Responsible Trading

This section outlines how we ensure we conduct our business in a responsible manner.

Supplier ethics 

As a Group we take seriously our impact on the world around us, including our supply chain. Our supplier manual contains twelve principles and all suppliers are requested to confirm their compliance with the following:

• Employment is freely chosen
• Freedom of association and the right to collective bargaining are respected
• Working conditions are safe and hygienic
• Child labour shall not be used
• Living wages are paid
• Working hours are not excessive
• No discrimination is practiced
• Regular employment is provided
• No harsh or inhumane treatment is allowed
• Responsible environmental practices
• Zero-tolerance of conflict products
• Compliance with Watches of Switzerland Group code of conduct

Sourcing

Conflict diamonds and the Kimberley Process

The Kimberley Process is a joint initiative between governments, industry and the United Nations to restrict the supply of conflict diamonds. In this process, conflict free diamonds are transported in tamper-resistant containers and must be accompanied by a government-validated Kimberly Process Certificate. The System of Warranties (SoW) Assurance was introduced to assure only legitimately sourced diamonds are traded. Once a diamond is imported and ready for trade, a written statement must accompany all invoices guaranteeing the diamonds are from legitimate sources.

The Group insists that all our suppliers guarantee that any diamonds are conflict free and that written guarantees are provided to that effect.

Gold and other precious metals

The Group has a policy of only purchasing from jewellery suppliers who purchase their precious metals from recognised responsible bullion suppliers who are listed on the London Bullion Market Association (LBMA) good delivery list. The LBMA’s list seeks to ensure that the bullion is sourced responsibly, that is not acquired from conflict areas and that human rights standards are properly respected. 

Payment practices 

The Group understands the importance of maintaining good relationships with suppliers and it is Group policy to agree appropriate terms and conditions for its transactions with suppliers (ranging from standard written terms to individually negotiated contracts) and for payment to be made in accordance with these terms, provided the supplier has complied with its obligations. Find out more about The Group’s payment practices report.

Anti-corruption and bribery

The Group’s anti-bribery and corruption policy reinforces that the Board is committed to conducting its business affairs as to ensure that it does not engage in or facilitate any form of corruption. During the year the Group launched an online anti-bribery and corruption training course for all colleagues. The Group also has controls around anti-bribery and corruption including:

• A formal policy for the logging and approval of all gifts and hospitality accepted by colleagues
• Due diligence procedures for new suppliers
• Financial controls around segregation of duties, invoices and payments
• Supplier manual in place articulating our policies

The Group also has policies regarding anti-money laundering and the related processes are audited by the operational audit team.

Tax Strategy

The Group manages its tax affairs responsibly and proactively to comply with tax legislation. The Group pays corporation tax on its operations in the UK and in the US and does not operate in any tax havens or use any tax avoidance schemes. We seek to build solid and constructive working relationships with all tax authorities.