C5 company

Overview of Issues

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Industry

Anti-trust laws in the United States and elsewhere are passed to create a competitive environment whereby consumers are protected from industry monopolies. However, the mined diamond industry has remained outside the jurisdiction of these laws and has been controlled by a handful of multinational companies. Only in recent years has the industry as a whole been regulated on a global scale.

Conflict

The trade and sale of diamonds in exchange for weapons in war-torn developing countries has been well documented. Traditional diamond companies have responded by participating in the Kimberley Process, created in 2003 to establish industry standards for “conflict-free.” Though steps have been made to resolve this issue, the extent of progress has been overstated.

Labor

Diamond mining operations are frequently marked by inhumane working conditions, long hours, inequitable pay, lack of safety precautions and unhealthy environmental settings. Slavery, including the forced labor of children in the most extreme cases, has been uncovered in developing countries.

Environment

Diamonds are forced upward from deep inside the Earth, bringing them close to the surface. Open-pit mining is used to uncover these primary deposits. In so doing, layers of earth, plant life and wildlife habitats are stripped away. Many animal species are affected, which may lead to endangerment. In many cases, fresh water supplies and landscapes are compromised for decades.

Deforestation and environmental degradation have contributed to exposure of diamond deposits, known as alluvial deposits, on riverbeds and ocean shores. Though alluvial diamonds do not lay as deep, mining still takes a toll on the environment as biologically sensitive areas are disturbed.

Social

In creating a false commodity of value, the traditional diamond industry has perpetuated a culture of social disruption. Poverty stricken aboriginal and indigenous communities worldwide struggle with development. Focus is placed on everyday survival, rather than long-term strategies for lifting out of poverty. The most promising in these communities are often discouraged from the pursuit of education. Instead, children are taught to value the immediate reward associated with finding a diamond in the rough, thereby advancing a culture of exploitation and suffering.