USGI Editorial: What the word “Ethics” means to us.

Ethics. One of the most important words in the jewelry industry, in fact in all business around the world. The concept of doing ethical business is at the heart of almost every organization in the jewelry industry. But there is a problem. The word “ethics” can be used as passive or active when it comes to a business.

The Merriam-Webster Dictionary defines “ethics” as:

“Ethics: the discipline dealing with what is good and bad and with moral duty and obligation.”

Investopedia (the business reference website) defines business ethics as:

 “Business ethics refers to implementing appropriate business policies and practices with regard to arguably controversial subjects.”

Nearly every major organization in the jewelry industry promotes ‘ethics’—from trade associations to gemological laboratories. Codes of ethics are published, standards are discussed, and commitments are made.

But too often, ethics is presented as a principle—not a practice. It is not enough to simply claim to have a Code of Ethics, a Professional Conduct Standards, or Consumer Protection language in advertising and bylaws. These are passive applications of the concept of “ethics.” What is required is action. To act with a moral duty and obligation to defend ethical dealing in the industry, even when it involves a controversial subject.

At USGI, we believe ethics is not defined by what we promote, but by what we do—what we disclose, what we correct, and what we are willing to defend.

At the United States Gemological Institute, we define ethics as:

” The consistent practice of full, accurate, and transparent disclosure—especially when that disclosure may influence a sale, a value, or a client’s decision. And ethics does not end with disclosure—it requires action. It requires the willingness to protect, uphold, and defend ethical practices within the industry, even when doing so is uncomfortable or unpopular.”

That is a tough standard to live up to sometimes. That “uncomfortable or unpopular” section has cost us a great deal of time and money and created some serious enemies for us. You do not stop a $150 million dollar fraud like the Tibet andesine hoax without infuriating some very rich people who will want revenge.

But we have never backed down from defending ethical practices in this industry, even when we are standing alone against some very big industry players. Consider this:

• The USGI was the only organization to stand against the Tibet andesine hoax and prevailed in a court of law against this heinous fraud.
• We are the only organization that has done the research and reporting on the “Memorial Diamond” hoax.
• We are the only organization researching how to utilize the new AI tool to identify the “super clone” jewelry and watches.
• We have actively helped many jewelers facing litigation and false accusations utilizing our legal and insurance credentials.
• We are currently investigating what we consider the illegal use of the term “David Yurman Dupe” selling fake David Yurman designs on venues like Faire.com.
• And we are currently investigating the sellers of “Tiffany and Company Replica” or “Dupe” jewelry that violates the Tiffany and Company designs and trademarks.

These investigation reports will be posted in our newsletter and submitted to the Attorneys General and Federal Trade Commission in the coming weeks.

While the word “ethics” is widely touted across the industry in passive terms, here at the USGI the word “ethics” is always an action word. A commitment to ethics is a commitment to act for the good of the industry, even when that action comes at a high cost.

Because at the United States Gemological Institute, ethics is not what we say—it is what we do.

That is what the word “Ethics” means to us.

Robert James RGA, FGA, GG
United States Gemological Institute
Certified Continuing Education Provider
Texas Department of Insurance #170536