Trading Diamonds Responsibly:

Institutional Explanations for

Corporate Social Responsibility
Emine Nur Kaya
Doğa Kar
Yusuf Engin
İrem Odacı
Zeynep Olcaylı
Taha Kadiroğlu
The Main Points of The
Author

• One of the main arguments highlighted in

the text is Corporate Social Responsibility
influencing the diamond industry to
become more aware of their actions and
act towards a safer and cleaner market
approach.
The Main Points
of The Author
• NGOs had a great engagement
strategy to let people in on the
issue of conflict diamonds.

• In the Kimberly Process, the

author highlights how
organizations change the norms
of the industry and people in it.
Importance of Those Arguments In Globalization

Global viewpoint to ethical issues

NGOs contribute to the globalization of ethical standards and norms by
supporting responsible business practices on a global scale
Increased
adoption of
CSR

•Rapid spread of Kimberly

Process also showcases
the industries’
responsiveness to global
trends in the discussion of
globalization
CSR strategy as a reaction to consumers’ global expectation

Critical to CSR's involvement in Industries, like the diamond industry, are

globalization is the trend of customers forced to display ethical standards as
choosing business information that reflects customers grow more aware of the ethical
their ethical ideals. implications of their purchase decisions.
Critiques
Non-Governmental
Organizations
•NGOs played a crucial role in raising awareness of the
conflict diamonds issue and pressuring governments
and industry to take action.

•While NGOs have been praised for their role in the

conflict diamonds campaign, there are some critical
perspectives to consider.

•They are voice of public at the start but they can cause
populism if they have the power they cannot control
NEGLECT OF STRUCTURAL ISSUES
• The conflict diamonds campaign has focused on
addressing the supply chain of diamonds, but it
has not adequately addressed the underlying
structural issues that fuel conflict.

• These issues include poverty, inequality, and

weak governance.

• Addressing these issues will require a more

holistic approach that goes beyond individual
corporate initiatives.
OVER-EMPHASIS OF CSR
• Many companies use CSR as a way to greenwash their image and appear more socially
responsible.

• CSR campaigns can be expensive to run, and there is no guarantee that they will be effective in
improving a company's reputation.

• Some critics argue that CSR is more about corporate self-interest than about genuine social
change.

• CSR is limited by the fact that it is ultimately driven by profit motives.

• Companies are unlikely to take significant action on social and environmental issues unless they
believe it will benefit their bottom line.

• CSR initiatives often focus on superficial or symbolic gestures rather than addressing the root
causes of social and environmental problems.
Role of State: Bad or Good?
• Conflict diamonds have often been facilitated by corrupt
governments that have turned a blind eye to the trade or
actively benefited from it.

• Addressing the conflict diamonds problem requires

reforming corrupt governments and promoting good
governance.
Non-State Players and
Global Standards

Empowering Change: Non-State Players

and Global Standards
• Activism, predominantly led by non-
governmental groups, plays a vital role
in establishing global standards. These
non-state players inspire movements
advocating for corporate accountability
and sustainable practices.
Beyond Diamonds: Conflict-Free Sourcing Across Industries
• Conflict-free sourcing extends beyond the diamond industry. The technology sector, for instance, prioritizes
conflict-free minerals for electronic gadgets, aligning with the responsible sourcing themes presented in this text.
Consumer Advocacy and the
"Right to Know" Movement

Informed Decisions: The Rise of Consumer Advocacy

• The "right to know" movement empowers
consumers to make informed decisions. Businesses
respond by engaging in ethical consumerism,
releasing CSR reports, and adapting to evolving
customer demands.
 CSR: Business Game-Changer

Group • CSR stands as a crucial differentiator, allowing businesses to showcase

responsible practices, boost credibility, and enhance brand image. This
Evaluation presentation explores the global shift that requires companies to address
local and global socio-economic and environmental concerns, moving
beyond conventional business approaches.
Varied CSR Approaches

CSR Strategies: Integral Ethical Element

• Some organizations integrate CSR as an indispensable part of ethical decision-making,
while others approach it philanthropically. Collaborating with NGOs and responding to
customer demands, whether philanthropic or economic, can enhance the global business
environment for the benefit of all citizens.
Future Role CSR's Future Role and Global Impact
and Impact of • In the future, CSR is set to play an increasingly vital role. Businesses must
focus on societal expectations and environmental responsibilities, fostering
CSR the adoption of sustainable practices for a more equitable and ethically
managed global business landscape.
Group
Evaluation
• We believe that with the push of
NGOs and customer demand,
philanthropic or economic, CSR
still makes the global business
environment ethically better in a
way that all global citizens can
benefit from being in it.