EMPLOYEE TRAINING MANUAL

HOW TO TRAIN YOUR EMPLOYEES ABOUT CONFLICT DIAMONDS.

EMPLOYEE TRAINING MANUAL

ONCE YOU HAVE ENSURED COMPLIANCE

If you feel that you have not completed the necessary action to ensure that you are compliant, refer to the Managers Action Guide. Complete each detailed section, and do not commence this manual until you are confident that each step has been fulfilled. Bullet points indicate important concepts to be discussed. Italics indicate suggested words or phrases you can use when delivering the concepts. As a manager, you play a crucial part in communicating the industrys position to your staff and eventually to the general public. Misinformed or uninformed employees will only hinder our cause and may result in lost sales. That is why you must make learning about conflict diamonds a priorityfor both you, and your staff. The key, though, is for you to learn first and learn well. You will be considered the store expert, and, as such you must be prepared for their questions and concerns. Use any or all of these points to help educate your staff. Introduce the meeting topic and assure your employees that they will be able to answer customer questions with confidence at the end of this meeting. Example meeting script: This morning we will be discussing a very important emerging issue, our customers concerns on conflict diamonds. New media attention will bring renewed awareness to this topic, especially with the release of The Blood Diamond. Consumers are more socially aware so we need to let them know we do not support or sell conflict diamonds. They also need to know that for years the industry has been actively working to eliminate conflict diamonds from the marketplace.
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First, let me remind you that diamonds are one of the ways that people celebrate their deepest emotions. But diamonds also employ people and deliver hope all over the world. I want to assure you that every diamond we sell is warranted by our suppliers to be from sources that are free from conflict. We are part of an industry-wide, global effort to eradicate illegal diamonds. We will be discussing how you can speak confidently to your customers and assure them that the diamonds they are buying come from legitimate sources. Diamonds are a lifeline and provide a livelihood for many people in Africa and across the globe, so we also need to do our part to ensure that our customers understand that diamonds are vital to the stable societies of Africa and to the growth and future of many nations.

EMPLOYEE TRAINING MANUAL (CONTINUED)

Using the Mini Guide: Understanding the Processes in Place that Ban Conflict Diamonds, explain the history and background of the Conflict Diamond issue and the creation of the Kimberley Process. In 1998, our industry became aware that rebel movements in Africa were selling, among other things, illegally obtained rough diamonds to pay for their wars. As awareness grew, it became apparent that this illegal trade and the rebel wars it supported were causing a lot of human suffering. The diamond industry realized that this trade had to be stopped. It took four years to create, ratify and adopt a process that prohibits conflict diamonds from entering the legitimate rough diamond supply. On November 5, 2002, there were 52 governments who ratified the process. This process is called the Kimberley Process. The Kimberley Process sets rules for the import and export of rough diamonds. Every shipment of diamonds that crosses an international border must be certified, numbered and sealed. It is a system that includes tamper-resistant containers and forgery-resistant certificates. The United States Government has a law that enforces the Kimberley Process, called the Clean Diamond Trade Act. It requires annual reviews of the standards, practices and procedures of the systems in place in the United States, which imports, trades or exports rough diamonds. The Kimberley Process is helping put an end to the problem of conflict diamonds. When the problem was at its height, conflict diamonds accounted for no more than 4% of the worlds diamond supply. Now, they represent considerably less than 1%. And the industry is committed to totally eliminating them. The Kimberley Process guarantees that only diamonds from legitimate sources are used in our jewelry. While we may not know exactly where a diamond originated, you can guarantee that every diamond we sell was handled within the Kimberley Process and therefore is certified to be from sources that are free from conflict.
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EMPLOYEE TRAINING MANUAL (CONTINUED)

ENSURING A CONFLICT-FREE DIAMOND INDUSTRY

MINING

EXPORT

IMPORT MANUFACTURING

RETAIL

KIMBERLEY PROCESS (KP) CERTIFICATION

Rough diamonds traded between KP countries are transported in a tamper-resistant container and accompanied by a government-validated KP Certificate.

SYSTEM OF WARRANTIES (SoW) ASSURANCE

Once imported and ready to be traded, a written statement must accompany all invoices guaranteeing that the diamonds or diamond jewelry being sold are from legitimate sources.

Explain the System of Warranties and how it assures consumers. The diamond industry adopted a System of Warranties to further assure consumers of the origin of their diamonds. This system requires every buyer and seller of polished diamonds and diamond jewelry to make the following statement on all invoices: The diamonds herein invoiced have been purchased from legitimate sources not involved in funding conflict and in compliance with United Nations resolutions. The seller hereby guarantees that these diamonds are conflict free, based on personal knowledge and/or written guarantees provided by the supplier of these diamonds. The System of Warranties Assurance Statement In addition to putting this statement on every invoice, businesses are required to keep records of their invoices and to have them audited. Government agencies can also request proof of compliance.
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Explain how your business reinforces the Kimberley Process and the System of Warranties (once you have ensured compliance). We are in full compliance with this process, and we require every one of our vendors to provide us with written assurances that every diamond we buy has been sourced legitimately. (If appropriate say, Vendors who could not fully meet our standards are no longer doing business with us. ) We are totally committed to being able to assure our customers that their diamonds are certified to be from sources that are free from conflict.

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Review www.diamondfacts.org with your staff. You will also be able to download additional Confidence Pack materials on this site, should you need to do so. This website is an essential resource that we and our customers can visit to learn more facts about conflict diamonds, the measures in place to stop the trade in conflict diamonds, and the positive impact that diamond and diamond revenues have for producing nations. Recount the Confidence Card points to your employees. Specifically, make a point of how the diamond industry, directly and indirectly, employs 10 million people around the world. Further, explain how diamonds are helping transform the lives of Africans by providing jobs, building essential infrastructure and funding education. Its also extremely important that your employees convey the fact that your establishment does not sell conflict diamonds. Employees must also convey that every supplier to your store has assured that their diamonds are from legitimate sources. Finally, stress that today, over 99% of all diamonds are certified to be from sources that are free from conflict. So now you can tell your customers that the diamonds they are buying are from legitimate sources and that the diamonds sold by your store comply with the Kimberley Process and System of Warranties. The Kimberley Process is an international agreement that involves governments, human rights organizations and the diamond industry. Under this process, only legally-sourced diamonds can be made into jewelry. The System of Warranties provides assurance that polished diamonds and jewelry are legitimately traded. Introduce and discuss the Poster. Pose the questions and take a few minutes to talk about the answers. You may find it helpful to write down some of the ideas and answers so people can refer to them during the skill practices. This poster will be posted in our back office to remind us to be ready to answer the tough questions your customers could ask you at any time.
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EMPLOYEE TRAINING MANUAL (CONTINUED)

Review the Consumer Brochure with your employees. If a customer has questions about conflict diamonds and wants more information to take away and read, give them a copy of the Consumer Brochure (available August 2006). It is designed to reassure consumers that the trade in conflict diamonds has been virtually eradicated. With an overview of the Kimberley Process and System of Warranties, it emphasizes that their support for the diamond industry will help maintain the prosperity of diamond producing nations. Discuss and practice conversations about Conflict Diamonds. We are going to practice how to answer questions about conflict diamonds. When a customer says, How can I trust that these diamonds are conflict free? you will say I can assure you that all diamonds here at _______________ are from areas that are free of conflictbecause we only source our diamonds from suppliers that are in compliance with the Kimberly Process and we participate in the System of Warranties. Plus it is illegal in the U.S. to sell conflict diamondsand we follow the law. We have written assurances from every vendor that our diamonds are legally and legitimately sourced. Encourage Employees to Practice We must all be comfortable with these statements. Lets practice. Remember, you should all have these responses memorized so that you can speak comfortably and naturallybut I would rather you use your pocket card than say something incorrect or not have an answer. So, lets practice using our card with the customerin case you need it.
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Did you know that the U.S. is one of over 68 countries that have laws to ensure that no conflict diamonds cross our borders? Before these laws were enacted, the amount of conflict diamonds was estimated to be 4% of the worlds diamonds; today that number is considerably less than 1%. Our industry will not rest until it is 0%. While there may be people who are engaged in illegal diamond trading, it is important to deal with a jeweler you know and trust. We have been in business for We have been part of this community for We require official statements of assurance from every single one of our vendors.

EMPLOYEE TRAINING MANUAL (CONTINUED)

Skill Practice Scenarios 1. A couple is looking at diamond engagement rings. She is very excited, but he seems a little reserved. Finally, he asks you if you have heard any of the buzz about conflict diamonds lately Close the meeting and discuss next steps. That concludes our meeting, but not our discussion. This poster will be in the back office and I would like each of you to carry your pocket card and refer to it daily until the information is second nature to you. Over the next few days, I will be working with each of you to practice using what you have learned as part of your selling conversations. 2. A woman is looking at gold earrings but doesnt seem to like anything she sees. You suggest diamond stud earrings and she responds that she wont buy conflict diamonds. You answer We need to be prepared to be supporters of diamonds and our commitment to socially responsible business practices. As new issues arise, I will bring them to your attention and I hope you will do the same. We are part of a global industry and we want to be sure that our customers can buy from us with confidence. This means not just selling the most desired gemstone in the world. It means selling the ultimate gift of love, without any reason for concern. 3. (For Manufacturers.) A retailer is examining your line of diamond jewelry. The retailer asks: what steps are you taking to make sure your business has no conflict diamonds? We are committed to keeping diamonds out of the hands of those who would finance conflict. And we have a system in place to make sure that happens. Plus, it is illegal in the U.S. to sell or trade in conflict diamonds. Diamonds give developing nations hopebecause they are one of their most valued resources. Thank you for your participation. Lets go sell the most emotional and meaningful gifts anyone can give a loved onediamonds.
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WORLD DIAMOND COUNCIL IN ALLIANCE WITH THE FOLLOWING U.S. ORGANIZATIONS: JEWELERS VIGILANCE COMMITTEE, JEWELERS OF AMERICA, AMERICAN GEM SOCIETY, MANUFACTURING JEWELERS & SUPPLIERS OF AMERICA, DIAMOND DEALERS CLUB, DIAMOND MANUFACTURERS & IMPORTERS ASSOCIATION OF AMERICA, JEWELRY INFORMATION CENTER