Tiffany & Co.’s roots date back to 1837, when founder Charles Lewis Tiffany opened a “stationery and fancy goods” store in New York City. Tiffany’s first store quickly became the go-to destination for fashionable ladies looking for high quality jewels and timepieces. By 1848, Tiffany had established the store’s focus on fine jewelry. He hired dozens of artisans to create jewelry in a workshop located above the storefront at a time when most jewelers were simply retailers. Tiffany sought to express his own style of American jewelry that demonstrated natural beauty and simplicity. By the late 19th century, Tiffany & Co. had acquired its own facilities to cut and polish diamonds, which gave the gems a consistent, quality finish.

Diamonds and precious metals exploded in popularity in the 20th century. As a result of the increased demand for fine jewelry, Tiffany & Co. enjoyed massive growth and began expanding internationally. The company became further vertically integrated—controlling aspects such as sourcing, design, and manufacturing at locations all over the world. This allowed the company to maintain its design philosophy and to source only diamonds that met its standards. As Tiffany & Co. grew, customers became increasingly aware of the environmental concerns regarding precious metal extraction and the social injustices of the diamond industry, brought to light by various NGOs and trade organizations.

Toxic chemicals such as cyanide and mercury were used to extract gold from the ground. In addition, many diamonds originated in countries with political conflicts and where the human rights of miners were severely abused. Awareness of what were known as “conflict diamonds” further increased after the 2006 release of director Edward Zwick’s movie Blood Diamond, starring Leonardo DiCaprio.

Questions

1. Should a luxury company actively engage in corporate social responsibility? What are the pros and cons of this decision?

2. Should Tiffany advertise the fact that it is supporting various social and environmental initiatives? Why or why not?

3. How important is it for Tiffany to have a chief sustainability officer (CSO)? What are the advantages and disadvantages of having a single person ultimately responsible for designing and implementing corporate social responsibility programs?