The ALROSA ALLIANCE Guidelines were adopted by the company’s Executive Committee on May 19th, 2014. The Guidelines form an integral part of the ALROSA ALLIANCE Logo license agreement open for signing by long-term buyers of rough diamonds produced by ALROSA to endorse their status of a reliable buyer of rough diamonds and strengthen supplier-consumer confidence.
In a detailed document published on ALROSA’s website the miner says that a long-term supply contract with ALROSA is not only a guarantee of a consistent access to the source of high-quality rough diamonds produced and supplied in full compliance with the requirements of the Kimberley Process (KP) and the System of Warranties of the World Diamond Council (WDC). As the mining sector’s largest public company, ALROSA is very careful about selecting its long-term clientele and their adherence to the industry’s best business practices and corporate principles of responsible conduct on the diamond market.
The ALROSA ALLIANCE Logo is the hallmark confirming that ALROSA’s clients are reliable partners who honor their obligations. Long-term clients of ALROSA may use the ALROSA ALLIANCE Logo in their business related to supplying rough diamonds, manufacturing polished diamonds and/or diamond jewellery to indicate to their clients and suppliers adherence to high business ethics standards, expertise and experience that are integral elements of ALROSA long-term client status.
Clients who may be entitled to use the ALROSA ALLIANCE Logo under a license agreement with ALROSA must meet the following criteria:
- Maintain best standards of business practice and corporate ethics;
- Show a high level of professionalism and production efficiency;
- Have the ability to add value to diamond products;
- Have a wide distribution network with geographical exposure;
- Adhere to responsible trading practices on the diamond market;
- Satisfy the requirements and criteria set forth in the Regulations on the Procedure and Terms of Sales of Natural Rough Diamonds by OJSC ALROSA.
Taking into account the need to represent the interests of the global diamond industry at large in the best possible manner, and with regard to the importance of building and strengthening end consumers’ confidence and increasing the investor appeal of diamonds, ALROSA attaches special attention to client selection, seeking to enter into commercial relationships only with clients who are capable of demonstrating proper legal compliance, ensuring financial sustainability, and meeting the highest business ethical and reputation standards.
These Guidelines are based on the experience of the implementation of the world’s best practices in business, internationally-accepted corporate governance standards and key international instruments that regulate ethical principles of business practices, financial transparency, human rights, ensure security, social and economic stability, and protection of environment.
These Guidelines are based on key documents of the United Nations Organization (UN), laws of the Russian Federation, and the best industry initiatives for implementing responsible business practices. These Guidelines set forth basic compliance requirements for meeting the criteria of responsible business conduct and corporate ethics. These Guidelines are to be used by ALROSA, its long-term clients and other diamond industry stakeholders as a road map to compliance with high business standards, corporate ethics and governance throughout the entire diamond supply chain.
The document contains relevant definitions, a clear description of basic principles OJSC ALROSA adheres to in its business, and references to basic norms of international law, Russian legislation and internal regulations of ALROSA. By providing and using the ALROSA ALLIANCE Logo, the ALROSA ALLIANCE Members (OJSC ALROSA and its long-term clients) declare their adherence to the “ALROSA ALLIANCE Guidelines on Responsible Business Practices”, commitment to their implementation in their business activities and in the process of interaction with their clients and partners fr om production to retail.
ALROSA calls on all its business partners who buy rough diamonds to declare their adherence to the Guidelines as a voluntary gesture that will demonstrate their high level of professionalism and responsible conduct on the diamond market. Such voluntary demonstration of adherence to the Guidelines will be regarded by ALROSA as an additional credit to be taken into account in the process of building further supplier – client relationship. ALROSA reserves the right to amend these Guidelines if needed.
It is specifically stressed in this document that ALROSA ALLIANCE Members regard the Kimberley Process Certification Scheme as a foundation for the world diamond trade and a key instrument in fighting against diamonds from conflict areas.
Members agree that sustainable development is interconnected with the implementation of corporate ethical behavior and social responsibility, fiscal transparency, promotion of responsible sourcing of diamonds, stable regional development and prosperity of population in business operation areas, compliance with international standards in the protection of human rights and environment.
The document enumerates the basic guidelines to be followed by the Members of the ALROSA Alliance in their work in the diamond industry, including compliance with applicable laws of the countries wh ere their business is operated; countering financial offences; maintaining multilateral trade relations and adhering to the principle of fair competition with other market players; rejecting entities that conduct activities unlawful or questionable from the point of view of law, morality or business ethics; rejecting to trade in rough diamonds from conflict areas; rejecting to conduct undisclosed and willfully undeclared trade in treated diamonds, synthetics and simulants; protecting the rights of owners and shareholders; as well as protecting human and workers’ rights.
Members of the ALROSA ALLIANCE promise to counter bribery and corruption and acknowledge the need for unconditional respect for the principles of transparency in their financial policies.
The Guidelines stress that the establishment of responsible supply chain from mining of diamonds to sales of diamond jewelry to consumers is an important element in securing transparency of the diamond industry and business of every member of the diamond pipeline. Responsible supply chain is based on the principle of unconditional disclosure of information on conflict-free diamond sourcing and quality characteristics of diamonds on every stage of change of ownership with the aim of promoting consumer confidence in diamonds.
ALROSA ALLIANCE Members acknowledge that workers are their most important asset and strive to secure their well-being, professional and personal fulfillment, which ensures sustainable development of the whole diamond industry. Relations with workers are based on the principles of social partnership, adherence to providing safe and appropriate working conditions and promoting social benefits.
In addition, the Guidelines approved by ALROSA require from ALROSA ALLIANCE Members to take decisive actions aimed at reducing negative effect on the environment, rational use of mineral resources and environment protection.
The document also says it is important to take part in the Global Reporting Initiative (GRI), which is a basis for sustainability reporting by companies as far as their economic, environmental and social aspects of business are concerned.
Rough&Polished
