Ethics
Ethics
Ethics
Ethics

30 Ottobre 2025

Sustainable Value Chain Management in the Diamond Industry – The Case of Samarth Diamond

Autori: Maria Jell-Ojobor, Sriteja Reddy Wudaru                                                                                                                                                                                                                                                                  Abstract: The diamond industry produces sophisticated luxury products through a global value chain with a wide variety of players, benefitting a demanding customer base but also causing several ethical issues in indigenous countries. From being formed in and mined from the deeper layers of our planet, the journey of a diamond is fascinating. It comprises many steps and involves different types of organizations. It is also a cyclical industry prone to global events such as financial crises or the ongoing pandemic. More than 90% of diamond manufacturers in the world are family-owned SMEs in India. Thus, when the global economy collapses, or the markets decline, they find their survival threatened. In this case, we focus on Samarth Diamond, one such family firm operating in the Indian diamond industry. With its headquarters located in India, the company today also has presence in various other countries through subsidiaries or stand-alone businesses. It can be considered one of the top 1% firms in the Indian industry along several criteria. But the company’s journey has not been easy. Our teaching case will introduce the various aspects of the diamond industry, including its value chain, and outline the major problems that exist in the industry regarding sustainability and ethics. Then we present the history of Samarth Diamond, how it had faced challenges during the 2007-2008 financial crisis and how it had emerged as a successful company when the majority of the industry was closing down. From doing contract-based “job work” for other companies to becoming its own manufacturing company, the growth of Samarth Diamond can be attributed to two main factors: its approach towards technology and its attitude towards employees. With hefty investments in technology and capitalizing on their goodwill and name in the market, Samarth Diamond had succeeded to make an effective transformation. From becoming the first to introduce the famous “single package system” in the small diamond category to becoming an organization with more than 4,500 employees, 3 factories, and 3 international offices, Samarth Diamond is an example of family firms surviving and succeeding with grit, skill, and passion as well as risky decisions to adopt new technologies. We will look at how Samarth Diamond implements its human resource policies, specifically from an ethics and sustainability perspective. The company prides itself on the commitment and loyalty of its employees and considers it a core factor that helped the company survive any crisis. As such, it is interesting to see how a family owned firm manages its people and achieves a level of sustainability that does not just meet CSR definitions but also translates into strategic competencies. Moreover, both technology adoption and employee management are intricately linked in the company’s everyday operations. Given that the majority of diamond manufacturing firms are family-owned Indian SMEs, both the adoption of technology and the move towards sustainability and ethics are quite slow. Samarth Diamond is an example of how sustainability can be integrated into the company to realize the triple-bottom line goals of profits, planet, and people. Download Case Study Richiedi Teaching Notes

30 Ottobre 2025

What happens in Vegas, stays in Vegas? A young traveler’s decision making problem

Autori: Fabian Homberg, Dennis Schoeneborn                                                                                                                                                                                                                                                                                                                                                                                                              Abstract: The case takes us to Las Vegas the capital of gambling in the US. The city is well known for attracting travelers due to its busy night life and casino density. In 2018, Las Vegas had more than 42 million visitors of which 20% indicated their gambling budget is more than USD 600. On weekends, the hotel occupancy rate is 94.5% (see LV Visitor Statistics website for details). Jack, a recent college graduate from rural Wisconsin, travels to Las Vegas. He has booked a standard room. Before travelling he searches the web for information about what to do in Vegas in order to plan his time in the best possible way. While doing this, he comes across a couple of blog entries talking about a so called “$20 sandwich trick”. He finds out that the trick refers to a common tipping practice people apply when checking in into their hotels in Vegas. This is how the trick works: During check-in hotel guests place a dollar note (typically a $20 one) between their credit card and ID (“the sandwich”), hand it over to the receptionist and ask for a complimentary upgrade (e.g., to a room with special amenities or a better view over the strip). The hotel clerk typically takes the sandwich, pockets the money, and sees what s/he can do for the guest. Enthused by the idea to get an upgrade for a low price, Jack really wants to try it when arriving at the hotel. One week later – it’s travel day! He arrives at the Bellagio hotel at 14:30 in the afternoon, and waits in the queue of travelers checking-in. While waiting his thoughts start to float and he thinks about the 20$ trick again. Suddenly he gets this odd feeling of doing the wrong thing – should he really play the $20 sandwich trick? Is it ethically sound? And is playing the trick actually a tip or a bribe? Download Case Study Richiesta Teaching Notes