in conflict diamonds. LKI has a zero tolerance policy with regards to conflict diamonds and will not import or export rough diamonds without an accompanying Kimberley Process Certificate of origin. World Diamond Council Industry Self-Regulation – 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. 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) – 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) – LKI's primary factory in Puerto Rico was the first diamond polishing factory in the world to be certified by SAI for compliance with the highest standard of workplace norms, as measured