What is the primary purpose of value chain mapping in the diamond sector?

• A. It traces every stage from mine to market, identifying revenue flow, risks, governance, and environmental/social impacts.
• B. It is a financial chart of mining company stocks.
• C. It measures only the color of diamonds.
• D. It predicts future fashion trends.

Answer: (A)

Value chain mapping in the diamond sector aims to trace each step from mine to market to see where value is created and how money moves through the system. By laying out activities from extraction, rough handling, and polishing to trading, manufacturing, and retail, it shows who captures profits at each stage and where costs and risks accumulate. It also highlights governance and accountability, revealing where policies, certifications, and due diligence apply, and where environmental and social impacts arise, such as mining practices, water use, land rights, and labor conditions. The goal is to create a transparent, end-to-end view that helps manage risk, ensure responsible sourcing, and optimize efficiency and value across the supply chain. This differs from a financial chart of stock prices, which focuses on market performance; it isn’t about measuring diamond color or predicting fashion trends.