Business Ethics as Related to The De Beers Company and Employee Rights Essay Sample

10 October 2017


Business moralss is defined as the norms or criterions of behavior that direct moral picks about the behaviour of the forces in a concern association and the association with the members of the populace. The end of concern moralss is to guarantee the safety of the employees. direction. and the external populaces are protected from enduring the effects from the concern activities of the peculiar organisation.

Social duty along with concern moralss outlines what the house ought to make in the running of the concern. The societal duty of a concern organisation towards the society deserves considerations in all the stages of strategic disposal. whereby the organisation must exert strategic planning through environmental and organisational assessment in order to supply replies to what an organisation might make and what it can make. ( Maund. 2001 )


The constitution of a concern or company entails coming up with concern rules or ethical motives that must be followed. These concern rules may include how the concern behavior or transacts its concern and how it deals with its clients or consumers. Business moralss besides entails the employee’s rights and their behavior as expected in their responsibilities to the company. The De Beers Company is involved in diamond geographic expedition. diamond excavation and diamond trading. For the De Beers Company I am traveling to turn to the undermentioned ethical issues ; the company’s place on merchandising of struggle diamond. legal issues. popular civilizations. runs and its place on man-made diamonds. Some of the employee’s rights I am traveling to discourse will include the labours criterions. wellness and safety every bit good as environment. The industries system of guarantees is besides another ethical issue that I will turn to under this subject. All this issues contribute greatly to the success of the concern ends and aims.

Over the recent yesteryear. De Beers Company has played a cardinal function in selling conflict diamonds from those countries that had diamond struggle due to the rebellions. In the 1990s De Beers Company came up with a policy which applied to all of Africa which was merely to purchase those diamonds that were lawfully traded and which the company believed it were non used to fund Rebel groups in those excavation countries. This was their public place while they were really purchasing struggle diamonds and funding those rebel groups for illicit trade. They were so much involved in get downing wars through the Rebels so that the Rebels could acquire their work forces to mine and research for diamond and sell this diamond at a lower or cheaper monetary value to them. This is a large unethical concern issue since the Rebels are non allowed to come in into trade or concern for illegal trade of diamonds. They were besides involved in offense against humanity as many lost their lives during the Rebel wars and this is unethical to concern projects. ( Edward. 1982 )

The other major ethical issue that affects the De Beer Company is the unfavorable judgment on monopoly of the diamond industry. Monopoly is a large concern ethic issue that the company is confronting which is illegal. The diamond market is dominated by De Beer’s companies which were originally formed in South Africa by British proprietors. De Beers now owns about 70 per centum of diamond mines in Africa and a household of companies jointly which is responsible for around 40 per centum of universe diamond production by value in the market. The even per centum partnership trade between De Beers and the authorities of Botswana is the world’s taking manufacturer of diamonds in the market. The supply of diamonds worldwide is controlled merely by De Beers therefore basking a monopoly in Botswana and about near monopoly in diamond supply in the remainder of the universe. Some other diamond mines owned by little companies have less control on the diamond market and this is unethical in concern.

Monopoly is non allowed in concern ; nevertheless. the codification of moralss merely allows 50 per centum of the market monopoly and non all monopoly on the market. This suppresses the little graduated table concerns in the market by even holding control over the monetary values of the market. It besides leads to run outing the resource of the developing states such as Botswana for case through suppression of the mine workers who are lowly. In any concern puting monopoly is non allowed at all and steps should be put in topographic point to avoid such sort of market by any company.

De Beers through its gross revenues and selling publicities has been really successful in increasing gross revenues and desire for diamonds. One of the run schemes is that it has been trying to deter diamond proprietors from seting their older diamonds into the secondary market and therefore restricting competition. Since 1947 the company has created many successful runs on how to increase the sale of diamonds. One of the most effectual schemes undertaken by De Beers Company has been the selling of diamonds as a symbol of love and committedness such as the ideal gem for an battle or marrying ring. Another run that the De Beers Company has been involved on is that of HIV Aids bar and control. Bing a planetary company that has many employees throughout the Earth and some of them has been affected so much by the stigma. the company has come out to assist control and halt the stigma. The company through its public assistance activities to its employees and community at big has come out greatly to battle the stigma through runs that educate people and give wellness attention support for those already affected by the deathly disease.

Since the 1950s. it has been possible to make synthesized diamonds in a research lab other than the original natural diamond. These research labs have been able to make diamond rocks that are used for many industrial intents such as for abradants in heavy responsibility boring. It is now besides possible to bring forth research lab created synthetics that are identical optically from mined diamonds even by professional sellers therefore doing them suited for jewellery. These are by and large colored treasures that offer colourless man-made diamonds. This has resulted to the monetary values of the original diamond of the company that it mines to travel down since the competition is really high in the market topographic point as people tend to prefer synthesized diamond that serve the same intent in the market. This is a large menace to the company and it has to run against production of such synthesized diamond that is illegal in the market since it has a great consequence to their gross revenues in the market. The company hence ought to get down runs on this illegal trade of synthesized diamond that is unethical harmonizing to the diamond concern.

The other legal issue that is of great concerned to the company is who controls or repair the monetary values of diamond in the market so that there is no monopoly in this planetary diamond market or industry. This is a large issue that affects the De Beer’s codification or rules of trade to the market greatly because they may non command the market monetary values. In 2004 the De Beers paid a $ 10 million mulct to the Department of Justice of United States to settle a 1994 charge that the corporation had entered in to with General Electric Company to procure the worth of industrial diamonds. De Beers reached an understanding in the twelvemonth 2005 and a preliminary blessing order was issued to settle the bulk of civil monetary value repairing suits filed against the company in the United States. Such colony of jurisprudence suits does non affect any admittance of liability on the portion of De Beers but it will convey an terminal to all outstanding category actions. This legal issue on who should command the monetary values of the diamonds in the market continues to be a great issue that affects the concern markets and gross revenues vastly of the company. ( Davis. 2007 )

De Beers Company over the yesteryear has been involved in illegal trade of diamond by funding the Rebels to mine diamonds for them and besides supported the wars so that they could freely merchandise and get diamond without the intercession of authorities. It is besides unethical for a company to prosecute itself in illegal covering that does non run into the specifications set out in concern Acts of the Apostless. For illustration. Rebels forced people in the illegal diamond excavation which is a misdemeanor against the human rights or employees rights. The people were forced to work under rough conditions and for long hours without nutrient or H2O which was a misdemeanor of their rights. Children were besides used mine in the excavation evidences that were non environmental friendly to them which was a misdemeanor of kids rights under any concern moral principle. All this was due to the illegal concern moralss De Beer got involved itself in with the Rebels.

De Beers is active in every class of diamond excavation which includes open-pit. belowground. large-scale alluvial. coastal and deep sea. Some of these environments are non contributing for the workers or employees to work for illustration working in the resistance or big scale alluvial therefore the employees need to be protected or insured against such hazards. They besides need protective cogwheels to protect them against hurts and the risky environment the work under. The concern moralss ensures that all this is catered for and all employees’ rights are protected. De Beers Company is on the record utilizing dust suppression method of spraying H2O when boring which violates their rights because dust in a diamond mine can cut and mark the lungs of miners. This is a large hazard and particularly to the workers non protected by usage of protective cogwheels or being insured when such hazards occur.

These belowground mines besides posed great hazards of prostration and so the company under concern codifications should guarantee that the mines follow process in boring such mines so that they don’t pose any danger to the employees. Health and safety are among the major concern moralss issues that are concerned to protect their employee’s rights in any company or concern. Labors criterions are besides portion of the concern ethical issues where workers demands have to be addressed for illustration wages should be standardized for them to be able to gain a good life. However. the company besides has some benefits like the retirement strategies and wellness insurance strategies. The wage they earn should be able to prolong them to bask a good life and their criterion could besides be improved by supplying lodging installations. The labours criterions should besides be improved by holding standard working hours to avoid overworking of the workers particularly those in the mines. The working environment should besides non be risky to the workers and all mines should be safe for mining to take topographic point.

There are many alternate solutions to work outing the jobs affecting concern moralss as stated above. The first solution is whereby De Beers warrants that a 100 per centum of the diamonds it now sells are conflict free. All De Beer’s diamonds are purchased in conformity with national jurisprudence. the strategy of Kimberley Process Certification and its ain Diamond Best Practice Principles that is harmonizing to the company are normally followed. De Beers is active in the Kimberley Process which aims to extinguish conflict diamonds from universe diamond flows. On the other manus Diamond Development Initiative should take to turn to the political. societal and economic challenges confronting the little graduated table informal diamond excavation sector and to optimise the good development impacts of little graduated table formal diamond excavation to mineworkers. The De Beers does this through advancing the development of sustainable concern theoretical accounts supported by development undertakings. ( Fisher. 2002 )

In order to hold control of the monetary values in the market. De Beers should offer injunctive alleviation which includes a general committedness to follow with the antimonopoly Torahs of the United States. and a committedness non to prosecute in specific behavior with 3rd party manufacturers and Sight holders. For illustration in the twelvemonth 2006 De Beers Company voluntarily entered into lawfully adhering committednesss with the European Commission ( EC ) to discontinue buying unsmooth diamonds from Alrosa. However. the De Beers Company no longer controls the monetary values and besides no longer monopolizes the market by holding the 70 per centum of the sells. The authorities should besides command the monopoly and put up policies to let the little graduated table companies to sell their diamonds without leting the large companies to take control. The Botswana and South Africa states should ordain Torahs to forestall these companies from working them and from ruling the markets but besides assisting the little graduated table companies.

The solution to issues on heath should besides be imposed by the company and the authorities in order to follow all healthy steps put in topographic point in any concern. For illustration De Beers presently holds a legal freedom in South Africa from the compulsory dust suppression method of spraying H2O when boring on the evidences that the dust in its mines is uniquely harmless ; a scenario which might non keep if it is considered profoundly. Such a step will forestall dust in a diamond mine from cutting and impacting the lungs of miners who are exposed to this risky environment. These steps should be enacted and any concern that breaks such jurisprudence should confront effects of action caused. This will heighten the preparation of concern moralss by different companies that attentions for their workers or employees welfare.

The production of synthesized Diamond is another job that needs to be resolved that is to extinguish this merchandises from the market. As portion of De Beers’ and Diamond Trading Corporation enterprise to work out this job they came up with the Gem Defensive Program as an instrument to be used by trade and gemological research labs that can observe all interventions. synthetics and simulates diamond merchandises. The two companies besides financess educational plans about interventions that can alter the visual aspect and other belongingss of diamonds and anterooms for all diamond interventions and synthetics to be labeled in such a mode. These activities are undertaken in cooperation with taking trade organic structures as a agency of guaranting full and accurate information is provided to consumers of the merchandises. This Defensive Program will be able to assist place this illegal synthesized diamonds that is being flooded in the market and being made available in the market at a lower monetary value than the original diamond. The concern moralss do non let forgery merchandises into the market and hence De Beers should keep itself from such a pattern ; this will guarantee that all merchandises supplied to the market will be of good quality and of original beginning so that its worth to the consumers for desired usage.

The authorities should inspect all mines for safety working status free from fright of prostration and risky environment. Safety steps should be amended and guarantee that they are followed for the Torahs surfs to confront effects. ( Fisher. 2002 )

Diamond is a cherished resource as a symbol of love and commitment hence concern moralss must be held in order to construct a feasible foundation and committedness for concerns and at the same clip protect all employees’ rights in any organisation.


The extent of concern moralss is considered extended and can be measured from diverse point of views. In this instance the firm’s direction must do certain that a figure of ethical considerations must be nonsubjective for the concern to be booming in its maps and associations with its human resources and the milieus of its company.

Corporate communicating hence must be adhered to and it is termed as a procedure that is used to smooth the advancement of the exchange of information and facts of the endeavor with its internal and external populaces or persons that have a direct relationship with the organisation. This activity is by and large practical in the internal communications direction as it is utilized from the distribution of the comprehension to determination doing with human resources. traders. investors and the company’s associates. Therefore. corporate communicating as a regulation is used to construct the company’s position among its stakeholders. This communicating entails the followers: transmutation direction. capable direction. concern societal duty. exigency communicating and internal connexions. ( Sparrow and Hilltop. 1994 )


Davis. J. ( 2007 ) : The New Diamond Age- Wired Issue diary. Vol. 2

Edward. J. ( 1982 ) : The Diamond Invention: – Diamond Trading Company diary. Vol. 1

Fisher. D ( 2002 ) : De Beers plans war on man-made Gems- Times Publishers

Maund. L. ( 2001 ) : An Introduction to Human to Human Resource Management: – Theory

and Practice: Macmillan. Palgrave

Sparrow. P and Hilltop. J ( 1994 ) : European Human Resource Management in

Passage: – Prentice Hall. New York

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