Ethical Sapphires

_{ethical origin pink sapphire gemstone}

In order to understand what makes a sapphire ethical, a broader understanding of the gem trade in relation to what makes a sapphire an ethical purchase is needed. Owing to the nature of this enterprise, one that is spread across multiple countries, involving numerous stakeholders: in the form of private institutions and governments, the ethics of sapphires is a relatively expansive subject. Here we discuss some of the primary factors to consider when determining the ethical origin of a sapphire.

Sourced from Conflict-Free Regions

In identifying an ethical sapphire, the most significant factor to consider is the role of conflict in the particular geographic region from which the gemstone is mined. Gemstones, whether sapphires, diamonds; in addition to other economically valuable resources are sourced from different parts of the world. With many of the gem mining hot spots being located in and around the conflict-oriented region in the developing world, the need to understand the nature of the industry, from the ownership, management and profits and their relationship to conflicts. The key principle when it comes to ethical sapphires is that the profits of these operations do not fund, or directly support civil wars, terrorist activity, or any other form of conflict. The problem of conflict minerals is a concept one may be familiar with, and it is one which applies especially to the world of diamonds, is the difficulty in fully regulating practices so as to ensure that the trade in gemstones like sapphires, does help fund conflicts and/or contribute to the social and political destabilization of regions. A key factor that helps to clarify a company’s position on sapphires that are sourced from conflict-free zones, is their ability to trace and present evidence on its country of origin. Country, as a factor that helps measure sapphire’s ethical character, thus becomes more important. Since certain countries invest more effort when it comes to laws, infrastructure etc., to ensure that sapphires do not support such practices.

Absence of Child Labour or Forced Labour

In recent times there has been some controversy over the practice of child labour. Whilst there is universal agreement that the employment of minors in physically demanding, exploitative work. Notably, those which involve harsh working conditions, with the potential for abuse. However in recent times, in light of the growing awareness of the economic plight of families in the developing world, the need for foreign investment, and the importance of productive work as a healthy outlet for minors who don’t have the opportunities in education and career. Whilst global organizations like the UN have established clear rules in outlining what counts as unacceptable work when it comes to minors, the growing emphasis in recent times is on the health safety of the minors, including their mental well being. The difficulty of completely eradicating child labour comes down to the high percentage of minors who are employed in productive work in parts of the developing world. In regions like Africa where a high percentage of minors are involved in labour (1). So efforts to combat child labour now increasingly focus on health and safety, encouraging opportunities for growth in work and career. So legislation to support well being of minors and to prevent their exploitation remains critical, there is more debate on how work can be supportive of children’s well being. Provided the basic safety requirements and other protections are in place. This is especially true in industries like sapphire mining where health and safety are a genuine concern. The same principle applies to the question of forced labour, which is akin to modern-day slavery. Countries, thus have a responsibility to ensure that worker laws are clear in protecting and safeguarding, especially those who are employed in industries that carry a high physical risk for workers.

Fair and Safe Working Conditions

This is a basic, and key feature of any ethical business enterprise. Ensuring safe working conditions is especially important, as sapphire mining takes place in locations where there is a real risk to health and safety. Depending on the nature and extent of the sapphire mine, the company needs to invest in basic support services and infrastructure. In addition to providing basic requirements such as food, shelter, and hygiene. Since sapphire mining, especially in countries like Ceylon (Sri Lanka) are social in their character. Where the workers are often from the local region and are connected with the local community, hence there is a greater emphasis on health safety in mining operations, and also their social well-being.

Fair Wage, Employee Welfare, and Community Development

When it comes to ethics of business, a lot of the focus has been directed towards worker well being: Their treatment in the workplace, worker safety, and in more recent times the role of gender. However, the idea of worker compensation has been popular but also controversial. With debates over minimum wage laws raging across many countries. In the world of sapphires, depending on the size and scale of the business, the profits could be very great, to highly acceptable. Where abnormal profits can be made, so the question of how well workers are compensated is a question that often arises. Especially in certain parts of the world, where wages are lower and worker protection laws generally weaker.

Arguably the most significant factor. Since the sapphire trade follows the money, with greater profits attracting more players to enter the trade. Whilst profits are central to all businesses, the manner in which profits are used from worker wages, investment in the business, there are other areas of the enterprise that needs attention. Notably, the well being of workers, which goes beyond remuneration. In the sapphire trade, which is an extractive, nature-intensive enterprise, where workers, especially at the level of manual labour, requires greater effort. Depending on the type of business (i.e. a local operation), the workers tend to be closely attached to the business, one that goes beyond work. Where the relationship between the company or local business and the employees is closer, hence motivating them is a process that often involves a friendly working environment, provision of food, and resting quarters. And importantly special financial incentives, that are often attached to the profits that result from the sale of gemstones. This is is an important and in many ways a novel approach to worker motivation that is adopted in countries like Ceylon (Sri Lanka), where great emphasis is placed on worker welfare and the social function of the gem business.

Fairly Traded

The gem industry, like any other profit-oriented business, is subjected to the same dangers that plague other commercial enterprises. The concept of Fair Trade is one that can be confused with the broader practice of ensuring that the goods and services that a person pays are the results of trading practices that do use illegal methods, money laundering, tax evasion, and other illegal export/import policies, such as contraband. The latter comes under the heading of fairly traded goods, in light of the laws and regulations of the lands the business chooses to operate in. Fair Trade, as noted is a different concept, and over the years it has developed into an industry-standard, where companies, primarily from the West, are required to abide by certain standards when it comes to worker well-being, wage rates, on-time payments etc. When dealing with business stakeholders, predominantly in the developing world. Companies that engage in international trade being required to abide by specific protocols. Economic goods, such as sapphire gemstones, which are fairly traded, whilst following the requirements of policies that relate to fair trade, also focus on the legal character of their fundamental business practices. This is especially true since sapphire mining today is a predominantly developing world industry. With countries like Myanmar (Burma), Thailand, Ceylon (Sri Lanka), a number of African countries leading the way. Parts of the world where the legal environment is not always solid in contrast to those in the West. Further, the political and economic instability in these regions and the weak institutional environment may facilitate unethical practices to enter the fray. Whilst, not all developing countries are equal with respect to their laws and enforcement, when it comes to fairly traded sapphires it is best to keep an eye out for these factors.

_{A typical small scale mining setup in Ceylon (Sri Lanka)}

Environmental Sustainability 

The natural environment is central to everything that we do. And in resource-intensive, extractive industries like diamonds and sapphires this is especially so. Sapphire which is sourced from the natural environment, often in alluvial deposits which are found in water-rich regions, means that their impact on the natural world is significant. When it comes to understanding the ethical character of sapphires, the nature of the business operations in relation to their impact on the natural environment is a key stage in determining their character. This means the extent, degree and permanence of the environmental effects caused by their extractive and logistical processes can degrade the environment in which these operations take place. The principle of sustainability is key, which is the reversibility impacts of the work, notably the dredging, mining, cleaning, polishing of the gemstone has on the locations from which gemstones are taken. Logistical questions are relatively less significant, depending on what part of the world where the gemstone mined, as sapphire mining is relatively smaller in contrast to the vast pit mining methods adopted by diamonds. The key here is the combination of the commitment on part of the business to the mining and trade of ethical sapphires, and the regulatory environment, which relates to the laws set by the government. 

Perfect Competition

In the world of diamonds, the business, in terms of sourcing and supply are controlled by a handful of large multinationals, with a number of public and private partnerships. In business, the principal requirement when it comes to a healthy business environment is the presence of competition. The greater the number of companies that are able to service a market with a quality offering the better it would be for the consumer, and also helping in areas like innovation. Unlike the world of diamonds, which involve major mining and logistical investments, with a handful of companies running the show, in the sapphire business, things are more decentralized. Whilst smaller, independent or artisanal miners as they are known, do play some part in the diamond industry, their influence is much smaller in comparison to that which is found in the sapphire business. The sapphire business globally, at the level of sourcing, cutting, polishing and in the early stages of the value addition and trade takes places with the involvement of a greater number of smaller, more widespread businesses and individuals. Since the sourcing and mining of gems do not involve the large scale investments that characterize large scale diamond operations, thus a greater number of stakeholders are engaged, at various stages of the business. This means there are fewer vertically integrated companies, many that tend to be based on major cities in the West, far away from the local source of operations. This brings us to the next key point, the regional question.

If you are in some way familiar with the world of gemstones, one may know that the countries from which gemstones are sourced and the location of their sale; along with the stages of value addition may not always be the same. A fact that is often true in the world of diamonds, where the countries from which the gems are soured and the locations of their demand, exchange and sale differs. Sapphires are different. Since the smaller scale of sapphire mining operations, and the logistical requirements that underlie them means there are a larger number of stakeholders, with operations that are carried out by locals. Which are not limited to sourcing and cutting, but also polishing, shaping and their sale to gem merchants, and at times even customers. This localized approach to the trade-in gemstones is especially popular in countries like Sri Lanka (Ceylon) and in more recent times in Australia with the rise of smaller independent sapphire mining operations. This means the benefits of the business are more localized: the workers from the region being employed, often this means families and friends; the strengthening of the local community through the business. And when the sapphire businesses are more localized there is a natural respect for the local culture and the health of the community.

Should the Country of Origin of the Sapphire Matters?

Among the top sources for quality natural sapphires are countries like Sri Lanka (Ceylon), Burma, Thailand, and Madagascar, and in more recent times, Australia and the USA. When it comes to these countries there’s a natural tendency to associate the character of the country with the gemstone’s ethical character: here Western Developed countries like the United States and Australia tend to be naturally viewed as the top contenders. But to approach the question of ethics in sapphires from this perspective is to miss out on other key factors that determine its value in a social and environmental sense. The two key factors that determine a gemstone’s ethical character. The tendency to look at the socio-economic, and political status of a country in relation to the ethical character of its gemstones does apply to a certain extent. For example, the nation of Myanmar (Burma) in recent times attracted the world’s attention for its human rights record and the role of its military government. Which in turn has brought into question the ethics of buying gemstones exported from this part of the world. However, a deeper study is required, especially since the question of what counts as an ethical sapphire, and what is really meant by social and environmental responsibility in the gemstone trade.

Looking for an Ethical Sapphire: Know your Jeweller

This may seem like straightforward advice, however, this is a point that cannot be stressed enough. Given the plethora of new and independent sapphire and gem companies out there. Many of who have ridden the wave of online business, as a buyer one may be confused on identifying the right outlet for either a sapphire gemstone, or a fine jewellery item that contains a well-cut, lustrous sapphire, one that is, importantly ethically mined, and adhere to the laws in every stage of the business process. One good indication of an ethically mined sapphire is to look for the gemstone's country of origin. Good gem companies that play by the rules are not afraid to showcase the country of origin of their gemstones, as they are confident of the processes that took to bring their gemstones to m

References

https://www.worldvision.com.au/docs/default-source/school-resources/what-is-child-labour-worksheet.pdf?sfvrsn=2