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Corporate Social Responsibility and Blood Diamonds

Paper Type: Free Assignment Study Level: University / Undergraduate
Wordcount: 3532 words Published: 20th Oct 2020

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Inform consumers of the origin of their diamonds. Diamonds are very popular among consumers for their symbols of love, prestige etc.  It is not known to a lot of consumers the history behind the jewellery they are wearing. Diamonds has caused major destruction for countries such as west and Central Africa where a lot of diamonds come from. In places like Siera Leon Diamonds has helped fund wars. Due to Blood Diamonds millions of people Have suffered mental and physical abuse. Blood Diamonds are those that are mined in places where forces are controlling the area and where the diamonds are used to help fund, ilitary action. A focus on Siera Leon. Siera Leon is rich in natural resources. Holding some of the most precious diamonds this has caused chaos. There was a war that broke out in Siera Leon between the government forces and revolutionary United Front between 1991 and 2001. It was said that the war was because they were fighting for democracy but instead, they used diamonds to get the guns and help fund the war. Millions of people were brutally attacked, and half the population misplaced. The documentary was made to inform consumers about the origin of diamonds and highlight the fact that diamonds should not cause wars and should not cause deaths, harms etc to innocent lives

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A) Impacts that the diamond industry have on the development of international markets

Diamonds were a rare resource till late eighteen hundred, founded only in the rivers beds of India and brazil, where the price of the diamond were decided upon the only few factors and only by few gem stones had been produced each year. Also, the finding of the first diamond mine in South African Orange River had become a milestone in the global diamond industry which has become significant happening in the diamond market, which made the British investors in finding out the investments were in utter danger. (European Commission, 2018).

The value of the diamond stones are resulted from its physical properties that made applications and use of this valuable stone in the industrial units by the value of the diamonds has been caped by its development over the synthetic diamonds which can act as to be the substitutes. And gradually the importance for the diamond has been grown and has also impacted the industrial unit in massive terms, where by realizing the importance in controlling the supply the early investors in the industry consulted to the De Beers mines to control the supply Sir Ernest Oppenheimer by whom the industry has been controlled through. By the later part of the nineteen hundred the supply chain of the industry has evolved to be of four stages which had been dominated by De Beers as two monopolies in controlling the trade of raw diamonds, and the other two based on dominant sellers

The Market Segments of Diamond

The diamond is conventionally dividend into three main segments which has been given below

  1. The industrial diamonds – the diamonds which are natural and synthetic and which have been widely used in manufacturing process specifically for their physical properties
  2. The Jewellary diamonds – the diamonds that are irregular and cut for the use of stones in jewellary
  3. Investment diamonds – the amazing stones, which has excellent characteristic explicitly exactly purchased on the purpose of investment (So, et al., 2002)

Global Diamond Market

The jewel showcase in the worldwide level has improved overall which speaks to the 3% growth in the general setting that can estimate to be a $79 billion global market deal in the year 2013.Based on the diamond insight report, by the De Beers group in 2018, the countries that including the USA, Japan, China, and India were named as the countries which confirmed the development of a high pattern over the long period viewpoint in the diamond market global. Furthermore, this specific development was likewise involved to be in  recovery into the recuperation of the worldwide money related emergencies particularly in the United States and the other world prevalent creating market which includes China and India from 2008. Accordingly, the diamond markets dependent on the US and Japan had been faster on the quick development sales of 14% and 7% individual as far as the global normal of 3% in the year 2018. What's more, on the opposite end, India and Japan were decreased to 10% and 6% individually(De Beers, 2018).)

And the rough diamond production in the global level was estimated to 146 million carats in the year 2013 where this has been increased to 176 million carats in 2006. Also the diamond supply will also be increased within the next few years in the new investment channels in the production sector. And it is expected that by the year 2020, the global level diamond production will also be drop little by little as if there is no any new discovery over the mining operations on diamond. The countries in the African continent are ahead in the production of rough diamond and currently the production is charming very challenging for the deeper and remote locations (De Beers, 2018).

Though the diamond industry has significantly impacted on the growth of livelihood and national economy, the employment on the global markets the diamond industry is being impacted by a number of factors in the industrial background (Csrcompas, 2002). But the diamond sector is also keeping as a step toward in raising the ethical and environmental standards on the industrial context. According to Code of practices Certification by the Responsible Jewelry Council, which applies to be every one of the partners of the business, from mining to the deal? " Many organizations have gone over and past these models and built up their own severe procedures, standards, and certainty programs"” (16). 

Most of the brands in the industry are adopting ethical and sustainable models which create positive changes in the diamond business. The economical changes in the industrial units as well as the environmental factors also impacts the development of the diamond industry in the global level firms (De Beers, 2018)

B) The benefit of having a responsible supply chain

When an organization has responsible supply chain management this can be valuable for the organization and the organization would gain the below mentioned benefits

  • Improving the collaboration with the suppliers – Dialogue and the corporation in improving the CSR performance which strengthens the relationship with the suppliers and also contributes in increasing the productivity and in reducing the cost
  • Improving the quality of the products – a accountable supply chain management is helpful in protection the product quality and development over more sustainable products in the background (De Beers, 2018)
  • Ensure the compliance with the customer expectation and the requirements – a responsible supply chain management is helpful in documenting the products which are produced in the situations which would comply with the globally recognized CSR guidelines (Heledd & Louise , 2011)
  • Reducing the risk over the negative PR (Public Relations) – a accountable supply chain the management will likewise supportive in defending the organization from the negative PR when in a dangerous CSR issue in the supply chain and in the
  • cases which may incur legal liability as an accuracy in grossing the human right violations (Heledd & Louise , 2011)
  • Attracting and retention of employees – a very good reputation is very important for every organization in attracting and retaining the most qualified employees
  • Creating new market opportunities – a accountable supply chain management will also be used in branding the company and in creating new market chances 

C) Human rights issues that might be violated and the subsequent actions taken by diamond companies

According to the UN reports there is huge need in the diamond industry in order to fight against the violations of human rights. It has been estimated that in order to produce gold ring which holds a diamond, 20 tons of mine waste is produced. And the earth is mixed with the Cyanide, which is wisely known to be a toxic poison, which dissolve in gold or silver, which the addition of this toxic chemical pollutes the water and soil in the mining also this makes the environment poisoned (Csrcompas, 2002)

This particular substance addition is making the communities ill that are surrounding the mines. The authorities in the Zimbabwe have failed in ensuring the greater revenue transparency in the diamond mines, which also regulates the mechanism on the diamond mining which needs in ensuring the rights of the local communities in informing and protecting the people form the evictions which have been forced and also causing negative impacts on health of people and environmental pollution to greater end, causing human rights violation over armed forces and gender based violence (Quigley, 2018)

The European Union can be mentioned as the major centre which dealt with the diamond trade and with in the European Union council Regulation 2368/2002 set out the criteria which relates to the trade of rough diamonds in ensuring the adherence of the requirements over the Kimberley process. In this background the EU aims in making the progress in order to support the trade of honest diamond which can be helpful in meeting the international community in ensuring that the process related to the Kimberley are followed in continuing the role play which is combating with the human rights violation in diamond trading (European Commission , 2018)

Another main human issue which is related with the international diamond industry is the association of armed in the diamond industry. These military are the individuals who benefit from the diamond trade exchange and which the exchange continues, and the contention is unclear.

These forces are not getting the value of the diamond trade, and these groups also obtain funds from sources which includes the extortion on gold and also the other economic activities (Banat, A.B, 2002) 

Also these mines have been situated in poor countries of the world where most of the countries are categorized under the poverty line,  and the people who are specially the miners are poorly paid, leading a very difficult life and in a dangerous background. According to the report of International Crisis Group of 2010 mentions what they described to be “the hazardous condition” is that “the hard physical labor causes hernias and collapse, and injuries are common. Miners die under the collapsed pit walls, and divers sometimes do not resurface. Many miners and the family leave their village to live in makeshift camps near the mines where they are even more vulnerable to malaria and often contract parasites by drinking from streams dirtied by their own excrement… Education suffers, because parents encourage their children as young as eleven to dig or sieve instead of going to school”. And the other main issue related to these countries is the existence of child labor in the diamond mines which has been mentioned by a number of NGOs but still the issue cannot be sorted out in giving a formal education which is accessible to the extent over the problem has been undertaken.

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Apart from the difficult conditions which these people are being facing, the miners are also being subjected to exploitation in the background where there no meaningful way in protecting the rights of their own. Most of the miners are dependent upon their middlemen who buy the diamonds and sell them to the spreading companies. As mentioned by the IPIS study (2013) “Miners often experiencing high levels of control by their collector (middlemen) who only offers uncompetitive prices for their production. If a miner is discovered to have sold to another collector, harassments are quite common” thus it is quite clear that the people who are working in these mines are being overcoming many human rights issues and violation their day to day life (Mailonline, 2015)

D) Reccommendation for the diamond industry in overcoming the issues which have accured in the past

As mentioned above the diamond industry is being facing many issues and many miners and related workers in the background are banning or boycotting which will not solve the problem. And in sorting out this issue a number of responsibilities have to be considered in sorting out the problems in the industry, and various players have to play a specific role in playing in order to sort out these issues where some recommendations have been mentioned below

Producing and exporting country

The diamond exporters need to measure against the illicit activities before the industry leaders and the importing countries are being effective in their roles, first the country has to establish a internal certification system that can ensure the exported diamond mines internally traded through the legitimate sources, and the governments must license any person who are an entity in seeking the extract diamond.

Produce of trending and the importing countries

There exist a humanitarian crisis in the organizations and the activities can call in banning the tainted goods, where a ban can be ineffective in the crisis as it would damage the legitimate diamond industry which may prop much of the economy in certain part of Africa. And the role play by the importing the carefully balanced with the interest on preventing the and preserving a high valuable industry based on the development which can also be applied for other organizations too

Human rights applications in diamond industry

Human rights targeting the diamond industry huge De Beers, which is best known as the “a diamond forever” ad movement with the participation in the illegal trade of diamond, as well as poor action over the black African employee on the strict working conditions. And the company controls over seventy percent of global diamond trade thus the pursuit by the justice department should be represent the problems in diplomatic efforts in conflicting the diamond controversy (Johnson, 2002)

E) Role of international multi lateral organizations in making the diamond industry socially responsible

As defined by United Nations the “Blood Diamond” which is also known as the “Conflict Diamond”, is any kind of activities which are related to the diamond industry where the mines are situated, through forces on the opposing the legitimate, which has been recognized by the government of the country which can be sold in funding the military actions against the particular government

The intervention of UN with the blood diamonds have stated in 1990s where brutal wars are being occurring in certain parts of Africa specifically targeting the diamond mines. With this background the UN Security Council successfully brought out a report in presenting the conflict diamonds based in the world market which also implicates the De Beers consolidated mines, this report has not considered on the trade activities.  Thus the trade associations along with the human rights groups in UN ended up in bringing out the Kimberely Process, a process based in certifying schemes in the year 2003 which is focused on certifying the diamond exporting countries are free of conflicts.  (Davidson, 2016)

The United Nations has proposed a special court in prosecuting the least twenty to twenty five people in order toe be responsible for the “commission of crimes against the humanity, war crimes and other thoughtful violations of the international humanitarian law, as well as crimes under the applicable law which obligates within the land”.

Apart from the founding of the special court, the United Nations also works in establishing a Truth Reconciliation Centre (TRC) as well as the Human Rights Commission (HRC) in order to take care to the suffering innocent wounded in the diamond mines.

Apart from the UN the World Bank also helps the countries which seize the opportunities over the development and in reducing poverty through focusing effective industrial governance, through increasing the transparency, and by improving  resource mobilization in the domestic terms and also through promoting inclusive growth which ensures the local community needs and protecting the environment.  As part of this initiative the World Bank has joined the African mining bodies and the industry-based organizations in order to help and boost public as well as private cooperation based on the mining sector. (Banat, 2002)

Through implying the IMF in CSR practices in the mining will be helpful in protecting the environment as well as the human rights in the mining background where number social problems are increasing day by day.  And in order to promote CSR in the African mining sector the NEPAD has set out an program of achieving a number of objectives  which would be addressing the development goals that includes poverty, education, health, gender and the environment concerns. The objectives of the program include the following

  • “creating conditions for maintainable growth, and contains creativities on peace, security, democracy and political governance, and economic and corporate governance”
  • “policy improvements and increased investment in many importance sectors, which includes infrastructure, human development, agriculture, the environment, culture and science and technology “
  • “Mobilizing resources to allow for capital flows and market access” (Heledd & Louise , 2011)


The diamond industry is one of the most leading and influential industry in the globe in the current world of trade where it is being impacted by a number of factors in the background leading it towards the establishment of newer trades, economical rises and much more.  And there are a number of human rights issues related with diamond which includes, environmental hazards due to addition of toxic substances to the water ways and the environment which causes health issues and environmental pollution, apart from that the child labor, existence of armed forces in the mines, the poor health and mastery dominations can also be mentioned as a serious problem in the industry. Apart form that globalization also plays a huge impact on the diamond industry. Thus in order to overcome these issues the NGOs as well as the UN and other corporative initiatives are being working in the background.


  • Banat, A.B (2002) Solving The Problem Of Conflict Diamonds in Siera Leone: Proposed Market Theories and International Legal Requirments For Certification of Origin. Arizona Journal of International and Comparative Law, 939-974
  • Csrcompas (2002) Benefits of responsible supply chain management. Retrieved from csrcompass:https://www.csrcompass.com/benefits-responsible-supply-chain-management
  • Davidson (2016). Are Conflict Diamonds Forever?: Background to the Problem. In The Lion that Didn't Roar: Can the Kimberley Process Stop the Blood Diamonds Trade? Retrieved from jstor.: http://www.jstor.org/stable/j.ctt1rqc976.8
  • De Beers. (2018). The Diamonds Insight Report . London: DE BEERS UK LTD.
  • European Commission . (2018). The Kimberley Process, the fight against ‘conflict diamonds. Retrieved from European Commission : https://ec.europa.eu/fpi/what-we-do/kimberley-process-fight-against-%E2%80%98conflict-diamonds%E2%80%99_en
  • Heledd , J., & Louise , O. (n.d.). Corporate Social Responsibility (CSR) in the mining industry - the risk of community dependency. Retrieved from pdfs.semanticscholar: https://pdfs.semanticscholar.org/7de0/2cd7441d5a31114109bcbe81938d9c84be0c.pdf
  • Johnson, E. (2002). Blood Diamonds: The Conflict in Sierra Leone. Retrieved from web.stanford: https://web.stanford.edu/class/e297a/Conflict%20in%20Sierra%20Leone.htm
  • Mailonline, I. C. (2015). Blood diamonds' dug from African mines by children as young as 11, gold taken from 25m underwater by kids aged 9: The slave labour scandal behind the jewellery hanging around your neck. Retrieved from Daily mail: https://www.dailymail.co.uk/news/article-3256249/Blood-diamonds-dug-African-mines-children-young-11-gold-taken-25m-underwater-kids-aged-9-slave-labour-scandal-jewellery-hanging-neck.html
  • Quigley, A. (2018). Human Rights Violations in Diamond Trading. Retrieved from borgenproject: https://borgenproject.org/human-rights-violations-in-diamond-trading/
  • So, Y. C., Amanda , H., John , K. M., Geoff , M., Lodovico, R., & Orestes , T. (2002). The Global Diamond Industry.Chazen Web Journal Of International Business 


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