lori bonn short deck by 2s1J5Sm

VIEWS: 5 PAGES: 17

									         Clear Conscience Jewelry




   Bill Gallagher            Jennifer Malkin
Lori Bonn Gallagher          Wiam Hasanain
                      1
                                Apr 25th, 2007
Overview
        1. Lori Bonn

        2. Charge/Scope

        3. Methodology

        4. Jewelry Market

        5. Consumer

        6. CSR & The Jewelry Industry

        7.   Industry Recommendations

        8. Lori Bonn Recommendations




    2
                      Lori Bonn Design, Inc.
•   Founded in 1991

•   Northern California based designer,
    manufacturer and distributor of jewelry.

•   Distribution: specialty retailers, department
    stores and catalogs.

•   Growth goal: tripling revenue in next 5
    years

•   Clear Conscience Jewelry 2004




                                                    3
                              Scope
Explore social, environmental & ethical issues facing the entire jewelry industry
from mine to retail and efforts currently underway to address them. Evaluate
current efforts and recommend a process for Lori Bonn and the industry to
enhance social responsibility.




                                     4
                               Methodology
      Jewelry Industry                  Consumer             Lori Bonn
       and CSR Issues                    Demand               Designs

Primary:                           Primary:            Primary:
Interviews with 25+ stakeholders   - Designed online   - Company visit
- 1 Mining company                    survey           - Interviews with
- 3 Stone dealers                                         principals and staff
- 3 Manufacturers
- 3 Jewelry design companies
- 4 Retailers
- 1 Industry Association
- 2 Fair Trade Certifiers

Secondary:                         Secondary:          Secondary:
- Industry websites                - Reviewed LOHAS    - Review of company
- Analyst reports,                    and Jewelry         literature
- Current standards                   consumer study
- Research publications


                                          5
                               Executive Summary
                 Issues                              Industry Recommendations
•   Growth in consumer demand, NGO
    pressure                                     •    Lay the Groundwork

                                                 •    Address Gaps
•   Mining concerns drive the agenda
    (and research), but entire value chain       •    Deep collaboration
    is of concern
                                                 •    Transformation
•   Retailers feeling pressure, but value
    chain is murky.


•   Fractured efforts by segment, size               Lori Bonn Recommendations
                                                 •    Compliance and Involvement

•   Social responsibility vs. Fair Trade         •    Extend Reach

•   Scarcity of responsible sources.             •    Company Transformation

                                                 •    Beacon for Others


                                             6
              Jewelry Anatomy


 Diamond                        Metal


Colored Gem




                     7
                    Journey Behind the Jewelry

                 Leach
                                     Smelt
                  With
                                    & Refine
                Cyanide
 Metals




          • Environment           • Energy
                                   Consumption
                                  • Air Pollution


                                                Sort
                                                                   Cut
   Explore                Mine               Distribute,                       Manufacture      Retail
                                                                 & Polish
                                              & Trade

• Environment     • Forced Labor        • Smuggling            • Working       • Working       • Lack
• Indigenous                                                     conditions      conditions      Accountability
                  • Child Labor         • Pricing
  Issues                                                       • Child labor   • Child labor   • No common
                  • Environment         • Stone Mixing
                                                                                                 definitions
                                                               • Wages         • Wages
                  • Health &
                    Safety
                  • Wages
                  • Resettlement,                          8
                    Dependency
Consumer




   9
                            Consumer

                                                  Fair Trade Products

  Consumer Types                80%

                                70%

                                60%
            50M Consumers
                                50%
                 23%
                                40%

                                30%

167M Consumers                  20%

     77%
                                10%

                                0%
                                      Y   N   Y      N                  Y   N   Y   N

   LOHAS    Regular




  There is a growing demand for Socially Responsible Jewelry.

                               10
    Broad Overview of CSR & Jewelry industry
•   Growth in consumer demand, NGO pressure


•   Mining concerns drive the agenda (and
    research), but entire value chain is of concern


•   Retailers feeling pressure, but value chain is
    murky.


•   Fractured efforts by segment, size


•   Social responsibility vs. Fair Trade


•   Scarcity of responsible sources.




                                                      11
             Efforts Underway - Standards
Standards                                            Fair Trade Efforts

Mining                                               Artisanal Mining
- Industry Standard Initiatives: Extractives          Development oriented:
- Industries Transparency Initiative (EITI)          - PartnershipAfrica Canada
- Initiative for Responsible Mining Assurance        - Diamond Development Initiative (DDI)
  (IRMA)                                             - ARM (metals)– relationships with
- International codes of note: Framework for             producers and others…
  Responsible Mining

Diamonds                                             Gold
- Kimberly Process Certification Scheme.             - Zero Standard
- Council for Responsible Jewelry Practices
  (CRJP)

Gold                                                 Colored Gems
- No Dirty Gold, CRJP (gold)                         - Columbia Gem House Fair Trade Protocol



                                                12
                     Industry Recommendations



Transformation
                          •Standards  Fair Trade
5-10 years
                          •Monitoring system
Deep Collaboration        •Relationships between
3-5 years                  companies and communities
                          •Industry standards for all segments

Address Gaps              •Research supply chain gaps
                          •Retailer analysis and education
1-3 years                 •Quantify and stimulate demand
                          •Build up credibility
                          •Shore up supply
Lay                       •Maximize industry participation
Groundwork                •Increase accountability
                          •Reframe discussion
0-1 year
                          •Communicate and coordinate efforts
                          •Share sources and create a network
                                           13
                    Lori Bonn Recommendations



Beacon for Others
5-10 years                •   Fair Trade Jewelry Company
                          •   Recognized leader
Company Transformation    •   Develop fair trade jewelry line
3-5 years                 •   Communicate story to consumer


Extend Reach              •   Implement code of practices
                          •   Support (not lead) development of network
1-3 years                 •   Philanthropy


Compliance                •   Determine CSR Strategy
                          •   Develop code of practices
& Involvement
                          •   Comply with Kimberly Agreement
                          •   Source from responsible companies
                          •   Increase involvement through formal partnerships
0-1 year                                   14
                                      Next Steps

                Compliance                                     Involvement

 Review                                              Attend June                Converse
                  Interview        Assess No                          Attend
 existing                                            meeting in Las             with
                  gem              Dirty Gold                         Fall
 standards                                           Vegas                      industry
                  suppliers        signing                            meeting
                                                                                leaders
                                                                      in DC

                                                                                     CRJP
Establish
                  Establish                          Rapaport
code                                                                                 Dene Design
                  baseline                           Fair Trade       Ethical
of practices
                  and track                          Diamond          Metals
                    back                             and                             Lucina Designs
                                                     Jewelry
                              Review                 Association                     Ethical
          Explore
                              implementa                                             Metals
          responsible
                              tion
          sourcing
                              guidelines
          options
                              for                                                    Columbia
                              Kimberly                                               Gem House
                              Process




                                                15
                                   Thanks!
Value to us:
• First hand how information can impact decision of
   consumer
• Difficult for one player to make a difference
• Appreciation of complexity of Jewelry market and
   knowing all the pieces and players.

Value to firm:
• Raised profile through interviewing process
• Deliverable to field on behalf of Clear Conscience
• Sustainable sourcing and partnership options




                                           16
             Clear Conscience Jewelry




   Bill Gallagher                Jennifer Malkin
Lori Bonn Gallagher              Wiam Hasanain

                        17        Apr 25th, 2007

								
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