Hanging by a Thread

There is that time, and it always comes, a time for honest self-examination, followed by conclusions and actions. It is needed, and in fact, necessary to do, both as individuals and as a collective. Our industry hinges on its reputation. At the end of the day, we’re selling an illusion. Our reputation is what gives that illusion value and so, being ethical is the very core of our industry’s collective value. 

There are currently a number of issues on our plate that require an ethical stand to deal with. One obvious and familiar one is the trade in diamonds and gold produced in conditions we don't want to be subject to ourselves. It tops a long list of acts that seek the darkness of the unknown versus the harmful embarrassment of daylight.

In the past few years, there were cases of smuggling of goods to hide origin or create fake inventories, hiding hundreds of millions of dollars in Swiss bank accounts, shady transactions performed by shell companies to protect the good name of well-known owners, making false claims in the name of decency, cases of bribery and defamation. If you are a veteran of the diamond industry, you are probably familiar with these cases and others.

In the past few weeks a story has been unfolding at one of the diamond exchanges. We are not sure yet what is the truth, or who is guilty of wrongdoing, whose sweeping is for covering tracks and whose is for cleaning dirt. It is clear that it is not good for those involved, or for the well-being of that exchange.

What questions does this raise about this industry? Are we collectively "bad" or excusably "just human"? Is it the former because while the acts were by a small minority, the majority silently ignored and kept doing business with these companies and individuals? Or is it the later, meaning that we all err?

As individuals, we all make mistakes, harm others, offend and maybe, on occasion, act maliciously. That is human and we cannot simply measure and judge each other solely on that. The question is what we do when we recognize that we committed such an act, or see an illicit act in progress. The irresponsible thing to do is ignore it; or, point fingers at others. What we must do is take responsibility for our actions. Recognize, apologize, step back, learn and act differently. 

Entities – organizations, exchanges, companies, industries, even countries – are no different. All occasionally do something wrong; and all need to take responsibility for their wrongdoing. It's preferred when the recognition is self-induced and not externally forced. But even if others need to first put a mirror to our face, it is still our responsibility to make amends.

One such act is the Kimberley Process, formed to end the trade in goods mined by rebel forces to finance arms’ purchases. We can be proud of creating the KP, but we can't brag about it; we did what we needed to do. 

We should be judged by our reactions to our own wrong doings. If we won't take responsibility for our actions, others will act. This may take the form of forced laws, raiding tax authorities, legal action, or worse - embittered consumers.

What is of greater concern is that the dealings of those choosing to act unethically reflect on us all. It influences our livelihood, well-being, standing in society, and the image looking back at us from the mirror. 

It is time to claim back that image. We need to refuse to do business with wrongdoers; avoid giving them the lifeline that is strangling us all when wrapped around our collective neck. It may not expunge their acts, but it will only be then that we could say that we are a responsible and ethical industry. 

Without a superb reputation, we are only offering a pretty mineral and a hollow illusion.