Corporate Responsibility
Group sales $3.5 billion 81% US / 19% UK As at January 31, 2013 Kay Jewelers Every Kiss begins with Kay Sales: $2b Stores: 949 in 50 states H.Samuel Helps you say it better Sales: 243m Stores: 318 Jared He went to Jared Sales: $1b Stores 190 in 35 states Ernest Jones Love & Life Sales: 202m Stores: 193
Conflict diamonds Other conflict minerals General ethics etc Bribery Act and other key legislation
Diamonds are largest single product category sold. Gold is also very significant. Huge reputation risk Impact on diamond/gold sales Total Sales Share price
Diamonds sold by rebel movements to fund military campaigns. Sierra Leone Angola Blood diamonds World Diamond Council (WDC) UN Government Bodies KIMBERLEY PROCESS CERTIFICATION SYSTEM - KPCS (UNCUT DIAMONDS) WDC SYSTEM OF WARRANTIES (POLISHED DIAMONDS)
Invoices and packing slips for diamonds and diamond jewellery shipped must state For any product fabricated from rough diamonds mined from January 1, 2003, onward, the seller warrants that diamonds have been purchased from legitimate sources not involved in funding conflict and are in compliance with United Nations resolutions. The seller hereby guarantees that the diamonds are conflict free, based on personal knowledge and/or written guarantees provided by the supplier of these diamonds. For any product fabricated from rough diamonds mined prior to January 1, 2003, the seller warrants that conflict diamonds will not be knowingly sold and that, to the best of their ability, will undertake reasonable measures to help prevent the sale of conflict diamonds in this country.
Dodd Frank Act 2012 Source of minerals is conflict free. Covers whole supply chain Gold, Tin, Tungsten, Tantalum Tantalum is a hard grey metal used in dental and surgical instruments Companies should take reasonable steps and make good faith efforts to conduct due diligence and prevent or mitigate any risks of adverse impacts associated with the condition of mineral extraction and the relationship of suppliers operating in conflict affected or high risk area
Companies should publicly report on their supply chain due diligence policies and practices should have their due diligence practices audited by independent 3 rd parties
Responsible Jewellery Council (RJC) A global association for sustainability standards that certifies organisations for the diamonds, gold, platinum group metals jewellery supply chain. Developed Code of Practices set of responsible business practices.
Main Areas Business ethics Human rights and social performance Environmental performance Management practices Self Assessment Third Party accredited Auditors Certification lasts 3 years
Bribery Act Competition Act
Member of WDC Member of Responsible Jewellery Council (RJC) Development of SRSP Signet Responsible Sourcing Protocol Lobbyist at OECD and EU PwC Bribery Act risk assessment External lawyers ongoing Competition Act guidance On line training must pass tests ½ year refreshers for senior management doing things right
Group CEO - part of our main strategy (2020 vision) UK CEO part of UK strategy Corporate Social responsibility
Kimberely Annual audit - group wide Dodd - Frank Annual audit group wide RJC Full audit every 3 years (in advance of external audit) group wide Strategic annual follow ups Bribery Act Periodic full audit and then strategic follow ups
Competition Act Annual full audit Monthly pulse checks using word mining Additionally Sit on numerous committees / working parties Involved in ½ yr senior management refreshers Bridge across the Group
Make it a point of difference Very favourable pressure group and press response