WHEN DIAMONDS WEEP

From the mines in Africa, to polishers in India, to retailers in the WestA diamonds Global path to market

Group 5

Presented to Dr. Suresh

MR

What the case talks about:

Two broad categories of diamond: Gem-grade and Industrialgrade.

Trading centers: Belgium, Unites States, Israel and India.
Diamond processing industry: India, Belgium, Israel, Thailand
and United States
Diamond Pipeline is around two years.
The Kimberly Process: A plan to ensure that only legally mined
rough diamonds reach the global market.

Diamond Industry

Over 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

diamonds
Laser engraving
Invisible Fingerprint
Creation of a database

Core Issues

Illicit trade of diamonds

Exploitation of populations for extraction
Funding of terrorist activity and rebel groups
Mining Techniques- sustainability issues

SLEPT Framework

Operates 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 certificate
Economic Factors: Monopoly, Poverty, Gap in money distribution
Political: Kimberly Process, Corruption Level, Employment Laws
Technology: Tracking diamonds with tools like laser engraving,
invisible finger print, internal finger print.

ABCD Framework

Access

Cartels
Upper middle and upper class outlets
Synthetic diamonds
Chemically both are same
Lower cost and accessible to middle class

ABCD Framework (Cont.)

Buying Behaviour

Trust quotient
Brand loyalty
Social status
Blood diamond(Jewellery consumer opinion
council)

ABCD Framework (Cont.)

Consumption characteristics

Diamond is forever
Symbol of love
Wedding rings
Gift Items
Industrial and medical use

ABCD Framework (Cont.)

Disposal

Marketed as Diamonds are for ever

Lower 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 consideration
Reaffirmation 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)

Recommendations

The WDC should help to Develop infrastructure and create

employment opportunities.
Awareness Campaigns.
For Kimberley Process

Guidelines 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.

Companies that have had history of Labor

issues:

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)

Thank You!