2. What are the pros and cons of Anglo American adoption of an aggressive strategy in combating HIV/AIDS among its South African workforce? What recommendations would you give the company concerning its HIV/AIDS policy? Answer:
Anglo American had huge investment in South Africa and was heavily hit by the HIV/AIDS epidemic. It was the first private company to develop a proactive strategy to combat the ravages of the disease on its workforce and thus effecting their operations. Pros of adoption of an aggressive strategy
* The early adoption has helped to prevent further loss in operating expenses by providing ART in earlier stage. * The company prevented higher loss by adopting the strategy; as if the worker is left untreated the loss would be more than that of the expense put on ART. * The future of Anglo American is bright as the Government has launched a national strategic plan in the later stage. This helps in political support for Anglo American in the long run. * Adopting the strategy the company achieves trust and commitment from ethical minded shareholders. * This strategy in later stage through word of mouth from the employees, who were responding well, will spread awareness and make everyone take a precautionary step. * It got good response from WHO, Global business council for HIV/AIDS and other NGOs, this makes the company a socially responsible organization in Global business. Cons of adoption of an aggressive strategy
* This program had spiralling costs for the company as the distribution of the medicines remained high. * It was unable to determine if its efforts are making a difference in underlying problem as one third of those receiving treatment dropped out * Harsh working conditions worsened the medication effect and its side effects. * Migrant workers were more prone to get the disease and spread the disease in their respective villages * The company had to face opposition from the political leaders thus...
...Q1: Trace the history of AngloAmerican from 1917 to date in South Africa and other Businesses?
AngloAmericanplc is a global mining company headquartered in London, United Kingdom. It is a major producer of diamonds, copper, nickel, iron ore and metallurgical and thermal coal and the world's largest producer of platinum, with around 40% of world output.
The following is the timeline of AngloAmerican:
1917 Company founded by Sir Ernest Oppenheimer along with American J.P Morgan. Initial investment was 1 million pounds raised from various sources in UK and US. The company was headquartered in London, United Kingdom.
1926 AAC became the major stakeholder in the De Beers company.
1928 AAC began mining in the Zambian copper belt.
1945 AAC moved into the coal industry by acquiring Coal Estates
1957 Sir Ernest died in Johannesburg and was succeeded by his son, Harry Oppenheimer, who also became chairman of De Beers.
Late 1950’s AAC focused on the development of the Free State goldfields (seven major mines simultaneously) and the Vaal Reefs mine. The success of the mines enabled the company to become the world’s largest gold-mining group.
1961 AAC expanded outside of southern Africa for the first time and became a major investor in the Hudson Bay Mining and Smelting Company in Canada.
1967 Moved into the steel industry by acquiring Scaw Metals.
1967 to 1975...
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REV: MARCH 3, 2015
Cynthia Carroll at AngloAmerican (A)
On June 27, 2007, Cynthia Carroll (HBS ’89), the newly-appointed chief executive of mining giant
AngloAmericanPLC, was flying by helicopter to Johannesburg from the company’s platinum mines
in Rustenburg, South Africa. Carroll was the first non-South African and the first woman to lead the
90-year old company. When she landed, Ralph Havenstein, the chief executive of AngloAmerican
Platinum, majority-owned by AngloAmerican, pulled Carroll aside. “I have some bad news,” he
said, “We’ve had another fatality.”1
The latest incident brought the year-to-date number of fatalities to 29 miners. Between 2002 and
2006, the company averaged 46 deaths in mining accidents each year. “In my first address to
shareholders in April 2007, I was clear with them,” Carroll said. “These fatalities and injuries are
The past few months had been a particularly bad period for safety at the Rustenburg mines. Over
several weeks, five workers had been killed in three separate incidents—“three when they were
inundated by a mud rush, one when he was thrown off a conveyer belt and another after he was
struck by a blasting barricade.”2 Despite the spate of fatalities, Anglo American’s South African
operations were not markedly different...
...CASE STUDY ON
ANGLOAMERICANPLC IN SOUTH AFRICA
PGDM –IB ( 08)
1. What are the pros and cons of Anglo American’s adoptions of a strategy in combating HIV/AIDS among its South African workforce ? What recommendation would you give the company concerning its HIV / AIDS policy ?
Ans :- AngloAmerican had a huge investment in South Africa and was hard hit by the HIV / AIDS epidemic . It was one of the first corporation to develop a comprehensive, proactive strategy to combat the ravages of the disease on its workforce and the repercussions for its operations .
The pros and cons of Anglo American’s adoptions of a strategy in combating HIV/AIDS among its South African workforce are :
Pros of American’s adoptions of a strategy
• It became a trend setter for other major companies operating in South Africa, thus gaining a goodwill among other companies, which can be helpful in partnering with other major companies not only in South Africa but also in other part of the world .
• It got good response form WHO, Global Business Council for HIV / AIDS and other NGOs, thus making it as a socially responsible organization in Global business .
• The early adoption strategy helped it to prevent further loss in operating expenses by providing awareness and ART to its...
Anglo-American and Primark are among the world’s leading companies. In this paper, I will analyze their application of ethics and then utilize “A Model of Business Ethics” to help describe the two companies ethical practices. The paper will provide a discussion of the costs and benefits of an organization as well as define ethical business.
Anglo-American and Primark are two multinational organizations with different Code of Conduct ethics. However, the rapid economic changes of the world have interconnected global organizations and it is evident that regardless of organizations operative procedures one thing is for certain; the global businesses have engaged in this organizations labor modules to meet the consumer demands of the world forgetting their Code of Conduct in which they based their company on.
Laws are established for a reason; therefore, in the business market it is no different. Laws, whether foreign or domestic are the key point for starting any business. Although, businesses establish their own principles, each organization defines their own values differently.
Business ethics are based on the same principles that determine an individual’s character; therefore, business ethics relate to organizations moral principles that guide what is relatively right and wrong within an organization. An example of a business ethic is following the...
...to minimise waste. The central economic problem is how to match finite resources with unlimited wants. With the demand for resources rising as the world economy grows this is becoming more of a challenge. Leading global companies like AngloAmerican strive to find new solutions to this problem every day. AngloAmerican is one of the world’s largest mining companies. Its portfolio of mining businesses spans precious metals and minerals – in which it is a global leader in platinum and diamonds, base metals (copper and nickel) and bulk commodities (iron ore, metallurgical coal and thermal coal). The company’s mining operations and extensive pipeline of growth projects are located in southern Africa, South America, Australia, North America and Asia. The purpose of the organisation is set out in a mission statement.
In 2008 there was a downturn in world economic activity. This resulted from a loss of confidence in the world financial system. The downturn led to a steep fall in commodity prices such as coal, copper and platinum. By late 2009 these prices started to rise again as demand for commodities increased. Although mining companies are affected by changes in economic activity, mining is a long-term investment business. Firms like AngloAmerican have to take a long term view of the business. This involves extracting commodities in a sustainable way over a long period of time. The company...
...business itself and the wider community. Taking an example of an AngloAmerican business project, identify the benefits to the local community and to the company’s shareholders.
Inevitably once a business is set up a proportion of the local community who manage to find employment with them benefit from their presence. Thanks to South Africa’s government Anglo-American. is supporting B.E.E. No doubt the idea of supporting them has an advantage for Anglo-American in that AA selling 26% of its assets to B.E.E is of benefit to both. (Anglo-American)
For example, used its supply chain needs to generate new businesses or to improve the water or electricity infrastructure.
High on the list of their business agenda are issues such as combating corruption and promoting revenue transparency.
The result of good ethical practice is necessarily beneficial to the shareholders.
3.How is Anglo American’s reputation enhanced by engaging with local communities in decision-making? Why is it important for this engagement to be an ongoing process?
In order for a company to survive in the long term it should involve the local community. Cooperation with the locals works for both company and community it makes business sense to create an exchange of give and take. A balance is achieved. Since, that in 1992 at ‘the Rio ecological world summit’ we are painfully...
Business ethics and corporate social responsibility
1. How has Anglo American’s reputation enhanced by engaging with local communities in decision-making? Why is it important for this engagement to be an ongoing process?
AngloAmerican mining company is one of the leading companies on the mining industry and has gained reputation because they include the local community at the moment of decision-making. Mining industries are often being observed as they are recognized because they tend to contaminate the environment. Pressure groups are often the ones who are mostly aware of the situation. In order for AngloAmerican to get a good reputation, they would have to work hard and try to reduce the contamination as possible and also they would have to prove that they are an efficient company that gets out more products from less material. To prove that they are efficient they are willing to take account of non-financial costs, which includes noise and impact on the environment to demonstrate that they can work in a satisfactory way without receiving complaints of the community. They have interview the local community, politicians, businesses and indigenous people so that AngloAmerican knows the opinion of different people and that they will only proceed with any project only if they will not harm the environment in the case of...
Student Number: 100807173
Course: BUSI 4708 Intl Expansion
Name: Lupita Ardhyaningrum
Student Number: 100807173
Course: BUSI 4708 Intl Expansion
AngloAmericanPLC in South Africa:
What Do You Do When Costs Reach Epidemic Proportions?
1. The pros would be: a) The early adoption strategy of ART can help the company to prevent and combat the spread of the disease not only on its workforce but also the populations of surrounding communities. This early initiative can also help to prevent further loss in operating expenses and declining workers’ productivity in the company. b) AngloAmerican became a de facto leader in the private-sector fight against HIV/AIDS in Africa. It also became a trendsetter for other MNEs to follow suit such as Coke, Ford, and Colgate-Palmolive. c) Received positive reactions and approval from WHO, the Global Business Council on HIV/AIDS, and a host of other NGOs. d) Became a socially responsible company in the global market. This comprehensive program reflects that AngloAmerican has a good intention on protecting the rights of infected workers. e) The program might have a bright future, as 95% have responded well to the treatment and are working productively. f) The gradual change in the South African government’s view towards HIV/AIDS can further on help AngloAmerican to combat this national wide...