The article in the url below presents a case study of the positive impact that De Beers has had in Africa, in general, and Botswana, in particular:
“There is also no question, though, that Botswana was greatly aided by something else: De Beers's own sense of -- to use the current term of art -- corporate social responsibility.”
The author argues that, unlike many other firms that have extracted Africa’s resources (and continue to do so today), De Beers sought to build sustainable operations by building the local infrastructure that would also ensure the country’s development:
“Practically from the start, it entered into a 50-50 joint venture with the government; about a decade ago, it also sold the government a 15 percent stake in the company. … It has also built roads, hospitals and schools in Botswana; worked to help the country deal with H.I.V. and AIDS; and been involved in and paid for a hundred other things that have helped make Botswana an African success story.”
The author is quick to point out that this was not a charitable act by De Beers, but helped ensure the firm also continued to succeed:
“Botswana's citizens need roads -- but so does De Beers, to transport its diamonds. De Beers needs a healthy work force, so its emphasis on H.I.V. awareness and treatment is clearly in its self interest. Indeed, a more prosperous Botswana helps De Beers in every way imaginable, not least by providing a stable environment in which it can do business.”
The remainder of the article tracks the firm’s evolution in relation to the development of the diamonds industry and the role of the current CEO (appointed in 2006) in shaping the firm’s CSR profile:
“In the two years he's been the chief executive, Mr. Penny has become a proselytizer for what he likes to call ''beneficiation'' -- which is a fancy word for doing well while doing good. … He went on to say that every company doing business in Africa needed to practice this kind of enlightened stewardship if it hoped to succeed over the long haul.”
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
Diamonds Are Forever In Botswana
By JOE NOCERA
1769 words
9 August 2008
The New York Times
Late Edition - Final
1
http://www.nytimes.com/2008/08/09/business/worldbusiness/09nocera.html
