Keeping an ethical business model in the diamond market

In a field dominated by defense, we, at LakeDiamond, strive to keep our business ethical. Learn more about our key values in this interview with Pascal Gallo, LakeDiamond CEO and co-founder.

In what ways does LakeDiamond position itself as an ethical company?

Pascal Gallo: Ethical considerations cover several facets of the company. First of all : the technology. We choose to develop applications that are intended to have a positive impact on humanity. We remain within the civilian market whereas lab-grown diamond is often used in military applications. Second, we manufacture diamond in a sustainable way: our diamond does not require digging craters into the ground nor to expose our employees to extremely harsh working conditions. In addition, we use renewable energy in our labs.

Another important ethical issue is the transparency of our blockchain-based token sale (ICO) which was launched in October 2018. One LKD token equals one minute of diamond production. These tokens can be used to pay for diamond products (plates or round brilliant stones) on our e-commerce website or can be exchanged on the LKD platform when a customer purchases diamonds with a fiat currency. This implies recording our diamond production on a blockchain ledger, ensuring the traceability of our products.

How do you avoid working in the military market?

PG: Generally speaking, our partner university EPFL (Swiss Federal Institute of Technology Lausanne) is involved in very limited military projects. This is a difference with most of national research institutes in France, USA or Russia for example. Beyond the applications themselves, we strive to avoid any financing related to the military industry.

Potentially, all the technologies we develop could have a military use, as it is possible to divert any invention from its intended use.. To protect ourselves from that possibility, we have set up an ethics committee. One of its members is a retired former NATO general engineer.It guides us when a company approaches us. Even if the offer is not directly related to the military field, it could eventually be used in military applications.

Some of our current customers develop both civil and military applications. We must systematically stipulate in a written contract that we focus exclusively on civil operations. So far no one has forced our hand.

How much could you make in the military market?

PG: We haven’t calculated its potential because we’re not interested in that business. We’ve already been approached by Russian investors active in the missile business. We have refused a big investment and a very profitable market.. We systematically reiterate and maintain our position, even if we may look like “softies” and miss opportunities.

Where did your strong ethical position come from?

PG: Our generation has grown up in an era when the values of social and environmental responsibility were becoming increasingly important. These are concepts advocated by Buddhism, a religion that is dear to me and that I discovered during my trips to Asia. Karma is a powerful notion in Buddhism. Doing positive actions brings us good things, and doing negative actions brings us harm. I believe that karma is everywhere, even in business. There are lots of opportunities in the diamond industry, which is very fragmented. You have to choose your side from the outset.

Do all LakeDiamond employees share your position?

PG: Our employees accept this point of view. The company has been built on the friendship between like-minded people who share similar values. Those values act as a filter as to who comes in. In Switzerland, the labour market is very tight. Our employees can leave and easily find another job, but our strong values also make them want to stay and we notice it. They give themselves entirely and don’t count their time.. Of course, they find the project of scientific interest,, but these strong values also motivate them a lot.

Founded in 2015 on the campus of École Polytechnique Fédérale de Lausanne (EPFL), LakeDiamond produces lab-grown diamonds used in industry. The properties of diamonds grown in labs make it ideal for use in a number of high-tech applications. LakeDiamond develops the material for areas ranging from micromechanics, electronics, and photonics to biotechnology. However, the company refuses any involvement in military projects.

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