FREE BLOOD DIAMONDS
“A conflict-free diamond is a diamond whose profits are not used to fund wars and which is produced and mined under ethical conditions. Only diamonds that are certified and can be traced from the mine to the consumer are conflict-free diamonds. A cultured diamond is also conflict-free, since it is grown in a laboratory.” [1]
The ancient Greeks called diamonds the tears of the gods. Today, we know that natural diamonds consist of highly compressed carbon molecules. They have become a symbol of beauty, power, wealth, and love. Nevertheless, diamonds and the diamond trade are plagued by a sad reality: the exploitation of people for diamond extraction and the use of diamond profits to fund terrorist activity and rebel groups.
Trade in diamonds is highly profitable. The stones are readily converted to cash, small and are easily transportable, not detectable by dogs, nor do they set off any metal detectors. Unfortunately, this makes them an easy _ target for money laundering activities by terrorist and rebel groups; in addition, their high value encourages some diamond producing countries to employ means of extraction that may violate human rights. Consider the case in Botswana where a rich diamond deposit was discovered on the land belonging to a tribal group, the Bushmen. The government forcibly resettled all 2,500 of them.
The world diamond industry breeds a network of secrecy and sophisticated levels of corruption. This has created an environment in which a significant proportion of African diamonds are allowed to circulate in ways that make it difficult, if not impossible, to determine where they originate. As a result, African diamonds act as a form of currency used to back international loans, pay debts, pay bribes, and buy arms. This phenomenon often leads to the unfair mislabeling of African diamonds by the world's most established diamond organizations and cartels. These problems are compounded by the fact that bloody wars are being fueled throughout Africa by many non-African countries with the intent of distracting African countries, while their valuable natural resources are quietly being extracted to build wealth in more developed nations outside of Africa. Conflict-free diamonds are diamonds of certified origin which are guaranteed not to be obtained through the use of violence, human rights abuses, child labor, or environmental destruction. These diamonds are individually tracked through their full chain of custody to ensure that ethical practices are used in mining, cutting and polishing.
Conflict diamonds (often called Blood Diamonds) are often described by the United Nations definition as diamonds "that originate from areas controlled by forces or factions opposed to legitimate and internationally recognized governments, and are used to fund military action in opposition to those governments, or in contravention of the decisions of the UN Security Council". The U.N. sponsored Kimberley Process addresses only this narrow definition of conflict diamonds,i.e., they do not include governments or government forces that trade in diamonds to finance their conflicts.Conflict-free diamonds address more than the U.N. definition and are free of all violence and human rights abuses, whether state-sanctioned or directed against a government. In addition, conflict-free diamonds are mined in an environmentally responsible fashion. Conflict-free diamonds must be independently tracked from their country and individual mine of origin. Almost all conflict-free diamonds today originate in Canada, and are verifiable through an independent auditing system, such as the Canadian Diamond Code of Conduct, Canadamark, or the Government of the Northwest Territories.Conflict free diamonds may be mined in one country and cut in another.Conflict-free alternatives to a mined diamond include laboratory grown diamonds and imitation diamonds. Since they are grown in a laboratory or controlled facility by scientists and engineers, their origin is known and guaranteed.
The following, is an actual opinion poll at the oficial Webpage of the African Diamond Council Association.[2]
Do you think about origin and conflict-free status when buying diamonds and gems?
- Absolutely!51.71 % (166)
I've never really thought about it much. 11.21 % (36)
I'll still buy diamonds but I'm going to base my purchase on whether they are produced in a humane way.13.08 % (42)
Don't really care! Diamonds are a girl's best friend.12.15 % (39)
I have thought/will think about alternatives.10.28 % (33)
The Kimberley Process is a United Nations-backed certification plan created to ensure that only legally mined rough diamonds, untainted by conflicts; reach established markets around the world. According to the plan, all rough diamonds passing through or into a participating country must be transported in sealed, tamper-proof containers and must be accompanied by a government-issued certificate guaranteeing the container's contents and origin. Customs officials in importing countries are required to certify that the containers have not been tampered with and are instructed to seize all diamonds that do not meet the certification requirements.
The agreement also stipulates that only those countries that subscribe to the new rules will be able to trade legally in rough diamonds. Countries that break the rules will be suspended and their diamond trading privileges will be revoked. Furthermore, individual diamond traders who disobey the rules will be subject to punishment under the laws of their own countries.
New Technologies Offer Solutions
Recently, a number of new technologies have emerged that, if adopted by the diamond- industry worldwide, could change the way that diamonds are produced, traded, and sold. Several United States companies, using machines produced by Russian scientists, have been able to make industrial and gem-grade diamonds artificially. In terms of industrial-grade diamonds, which constitute at least 40 percent of all annual diamond production, this could mean tremendous cost savings for industries using industrial diamonds and the elimination of conflict diamonds from industrial uses. For gem-grade diamonds the viability of synthetic diamonds is questionable. Because of marketing campaigns by industry leader DeBeers Diamond Group, most consumers still feel that diamond gems are natural pieces of art and a rarity of nature. They are unwilling to trade that image for the mass-production view of synthetic diamonds.
People Involved.
Kanye West: is an American rapper, record producer and singer, from Chicago, Illinois.
Kanye West Raps About Conflict Diamonds
“According to this piece in National Jeweler, West first titled his new single "Diamonds from Sierra Leone" as "Diamonds are Forever." But West changed the song when he heard about conflict diamon
Leonardo DiCaprio: Is an American actor and film producer whose career rose with his role in the television sit-com Growing Pains and quickly moved to films. Also He was the main actor of the movie denominated “Blood diamond” which in addition features an ethical dilemma about buying and trading diamonds
Manufacturers, brokers, and dealers to importers and wholesalers.
Jonas Savimbi, the head of a rebel movement called UNTTA (National Union for the Total Independence of Angola).
Alex Yearsley: Journalist of Global Witness organization whose critics some of the weaknesses of the Kimberley process.
Sirius Diamonds: a Vancouver-based cutting and polishing company, now microscopically laser-engraves, a polar bear logo and an identification number on each gem it processes.
3 beams Technologies: is currently working on a system to embed a bar* code inside a diamond (as opposed to on its surface) which would make it much more difficult to remove.
Indetex: Canadian security company creator of the "invisible fingerprint". The technology works by electronically placing an invisible information package on each stone.
Antwerp, Belgium, ;
New York, U.S.A;
Tel Aviv, Israel;
and Mumbai, India.
Five countries currently dominate the diamond processing industry— India, which is the largest (processing 9 out of every 10 diamonds); Israel; Belgium; Thailand; and the United States; with China emerging as a new processing center.
Countries afected by the violence:
Angola, Sierra Leone, Congo, Cote d'lvoire, and Liberia.
Washington Post: is the newspaper with the largest circulation in Washington, D.C., United States and is the city's oldest paper, founded in 1877. Being located in the nation's capital, it has a particular emphasis on national politics and international affairs. It is a newspaper of record and a regional paper; only D.C., Maryland, and Virginia editions are printed for daily circulation.
Global Witness: is an international NGO established in 1993 that works to break the links between natural resource exploitation, conflict, poverty, corruption, and human rights abuses worldwide. The organization has offices in London and Washington, D.C.. Global Witness does not have any political affiliation.
UNITA (National Union for the Total Independence of Angola), extended his organization into the vast diamond fields of the country. In less than one year, UNITA's diamond-smuggling network became the largest in the world—-netting hundreds of million dollars a year with which they purchased weapons.
The main problem could consist on the bribery and forgery which are inevitable and that cornet "government officials will render the scheme inoperable. Even those diamonds with certified histories -attached may not be trustworthy.
The biggest weakness of the Kimberley Process is how it is monitored. Any country can become a member of the Kimberley Process by sending a letter to the organization's president, currently, the European Commission. Whether or not the country meets the standards of the Kimberley Process, it can still become a member. This means that many conflict diamonds are still getting past the Kimberly Certification Scheme because some countries don't meet the requirements of the Kimberley Process. However, as of 2007, it is estimated that its share in total trade of rough diamond has come down to only USD 10.2 million.
The restrictive measurements that with the technology have been more effective every time, are going to have equally a parallel alternative measurement to evade them. The solution for this problem, more than prohibitive measurements on the buy and diamond sale from nations affected by the violence, it is to create conscience in the persons since it is the same demand of this type of good the responsible of the invention of different methods to evade the restrictive measurements. The advertising must be a fundamental tool in this aspect allowing to show to the people the real reality that is removing to end in these nations in detriment.
Questions for Discussion
1. In light of die conflict diamond issue, would you buy a diamond? Why or why not?
A. In cooperation with the African people, during this period I would take advantage that the diamonds are substitutive goods, so instead of purchasing one diamond I would buy an emerald beneficing the Colombian industry of the primary goods. So my decision creates a perfect balance between the African people safety and the Colombian industry development.
2. As a diamond retailer, what options do you have to ensure that the diamonds you sell are not conflict diamonds?
A. As a retailer the warranties of the origin of my gems depends exclusively from my suppliers, for that reason instead investing in technologies to stamp my gems, the selection of the suppliers must be rigorously and extremely carefully.
3. As a diamond producer, what steps can you take to prevent conflict diamonds from entering your supply chain?
A. Probably the most strict example of a logistics of the first level happens in the jewelries, where the interaction between suppliers of products, shop and transporter it is necessary for the whole chain of supply. For that reason an vertical integration between all the step of the chain will warranty the quality and origin of all the gems.
4. Do you think the diamond industry as a whole has an ethical responsibility to combat the illicit trade in diamonds?
A. Obviously, the diamond industry is the responsible of purchasing the diamonds as raw materials to the affected nations, these nations are the direct suppliers for the industry so mayor retailer must offer the same warranties with the customers and suppliers.
1: Bases for international Market segmentation : Segmentation is essentially the identification of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behavior. The world is made up from billions of buyers with their own sets of needs and behavior. Segmentation aims to match groups of purchasers with the same set of needs and buyer behavior. Such a group is known as a 'segment'. [3] This is one of the most important tools in the marketing process, this part defines how is going to be our product and wich is our target to sell it, so all the company since the production area to the advertising strategies depends directly on this part of the marketing process which determines the design, the price, the target which is focused and the advertising strategies necessaries to penetrate the market.
Requirements for Effective International Segmentation
•Measurability
•Substantiality
•Stability over time
•Accessibility
•Actionability
•Differential response
2:Environmental Variables: Universe of sociological elements that affect a company's ability to serve its customers or sell its goods and services. There are six major macroenvironment forces: cultural, demographic, economic, natural, political, and technological.
3:Marketing Management Variables:
The four Ps are traditionally featured as the elements of the marketing mix. These four variables (product, price, place and promotion) engage the company in the fundamental aspect of conducting business. Blending the four variables into a coherent program requires trade-offs based on the type of product or service being offered, the stage of the product’s life cycle, and resources available for the marketing effort, as well as the type of customer at whom the marketing efforts are directed.
4a:Geographic:it is referred to the regions, countries, city/town size, population density and climate. geographic segmentation is an important process - particularly for multi-national and global businesses and brands. Many such companies have regional and national marketing programmes which alter their products, advertising and promotion to meet the individual needs of geographic units.
4b:Political: Political and legal factors often play critical roles in international marketing activities. Certain issues in the political environment are particularly significant. Some countries, such as Venezuela, have relatively unstable governments, whose policies may change dramatically if new leaders come to power by democratic or other means. Some countries have little tradition of democracy, and thus it may be difficult to implement.
4c:Economic: Totality of economic factors such as employment, income, inflation, interest rates, etc. that influence in a directly or indirectly way the behavior of consumers.
4d:Cultural:
•An integrated system of learned behavior patterns that are distinguishing characteristics of the members of any given society.
The definition encompasses a wide variety of elements, from materialistic to the spiritual
Language
•verbal
•non-verbal
Religion
Values and Attitudes
Manners and Customs
Material Elements
Aesthetics
Education
Social Institutions
5a: Product variables: Type of product or service being offered, simply the tangible, phsysical entity that they may be buying or selling.
•Pricing is the only revenue generating element of the marketing mix.
•Pricing is a means of attracting and communicating an offer to a potential buyer.
•Pricing is a competitive tool.
•Pricing can be use to position the product or service in the marketplace.
