Corporate Social Responsibility in Diamonds

Many industries are faced with supply chain challenges. I am typically hired by consumer-facing companies (e.g. brands, retailers) to evaluate risks in their supply chains and subsequently work to remediate those risks. In this work, I have seen some of the poorest social and environmental practices, as well as the most sophisticated, in mining and manufacturing that exist around the globe. In this work, I have come to expect the worst. But my assumptions have been challenged by the diamond industry (read more on diamond provenance), and I have been given a fresh perspective on what is possible in supply chains when leaders are dedicated to making improvements.
Indian diamond manufacturing has noteworthy leadership practices despite facing extreme pressures that are typical to the “midstream” of a supply chain. In the diamond supply chain, diamond manufacturing has less buying and selling power than many midstream processing companies, yet still has managed to be profitable and support the livelihoods of millions of diamond cutters and polishers. In this paper, we attempt to explore what sets the leaders apart from those that fall behind in the industry, and highlight some notable examples of leadership. We will also delineate opportunities for improvement and expansion of these best practices as well as broader uptake by those that are weaker in the system.