3 Key Terms

Question 1

Beneficiation

Answer 1

A commitment to reserve a portion of the resources derived from any country for the economic development of that country.

Question 2

Best Practices Principles (BPP)

Answer 2

De Beers’ formalized commitment of itself and its sightholders to the highest ethical standards.

Question 3

Brick-and-mortar retailer

Answer 3

A traditional store consisting of walls and a fixed location.

Question 4

Conflict diamonds

Answer 4

Rough diamonds used by rebel movements or their allies to finance conflict aimed at undermining legitimate governments.

Question 5

Cutting center

Answer 5

A city, region, or country with a large number of gemstone manufacturers.

Question 6

Electronic retailer

Answer 6

Business that sells to consumers via television or computer.

Question 7

Kimberley Process (KP)

Answer 7

Diamond industry program designed to ensure that diamonds crossing international borders are legitimate and do not fund civil conflict or terrorism.

Question 8

Supplier of Choice

Answer 8

Program adopted by De Beers in 2001, in which it required its sightholders to help increase market demand for diamonds.

Question 9

Supplier of Choice 2

Answer 9

Program adopted by De Beers in 2007 to answer critics and resolve shortcomings of its original SOC program.

Question 10

Vertical integration

Answer 10

Involvement of a business or industry in all aspects of its product’s market.