Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
ROBERT PINES PROFESSOR JUSTUS R. WEINER, ADVOCATE BUSINESS ETHICS AND SOCIAL RESPONSIBILITY: A MIDDLE EASTERN PERSPECTIVE ...
World Diamond Industry <ul><li>Three major world diamond capitals: </li></ul><ul><ul><li>Antwerp, Belgium </li></ul></ul><...
Israeli Diamond Industry <ul><li>World leader in the production of cut diamonds </li></ul><ul><ul><li>Polishing Center </l...
Israeli Diamond Industry, Statistics <ul><li>In 2000, Israel exported more polished diamonds than Belgium and India combin...
Industry Process <ul><li>Israeli involvement in: </li></ul><ul><li>Sorting </li></ul><ul><li>Cutting and Polishing </li></...
Efforts to Eliminate Blood Diamonds <ul><li>Blood diamonds, or conflict diamonds, are: </li></ul><ul><ul><li>Mined from ar...
Efforts to Eliminate Blood Diamonds <ul><li>International </li></ul><ul><li>2003: Israel was the first country to issue a ...
Efforts to Eliminate Blood Diamonds <ul><li>Domestic </li></ul><ul><li>Establishment of a Diamond Controller within the Mi...
Diversity and Integration in the Industry <ul><li>A traditionally “Jewish” occupation in pre-WWII Europe </li></ul><ul><li...
Diversity and Integration in the Industry <ul><li>Ashkenazim mainly worked in management, a legacy from their positions in...
Diversity and Integration in the Industry <ul><li>Mix of such diverse cultures resulted in tensions in the workplace durin...
Government Influence on the Industry <ul><li>During the early years of the state, the government encouraged construction o...
Government Influence on the Industry <ul><li>Eventual financial failures of most plants </li></ul><ul><ul><li>Locations de...
Government Influence on the Industry <ul><li>Growth in plants, decline in employment </li></ul><ul><ul><li>Underutilizatio...
References <ul><li>&quot;Boaz Hirsch, Chair of the Kimberley Process.&quot;  Israel Trade Commission . Israel Trade Commis...
Upcoming SlideShare
Loading in …5
×

Ethics within the Business Practices of the Israeli Diamond Industry

970 views

Published on

Published in: Business, Lifestyle
  • Be the first to comment

  • Be the first to like this

Ethics within the Business Practices of the Israeli Diamond Industry

  1. 1. ROBERT PINES PROFESSOR JUSTUS R. WEINER, ADVOCATE BUSINESS ETHICS AND SOCIAL RESPONSIBILITY: A MIDDLE EASTERN PERSPECTIVE BUSINESS AND ECONOMICS 48260 NOVEMBER 21, 2011 Ethics within the Business Practices of the Israeli Diamond Industry
  2. 2. World Diamond Industry <ul><li>Three major world diamond capitals: </li></ul><ul><ul><li>Antwerp, Belgium </li></ul></ul><ul><ul><li>New York City, USA </li></ul></ul><ul><ul><li>Ramat Gan (Tel Aviv), Israel </li></ul></ul><ul><li>Two categories: </li></ul><ul><ul><li>Gem-grade diamonds, used for their beauty </li></ul></ul><ul><ul><li>Industrial-grade diamonds, used for their molecular properties </li></ul></ul><ul><li>Most imported from Africa; global sales worth over $72 billion </li></ul>
  3. 3. Israeli Diamond Industry <ul><li>World leader in the production of cut diamonds </li></ul><ul><ul><li>Polishing Center </li></ul></ul><ul><ul><li>Trade Center </li></ul></ul><ul><li>Diamond Exchange District, Ramat Gan </li></ul><ul><ul><li>World’s largest diamond exchange </li></ul></ul><ul><ul><li>World’s largest trading floor </li></ul></ul><ul><li>Thousands of diamantaries, which are manufacturers of gem-quality diamonds </li></ul>
  4. 4. Israeli Diamond Industry, Statistics <ul><li>In 2000, Israel exported more polished diamonds than Belgium and India combined </li></ul><ul><li>In the first quarter of 2011, Israeli diamond exports reached $1.2 billion </li></ul><ul><ul><li>2010 Q1 only saw $829 million </li></ul></ul><ul><ul><li>39.6 percent increase </li></ul></ul><ul><li>Participation in trade shows in Mumbai, Vicenza, Hong Kong, and Basel </li></ul>
  5. 5. Industry Process <ul><li>Israeli involvement in: </li></ul><ul><li>Sorting </li></ul><ul><li>Cutting and Polishing </li></ul><ul><li>Jewelry Manufacturing </li></ul><ul><li>Retailing </li></ul>
  6. 6. Efforts to Eliminate Blood Diamonds <ul><li>Blood diamonds, or conflict diamonds, are: </li></ul><ul><ul><li>Mined from areas of conflict, often using slave labor </li></ul></ul><ul><ul><li>Sold to fund insurgencies, wars, battles, etc. </li></ul></ul><ul><li>Kimberley Process Certification Scheme </li></ul><ul><ul><li>UN-mandated process to eliminate blood diamonds from the market </li></ul></ul><ul><ul><li>Only the 75 countries that are members of the Kimberly Process (KP) can import or export rough diamonds </li></ul></ul>
  7. 7. Efforts to Eliminate Blood Diamonds <ul><li>International </li></ul><ul><li>2003: Israel was the first country to issue a KP certificate, showing that its diamonds are conflict-free </li></ul><ul><li>2010: Mr. Boaz Hirsch of Israel named Chair of the KP </li></ul><ul><ul><li>In favor of a supranational body to monitor and enforce the KP </li></ul></ul><ul><ul><li>Proponent of passing the chairmanship between trading and producing countries </li></ul></ul>
  8. 8. Efforts to Eliminate Blood Diamonds <ul><li>Domestic </li></ul><ul><li>Establishment of a Diamond Controller within the Ministry of Industry, Trade, and Labor. </li></ul><ul><ul><li>Monitors imports and exports in accordance with the KP </li></ul></ul><ul><ul><li>Represents the government in forums dealing with conflict diamonds </li></ul></ul>
  9. 9. Diversity and Integration in the Industry <ul><li>A traditionally “Jewish” occupation in pre-WWII Europe </li></ul><ul><li>Establishment of Israel brought Jewish immigrants from a variety of backgrounds </li></ul><ul><li>Tension between the richer Ashkenazim and the poorer Sephardim influenced employment in the nascent Israeli diamond industry </li></ul>
  10. 10. Diversity and Integration in the Industry <ul><li>Ashkenazim mainly worked in management, a legacy from their positions in Europe </li></ul><ul><ul><li>Belgium </li></ul></ul><ul><ul><li>Germany </li></ul></ul><ul><ul><li>The Netherlands </li></ul></ul><ul><li>Sephardim were relegated to lesser, more strenuous positions </li></ul><ul><li>In recent years, many foreigners have taken positions as diamantaries in Israel </li></ul>
  11. 11. Diversity and Integration in the Industry <ul><li>Mix of such diverse cultures resulted in tensions in the workplace during the early years </li></ul><ul><li>Today, the Israeli Diamond Industry is a standard for tolerance, diversity, and integration </li></ul><ul><ul><li>Every Israeli faces the same threats; no room for discrimination </li></ul></ul><ul><ul><li>Global Jewish connections/networks have made the industry quite prosperous for all employees </li></ul></ul>
  12. 12. Government Influence on the Industry <ul><li>During the early years of the state, the government encouraged construction of diamond plants in development areas </li></ul><ul><ul><li>Tried to encourage growth away from Tel Aviv </li></ul></ul><ul><ul><li>Attempted to create new sources of employment </li></ul></ul><ul><li>Dire need to populate and industrialize the Galilee and Negev </li></ul>
  13. 13. Government Influence on the Industry <ul><li>Eventual financial failures of most plants </li></ul><ul><ul><li>Locations deemed too remote </li></ul></ul><ul><ul><li>Inadequate amount of working capital </li></ul></ul><ul><ul><li>Irregular supply of resources </li></ul></ul><ul><li>Mass buy-up through government backed company called Pituach </li></ul><ul><ul><li>Fears of a government takeover </li></ul></ul><ul><ul><li>Protests from foreign governments, local manufacturing association </li></ul></ul>
  14. 14. Government Influence on the Industry <ul><li>Growth in plants, decline in employment </li></ul><ul><ul><li>Underutilization of plants </li></ul></ul><ul><ul><li>Frequent cessation of operations </li></ul></ul><ul><li>“ Plants… embroiled in wildcat strikes and frequent strife” </li></ul><ul><li>Mass migration back to urban centers </li></ul>
  15. 15. References <ul><li>&quot;Boaz Hirsch, Chair of the Kimberley Process.&quot; Israel Trade Commission . Israel Trade Commission, 26 Oct. 2011. Web. 20 Nov. 2011. </li></ul><ul><li>&quot;The Diamond Industry Fact Sheet.&quot; Diamond Facts . World Diamond Council, n.d. Web. 20 Nov. 2011. </li></ul><ul><li>&quot;Ethics Very Important Issue for the Diamond Industry.&quot; Diamond World . Diamond World, 30 June 2007. Web. 26 Oct. 2011. </li></ul><ul><li>Gradus, Yehuda, Eran Razin, and Shaul Krakover. The Industrial Geography of Israel . New York: Routledge, 1993. Print. </li></ul><ul><li>&quot;Israel Diamond Industry Reports Strong Export Growth.&quot; Jewellry Outlook . Jewellry Outlook, 6 Jan. 2011. Web. 26 Oct. 2011. </li></ul><ul><li>The Israeli Diamond Industry . Israel Diamond Institute, n.d. Web. 26 Oct. 2011. </li></ul><ul><li>Siegel, Dina. The Mazzel Ritual: Culture, Customs and Crime in the Diamond Trade . New York: Springer, 2009. Print. </li></ul><ul><li>Szenberg, Michael. The Economics of the Israeli Diamond Industry . New York: Basic Books, 1973. Print. </li></ul>

×