August 8, 2017

To Our Stakeholders:

I am pleased to confirm that Whiteflash Inc. reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Debi Wexler
CEO - Whiteflash Inc.

Human Rights
Whiteflash fully supports the Universal Declaration of Human Rights and is proud to be an equal opportunity employer with a small yet diverse workforce. The Whiteflash core values reflect a shared commitment to respect all people that we deal with including suppliers, customers and coworkers.
In addition to fair and equal treatment of our own employees, Whiteflash expects our trading partners to respect human rights in all their dealings. All diamond suppliers are required to warrant that their goods are brought to market through legitimate sources in compliance with the Kimberly Process.

Whiteflash has been a past supporter of the charity WCCCI (World Center for Compassion for Children International) through our Dreams of Africa initiative which provided relief for children affected by human rights abuses. Beginning in 2015 we began our support of Jewelers for Children and their collection of charities to which all the proceeds from Dreams of Africa are now contributed.
Whiteflash also supports the Diamond Development Initiative (DDI) which promotes beneficiation of communities in the artisanal diamond mining areas that have been impacted by human rights abuses. This initiative encourages investment in job creation, health and education in these under-developed and under-privileged communities. DDI is also taking an active role in making sure the marketing claims of the emerging synthetic diamond industry are accurate. Early messaging by companies in this sector and their supporters conveys to the public that synthetic diamonds are a more ethical product, when in fact synthetics threaten to deprive millions of people worldwide the ability to earn a living wage from the natural resource. DDI and responsible members of the diamond and jewelry industry believe there is a place for synthetics in the marketplace, but that claims must be truthful in order to prevent the unfair victimization of a large existing population whose livelihoods, educational opportunities, and access to health care depend upon the natural diamond market.

Measurement: Whiteflash remains vigilant in our sphere to make sure we are doing our part to promote the principles outlined in the Universal Declaration and that any indications of human rights violations that we might become aware of are dealt with firmly and appropriately. We are proactive in looking for ways to contribute to improvements in human rights, particularly as related to our industry. Through UN Global Compact Whiteflash made a cash contribution in 2016 to the Refugee Relief fund.

Labor

Whiteflash is an equal opportunity employer dedicated to creating a workplace that is healthy and safe and providing jobs and training that foster personal development and career advancement.

We ensure that our employees have a high level of job satisfaction in several ways. First, we use a well-known work style survey to make sure that each employee is well suited for their position. Second, regular coaching is provided as well as an open door policy to upper management such that any employee can address any issue in the workplace at any time. And third, we conduct anonymous “employee satisfaction” surveys on a regular basis to gauge the condition of our company culture and gain insights and ideas for improvements that will benefit all of us collectively. We believe the benefits of such an approach also ultimately extend out to our customers and trading partners.

And finally, Whiteflash has recently implemented a profit sharing plan that all fulltime employees participate in. It provides extra income to employees based upon the success of the company. It fosters teamwork and demonstrates an appreciation for the contributions of every employee.

Measurement:
We measure employee satisfaction through daily interaction, weekly staff meetings, periodic employee surveys and annual performance reviews. Profit share is distributed in an equitable fashion on a basis proportionate to the salary of the employee relative to total payroll.

Environment
The direct environmental impact of our operations is minimal. Our workplace is entirely office based. Our office space is regulated under strict local authority. Office lights are timed and motion activated to prevent unnecessary use of electricity. Our onsite small scale jewelry making operations must comply with safety and environmental standards for a Class A office building which required the installation of special air filtration equipment. This protects our employees, other tenants of the building and the atmosphere.

Whiteflash also supports a charitable foundation that is developing an innovative new lighting system called the gravity light which requires neither fuel nor batteries. It is driven entirely by the power of gravity and it is aimed at replacing the ubiquitous kerosene lamps currently used as primary light sources in poor countries all over the world. Money raised for the project is funding the development and production of thousands of these devices which will be donated to villagers in Africa and other locations around the world, and will be available for purchase at a price affordable for anyone who can currently afford a kerosene lamp. In addition to being a safer, healthier, more versatile and more cost effective solution for lighting, the environmental benefits will be substantial in terms of carbon footprint.
Gravity light has undergone further development to extend the functionality of the device to power radio. Radio is the broadest channel for dissemination of information available on the planet. It is also critical for widespread emergency broadcasts and so is a highly beneficial additional feature for this device, particularly in poor rural areas where other channels of communication may not exist or are unattainable.

Measurement: Whiteflash is subject to audits by building management, city fire and safety officials and by our own insurance adjusters. Environmental conditions are maintained that meet or exceed all requirements.

Anti-corruption
Whiteflash is dedicated to conducting business in an ethical manner and in strict accordance with the law. We are scrupulous in following all state and federal requirements regarding our business activities and financial transactions.

We actively discourage cash transactions and give a discount for transactions made by bank transfer. We use best practices to verify identities of customers and transact business in the most transparent and traceable ways possible.
Likewise, all Whiteflash expenses (other than petty cash incidentals) are paid by check or bank transfer and fully recorded and accounted for.
Whiteflash is dedicated to ethical trading and to doing our part to ensure that every transaction fully benefits all proper entities, and to promoting the enforcement of anti-corruption efforts.

Measurement: The jewelry businesses in our area are subject to periodic audits by the Internal Revenue Service for compliance with the USA Patriot Act and other banking regulations. Local authorities also require the filing of inventory information for the purpose of assessing taxes. Whiteflash financial records have always been found to be in perfect order in each of these filings and audits.