Social Performance of Organizations Essay

2146 Words Oct 4th, 2014 9 Pages
Assignment 1: Social Performance of Organizations
Janet Jackson
Strayer University
BUS475
May 1, 2014
Instructor:

The De Beers Company is one of the wealthiest companies in the world. De Beers leads and dominates the diamond industry in diamond mining, diamond trading, and industrial diamond manufacturing. In 1871 a South African man named Cecil Rhodes created De Beers. Rhodes rented water pumps to miners then invested his profits by buying up small mining operations. In 2011 the De Beers Group sold their remaining stake to Anglo American for $5.1 billion in cash. (DeMarco, 2011). Before the sale the diamond company was owned by the Oppenheimer family. Now Anglo American own 85 percent of De Beers making them the primary
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These stockholders do a great job planning on how to keep the company making big profits. This gives these stockholders lots of control. De Beers has done a great job expanding their markets and making sure those places have high demand for their product. In an article on Telegraph.co.uk, Josephine Moulds states De Beer’s “ sales in the Middle East, India and Asia drove pre-tax profits up 74% to $1 billion in the first half (Moulds, 2011).
The governments in the diamond industry have a lot of control what the companies can do. When mining diamonds many of land and resources are used. Governments have to take the interest of their people and also take into account what impact the diamond industry has on the local environment. In the country of Angola diamond mining has had a huge impact. Brilliantearth.com states “irresponsible diamond mining has caused soil erosion, led to deforestation, and forced local populations to relocate” (Brilliant Earth, n.d.). Governments also have to regulate labor laws for their country. In some countries diamonds are mined by small children in unsafe conditions. These responsibilities fall under the local government to protect the land from these mining companies. Local governments can write laws and regulations require diamond mining companies to take extra precautions in order to operate. This could require the diamond company to decide is it worth it to follow these regulations or find a cheaper place to mind
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