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Diamond ethical supply chain deconstruction 2010
Diamond ethical supply chain deconstruction 2010
Diamond ethical supply chain deconstruction 2010
Diamond ethical supply chain deconstruction 2010
Diamond ethical supply chain deconstruction 2010
Diamond ethical supply chain deconstruction 2010
Diamond ethical supply chain deconstruction 2010
Diamond ethical supply chain deconstruction 2010
Diamond ethical supply chain deconstruction 2010
Diamond ethical supply chain deconstruction 2010
Diamond ethical supply chain deconstruction 2010
Diamond ethical supply chain deconstruction 2010
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Diamond ethical supply chain deconstruction 2010

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Short presentation about the diamond supply chain and associated ethical challenges

Short presentation about the diamond supply chain and associated ethical challenges

Published in: Business, Lifestyle
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  • 1. Diamondindustry:Ethicalsupplychaindeconstruction<br />deepchi1<br />Swamibu<br />Michael Eich <br />Business & Society - executive MBA - HEC Lausanne 2009-2010<br />
  • 2. Diamond industry : under scrutiny<br />NGO media campaigns raises public awareness<br />UN sanctions related to conflicts diamond 1<br />Reputation & consumer confidence at risk<br /> Various certifications, ethic codes<br />2<br />Slave & child labor<br />“Blood diamond”<br />Pollution<br /> Aboriginal land violated<br />kaysha <br />FABRICIO_DG<br />
  • 3. Diamond supply chain and associated challenges <br />Issues: environmental, sociopolitical, human rights, labor<br />Environment, human rights, legal dispute<br />Environment, forced labor, child labor, wages, health & safety, force relocation, price control, corruption<br />Smuggling (war & terrorism financing), stone mixing, price control, counterfeit<br />Heath & safety, child labor, wages<br />Working conditions, child labor, wages<br />Money laundering, training salespeople, policies on conflict diamonds and the self-regulation, several “ethical” certification<br />3<br />
  • 4. Exploration<br />Environment: dewatering, pollution, deforestation<br />Human rights: Indigenous rights, distort and disrupt the cultural and social lives (Canada 4), forced relocation (Botswana 3)<br />Legal: legal title and rights dispute (« cancel » by the state once diamond discovered 5)<br />4<br />Exploration mainly done by drilling<br />In 2004, 500 projects worldwide (investment USD 250mio in 2003) 2<br />Diamond found in 35 countries ; 65% are found in Africa 2<br />Placer Dome. Western Australia Country<br />
  • 5. Mining<br />5<br />No One Nels. Argyle Diamond Mine, Western Australia<br />Deepchi. Srilanka<br />Esthr. De Beersdiamond mine in Jwaneng, Botswana <br />
  • 6. Mining<br />250 tons of ore must be mined and processed to produce a single, one-carat diamond 7 <br />Environment: pollution of soil, water and the all ecosystem (by the removal of the top soil), deforestation<br />Forced labor & child labor: 171 million children (2006) 6<br />Wages: poverty, more than 1 million workers in the alluvial diamond extraction earn only a dollar a day 14<br />Heath & safety: respiratory problems (dust), lack of safety protection<br />Forced relocation: bushmen in Botswana 4<br />Price control: 50% of production controlled by De Beers 8<br />Corruption<br />6<br />
  • 7. Sorting, distribution & trade<br />Smuggling: war & terrorism financing<br /><ul><li> “Bloody diamond” (fromwar zone): 10-15% of total supply in in 1990s 15 today less than 1% 2 (thanks to Kimberly certification)
  • 8. al Qaeda in trading network 2003 10</li></ul>Stone mixing : mix illicit diamonds with legal stone<br />Price control: dominant position by De Beers (63% of rough diamond market)8<br />Counterfeit<br />7<br />Rough diamonds market valued at $8.1 billion in 2002 8<br />Photos8.com<br />
  • 9. Cut, polish & manufacture<br />For India<br />Heath & safety: diamond-cutting in the top 10 “hazardous industries”16, silicosis (diamond dust)<br />Child labor: still exists but declining rapidly 13<br />Wages: cheap labor<br />8<br />Israel, Belgium, USA, Thailand (for color gem), India (for small pieces, highly manual process)<br />Surat (India) cut & polish 92% of the world's diamond 13<br />MrHuevo , Thailand<br />
  • 10. Retail<br />Money laundering: respect of the law (e.g. US Patriot Act)<br />Training of salespeople: awareness about issues across the supply chain<br />Policies on conflict diamonds and the self-regulation : existence / enforcement<br />Several “ethical” certifications: different scope not always fully independent, confusing for the final consumer<br />9<br />From the extraction to the retailer the price has been multiplied by 3 from its extraction 17<br />The Responsible Jewellery Council, The Diamond Development Initiative, RapaportFair Trade, Kimberly agreement, …<br />Wumpiewoo<br />
  • 11. Source<br />Quoted<br />1. Resolution on "conflict diamonds" by United Nations http://www.un.org/peace/africa/Diamond.html<br />2. Diamond Facts by the World Diamond Council http://www.diamondfacts.org/<br />3. Botswana Bushman land carved up for diamond exploration http://www.survivalinternational.org/news/37<br />4. Editorial: Canada's Blood Diamonds http://www.diamonds.net/news/newsitem.aspx?articleid=16235<br />5. Diamonds in the Rough: Human Rights Abuses in the Marange Diamond Fields of Zimbabwe by Human Right Watch http://www.hrw.org/sites/default/files/reports/zimbabwe0609web.pdf <br />6. Diamonds Are Forever, But Not The Lives Of Child Workers by Travis Molina http://ihscslnews.org/view_article.php?id=162<br />7 How a new generation of lab-grown diamonds is shaking up the jewelry world by By Vanessa O'Connell , the Wall Street Journal http://www.post-gazette.com/pg/07016/754167-28.stm<br />9 Weak Controls and “Poverty Diamonds” by Global Witness http://www.globalwitness.org/media_library_detail.php/350/en/weak_controls_and_poverty_diamonds<br />10 Making it Work, Why the Kimberley Process Must Do More to Stop Conflict Diamonds by Global Witness http://www.globalwitness.org/media_library_get.php/260/1274133589/GW_Making_it_work.pdf<br />8, 11 De Beers SA A Diamond is Forever By Scott Reilly & Professor Russell Winer NYU Stern pages.stern.nyu.edu/~rwiner/De%20Beers%20case.doc<br />13. Uncommon Brilliance By AravindAdiga, Time.com <br />http://www.time.com/time/magazine/article/0,9171,610100,00.html<br />14. A different kind of diamond mining By Ian Smillie, Partnership Africa Canada http://www.madisondialogue.org/SmilieDDI_DifferentKindofDiamondMining.pdf<br />15. From mine to mall or mayhem. Thoughts on the Diamond supply chain…, By robjbellhttp://transformationallogistics.wordpress.com/2009/04/11/just-diamonds/<br />16. Grime behind the glitter? By Sakina Sadat Hussain, MSNBC.com http://www.msnbc.msn.com/id/15842528/<br />17. Diamond Global Value Chain By Sean Bani, Stefanie Bohrt, Carson Denny, Courtney Landy, Duke University http://www.duke.edu/web/soc142/team7/Diamond Global Value Chain.htm<br />10<br />
  • 12. Source<br />Additional<br />Clear Conscience Jewelry By Jennifer Malkin & WiamHasanain, Berkly University of California www.madisondialogue.org/Clear_Conscience_Jewelry.pd<br />London Diamond Bourse http://www.londonmondialbourse.com/<br />HIV & AIDS in Botswana, By AVERT is an international AIDS charity http://www.avert.org/aids-botswana.htm<br />Diamond Development Initiative http://www.ddiglobal.org/pages/issues.php<br />Diamonds and Human Security annul review 2009 By Partnership Africa Canada http://www.pacweb.org/Documents/annual-reviews-diamonds/AR_diamonds_2009_eng.pdf<br />Artisanal Diamond Cooperatives in Sierra Leone: Success or Failure? By The Diamond Development Initiative and Partnership Africa Canada http://www.ddiglobal.org/contentDocuments/Policy BriefJune 2008 (English Version).pdf<br />Diamonds in the Rough By Human Right Watch http://www.hrw.org/en/node/83957/section/12<br />A praticalapproach of fairtrade and ethicalmining certification By Jean_Claude_Michelou<br />http://www.gemstone.org/congress/panyu2009/speakers-presentations/Jean_Claude_Michelou/JC_presentation-ICA_Panyu_revised.ppt<br />https://open-site.org/Business/Retail_Trade/Loose_Diamonds/Diamond_Mining<br /> Broken Vows: Diamond Jewellery Retailers Fall Short on Conflict Diamond Pledge By Global Witness http://www.globalwitness.org/media_library_detail.php/330/en/broken_vows_diamond_jewellery_retailers_fall_short<br />11<br />
  • 13. Credit<br />Icon<br />Under Common Creatives licence. Author : http://www.gentleface.com/<br />Pictures<br />Under Common Creatives licence<br />deepchi1http://www.flickr.com/photos/deepchi/<br />Swamibuhttp://www.flickr.com/photos/swamibu/<br />FABRICIO_DG http://www.flickr.com/photos/_fabriciodg/<br />kaysha http://www.flickr.com/photos/kaysha/<br />Placer Dome http://www.mining.ubc.ca/cimarchive/index.php?image=10000381<br />No One Nelshttp://www.flickr.com/photos/dan_and_claire_nelson/<br />Photos8.com http://www.flickr.com/photos/publicdomainphotos/<br />MrHuevohttp://www.flickr.com/photos/mrhuevo/<br />Wumpiewoohttp://www.flickr.com/photos/wumpiewoo/<br />This document islicensedunderCreative Commons Attribution 3.0 by Michael Eich michaeleich@gmx.ch<br />12<br />

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