When Diamonds Weep

When Diamonds WeepPresented to Dr. Suresh M RFrom the mines in Africa, to polishers in India, to retailers in the West- A diamonds Global path to marketGroup 5

What the case talks about:Two broad categories of diamond: Gem-grade and Industrial-grade.Trading centers: Belgium, Unites States, Israel and India.Diamond processing industry: India, Belgium, Israel, Thailand and United StatesDiamond Pipeline is around two years. The Kimberly Process: A plan to ensure that only legally mined rough diamonds reach the global market.

Diamond IndustryOver 156 million carats of diamonds mined annually.Conflict diamonds make up to 20 percent of diamonds in the market.An estimated 65 percent of diamonds are mined from Africa.Many technologies to change the way diamonds are mined, traded and sold.Synthetic diamondsLaser engravingInvisible FingerprintCreation of a database

Core IssuesIllicit trade of diamondsExploitation of populations for extractionFunding of terrorist activity and rebel groupsMining Techniques- sustainability issues

SLEPT FrameworkOperates in Botswana, Namibia, United Kingdom, US, Australia, Canada, Sierra, Liberia etc. Social Factors: Health, Education, Social Classes, Social Unrest, Bushman tribe relocation, civil wars.Legal Factors: Miners Employment, Child Labour, Canada certificateEconomic Factors: Monopoly, Poverty, Gap in money distributionPolitical: Kimberly Process, Corruption Level, Employment LawsTechnology: Tracking diamonds with tools like laser engraving, invisible finger print, internal finger print.

ABCD FrameworkAccess

CartelsUpper middle and upper class outletsSynthetic diamondsChemically both are sameLower cost and accessible to middle class

ABCD Framework (Cont.)Buying Behaviour

Trust quotientBrand loyaltySocial statusBlood diamond(Jewellery consumer opinion council)

ABCD Framework (Cont.)Consumption characteristics

Diamond is foreverSymbol of loveWedding ringsGift ItemsIndustrial and medical use

ABCD Framework (Cont.)Disposal

Marketed as Diamonds are for everLower resale value

In light of the conflict diamond issue, would you buy a diamond? Why or why not?

Questions that needs to be asked before purchasing a diamond

What should be done!?Raise Consciousness Stay Informed Return diamonds that you suspect may be conflict diamonds.Ask before you buy!

Do you think the diamond industry as a whole has an ethical responsibility to combat the illicit trade in diamonds?

Yes they do have the ethical responsibility.Companies, of any size, have a duty arguably both legally and morally to behave responsibly.For this Kimberley Process needs to be strengthened.At the initiative of the WDC, it was proposed that recommendations by Financial Action Task Force Report that relate to risks associated with the supply of rough diamonds would be taken into considerationReaffirmation by the working groups to broaden the definition of conflict diamonds.To address the valuation of rough diamonds throughout the entire supply chain.

As consumers we also have some responsibility, like we have the power to demand details about the diamonds we buy.

Demanding proof that a diamond is conflict-free sends a powerful message to the world that we will not support an industry or nation that helps fund terror groups.

This will in turn make the diamond industry work holistically to combat illicit trade practices in the diamond business all over the world.

What actions, if any, should the international community take towards nations or corporations found to be trading conflict diamonds?Sanctions - Expulsion from trading. Resulting in cutting off from almost rest of the world.London based NGO - Global Witness was one of the first organizations to bring the issue forward.Countries that suffered from the same: Republic of Congo (2004)Cote dIvoire (2005)Venezuela (2008)

RecommendationsThe WDC should help to Develop infrastructure and create employment opportunities.Awareness Campaigns.For Kimberley ProcessGuidelines to be established for developing the much required self assessment instead of peer review.Efficient system for monitoring the industry system of warranties.Formation of External Audits of the schemes Administration.

Nike (Sweatshop - Indonesia)KYE (Chinese company manufacturing products for HP, Apple, XBox)Forever 21 and Victoria Secrets (Child Labor - Cotton)Nest and Hersheys (Child Labor Cocoa)

Companies that have had history of Labor issues:

Thank You!