Challenge of time: moral and social responsibility

All participants of the Western jewelry market in a varying degree face a relatively new problem of properly positioning their companies or brands in terms of the creation of an image of socially and morally responsible business. Jewelers have to meet two challenges: to convince the public that their business complies with moral principles and show their willingness to patronize the arts and take part in charities.        
On May, 29 non-governmental organizations World witness and International amnesty made a statement that they had carried out a survey of 42 British jewelry trade organizations. According to the NGOs, the survey showed that that the majority of British companies do not deem necessary to inform the public about their policy regarding the sale of conflict diamonds nor carry out any inspection whatsoever of receiving stones.     
13 out of 42 companies including Cartier, House of Fraser and John Lewis did not respond the questionnaire. According to the survey organizers the summary data with respect to 29 responders showed that:
- 79% of retailers do not have any checking procedures preventing them from selling conflict diamonds;
- 62% of retailers do not place any information on their web sites about their policy with respect to conflict diamonds. 
The survey organizers pointed out that less companies including Signet (and its subsidiaries Ernest Jones, H Samuel and Leslie Davis) and Tiffany & Co according to their reports are taking tougher actions to exercise control over precious stones as compared with British retailers in general. 
We are not going to evaluate the accuracy of conclusions of World witness and International amnesty. Nevertheless, no other information about the jewelry and precious stones market was reprinted in May-June by so many mass media as this information. This situation has conclusively showed that jewelry market participants have to permanently think about the moral aspect of their business.
Some of them have already done it. Thus, De Beers Diamond Jewellers issue respective certificates for their products. In early June the web site http://www.fairjewelry.org was opened dedicated as it goes from its name to ethic problems of the jewelry industry.
Faberge brand announcing its return to the precious stones market emphasizes that the background of each diamond offered for sale will be always transparent for its clients.
The problem of the business social responsibility is a reverse side of the consumer boom in the USA. In 2006 for the first time after the terrorist attack Americans reached the previous level of consumption. Out of 150 billion US dollars spent for luxuries throughout the world in 2006, 30 % was the USA’s share.
In 2007 the American society faced the economic recession and an unprecedented rise in gasoline price. This primarily affected the middle class which sharply reduced the consumption of luxuries. At the same time some people with super profits on the contrary plan to increase expenditures for jewellery, clothes, traveling and so on. Some experts believe that the American society has not seen such a considerable social stratification since the Great Depression.         
Experts and luxury market participants say that a well off consumer is no longer looking for brands as was the case in the 80s and 90s. He/she is interested in high quality and exclusive goods. If a good meets this criterion, it is bought, no matter what the price is. 
Cartier representatives in the USA say that even a few years ago one-time purchases for 1-2 million US dollars were very rare, and now in American Cartier boutiques this happens at least a couple of times per month. The same is confirmed by Bulgari. 
Under these conditions economists and mass media are of an opinion that a new type of the buyer behavior has emerged: “the rich and the famous” keep consuming luxe goods, but prefer to buy them in such shops (and from such manufacturers) which contribute part of their income to different charities.      
Many participants of the Western jewelry market pursue their image and advertising policy considering these tendencies.  
Thus, launching the “Green initiative” collection, Simmons Jewelry reports that 25 % of the sales profit will be transferred to Diamond Empowerment Fund, specially founded by the company for the development of educational programs in Africa.
 Cartier announcing in early June about the commencement of new collection sales promises to transfer 10 % of proceeds on the first day of sales to partnership charity organizations. In 2006 Cartier in a like manner already transferred for charities 1,2 million US dollars.
Italian designer Roberto Koin has selected as a campaign identity supermodel Christy Terlington Burns who is also famous for her participation in various charity projects. 5 % of the net income from sold jewelries will be transferred to Youth AIDS fund.
Among other events which were outside the time frame of this survey, but emphasize the stability of this tendency it is necessary to mention a charitable Internet auction due for the 19th of June – 2nd of July organized by Bochic Jewelry on the occasion of World Refugee Day.
In addition, on June 20 Nickie Oppenheimer, the chairman of the Board of Directors of De Beers was awarded the World Wildlife Fund prize for his contribution to the preservation of environment in the South African Republic.   
The western public is very demanding towards the diamond and jewelry business and this business in its turn tries to meet these requirements.