Lazare Kaplan International
Encyclopedia
Lazare Kaplan International Inc. (LKI) is a diamond
manufacturing and distribution company based in New York City
. The Chairman of the Board of Directors is Maurice Tempelsman
.
s, which it sells to upscale retail jewelers throughout the world. Some of these diamonds are distributed loose while others are set in jewelry under The Lazare Diamond brand. LKI distributes its products through over 1,500 retail partners and customers in 29 countries.
Although primarily based in the United States
, LKI also has sales offices in Belgium
, Italy
, Mexico
, Japan
, China
and Hong Kong
. While some 60% of LKI’s sales are in the US, Canada
and Europe
, LKI has also operated in Japan since 1973, Southeast Asia since 1987 and Latin America
since 1997.
LKI’s primary factory is located in Caguas, Puerto Rico
, and is the largest diamond cutting and polishing factory in the United States. The company also has manufacturing operations in other parts of the world. It has established a joint manufacturing partnership with Alrosa
(the Russian government-owned mining company), with cutting facilities in Moscow
and Barnaul
. In addition, it produces in Antwerp, Belgium (mainly larger stones and square-cut diamonds), and has contract manufacturing operations in China
and Thailand
. In Africa
, LKI has manufacturing facilities in Botswana
; a joint manufacturing and technical services agreement with NamGem Diamond Maufacturing Company (Pty) Ltd in Namibia
; and a partnership with Nozala Investments (Pty.) to manufacture diamonds in South Africa
.
; stock symbol: LKI). It has been a Diamond Trading Company
(DTC) Sightholder
since 1946. In 1985, it became the first company to launch a branded diamond (The Lazare Diamond).
, first published the mathematical formula for diamonds cut to "ideal" proportions, a formula designed to optimise the brilliance, fire and sparkle in a polished diamond. In the same year, LKI became the first commercial-scale operation to cut its diamonds to ideal proportions. In 1957, LKI developed the modern oval cut, and in 1983 it developed and patented the laser inscription process. In 2002, LKI was awarded a patent, jointly with the General Electric
Company, for the high-pressure high-temperature (HPHT) process for improving the color of certain all-natural diamond types. In addition, LKI has secured numerous patents on diamond setting techniques and innovations in displays for loose polished stones and jewelry.
Kimberley Process Certification Scheme http://www.kimberleyprocess.com – LKI actively participated in the inaugural meeting of diamond industry stakeholders in Kimberley, South Africa, in May 2000, and participated in all subsequent deliberations that led to the January 2003 adoption of the KPCS and its system of controls over rough diamond trading, intended to combat the trade in conflict diamonds. LKI will not import or export rough diamonds without an accompanying Kimberley Process Certificate of origin.
World Diamond Council
Industry Self-Regulation http://www.worlddiamondcouncil.com – Established in conjunction with the KPCS, the WDC has established a system of buyer-seller warranties to extend the reach and effectiveness of the KPCS throughout the entire diamond pipeline. LKI trades only with companies that provide such warranties, guaranteeing the conflict-free origin of the diamonds on their invoices. All sales and consignments of LKI diamonds are accompanied by LKI’s own warranty statement. This flow of warranties in and warranties out is audited and reconciled on an annual basis by LKI’s financial auditors.
Zero tolerance for conflict diamonds – LKI follows a policy of zero tolerance for conflict diamonds as defined by United Nations
General Assembly Resolution 55/56 of 2000 http://www.un.org/Depts/dhl/resguide/r55.htm. The LKI system of controls was instituted before the existence of this UN Resolution, and received special commendation from the UN for its contribution to stemming the flow of conflict diamonds. All of LKI’s rough diamond buyers are required to sign and abide by a written code of ethical diamond trading conduct as a condition of continued employment.
Trade association membership – LKI and its officers are members of a wide variety of diamond and jewelry industry associations including, but not limited to, the American Gem Society
, the Jewelers Vigilance Committee, the Jewelers Board of Trade, the Diamond Manufacturers and Importers Association, the Jewelers Credit Interchange Group, the Jewelers Security Alliance, the New York Diamond Dealers Club, and the Council for Responsible Jewelry Practices.
Best Practice Principles Assurance Program (a Diamond Trading Company
program http://www.debeersgroup.com/debeersweb/About+De+Beers/De+Beers+Value+and+Culture/Diamond+Best+Practice+Principles.htm) – LKI subscribes to and is compliant with this program, which was developed to demonstrate to supply chain partners, consumers and other interested stakeholders that the exploration, extraction, sorting, cutting and polishing of diamonds, and the manufacture and sale of diamond jewelry is undertaken in a professionally, ethically, socially and environmentally friendly and accountable way.
Social Accountability International (SAI) http://www.sa-intl.org – LKI’s primary factory in Puerto Rico was the first such factory in the world to be certified by SAI for compliance with the highest standard of workplace norms, as measured by SAI’s internationally recognized social accountability measuring system (SA8000
). The SA8000 standard and verification system provides a credible, comprehensive and efficient measure of humane workplace practices and public responsibility.
UN Global Compact http://www.unglobalcompact.org – In 2000, LKI became a founding member of the United Nations Global Compact, intended to support universal environmental and social principles.
Global Sullivan Principles http://www.thesullivanfoundation.org/gsp/default.asp – LKI endorses and subscribes to the Global Sullivan Principles
, a code of conduct designed to promote social justice, human rights and economic opportunity.
Diamond
In mineralogy, diamond is an allotrope of carbon, where the carbon atoms are arranged in a variation of the face-centered cubic crystal structure called a diamond lattice. Diamond is less stable than graphite, but the conversion rate from diamond to graphite is negligible at ambient conditions...
manufacturing and distribution company based in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
. The Chairman of the Board of Directors is Maurice Tempelsman
Maurice Tempelsman
Maurice Tempelsman is a Belgian American businessman and diamond merchant. He moved to the United States as a child and attended New York City’s public schools and New York University...
.
Business activities
LKI's main business activity is cutting and polishing "ideal-cut" and "fine make" diamondDiamond
In mineralogy, diamond is an allotrope of carbon, where the carbon atoms are arranged in a variation of the face-centered cubic crystal structure called a diamond lattice. Diamond is less stable than graphite, but the conversion rate from diamond to graphite is negligible at ambient conditions...
s, which it sells to upscale retail jewelers throughout the world. Some of these diamonds are distributed loose while others are set in jewelry under The Lazare Diamond brand. LKI distributes its products through over 1,500 retail partners and customers in 29 countries.
Although primarily based in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, LKI also has sales offices in Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
and Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
. While some 60% of LKI’s sales are in the US, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
and Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, LKI has also operated in Japan since 1973, Southeast Asia since 1987 and Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
since 1997.
LKI’s primary factory is located in Caguas, Puerto Rico
Puerto Rico
Puerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an...
, and is the largest diamond cutting and polishing factory in the United States. The company also has manufacturing operations in other parts of the world. It has established a joint manufacturing partnership with Alrosa
Alrosa
ZAO ALROSA , is Russia's largest diamond company. Alrosa is engaged in the exploration, mining, manufacture and sale of diamonds. The company's operations are located primarily in the Sakha Republic/Yakutsk region. Alrosa accounts for approximately 25% of the world's rough diamond supply and 97%...
(the Russian government-owned mining company), with cutting facilities in Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
and Barnaul
Barnaul
-Russian Empire:Barnaul was one of the earlier cities established in Siberia. Originally chosen for its proximity to the mineral-rich Altai Mountains and its location on a major river, the site was founded by the wealthy Demidov family in the 1730s. In addition to the copper which had originally...
. In addition, it produces in Antwerp, Belgium (mainly larger stones and square-cut diamonds), and has contract manufacturing operations in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
and Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
. In Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
, LKI has manufacturing facilities in Botswana
Botswana
Botswana, officially the Republic of Botswana , is a landlocked country located in Southern Africa. The citizens are referred to as "Batswana" . Formerly the British protectorate of Bechuanaland, Botswana adopted its new name after becoming independent within the Commonwealth on 30 September 1966...
; a joint manufacturing and technical services agreement with NamGem Diamond Maufacturing Company (Pty) Ltd in Namibia
Namibia
Namibia, officially the Republic of Namibia , is a country in southern Africa whose western border is the Atlantic Ocean. It shares land borders with Angola and Zambia to the north, Botswana to the east and South Africa to the south and east. It gained independence from South Africa on 21 March...
; and a partnership with Nozala Investments (Pty.) to manufacture diamonds in South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
.
Company history
LKI was founded in 1903 by Mr Lazare Kaplan. The Tempelsman group purchased a controlling interest in LKI in 1984. LKI has been publicly listed since 1972 and remains the only company specialising in diamond manufacturing whose shares are publicly listed on a US stock exchange (American Stock ExchangeAmerican Stock Exchange
NYSE Amex Equities, formerly known as the American Stock Exchange is an American stock exchange situated in New York. AMEX was a mutual organization, owned by its members. Until 1953, it was known as the New York Curb Exchange. On January 17, 2008, NYSE Euronext announced it would acquire the...
; stock symbol: LKI). It has been a Diamond Trading Company
Diamond Trading Company
The Diamond Trading Company is the rough diamond sales and distribution arm of the De Beers Family of Companies. The DTC sorts, values and sells approximately 75% of the world’s rough diamonds by value...
(DTC) Sightholder
Sightholder
A sightholder is a company on the Diamond Trading Company's list of authorized bulk purchasers of rough diamonds. DTC is controlled by the De Beers Group, the single largest producer and purveyor of rough diamonds in the world...
since 1946. In 1985, it became the first company to launch a branded diamond (The Lazare Diamond).
Technical innovation
In 1919, Lazare Kaplan’s cousin, mathematician Marcel TolkowskyMarcel Tolkowsky
Marcel Tolkowsky was a member of a Belgian family of diamond cutters and an engineer by education. He is generally acknowledged as the father of the modern round brilliant diamond cut...
, first published the mathematical formula for diamonds cut to "ideal" proportions, a formula designed to optimise the brilliance, fire and sparkle in a polished diamond. In the same year, LKI became the first commercial-scale operation to cut its diamonds to ideal proportions. In 1957, LKI developed the modern oval cut, and in 1983 it developed and patented the laser inscription process. In 2002, LKI was awarded a patent, jointly with the General Electric
General Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...
Company, for the high-pressure high-temperature (HPHT) process for improving the color of certain all-natural diamond types. In addition, LKI has secured numerous patents on diamond setting techniques and innovations in displays for loose polished stones and jewelry.
Missing Diamonds
On May 17, 2010, Lazare Kaplan sued various Lloyds of London syndicates and European insurers for $640 million in damages arising out of the disappearance of diamonds. The lawsuit alleges that the insurers breached two “all risk” New York property insurance policies. The company has been suspended from trading on the American Stock Exchange since September 2009 and has not filed quarterly or annual reports with the U.S. Securities and Exchange Commission (SEC) since early 2009.Ethical standards
LKI supports (and has helped develop) policies that prohibit the trade in conflict diamonds, prevent money laundering, combat the financing of terrorism, and promote transparency, fair dealing and disclosure throughout the diamond pipeline. It is LKI’s strict policy to clearly identify its prospective suppliers and its customers before entering into any business transaction.Kimberley Process Certification Scheme http://www.kimberleyprocess.com – LKI actively participated in the inaugural meeting of diamond industry stakeholders in Kimberley, South Africa, in May 2000, and participated in all subsequent deliberations that led to the January 2003 adoption of the KPCS and its system of controls over rough diamond trading, intended to combat the trade in conflict diamonds. LKI will not import or export rough diamonds without an accompanying Kimberley Process Certificate of origin.
World Diamond Council
World Diamond Council
The World Diamond Council is an organization consisting of representatives from diamond manufacturing and diamond trading companies...
Industry Self-Regulation http://www.worlddiamondcouncil.com – Established in conjunction with the KPCS, the WDC has established a system of buyer-seller warranties to extend the reach and effectiveness of the KPCS throughout the entire diamond pipeline. LKI trades only with companies that provide such warranties, guaranteeing the conflict-free origin of the diamonds on their invoices. All sales and consignments of LKI diamonds are accompanied by LKI’s own warranty statement. This flow of warranties in and warranties out is audited and reconciled on an annual basis by LKI’s financial auditors.
Zero tolerance for conflict diamonds – LKI follows a policy of zero tolerance for conflict diamonds as defined by United Nations
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
General Assembly Resolution 55/56 of 2000 http://www.un.org/Depts/dhl/resguide/r55.htm. The LKI system of controls was instituted before the existence of this UN Resolution, and received special commendation from the UN for its contribution to stemming the flow of conflict diamonds. All of LKI’s rough diamond buyers are required to sign and abide by a written code of ethical diamond trading conduct as a condition of continued employment.
Trade association membership – LKI and its officers are members of a wide variety of diamond and jewelry industry associations including, but not limited to, the American Gem Society
American Gem Society
The American Gem Society is a trade association of retail jewelers, independent appraisers, suppliers, and selective industry members, which was founded in 1934 by Robert M. Shipley, who also founded the...
, the Jewelers Vigilance Committee, the Jewelers Board of Trade, the Diamond Manufacturers and Importers Association, the Jewelers Credit Interchange Group, the Jewelers Security Alliance, the New York Diamond Dealers Club, and the Council for Responsible Jewelry Practices.
Best Practice Principles Assurance Program (a Diamond Trading Company
Diamond Trading Company
The Diamond Trading Company is the rough diamond sales and distribution arm of the De Beers Family of Companies. The DTC sorts, values and sells approximately 75% of the world’s rough diamonds by value...
program http://www.debeersgroup.com/debeersweb/About+De+Beers/De+Beers+Value+and+Culture/Diamond+Best+Practice+Principles.htm) – LKI subscribes to and is compliant with this program, which was developed to demonstrate to supply chain partners, consumers and other interested stakeholders that the exploration, extraction, sorting, cutting and polishing of diamonds, and the manufacture and sale of diamond jewelry is undertaken in a professionally, ethically, socially and environmentally friendly and accountable way.
Corporate citizenship policies
LKI supports and implements, within the scope of its influence, a set of core values in the areas of human rights, development, labor standards and environmental sustainability.Social Accountability International (SAI) http://www.sa-intl.org – LKI’s primary factory in Puerto Rico was the first such factory in the world to be certified by SAI for compliance with the highest standard of workplace norms, as measured by SAI’s internationally recognized social accountability measuring system (SA8000
SA8000
SA8000 is a global social accountability standard for decent working conditions, developed and overseen by Social Accountability International . Detailed guidance for implementing or auditing to SA8000 are available from its . SAI offers training in SA8000 and other workplace standards to managers,...
). The SA8000 standard and verification system provides a credible, comprehensive and efficient measure of humane workplace practices and public responsibility.
UN Global Compact http://www.unglobalcompact.org – In 2000, LKI became a founding member of the United Nations Global Compact, intended to support universal environmental and social principles.
Global Sullivan Principles http://www.thesullivanfoundation.org/gsp/default.asp – LKI endorses and subscribes to the Global Sullivan Principles
Sullivan Principles
The Sullivan principles are the names of two corporate codes of conduct, developed by the African-American preacher Rev. Leon Sullivan, promoting corporate social responsibility:...
, a code of conduct designed to promote social justice, human rights and economic opportunity.
External links
- Lazare Kaplan International (LKI) official website: http://www.lazarekaplan.com/
- Description of LKI in the DTC Directory of Sightholders: http://www.dtc.com/sightholder/modules/sightholders/SightholderDetails.aspx?sType=search&iID=40