Project for Class.

2.  De Beers created the
need for diamonds in
American culture.
 Their ad campaign
solidified the diamond
being a symbol of love
and commitment.
 They persuaded the
audience to believe that a
diamond is rare and
expensive, when it really
had no intrinsic value.

3.  In the 1990s there was an
influx of diamonds into the
market thanks to the
collapse of the Soviet
Union.
 The more common way of
mining diamonds is
through shaft mining.
 In Africa, diamonds were
mined easier due to alluvial
mining.
 Alluvial mining meant that
diamonds could be mined
from water beds.

4.  The diamonds were so easy
to mine, that anyone who
found them would make a
fortune.
 Militias and Rebel groups
like RUF took over the
diamond rich territories.
 They forced locals into
servitude to perform hard
labor, or risk losing limbs,
family members, or their
own lives.

5.  De Beers process until
this point was to buy
diamonds through long-
term contracts.
 They then put the
diamonds in inventory.
 They selectively sell a
small amount of the
inventory to preserve the
rarity of the diamond.

6.  De Beers experienced an
influx in surplus.
 De Beers received a lot
more supply, but still only
sold the same amount.
 The renegade groups
amped up the procurement
of diamonds through
terrorism and violence.
 Many people died through
VS
suffering and strife, and it
appeared De Beers profited
from it without insight.

7. 1)To What Extent is DeBeers at Risk? To What Extent is
DeBeers Responsible?
2) Identify the Key Actors
3)Is there a mechanism that can stop the supply of conf lict
diamonds, end the killings, and restore order to the market?
How should it be enforced?
4) Are there ways to get around (loophole) the mechanism?

8.  De Beers is at risk to the  DeBeers is responsible to
extent that it only acted the extent that it profited
when it was on the public and stored diamonds in
stage, a whole decade the course of these
after it started. It is at African countries’ strife,
risk of losing a consumer that it turned a blind eye
base it solely built over to the situation and
the lack of corporate benefitted for 10 years,
social responsibility. and only forfeited 60% of
their “loot”.

9.  Rebel and terrorist groups,
including the infamous
RUF.
 Government
 Victims of terrorism in the
African countries, like
Angola, Sierra Leone, and
Liberia.
 NGOs and special interest
groups
 Kimberley Process Nations
 Private parties and
individuals

10.  In 2000, a conglomerate of countries,
companies, government and individuals
of South African diamond-producing
states created the Kimberly Process
Certification Scheme for rough diamonds
to prevent conflict diamonds to influx
into the mainstream market.
 Diamonds that originate from a
Kimberley Process country do not
finance rebel groups.
 Each diamond parcel must have a
certification slip,
 Each diamond parcel must be in a
tamper proof container,
 No diamond is imported from or
exported to a non-member nation.
 If you disobey these guidelines, you will
be punished with an embargo. No trade of
diamonds can occur if you violate the
guidelines. This is harsh if it is your
nations main industry.

11.  Country could possibly sneak
them into packages that are
certified conflict-free.
 The Kimberley Process is highly
disorganized with a rolling
leader, sharing responsibility
nation to nation, year after year.
 The disorganization of the KP
can be undermined.
 Some other critics have said that
the system doesn’t truly stop
conflict diamond mining or help
people. It merely takes a portion
of the power away from them.
They can still sell the diamonds
in the black market.

13.  Tylenol scare happened in
the early 80s. Someone
poisoned bottles of
Tylenol. It caused many
people to fear Tylenol and
quit buying.
 Johnson & Johnson ripped
the product off the shelves
at a cost of over 20 million.
 They are applauded for
their handling of the
situation, and reintroduced
the product with new
bottles.

14. Johnson & Johnson De Beers
 Immediately reacted to  Turned a blind eye, and
the scandal as it let the situation fester.
happened.  Took the product out of
 Recalled all the products the inventory over a
that were associated with decade after it started.
the harming of people  They gained money, and
 They lost money, but lost respect. They are
gained resounding still trying to get back to
respect and patronage where they were.

15.  Everyone in the diamond
industry must be conflict-
free.
 Ethics became a stronger
proponent to the purchase
of diamonds.
 Ethically, DeBeers was
wrong, but legally it was
fine.
 They had an easy and a
difficult route. De Beers
chose the easy way.
 In my opinion, it is too
little too late.