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Debeers Code Of Ethics

Decent Essays

De Beers advertising and pricing
DeBeers is considered one of the most powerful mining in the world and not because of their top quality products but because monopolistic values. The DeBeers corporation has been called ‘The most unethical corporation in the world’ by the St Antoninus Institute because of all the unethical issues that have been linked to DeBeers. DeBeers defies all standards of business standards conduct on a grand scale, in particular to the pricing of their diamonds and use of their advertising media.
Diamonds were a very rare commodity and therefore were a very expensive commodity but with the discovery of diamonds in other Southern African countries such as Botswana, it threatened to lower the price of diamonds and thus …show more content…

Cartels destroy fair market competition and are considered to be an example of unethical conduct. Cartels have the greatest impact in increasing the price of the commodity well beyond what is considered acceptable and fair market price, this causes an exorbitant and unreasonable prices. One of DeBeers’s unethical scandals was that they would withhold diamonds so that they could make as if there was a shortage of diamonds so they could raise the prices on the diamonds they sold. DeBeers is not only unethical towards the public who buys their diamonds but also to distributors and retailers around the world. DeBeers has been said to be unethical towards retailers in that when distributors want to purchase diamonds from DeBeers a DeBeers employees …show more content…

DeBeers practises with price fixing and putting pressure on distributors and retailers show that they behaviour is to their behaviour however their effect on others is negative. Even in the way that they have dishonest advertising benefits them because people will buy more diamonds which will increase their profits but the end consumer has spent more money on a diamond that they were told would last forever. Their dishonest advertising negatively affect people. Also cartels eliminate competition and people are forced to buy over priced diamonds, this is another example of how DeBeers business conduct has had a negative

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