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The Best Practice Principles (BPP) is a mandatory set of
principles introduced by the Diamond Trading Company (DTC), a major arm of the
De Beers Group . As another initiative to promote integrity and accountability
in their trade, these oblige every member of the De Beers family to follow the
highest standards in their professional, social, ethical and environmental
responsibilities.
Salient features
The following three salient points, also known as the triple
bottom line, are the highlight of BPP
Ethical
responsibility
This ensures that the company and all its operations act in
a responsible and ethical manner while conducting business practices. This is
fulfilled be controlling all activities like misuse as conflict diamonds , non
disclosure of synthetics, simulants and treatments , usage of child labor and
money laundering. Also all participants would need to follow the national law
while conducting business.
Social
responsibility
This keeps in view that participants continuously adhere to
the stringent ‘social requirements'. It is kept in check by ensuring that all
businesses comply with the national employment laws. Also the safe working
conditions of employees and the provision of a healthy working environment
without discrimination based on caste, color and creed would be considered.
Finally, usage of child labor would be treated as a major offence with strict
action being taken against those participating in it.
Environmental
responsibility
Under this aspect, the company ensures that all operations
regardless of their scale adopt the highest standards with respect to their
impact on the environment. Adherence to the highest standards, policies and
regulatory frameworks are followed to up keep the environmental responsibility.
This would apply to the management of materials, water, biodiversity, energy,
wastes, effluents and emissions. Through reduction, recovery, reuse and
recycling; all these harmful substances would be carefully managed.
BPP participants
The BPPs apply to all the units that are owned and operated
by the De Beers group. This includes units in the areas of mining, exploration,
sorting, recovery, valuation and marketing. Besides this, joint ventures and
diamond related contractors also need to comply with the regulations of the BPP.
Besides this, these principles apply to the units that are owned or controlled
by the sightholders (organizations that receive rough diamonds from DTC) and
their contractors.
Structure of BPP
Based on the participants there are three tiers of groups that
would subscribe to the BPPs. Amongst them, the first tier applies to the De
Beers group and its diamond related contractors and partners. Tier 2 includes
sightholders while tier 3 includes the contractors that work for sightholders.
Besides these three major tiers, a tier 4 has also been acknowledged, which
would have to indirectly comply with the BPPs. This includes ancillary (non
mining) contractors to the De Beers group operations and the independent
companies that purchase or sell diamonds because of the business relations with
the De Beers group or sightholders.
Assurance of BPP
All entities that are a part of the BPP network are regularly
assessed by an independent third party known as SGS. The assessment is objective
and impartial and comprises of completing the ‘BPP workbook'. While the format
of the workbook is common for all, the means of assessing its data changes for
people of different tiers. The workbook is evaluated by SGS, whose work is
further reviewed by an audit experienced body. Instances of failure to comply
would promptly be reported to the De Beers board, which would take immediate
action through ‘Corrective action plans'. The fourth tier, while it would not
be assessed, also needs to demonstrate best endeavors.
The future
What began in July 2000 has come a long way now. With the
BPPs in place, the BPP assurance program is now under development. In the
dynamic business environment, the BPPs ensure fair and transparent means for
conducting the diamond business. These ensure that the diamond business is
carried out in the best manner and all aspects: ethical, legal, social,
environmental and professional are kept under check. This is a necessary move
and a timely one from De Beers, the company that has carefully managed the
business of diamonds since their discovery.
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