week 4 assignment1 business and society - Running head Social Performance of Organizations Assignment 1 Social Performance of Organizations Tatiana

week 4 assignment1 business and society - Running head...

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Running head: Social Performance of OrganizationsAssignment 1: Social Performance of OrganizationsTatiana DunklinBusiness and Society 475Instructor: Daniel Goldsmith, DBAMay 1. 2016
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Social Performance of OrganizationsAssignment 1: Social Performance of Organizations 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 five point one billion in cash. (DeMarco, 2011). Before the sale the diamond company was owned by the Oppenheimer family. Now Anglo American own eighty five percent of De Beers making them the primary stockholder while the Republic of Botswana owns the remaining fifteen percent of the company. Mining diamonds involves a lot of factors that can effect a company’s external environment. In order for De Beers to operate it has to account for things such as: local and foreign governments, globalization and trade, the ethics of business and labor, the effect on the environment, the perception of society, and the importance of new technology. In the case of the De Beers Diamond Company the two most important factors to the organization’s external environment are globalization and trade, and the perception of society. Salient Stakeholders When producing a product as fragile such as diamonds, a company needs many factors tocome in place. In actuality a diamond is just a shiny rock found in the earth. A lot of people play a major role in insuring the value of the diamond. Three groups that have important stakes in De Beer Diamond Company are the stockholders, governments, and customers. One of the key stakeholders for the De Beers Company was the stockholders. In most companies the most important part of business is making a profit. The stockholders in theDe Beers Company had a large influence on the diamond industry and made De Beers a monopoly. 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 seventy four percent to one 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
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