Question: What do diamonds have in common with soccer balls and Chicken McNuggets?
Answer: They are products that have come under pressure to become more transparent. Increasingly, consumers and activists are asking questions about where they come from and how they are made. They’re getting answers, too.
To show that its soccer balls aren’t made in sweatshops, Nike publishes reports on factory conditions in the developing world. Just recently, the company announced that it may have a shortage of soccer balls this fall because Nike has stopped buying from a supplier in Pakistan because it could no longer verify that the soccer balls were being made at the factory, and not at homes, where child labor is likely to be employed.
As the obesity crisis has worsened, McDonald’s has agreed to list all the ingredients that go into a McNugget on its website. (Warning: You do not want to know.) Eventually, it’s likely that the ingredients and nutritional content will be more prominent in the restaurants as well.
As for diamonds, their image has been tarnished for about a decade because some of them—known as conflict diamonds or blood diamonds—have been used by rebel groups in Africa to finance brutal wars that have displaced, maimed or killed millions of people.
The question of how many diamonds are conflict diamonds, and how to stop the illegal trade, are being raised anew by, of all things, a movie. It’s called Blood Diamond, stars Leonard DiCaprio, and is set against the backdrop of the diamond-fueled civil war in Sierra Leone in the late 1990s. The movie will be released on December 8.
The movie is, potentially, a public-relations black-eye for the diamond industry during its holiday selling season. An industry group called the World Diamond Council has launched a $15 million campaign, including newspaper ads and a website, intended to polish the image of diamonds.
The issue’s very complicated, but here’s the interesting thing. Both the industry and its NGO critics, notably Amnesty International (disclosure: my wife Karen Schneider works there) and a group called Global Witness, agree that progress has been made since the NGOS brought pressure on the industry in the late 1990s. In 2002, countries that produce and import diamonds, including the U.S., agreed to a set of procedures called the Kimberly Process, which are designed to certify that shipments of diamonds crossing national boundaries are conflict-free.
How is the Kimberly Process working? I’m not an expert. If you’re interested, I’d refer you to both an industry website and to an independent website operated by Amnesty and Global Witness. The GAO put out a report this fall saying that the process needs to be improved. And a writer named Tom Zoellner, who has written a book about the industry called The Heartless Stone, wrote a thoughtful essay for Time on this issue. We talked briefly by phone, and he suggested to me that even under the best of circumstances, diamonds are less than ideal as a development strategy for African nations because their future value is unpredictable; they are no longer scarce, and their desirability depends entirely on their image, which movies like Blood Diamond are not going to help.
Here’s the point, though: Consumers can make a difference by asking intelligent questions about where the things they are buying come from, and how they are made.
That’s a big change from years ago. When I was a teenager, it would never have entered my mind to me to ask where a soccer ball came from or who made it. Then again, it never would have entered my mind to buy a soccer ball.




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Considering the cost of soccer balls vs. a diamond my guess is the average consumer is buying more soccer balls than diamonds. The company that provides these balls for our kids is thankfully doing the right thing in discontinuing their relationship with manufacturers they are not sure about. However my question is what else can be done besides winding up with a shortage of balls?
A recent article in Business Week called “Secrets, Lies and Sweatshops” shines a light on the many ways these manufacturers in foreign lands are getting away with the very abuses we say are unacceptable in our own society.
The question for every consumer should be what is the company (Nike in this case) doing to really verify that child labor and worker abuses are not being hidden by a double set of books or other methods used to hide that these facilities are abusing their workers. Monthly or random audits do not seem to be working very well.
One suggestion could be for the company (Nike) to hire a fulltime on site employee to monitor on a daily basis how the workers are being treated. This employee would stay at the facility for an indefinate period of time. Their sole function would be to act as the eyes and ears for corporate headquarters thereby guaranteeing compliance. This would send a very strong message not only to those directly involved but ultimately to the consumer. “We care about how our people both here and there are being treated. We take this issue seriously and are willing to commit the necessary manpower and resources to insure that the firms we employ to produce our products operate at all times under humane working conditions for all.”
I’m sure the cost of paying these police-persons would be nominal at best. Perhaps they could hire people who have lost their job as a result of outsourcing. At least that would help a small number of their American employees. That kind of financial commitment combined with the right advertising would set them apart from the competition. I would venture to guess that others would follow suit so as not to be left behind in terms of market share, sales, and profitability.
If Nike or any other manufacturer could guarantee their products are produced under humane conditions they would have my business. Of course if we could find a way to alleviate the suffering and hardship suffered by displaced American workers they would be guaranteed to have my business forever. We should all put our heads together and try to figure that one out.
Peter Ressler
Chairman, CEO
Ressler, Mitchell, Tucker Search
Chairman
The Center for Good Business
Co-author of:
Spiritual Capitalism
ressler@rmtsearch.com
http://www.spiritualcapitalism.com
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