Development Diamonds - Martin Rapaport


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TBLI CONFERENCE™ EUROPE 2012 - Zurich - Switzerland

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Development Diamonds - Martin Rapaport

  1. 1. TBLI CONFERENCE Development Diamonds Martin Rapaport November 8, 2012 – Zurich Martin @ Diamonds. Net www . Diamonds. Net1
  2. 2. Fair Markets Jobs and “Fair Market Value” Gov’t and NGO’s can’t deliver. – Sustainable Economic Development 18% of children die before the Age of 5 – No Rule of Law, Laws Become Evil The Role of Government is Problematic – Governments kill their own people2
  3. 3. Regulation The Kimberley Process – Government, NGO and Trade Cooperation – Sierra Leone, Zimbabwe – Fig-Leafing, Green-Washing, An African Story Limits of International Law vs. National Laws Dodd Frank Act Legislation- OFAC – Regulating Conflict Minerals – U.S. OFAC Regulations3
  4. 4. Responsibility Money is power. Money is not neutral. It can be used for good or evil. Money is a powerful force for change You are responsible for what you do with money You are responsible for how we invest money You are responsible for what you buy and sell4
  5. 5. Differentiation Market & Product Differentiation – Ethical, Legal, Economic Forces – The slippery slope of legitimacy – Monetization of externalities Are Some Products Evil? Product Certification = Product Differentiation – Source, Production, Chain of Custody (CoC) – RJC, Partial Certification, The Whole Truth – Changing distribution systems5
  6. 6. CertificationRating Ethical SourcingScore 9 Fair Trade Grassroot Beneficiation 7 Ethical Legitimate Sourcing 5 Unknown Unidentified Sourcing 3 Problematic No Human Rights Violations 1 Evil Severe Human Rights Violations6
  7. 7. Market Dynamics Maximizing Sustainable Profits – Altruism Is Not Sustainable – Price Competition Limits Profits – Value Addition Increases Profits … Branding Ethics (ESG) As A Value Added Proposition – Can we make more money by being ethical – Will consumers pay more for ethical products – Will we lose money if we are unethical – Can we hide under unknown sourcing7
  8. 8. Summary Fair Markets – Competition Regulation – National Laws Responsibility – Money Is Power Differentiation – Create Products Certification – Adding Value Market Dynamics – Supply / Demand8
  9. 9. Conclusion Market forces determine reality. It’s up to us to improve the added value proposition of ethical products. We must create free, fair, efficient, transparent and competitive markets for ethical (ESG) products.9
  10. 10. Conclusions In the end, after all is said and done ... Society gets the level on ethics that it is willing to pay for. No more, no less. Our challenge is to increase the value of our values.10
  11. 11. END End Of Presentation ..11