Ethics and social responsibility have long been discussed regarding business operation, governmental administration, and products and services offered to customers. Besides economy, consumers currently turn to focus on life quality and environment. Evidently, many countries across the globe, which had concentrated solely on economic growth without quality have been facing social and environmental problems. The 1996 Human Development Report of the United Nations Development Programme (UNDP) states that economic growth “quality” is more important than economic growth “rate” because quality is more sustainable. 

Sustainability Trends Amidst COVID-19 Pandemic

Many countries’ fashion industry has been strongly anticipating its post-pandemic recovery. One of the most talked about topics is fashion industry’s development toward sustainability. A survey of McKinsey regarding consumers’ attitude over sustainability and fashion industry in Germany and the UK indicates that 88% of the consumers were willing to pay more to reduce pollutions causing by fashion products. In order to reach the goal, 67% of the consumers agreed with using products made from recycled materials, while 61% agreed with buying products with environmental-friendly packagings. 

In addition, surveys on confidence in many countries’ economy were conducted. It was found that 58% of respondents in China and India believed that their countries would bounce back or become even stronger within 2-3 months after the pandemic. Respondents in Indonesia, the US, Mexico, and Brazil follow with the rate of 53%, 42%, 35%, and 28% respectively. The result reflects recovery opportunity of the gem and jewelry industry as many of them are the industry’ key markets. 

Source: https://www.mckinsey.com/business-functions

Ethics and Sustainability in Gem and Jewelry

Ethics and sustainability have been recognized and practiced by many sectors. The gem and jewelry industry has also built awareness and specified the definition of ethics. For the industry, ethics includes transparency and responsibility in sourcing and sustainable use of raw materials with the least environmental impacts as well as fair wages and safe environment for workers. According to the definition, it covers from upstream to downstream - transparent mining, providing good hygiene for workers, offering origin traceability throughout supply chain, being mindful of possible impacts to environment and neighboring communities, using reused or recycled materials, and giving fair wages. 

A survey of ExJewel, research company promoting ethics and transparency in the gem and jewelry industry, reveals that in 2020 the figures of search on keywords related to ethics and gem and jewelry were as follows: ethical jewelry, ethical diamond, and ethical gold increased from the previous year by 75%, 75%, and 73%; lab grown diamond jumped 83%; sustainable engagement ring rose 65% year-on-year; and Art Nouveau Jewelry skyrocketed by 113%. The figures show that consumers’ behavior regarding gem and jewelry consumption shifted to ethical jewelry. They have been eyeing synthetic diamonds to replace natural ones. Motifs representing natures like Art Nouveau have also been rising in popularity. The reactions could partly be due to the pandemic, which boosted their awareness over the matters.

 Source: https://exjewel.com/insight-the-2020-conscious-jewelry-report/

Moreover, ExJewel listed 10 ethical jewelry brands as follows.

Tiffany & Co.: Leading Ethical Brand 

Tiffany & Co. has been consistently carried out ethical and transparent initiatives. Back in 1995, the brand pushed against gold mining in the Yellowstone National Park. Furthermore, it launched significant activities in promoting ethics and transparency, for instance, 1999: it was the leader urging the US to join the Kimberley Process Certification Scheme (KPCS); 2002: established Laurelton Diamonds Inc. to examine diamond quality and control diamond supply chain for jewelry production to become transparent, traceable, and social and environmental-friendly, and to build good relationship with partners; 2004: stopped selling jewelry made of corals and encouraged other brands to join in; 2005: became the first brand focusing on using social-and-environmental friendly gold; 2015: collaborated with other brands in setting the goal on reducing greenhouse-gas emissions to zero by 2050; and 2020: launched the Diamond Craft Journey for customers buying diamonds of 0.8 carat and over with data registration. Participated customers will receive details of diamonds from their origin, cutting location, grading, quality assessment, to jewelry production before reaching them. The jewelry pieces are packaged in boxes with the brand’s logo. These boxes are produced with paper from sustainability-oriented sources certified by the FSC logo (a certification system for forest management and tree replanting) and recycled materials.

 Source: https://www.tiffany.com

SOKO, another notable jewelry brand, was established in 2013 to help jewelry craftsmen in Kenya. As the country’s jewelry market is small, they suffered from low wages insufficient for living costs. Furthermore, they were unable to reach buyers in overseas markets. Thus, SOKO helped them through Virtual Factory, a mobile phone application providing marketing support and order and payment management. The application helps them to connect with customers around the world. SOKO’s jewelry is produced by Kenyan artisans with skills in traditional handicrafts combined with modern technology to create jewelry pieces with unique local designs. Recycled brass is used in more than 90% of the brand’s production. As for production and labor, a team is assigned to visit a site to take charge of production and training. Matters regarding working time and child labor are also conducted according to the guidelines of the International Labor Organization (ILO). In addition, the brand is aware of production process reducing energy consumption, preserves environment, provides appropriate wage to lessen poverty and inequity gap, and strengthens communities in Kenya through creating distinguished and high quality crafts to achieve the mutual goal.

   Source: https://shopsoko.com/

In Thailand, there is an example of jewelry manufacturer named KWAHM SUMPAN CO., LTD. The company produces jewelry of more than 3,000 designs as well as jewelry for kids. It has become a member of Responsible Jewellery Council (RJC) since November 2019 and certified on trade ethics by the Sedex Members Ethical Trade Audit.

Ms. Rattiporn Nuchprapai, the manager of KWAHM SUMPAN CO., LTD., said that the company has existing customers who have long engaged in business with their trust in the company’s recognized standards. Materials used for its production are also confirmed by laboratories for safety. They are supplied by recognized transparent sources as requested by customers. Each process is controlled by quality assuring standards with packaging and delivering process focused on safety to ensure that products will reach customers around the world with accuracy and traceability.

 Source: https://www.ks925jewelry.com/

Natasha Creations Co., Ltd., an OEM company producing high quality 10-18k gold jewelry with gemstones, has been a member of RJC since April 2015. Mr. Numchok Untareejun, the personnel manager of Natasha Creations Co., Ltd., said that the company has its ethical standard for customers in trade secret protection. It has also set a standard in ethics and transparency with standard inspection through customer’s audit every year. Moreover, its jewelry is checked for contaminants such as lead, which American customers highly place importance on. With its standard, the company has consistently acquired customers from the US and Europe.

 Source: https://www.natasha-creations.com/

As consumers’ behavior has increasingly turned toward environment and raised global awareness in ethics and sustainability, the gem and jewelry industry has responded and formed standards in good governance. Many organizations in the industry have been established to promote and elevate trade and production process throughout the supply chain for transparency, fairness, and social and environmental friendliness. The organizations include The World Jewellery Confederation (CIBJO), Ethical Metalsmith, Fair Jewelry Action, Fairmined, Fairtrade, Responsible Jewellery Council (RJC), and Natural Diamond Council. They share the mutual purpose of forming standards and providing knowledge in building ethics and transparency. 

In the near future, ethical and sustainable jewelry will be a customer’s top choice. Also, it becomes the vital trend transforming the gem and jewelry industry regarding creating products which are not only precious for the soul but also gracious to the world and environment.