not signed the System of Warranties. What is the most appropriate course of action?

Answer: Request that the supplier adopt the warranty system or find a compliant alternative supplier

Best practice requires that retailers work only with suppliers who participate in the System of Warranties, and they should seek compliant alternatives if a supplier refuses.

Which of the following best describes 'due diligence' in diamond sourcing?

Answer: Proactively identifying, preventing, and addressing risks of adverse human rights and environmental impacts in the supply chain

Due diligence in responsible sourcing involves a continuous process of risk identification, prevention, and mitigation across the supply chain.

Fair trade diamond initiatives primarily aim to benefit which group?

Answer: Artisanal and small-scale miners and their communities

Fair trade diamond programs focus on ensuring artisanal and small-scale miners receive fair prices, safe working conditions, and community development benefits.

A customer asks whether a diamond on display was mined using environmentally responsible practices. Which response best reflects an informed, honest answer?

Answer: Environmental standards vary by country and mine; I can share what I know about our supplier's practices and certifications

An honest retailer acknowledges variability in environmental standards and shares specific, verifiable information about their suppliers rather than making blanket claims.

What is the primary function of a KP certificate when rough diamonds cross an international border?

Answer: To confirm the diamonds are not conflict diamonds and were legally exported from the issuing country

A KP certificate confirms that the rough diamonds were legally exported and are certified as non-conflict diamonds by the issuing government.

Zimbabwe's Marange diamond fields became a significant test for the Kimberley Process because:

Answer: Credible reports of government-sponsored violence in the fields challenged the KP's narrow definition of conflict diamonds

Violence against miners by Zimbabwean security forces at Marange exposed a gap in the KP's definition, which only covers rebel—not state—perpetrated violence.

Which record-keeping practice is most important for a jewelry retailer wanting to maintain an auditable chain of custody?

Answer: Retaining supplier invoices with System of Warranties statements for a minimum period as required by industry standards

Retaining supplier invoices bearing System of Warranties declarations provides the documentary evidence needed for an auditable conflict-free chain of custody.