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Public Affairs
Since the turn of the century jewellers have come under sustained pressure from campaign groups to consider the human and environmental costs involved in extracting the raw materials that they subsequently sell as finished products on British high streets. Numerous campaigns have sought to raise the collective consciousness, and retailers – as the interface between consumers and the supply chain – were encouraged to apply pressure on their suppliers to bring about change. In the jewellery context, precious metals, diamonds, and gemstones are viewed as the main ‘offenders’ and their extraction and processing has been blamed for conflict, oppression, human rights abuses, exploitation, and displacement of indigenous peoples. Not to mention environmental degradation. Gold and diamonds, which for these purpose we can think of as the principle commodities, are extracted in many places around the globe. However the continent of Africa has historically been considered the main source of both. With large corporations and artisanal miners both bringing raw material to market. It might be tempting to view the big mining companies as the villains of the piece, but they have done a lot to improve working conditions. It mustn’t be forgotten that, whilst small-scale artisanal miners may be less visible, they often leave an equally poor environmental legacy.  Starting with the clearing of the ‘overburden’ that includes trees, vegetation, and topsoil, and leaving behind degraded subsoils potentially contaminated with mercury and cyanide (See Paul Laird’s report from Ghana about illegal gold-mining near to Montonnso Sacred Forest.) During my twelve year tenure as former CEO of the National Association of Goldsmiths I witnessed a lot of good work done on cleaning up the supply chain. Members of the Responsible Jewellery Council (RJC), for instance, now commit to – and are independently audited against – international standards on responsible business practices for diamonds, gold and platinum group metals that addresses human rights, labour rights, environmental impact, mining practices, and product disclosure in the jewellery supply chain. My friend Greg Valerio on the other hand has worked tirelessly on the plight of artisanal miners, latterly championing the work of the Fairtrade Foundation. Their Fairtrade Gold scheme speaks directly to consumers about the effect their choices have on others, and the modest premium they pay improves the lives of small scale miners around the world.
Since leaving the NAG I have involved myself with the work of the International Tree Foundation (ITF). But this isn’t about ‘do-gooding’ or tree hugging! Just like Fairtrade, ITF’s work results in real incremental improvements in living standards, the environment, and well-being. Working in partnership with local organisations we support community forestry projects both in the UK and Africa. Helping to build secure livelihoods and improve the local environment through sustainable tree planting programmes. In Kenya alone there are plans for 20 million trees by 2024!
Yes, the planting and conservation of trees and forests does improve biodiversity, soil quality, water- retention and the air we breathe. But trees are also a source of economic benefits including fruits, wood, fibres, gum, cosmetics, and medicines. And they supplement livelihoods in rural areas. International Tree Foundation works with businesses to engage their staff and customers in tree planting initiatives across Africa and in the UK. If you are interested in improving ecosystems and livelihoods, and in communicating your commitment to sustainable development to your clients and employees, then get in touch. You can call 01865 318 832 or email info@internationaltreefoundation.org for further information on their business partnerships scheme. OUR MISSION
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Blog, Public Affairs, Public Relations

Thirteen years as CEO of the now defunct National Association of Goldsmiths (NAG) and I was beginning to experience a sense of frustration that the debate on transparency and trace-ability in the jewelley supply chain was going around in circles! After more than a decade of work – heroic efforts by Greg Valerio and Fairtrade Gold, and a bucket load of green-wash from other quarters – I was starting to feel that the pool of committed people was almost saturated and that we were now just having a circular debate within a group of devotees to the cause. But the recent FLUX: REDEFINING LUXURY conference has restored my faith!

The True Cost

Now, after three years watching from the side-lines, I’m immensely encouraged to find that the message is again reaching a wider, grass-roots, audience of designer makers. Why is this? Well, persistence is one reason, recognition another! The award of Greg’s MBE contributed new impetus and pushed ethical gold several notches up the awareness ladder. Ethical fashion has helped too.

In 2000 – when I first became involved with retail jewellers – many didn’t really get the connection between themselves and the fashion industry. But brands and diverse materials have broadened their horizons, and cemented the bonds between jewellery and fashion. Interestingly fashion and jewellery have been running on parallel tracks when it comes to ethical supply chain issues too.

Both are concerned with provenance, the elimination of destructive environmental practices, human rights violations, and exploitation of local workers. But their gestation periods have been different. Environmental and exploitation anxieties about gold, precious metals, and diamonds matured over decades, reaching their tipping point with the No Dirty Gold and ‘blood diamond’ revelations early this century.

Similarly, the extraction, and consumption of water during cotton cultivation and subsequent pollution in the processing of fabric has long been an environmental concern for the fashion industry. The universality, accessibility, and relentless rapidity of fashion trends – ‘fast fashion’ – has accelerated that destruction but also propelled the possibility of change in the garment industry. The durability, value, and complexity of jewellery, has driven change more slowly.

Fashion Revolution was born, in the wake of the Rana Plaza collapse in Dhaka, Bangladesh, that killed 1,134 and injuring 2,500 others.  Its belief that ‘fashion can be made in a safe, clean and beautiful way, where creativity, quality, environment and people are valued equally’ seems to me to be the fundamental linkage between jewellery and fashion! Thanks to Greg, Fairtrade Gold, Lina Villa from ARM, and Orsola de Castro of Fashion Revolution for bringing that fact vividly to life!

Michael Hoare

Bavaria 1

 

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Communications, Public Affairs, Uncategorized

Gem Idea Graphic

The jewellery industry has been angst-ridden for most of the current century over the moral, ethical, and environmental damage done by the exploitation of gold and diamonds. Child labour, the blighted lives of miners, the spoil left by extraction, the financing of civil wars, and the buttressing of repressive regimes have each left their own stain on the industry. The Kimberley Process, the Dodd Frank act, OECD Due Diligence, and subsequent legislation, attempted to deal with these concerns, and bring forth order out of chaos. However, the plethora of initiatives in the supply chain remains perplexing for retailers, and those that want to trade ethically.

As CEO of the now defunct National Association of Goldsmiths (NAG) and a founding Director of the Responsible Jewellery Council (RJC), I worked with NGOs and others for over a decade to influence the practices and policies of miners, refineries, processors, wholesalers, retailers, and banks in their efforts to regulate and monitor the movement and provenance of gold and diamonds within the supply chain.

Today, rigorous policies – both imposed and self-policed – are impacting on the tracking of both commodities back to responsible origins.  But the work still isn’t complete, and the industry still needs to shore up its claims to social and ethical sourcing with transparency, trace-ability, and communication across the entire supply chain, before retailers can trade with complete confidence in the attribution of their stock. Platinum group metals have also been added to the scope of the RJC, but one of the unsolved problems remains the provenance of coloured gemstones!

Therefore the announcement of the launch of a technical feasibility study to include coloured gemstones into the scope of the RJC should be music to jewellers’ ears.  But, past experience of working alongside the Gemmological Association of Great Britain (Gem-A), whose work is the study and identification of gemstones, I am acutely aware how complex a task it is likely to be. Not just because of the range of stones, but because of the fractured supply chain.

Artisanal and small-scale mining (ASM) – labour intensive and often in remote and inaccessible areas – still accounts for the majority of the worldwide supply, raising obstacles to transparency and trace-ability at even the production stage. Compared to diamonds, the supply chain of coloured gemstones is highly complex, making it nearly impossible to trace their trajectory from mine to end-user.

Mined in roughly fifty countries – located mostly in the global south – gemstones pass through numerous hands before being polished, transformed into jewellery and sold in the international retail market.  And – unlike diamonds – the coloured gemstone supply chain doesn’t have a history of being governed by a centralised cartel, so opportunities for human rights abuses, environmental damage, and illicit activity, are legion.

So, while the RJC’s intentions are entirely laudable, their desire to plug the remaining gaps admirable, I think we should all recognise that the road ahead will be strewn with moral and ethical boulders, and some will be very difficult to work around!

Bavaria 1

Michael Hoare

Contact me on info@michael-hoare.co.uk for strategy, communications, and public relations consultancy.

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Getting a buzz from jewellery drones

The jewellery trade press are reporting that a business owner in the U S has completed what is thought to be the first ever drone-delivery undertaken by a jeweller. According to Jewellery Focus:

‘Distinctive Gold Jewelry, of Frankfort in Illinois, delivered a women’s watch to a couple celebrating their anniversary. The business owners say that they have being “dying to do” such a delivery since they first heard of the concept of drones. Drones have become a talking point in retail and consumer circles ever since online shopping giant Amazon said it was trialling the technology….It is not clear whether Distinctive Gold Jewelry intends to roll it out as a standard part of their service offering, but it has nonetheless garnered some attention stateside, with US trade magazine National Jeweler breaking the story.’

So, a PR coupe for Distinctive Gold Jewelry, but what if this neat – even amusing – stunt were to become an everyday occurrence?  The crowded streets of our major cities are a far cry from the comfortable little town of Frankfort with its 17,000 inhabitants.

Scale up the delivery of one watch to the kind of volumes that might attract Amazon, and you have a whole different scenario. Imagine the skies of London or Birmingham buzzing with delivery drones? Or worse still, the peaceful horizons of our market towns? Is that really what we want?  How much fun will it be when our Sunday afternoons – and maybe nights – are shattered by the infernal buzz of drones passing overhead? How much of a laugh will it be when you’re poleaxed by a parcel falling from the sky, or get a swipe across the head from a twenty kilo projectile, as it bounces off the roof, and breaks a few tiles on the way down? And who will pay for the damage?

So, leaving aside the obvious security concerns, the threats to privacy and safety are just two of the reasons we should think very hard before surrendering to this seductive new technology. But if that time ever does come, I think I’ll be investing in a tin hat and a catapult!
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Sports Direct is facing heavy criticism in the press. Its board labelled as dysfunctional by the Institute of Directors (IoD) for failing, among other things, to check the powers of founder and executive director Mike Ashley. Apart from major decisions being made without board level consultation until the very last-minute; an atypical board structure; and unexpected decisions being made with no explanation, the Sports Direct board comes in for flack for its unusual governance. Have associations anything to learn from this example?

Dyfunctional by association

According to reports in The Guardian newspaper, Sports Direct`s chairman, Keith Hellawell, told a recent commons Scottish affairs select committee that non-executive directors were unaware of a plan to put part of the group into administration until the day before it happened, despite discussions with the administrator over nearly three months. Two hundred workers lost their jobs as a result. A handful of senior executives took key decisions without any discussion at board level, and one shareholder is facing legal action from Sports Direct after he sought access to the retailer’s shareholder register to gain support for a campaign on the use of zero-hours contracts.

Whilst the Sports Direct board may be an extreme example, I could name at least one membership association in a similar fix. So, with the effectiveness of a board and its members able to make or break an organisation, is it time to ask – how functional is my own board, and is it making good decisions? Membership boards aren`t exempt from failure after all!

Some forms of dysfunction may  be easily addressed but others can be much more difficult to resolve. In my experience, ninety percent of the time the problem is the wrong mix of people. They may have been  appointed board members because of their expertise, experience, great reputations and networks, and often due to their strong personalities. But this can sometimes prove a toxic mix!

There are numerous reasons why individuals sign up for board positions in the first place, and understanding these can go a long way to explaining dysfunction in the boardroom. Sometimes, its purely for ego’s sake, believing the role will look good on their CVs, rather than out of a true interest in contributing to the board and in doing their fair share. I know of boards where directors simply don’t turn up for regular, scheduled meetings. And others where they almost never read briefing notes. Plus, un-remunerated volunteers may give low priority to their duties.

Sometimes it is the inability of the chairman to keep order, prevent side meetings, and make sure all points of view are heard – curbing the bullying or garrulous, and encouraging the timid – so that the discussion flows and timely decisions are made. Postponement and procrastination are the enemies of decision-making. And failure to instil the principle of `cabinet government` – whereby the whole board puts its weight behind its collective decisions – can leed to a leaky and divided board. Directors must also leave individual self-interest at the door, acting only for the common good. Some trade association directors find this latter principle very hard to grasp.

So, a vital job for any board is to monitor  its own performance – with the help of an independent observer – to see if there is remedial work to do. The outward signs of board dysfunction should be easy to spot, and may include churn in the boardroom and among senior management; a CEO who struggles because of lack of support (a CEO running rampant can, conversely, be a sign of Board weakness); and constant failure to meet objectives in an otherwise healthy market.

The effects can be severely damaging. The business will undoubtedly lose good people and will make bad decisions. But there is no quick fix and severe damage can be done during the time it takes to remove and replace under-performing, dead-weight, or wayward directors. Nip the problems in the bud at an early stage. Don’t waste precious resources firefighting after the event – risking the loss of members’ confidence – with all that can entail in terms of lost revenue. Take action now!

Latest reports indicate that in the Sports Direct case, one result may be an AGM vote against the retailer’s executive deputy chairman by an influential shareholder. Where that will lead is not yet clear, but it’s a stark reminder that playing fast and loose with governance can have unhappy consequences for all boards – including associations!

Bavaria 1

Michael Hoare FIAM

@mjhoare

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I love trees, and one of the great things about London – compared with other cities – is it’s green spaces and tree lined streets. So I’d like to see more of them, and welcomed the idea of a ‘green bridge’ in the heart of the city when it was first mooted. Especially as it was to be coupled with innovative – almost sculptural – design. But if this Observer article has got its facts right, why don’t we just use the £60 million of public money, supposedly pledged to this project, to grow ourselves a proper forest that’s open to all? That’s fifteen million trees by my reckoning! Read more….

Green Bridge Design For those of us old enough to remember, this story must call to mind the lyrics of Joni Mitchell’s song ‘Big Yellow Taxi’ from the album Ladies of the Canyon, released way back in April 1970.  It goes something like this:

They paved paradise And put up a parking lot With a pink hotel, a boutique And a swinging hot spot

Don’t it always seem to go That you don’t know what you’ve got Till it’s gone They paved paradise And put up a parking lot

They took all the trees Put ’em in a tree museum And they charged the people A dollar and a half just to see ’em

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