Diamonds Are Forever in BotswanaEssay Preview: Diamonds Are Forever in BotswanaReport this essayDe Beers has been a prominent diamond mining and processing company in Botswana since the country gained its independence from colonial period. The company discovered its major business trading commodity锟解偓”diamond锟解偓”in which one of then-current poorest countries in the world, rooted in this country eventually, helped Botswana and its citizen board a fast economic growing track and established an interdependent relationship with countrys government, beyond the companys business perspectives but companys responsibilities ultimately.
De Beer “did not simply plunder Botswana”(Diamond 2008), which was once known as one of less developed countries, low annual per capita income, slow growing GDP and poorly developed infrastructures, as well as other social welfare systems, such as education, health care. De Beers carried out its corporate social responsibility and contributed itself to the entire countrys development.
Therefore, to help the stakeholders锟解偓”the country and citizen and to help company itself, not only did De Beers invest Botswanas infrastructure construction, such as transportation, because people living in this country need these roads to reach outside and De Beers need such roads to ensure its own business operation, De Beers also preserved some of its profits for helping country fight against health issues, because H.I.V and AIDS are stumbling blocks in most African countries development and individual citizens development, and De Beers expects a healthy work force. Moreover, De Beers plays a social role as a philanthropist entity, offering scholarships to youth and helping build a more civil society and practicing leadership for African people.
The Economic and Social Impact of the Economic and Social Development Initiative
The Economic and Social Impact of Economic and Social Development is the world’s only human development initiative by De Beers of the international nature that was to succeed. Through this and other initiatives and projects of De Beers around Africa, and including the United Nations (UN) Development Program, over $7.7 billion was saved in 2016 through Economic and Social Development.
As part of this effort, the country spent $200,000 for the Economic and Social Development Initiative (ECI), set up with support of UN-funded experts from around the world, to provide services through projects and events on global human rights issues and to give support and funds to more innovative projects than this, which they are promoting. The program includes:
Rent and transport subsidies. De Beers made the following:
Renting and transport subsidies include:
Pas, a family service
Food vouchers, including:
Bosnia and azerbaijan
Charity
A small bank with which De Beers helps its citizens to save money and is actively participating in events.
Education
De Beers gave out free textbooks at all levels to over 5,900 Ugandan children between June 2016 and September 2017, which includes:
An international study on human rights concerns
Founding and business
De Beers is the first American company to work with Ghana on a World Sustainable Development Programme, a world leading initiative to address the pressing challenges that African countries face, for example, the poverty, political instability, natural disasters and the war in places like Chad.
Speaking for the economic role De Beers played, the company employed local citizens, established high-technology facilities, created joint venture with the government and practiced business ethically. Meanwhile, company adjusted its strategy to focus on increasing market demand, instead of controlling diamond supply. This successful transformation and strong sense of responsibility, partially because the company has rooted in Africa for many years, improved people living standards, which is acting on behalf of citizens; geared countrys economic growth to a heterogeneous model, not is a agricultural dependent economy anymore; devoted to build a peaceful environment, because company stopped buying diamond from third party, who are most likely to raise the money for violence in Africa. Surely, De Beers business also became more profitable than it had been and gained reputation mainly from an ethical, legal and effective diamond supply chain.
The companys sizable profits aid companys social role, acting as a good citizen and well qualified leader. Conversely, De Beers business benefit from the countrys prosperity and sustainable development. For economic perspective, the company could perform more efficiently, become more stable and fulfill many other self interests if the whole country developed well. Both social role and economic role are correlated and mutually supported.
The Botswana governments willingness and openness to cooperation contributed considerably in creating a joint venture with De Beers. “But it only works if countries will let it work” (Diamond 2004). If the countrys leadership and governance were not honest enough, in other words, corrupted government锟解偓”severe corruptions, unstable and frequent regime change and poor oversight锟解偓”the De Beers-Botswana relationship would not have succeeded at all, the impacts from companys corporate social responsibility would have inevitable offset by government, despite of companys good intentions that to be a good citizens. Unlike the operation between many Chinese companies and African countries, paying off government and extracting local resources, the joint venture in De Beers-Botswana relationship accords both interests effectively and exhibits both parties accountabilities, including what I have described above about De Beers social roles. The joint venture overcomes one of corporation problems, “The most serious drawback, many critics contend, is their lack of accountability. Corporations are seen as rogue elephants, unbeholden to society. They do what they want even when it harms many stakeholders” (Goldsmith, Ch 11, p 219). The government holding shares in this venture lend a solid ground to oversee the industrial dominants.
De Beers retreated from an edge of monopoly by embracing the joint venture. To some extent, joint venture secures De Beers resource and existing business and encourages company to explore and produce diamonds in Botswana. With such opportunities, De Beers is safe for many possible critics on monopoly. De Beers is also able to earn sustainable profits, even though its business percentage account for the countrys GDP declined from 50 percent to a third.
Because of the De Beers norms, acting as a good citizen and leader, the well maintained channel锟解偓”joint venture锟解偓”De Beers and Botswana government, and governments spirit of democracy, Botswana country and people are able to experience a sustainable economic growth and long-term develop. While the diamond