To help maintain the integrity of our supply chain, Tiffany & Co. established Laurelton Diamonds, a wholly owned subsidiary that procures rough diamonds and manages our worldwide supply chain that sources, cuts, polishes and supplies finished stones to Tiffany & Co.
Tiffany & Co. recognizes that diamond-producing countries want, and indeed deserve, to benefit from their diamond resources; we wholeheartedly support producer country beneficiation. We believe that diamond activities should be used to further develop and sustain economies, to create employment opportunities and to support the broader social goals of communities and nations. It is our responsibility to contribute to this effort.
Our first investment in a producer country was in Yellowknife, Canada in 2002. Since then we have invested in polishing operations in the following diamond-producing countries: Botswana, Namibia and South Africa. Our facilities have custom-designed, state-of-the-art equipment and our employee development and training programs are designed to equip the local workforce to meet Tiffany & Co.’s exacting quality standards.
Tiffany & Co. works to support the local communities where we operate. In Calendar Year 2010, we provided over $67 million* in beneficiation to Laurelton communities.
In order to further invest in communities in which we operate, we hire local employees to work in, and ultimately manage, our facilities. Laurelton provides an on-the-job training program for employees to train the workforce and provide a lasting impact on the development of the country. From 2009 to 2010, we increased the percentage of local employees at Laurelton facilities worldwide from 95% to 97%. Additionally, Tiffany’s Social Accountability Program includes Laurelton facilities to ensure that employees are offered a safe and respectful working environment.
Tiffany has worked with outside contractors and academics to ensure that we provide our skilled workforce fair wages for its work. In 2009, we began to conduct annual living wage studies at Laurelton locations to ensure that trainees are paid above minimum wage in the area and that skilled workers receive salaries at and above the living wage. Tiffany defines a living wage as the rate which is required to support an employee, meet financial obligations of the employee’s dependents and provide some discretionary income. The living wage reflects the expectations of the particular society at the time the calculation is made.
*Metric included in the Report of Independent Accountants