Since the turn of the century jewellers have come under sustained pressure from campaign groups to consider the human and environmental costs involved in extracting the raw materials that they subsequently sell as finished products on British high streets. Numerous campaigns have sought to raise the collective consciousness, and retailers – as the interface between consumers and the supply chain – were encouraged to apply pressure on their suppliers to bring about change.
In the jewellery context, precious metals, diamonds, and gemstones are viewed as the main ‘offenders’ and their extraction and processing has been blamed for conflict, oppression, human rights abuses, exploitation, and displacement of indigenous peoples. Not to mention environmental degradation. Gold and diamonds, which for these purpose we can think of as the principle commodities, are extracted in many places around the globe. However the continent of Africa has historically been considered the main source of both. With large corporations and artisanal miners both bringing raw material to market.
It might be tempting to view the big mining companies as the villains of the piece, but they have done a lot to improve working conditions. It mustn’t be forgotten that, whilst small-scale artisanal miners may be less visible, they often leave an equally poor environmental legacy. Starting with the clearing of the ‘overburden’ that includes trees, vegetation, and topsoil, and leaving behind degraded subsoils potentially contaminated with mercury and cyanide (See Paul Laird’s report from Ghana about illegal gold-mining near to Montonnso Sacred Forest.)
During my twelve year tenure as former CEO of the National Association of Goldsmiths I witnessed a lot of good work done on cleaning up the supply chain. Members of the Responsible Jewellery Council (RJC), for instance, now commit to – and are independently audited against – international standards on responsible business practices for diamonds, gold and platinum group metals that addresses human rights, labour rights, environmental impact, mining practices, and product disclosure in the jewellery supply chain.
My friend Greg Valerio on the other hand has worked tirelessly on the plight of artisanal miners, latterly championing the work of the Fairtrade Foundation. Their Fairtrade Gold scheme speaks directly to consumers about the effect their choices have on others, and the modest premium they pay improves the lives of small scale miners around the world.
Since leaving the NAG I have involved myself with the work of the International Tree Foundation (ITF). But this isn’t about ‘do-gooding’ or tree hugging! Just like Fairtrade, ITF’s work results in real incremental improvements in living standards, the environment, and well-being. Working in partnership with local organisations we support community forestry projects both in the UK and Africa. Helping to build secure livelihoods and improve the local environment through sustainable tree planting programmes. In Kenya alone there are plans for 20 million trees by 2024!
Yes, the planting and conservation of trees and forests does improve biodiversity, soil quality, water- retention and the air we breathe. But trees are also a source of economic benefits including fruits, wood, fibres, gum, cosmetics, and medicines. And they supplement livelihoods in rural areas.
International Tree Foundation works with businesses to engage their staff and customers in tree planting initiatives across Africa and in the UK. If you are interested in improving ecosystems and livelihoods, and in communicating your commitment to sustainable development to your clients and employees, then get in touch.
You can call 01865 318 832 or email email@example.com for further information on their business partnerships scheme.
The jewellery industry has been angst-ridden for most of the current century over the moral, ethical, and environmental damage done by the exploitation of gold and diamonds. Child labour, the blighted lives of miners, the spoil left by extraction, the financing of civil wars, and the buttressing of repressive regimes have each left their own stain on the industry. The Kimberley Process, the Dodd Frank act, OECD Due Diligence, and subsequent legislation, attempted to deal with these concerns, and bring forth order out of chaos. However, the plethora of initiatives in the supply chain remains perplexing for retailers, and those that want to trade ethically.
As CEO of the now defunct National Association of Goldsmiths (NAG) and a founding Director of the Responsible Jewellery Council (RJC), I worked with NGOs and others for over a decade to influence the practices and policies of miners, refineries, processors, wholesalers, retailers, and banks in their efforts to regulate and monitor the movement and provenance of gold and diamonds within the supply chain.
Today, rigorous policies – both imposed and self-policed – are impacting on the tracking of both commodities back to responsible origins. But the work still isn’t complete, and the industry still needs to shore up its claims to social and ethical sourcing with transparency, trace-ability, and communication across the entire supply chain, before retailers can trade with complete confidence in the attribution of their stock. Platinum group metals have also been added to the scope of the RJC, but one of the unsolved problems remains the provenance of coloured gemstones!
Therefore the announcement of the launch of a technical feasibility study to include coloured gemstones into the scope of the RJC should be music to jewellers’ ears. But, past experience of working alongside the Gemmological Association of Great Britain (Gem-A), whose work is the study and identification of gemstones, I am acutely aware how complex a task it is likely to be. Not just because of the range of stones, but because of the fractured supply chain.
Artisanal and small-scale mining (ASM) – labour intensive and often in remote and inaccessible areas – still accounts for the majority of the worldwide supply, raising obstacles to transparency and trace-ability at even the production stage. Compared to diamonds, the supply chain of coloured gemstones is highly complex, making it nearly impossible to trace their trajectory from mine to end-user.
Mined in roughly fifty countries – located mostly in the global south – gemstones pass through numerous hands before being polished, transformed into jewellery and sold in the international retail market. And – unlike diamonds – the coloured gemstone supply chain doesn’t have a history of being governed by a centralised cartel, so opportunities for human rights abuses, environmental damage, and illicit activity, are legion.
So, while the RJC’s intentions are entirely laudable, their desire to plug the remaining gaps admirable, I think we should all recognise that the road ahead will be strewn with moral and ethical boulders, and some will be very difficult to work around!
Contact me on firstname.lastname@example.org for strategy, communications, and public relations consultancy.
Benjamin Franklin supposedly once said, “If you fail to plan, you are planning to fail” whilst Thomas Edison is credited with, “I have not failed. I’ve just found 10,000 ways that won’t work.” Both are catchy quotes, but do they get us any closer to understanding the value of planning? Learning from our mistakes is one thing, but doing only that would be a random, time-consuming, and even dangerous way to manage!
Think of your role running an association as being the cox of a rowing eight. With your team-mates all powering away with one sole objective, it looks like you’re having an easy ride sitting at the back. But really your focus is half a mile ahead to the next bend, and beyond that to the finish line. Your team all want to get across the line, but you are the one making gentle adjustments to the tiller and varying the pace and power input to suit conditions, all with the longer view in mind. Make unreasonable demands on your crew and they burn out too soon. Yank the tiller from side to side and you collide with the competition, strike a bridge, capsize, or hit the bank. To win races you need an agreed objective, a strong crew, and a skilled navigator with a clear view of the course ahead and a vision of what lies beyond the bend!
Only trouble is, some associations lack clear objectives, or lose sight of them amid the pressures of day-to-day survival. So staying on track, let alone changing course to avoid fresh obstacles, is a challenge; new initiatives a test of stamina. So it’s hardly surprising that almost 70% of projects fail to hit target. But the reason they fail isn’t always lack of effort from the crew, but failure to do adequate research and forward planning. What’s needed are strategic objectives, wisely allocated resources, effectively managed time, and a clear change methodology. And perhaps that way we’ll stop trying to fix organisations symptomatically rather than systemically.
Of course, one of the challenges for bosses is finding the time and head-space to research and plan. And like-minded brainstorm partners! Or better still a skilled and objective third party to guide you through writing an unfettered wish list of the things you’d like to magic away. Having attributed a 1-10 pain scale to those issues, you can thin them out by trimming anything below an 8 to derive an initial agenda. Ranking these again, this time for difficulty between 0 (requiring an act of God) and 10 (easy-peasy), and having considered the ‘rocks in the road’ which will either block further progress – or stimulate a burst of tangential or transformative thinking to get around them – a final set of challenges will emerge.
Only now is it time to look at the belief system, readiness, and capability of your organisation. Break them into their component parts, and analyse the gaps between your ultimate objective and the organisation’s current readiness. Along the way you’ll also have to account for critical mass, survivability, impact on the team, and the impact on your membership and financials.
By the end of all that you won’t be in any doubt when somebody asks, “What is the process for accountability and quality of execution of your mid-term plans? Is there a process? Have you separated it from operational and everyday management? And, are the right people involved? You could, with equal confidence, break the familiar logjam of continual ‘circular’ re-examination of the same issues, that so bedevils so many membership boards! Or would that be too much to ask?
Reviewing your strategy and communications? Can I help?
Over twenty years’ association management experience.
Michael Hoare FIAM
Institute of Association Managers
It may be flattering to be asked to join your trade association’s board but it could also be a very bad career move. So, before joining, you should conduct your own due diligence, and start by asking some probing questions.
Serving as a board member is one of the most challenging and rewarding of assignments, whether in the commercial, not-for-profit, or membership sector. But, while appointment or election may be an honour, board members have important legal and fiduciary responsibilities that require a commitment of time, skill, and resources. Prospective board members should do themselves a favour – and show that they are serious about the commitments they make – by asking some basic questions before joining any organization’s board. Probe the member who issued the invitation to join; the chief executive; the chairperson; and other current and former board members. Anyone with inside knowledge!
Start by asking for copies of the board minutes from the last 12 months and study them to see what has been agreed and achieved. You’ll find yourself defending those decisions whether you like them or not! Note how many directors showed up to meetings, and whether decisions were reflected in the company’s strategy and performance. While you’re at it find out what the organisation’s mission is, how its current programs relate to it, and if they have a strategic plan that is reviewed and evaluated on a regular basis?
Study the calibre of the other board members. Find out what experience they have, what they have done in their past careers and what their reputations are like in the industry. Most importantly of all, check out the chairman. A board’s performance will reflect their talent and management abilities. After all, this person is the board’s manager.
The chairman should oversee each meeting, keep discussions on track and on topic, and recognise when there is an issue – when a topic is too big to be solved in one meeting – and when offline meetings, or further information-seeking sessions, are required. A good chairman will recognise when specific directors are struggling or not pulling their weight, and will take action. And when certain directors are overly forceful in their opinions, a great chairman will restore balance and ensure every voice is heard before a decision is made.
He or she should also be able to tell you about the structure. What about descriptions of the responsibilities of the board as a whole and of individual members? What about committee functions and responsibilities? Is there a system of checks and balances to prevent conflicts of interest between board members and the organisation? And for your own peace of mind, does the organisation have directors and officers liability coverage?
Problems aren’t always visible from the outside. After all, a board’s job is to appear balanced and always in agreement even when it is not. So look for signs of dysfunction. These include regular resignations and appointments; organisational underperformance; the constant missing of objectives; and the CEO and senior management struggling for support. What about the board’s relationship to the staff – particularly the executive staff – and how do board members and senior staff typically work with each other?
Do a bit of probing into the finances too. Are they sound, does the board discuss and approve the annual budget, and how often do board members receive financial reports? Who does the organisation serve, and are the clients or members satisfied?
Once you’ve done all that, get down to the personal stuff. What can I can contribute as a board member? How much of my time will be required for meetings and special events? Am I committed to the organisation’s mission? Can I put its objectives above my own professional and personal interests when making decisions as a board member? Can I contribute the time necessary to be effective?
If you can answer all those questions to your own satisfaction you’re almost there. Now all you’ve got to do is get elected!
Reviewing your strategy and communications? Can I help?
Over twenty years’ association management experience.
Michael Hoare FIAM
As the Labour leadership contest proved, the merest hint of uncertainty over the conduct or legality of a selection process can seriously damage the credibility of an election in the minds of the voters. Even a whiff of mismanagement will leave a bitter taste of dissent lingering amongst the electorate.
Cock-up or conspiracy all become one in the minds of those who have begun to question the validity of the process and therefore the result. My recent experience confirms that some associations’ procedures are in desperate need of independent scrutiny. And history has shown us that governments adopted on the basis of a dubious selection process almost always fail to maintain the trust of the people. Except, of course, for dictatorships, and they just don’t care!
So, electing governments is one thing, what about day-to-day decision-making? How many times have you, as a trade association manager, been asked your membership’s view on a particular issue, policy, or piece of legislation, only to realise that you are completely in the dark? And, in all honesty, how many times have you responded to such an enquiry – possibly from the press – with your own best guess; hoping that the majority would tow the party line and follow you over the barricades into the thick of battle?
We’ve all done it, and because we’re all seasoned campaigners – with our ears to the ground – we generally get away with it. But what if your judgement call goes awry? Second-guessing the mood of your constituency is a risky business, and careers can be seriously dented by getting it wrong. Why not limit the risk by asking your members what they really think? Most often, the answer to that question is that to do so would be costly, time-consuming and possibly wasteful. But what if it was none of these? Enter the digital democracy!
A couple of years ago, during a fascinating IofAM discussion, – which utilised SMARTvote devices to take quick polls from the floor and encourage discussion around various points – Electoral Reform Services (ERS) asked participants to consider if digital technology could be applied to democracy. Along the way they demonstrated that online voting is an effective way to reduce an association’s printing costs, provide wider communication choice for members and be more environmentally friendly.
However, not everybody is comfortable with computers and it is vital in a democracy to ensure that no voter is disenfranchised: the right mix of communication methods need to be employed. Maximising communications and using social media within an election context is a powerful way to raise its profile and foster engaging discussion with the electorate. But unfettered it can also backfire badly leading to the dissemination of half-truths, falsehoods, and even character assassination.
So digital democracy is about much more than just social media. There are other barriers to voting online. These include lack of trust in the security of the process; technophobia; and voter fatigue or cynicism. However, as more commercial transactions take place digitally, and security improves, electorates may become increasingly comfortable with online voting. And if the effective capture and use of data allows for targeted communications it may also increase the ‘buy-in’ to online polling and elections.
But where does that leave Association management skills? Will there be any further need for judgement and experience once all options can be tested – Swiss style – by referendum and all decisions can be digitally ‘crowd sourced’? Can we really trust the wisdom of crowds to get us through? Or is a wily CEO with his / her ear to the ground still the best barometer of member opinion?
Michael Hoare FIAM
Association executives will all have experienced difficulties with presidents, chairmen, or directors. They are a mixed bunch and over the years the good, the bad and the ugly come and go. Never-the-less, as professionals you have to get on with them, accept their peculiarities and petty likes and dislikes whilst the serious business of governance goes on.
In my twenty-odd years’ working my way up through membership bodies, trade associations, and charities, I’ve discovered that Boards come in many shapes and sizes. Each adopting a different attitude to the responsibilities they have taken on – sometimes unwittingly. They range from the indolent to the hyperactive, the distant to the micro-managing, and all shades in between. Their attitude to the chief executive and secretariat can also vary wildly.
Some directors see the association as their personal fiefdom, with the staff as serfs to do their bidding; the chief executive’s prime functions – in their view – to ensure the success of the golf day and the quality of wine at the annual dinner. Such attitudes stem from the days when association secretaries ruled; when finding a place on a Board or committee was one way for family firms to distract patriarchs who refused to step aside; when a culture of amateurism prevailed; and directors’ focus was sometimes blurred. In my time I’ve met them all – the commanding, the conniving, the conceited, and the committed – but when it comes down to it there are two distinct types of association Board. One meddles and micro-manages in the mistaken belief that as business people themselves they must be able to do better than their ‘employees’. The other understands their strategic role but accepts that the secretariat are professionals – experts in their field – with the CEO taking operational responsibility on a day-to-day basis. Only the chairman can determine which route they take.
But don’t let’s fool ourselves, chief executives can be a mixed bunch too. Perhaps best described as entrepreneurs, showmen, and diplomats all rolled into one, they have to juggle the often conflicting interests of their members to achieve consensus, and they can be complex characters. Nevertheless the key relationship is that between the chairman and the chief executive, and trouble follows where this fails. As well as a shared commitment to the cause, relationships must be based on mutual respect and trust. They must be frank and open, with problem areas being addressed amenably. Empathy, communication, humility, and self-awareness are the key differentiators.
The two roles must be complementary. The chairman is responsible for leading the business of the Board while the chief executive manages the association’s business. The chairman and the chief executive must be aware of each other’s activities and work together as a team. The duties of the chairman – a non-executive role – arise from their position as the chief elected officer of the association and their responsibility for presiding over its official business and the Board. The chief executive is responsible to the chairman and the Board for directing and promoting the operation and development of the association consistent with its primary objectives. In so doing they exercise executive stewardship over the association’s physical, financial and human resources.
There used to be a joke along the lines of, ‘what’s the similarity between a non-executive director and a shopping trolley?’ Answer: ‘They both have a mind of their own, but you can get more food and drink in a non-executive director!’ It may be an old chestnut, but it illustrates that the fault line between executive and non-executive responsibilities is often where most tension develops. Some secretariats are resentful of the oversight of a largely non-executive Board that they sense doesn’t share their vision or commitment – or jeopardy to their income – or appreciate the skills and professionalism they bring to a difficult job.
Therefore, not-with-standing their fiduciary responsibilities, and duties to members, every Board must remember that the lively-hoods and well-being of all those employed by the association are at stake and the consequences of ignoring this fact can be enormous. Believe me, I’ve been on both sides of the fence, as director, chief executive, trustee, and humble foot-soldier, and I know how morale suffers when internecine warfare sours relations or the Board appears to lose the plot!
Michael Hoare FIAM
Members of The Gemmological Association of Great Britain can log in and find details of the 2015 Council elections on the Gem-A website, including a proxy voting form for those wishing to caste their vote online.
The Gem-A Manifesto by Ronnie Bauer, Kathryn Bonanno, John Bradshaw, Guy Clutterbuck, Michael Hoare, Alan Hodgkinson, Alberto Scarani, and Greg Valerio is available from email@example.com