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The Influence of Corporate Social Responsibility on Taiwanese Consumers Purchase Intention - Research Paper Example

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This paper "The Influence of Corporate Social Responsibility on Taiwanese Consumers Purchase Intention" investigates the impact of CSR activities on consumer purchase intention and brand image towards the diamond industry. The paper examines the influence of brand image on purchase intention…
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The Influence of Corporate Social Responsibility on Taiwanese Consumers Purchase Intention
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In spite of the pessimistic worries of the global economy, in 2011 the global diamond industry performed successfully beyond expectation. A total of 124 million carats of rough diamonds, which is worth $15 billion, were excavated (AWDC, 2013). According to the industry consulting organization, Bain & Company (2013), “those stones were worth $24 billion after moving through the chain of dealers, cutters, and polishers, on their way to making diamond jewelry worth $71 billion at retail”.

They also reported that compared to 2010, the global diamond sales significantly increased by 18% to $71 billion, close to the 2007 peak of $73 billion before the crisis. IDEX (2013) and Tacy LTD (2013) indicated that the majority of growth contributed to the mounting demand from Chinese and Indian markets. De Beers, which is reviewed in this proposal as an example of the world’s leading diamond companies for more than a century, reached their second-highest level of sales ever to $6.5 billion in 2011.

In the 1990s the issue of “conflict diamonds” or “blood diamonds” was heatedly debated across the globe. The diamond industry encountered a crisis from their diamond sourced countries. In several politically unstable African countries, such as Angola, Sierra Leone, Liberia, the Democratic Republic of the Congo, the diamond mines were under the control of the military as a means to finance their military power. With the media‘s widespread coverage and the movie “Blood Diamond”, the transactions between diamond buyers and the military, although not all from such illegal channels, were regarded as intensifying violent tribal conflict.

Consequently, the reputation of the diamond industry was blackened (The Kimberly Process, 2013; Pauwelyn, 2003; Worldbank.org, 2013). In response to this situation, the Kimberley Process was organized in 2002. Under the auspices of the United Nations, The Kimberley Process Certification Scheme (KPCS) conducted a list of rules that every diamond trading country should obey: certification of rough diamonds is now required before being exported (Pauwelyn, 2003; Schefer, 2005). This is to "guarantee that their trade does not finance rebel activities" (The Kimberly Process, 2013).

To establish a positive prestige from the infamous “blood diamond” image, and to ensure that De Beers’ “corporate activities contribute significantly to the development and prosperity of the countries and communities in which they operate”  

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