Tiffany’s CSR Business Plans Stress Transparency and Address Industry Challenges

CSR business initiatives can sometimes come from surprising sectors. Most people are aware of the challenges that are present in the jewelry industry, as the social and environmental implications from mining and processing diamonds along with other gems and precious metals all come into play. Change will only come if these issues are brought to the forefront and sustainable alternatives are adopted and there is no better champion for this change than Tiffany & Co. Tiffany is one of the world’s leading jewelers and they have developed a comprehensive CSR business plan to deal with these issues that are intrinsic to their industry.

If I could find a real-life place that made me feel like Tiffany’s, then I’d buy some furniture and give the cat a name. ~Truman Capote, Breakfast at Tiffany’s, 1958, spoken by the character Holly Golightly played by Audrey Hepburn

The company is taking the stance that as a premier luxury brand they have to set the same high standards to the production of their product as they do the product itself to live up to the social and environmental expectations of the company and its clientele.

As mining and processing has been an ongoing issue, Tiffany sources gold, silver and platinum from responsibly mined metal deposits and recycled sources in the U.S. only to minimize socio-environmental risks. Tiffany has also taken a strong stance against coral. Since 2002, they have refused to use coral in their pieces due to the rapidly changing marine ecosystem. In fact, Michael J. Kowalski, Chairman and CEO of Tiffany & Co., testified before the United States Congress in 2008 about the need to protect coral reefs.

Images courtesy of tiffany.com

To protect the integrity of their diamond supply chain, Tiffany created Laurelton Diamonds, a wholly owned subsidiary that purchases rough diamonds and manages the sourcing, cutting and polishing leading to Tiffany’s finished product. Tiffany purchases diamonds exclusively from countries that participate in the Kimberly Process Certification Scheme (KPCS) like Australia, Botswana, Canada, Namibia, Russia and South Africa.

The KPCS is an “international cooperative monitoring system created by governments, industry and civil society to eliminate the flow of “conflict diamonds”—rough diamonds that are smuggled by rebel movements to finance wars against legitimate governments.”

Tiffany also believes that the societies in these diamond producing communities where Laurelton exists should benefit. To help that along, they have invested in manufacturing operations, provided living wages and family benefits, employee development and training programs at cutting and polishing facilities in Belgium, Botswana, Mauritius, Namibia, South Africa and Vietnam. This investment is to ensure that they meet Tiffany’s exacting standards and employees have a safe and respectful working environment.

In 2010, Tiffany donated nearly 2% of pre-tax earnings to charity including local community investments and contributions to The Tiffany & Co. Foundation’s endowment which provides grants to nonprofit organizations dedicated to art and design, cultural preservation, urban environments, coral conservation and responsible mining.

Even the iconic little blue box and bag has been greened as 100% of the materials used in the making of the Tiffany Blue Bag® and Tiffany Blue Box® are certified by the Forest Stewardship Council (FSC) and 83% of the material used was from post-consumer recycled sources. Their environmental policy for paper products also includes the paper used in the making of their catalogues as that too is from post-consumer recycled sources and is FSC certified.

Chairman and CEO Michael J. Kowalski summed up their sustainable efforts well when he said, “Our position as a leader in the luxury jewelry market gives us the opportunity and the responsibility to set an example for the industry and to conduct our business in a manner that is consistent with our core beliefs—protection of the environment, respect for human rights and support for the communities in which we do business.”

Tiffany – Striving for Sustainability

[youtube]http://www.youtube.com/watch?v=DG1bMGz9Ac8[/youtube]

________________________________________________________________________________________

For nonprofit, CSR business, digital and other news,please connect with us on Twitter, Facebook and Linkedin or subscribe to our RSS feed.

Miratel Solutions is a Toronto call centre, eBusiness, and letter shop mail house specializing in professional professional fundraising including telephone fundraising, online fundraising, lottery services, donation caging, donation processing and other donor management services. We are committed to our CSR business values in all contact centre services and mail house operations and advancing the missions of the nonprofits we proudly serve.