Anglo American

PLC in South
Africa
 Abstract
• Anglo American is one of the world's leading mining companies. With
operations in over 50 countries and approximately 200 000 permanent
employees, its operating profit in 2006 was US$9.8 billion.
• One of its 5 sustainable development principles is to 'create meaningful
employment in safe, healthy environments'. Its HIV/AIDS programme is
part of this effort.
• Beginning in the mid-1980s with the appointment of an AIDS Education
Advisor, the programme was formalized in the early 1990s, and has
gained international recognition for its effectiveness and scope. This case
provides an overview of the Anglo American HIV/AIDS programme in
southern Africa. It outlines the context in which the company works and
its reasons for tackling the virus.
• It describes the workplace programme, with a specific focus on Anglo
Coal as an example of best practice within the group. It also looks at the
community programme, and the the lessons learned.
 1. What are the pros & 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 :-   Anglo American 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 employee   in   earlier stage .

    • It also prevented   the possible higher loss to the company   i.e.   if   in case   the
worker were   left untreated then losses would have been higher than providing ART .

    • The future of Anglo American’s initiative is bright as there has been change in
the governments views towards   fighting HIV / AIDS ,   this change in government
thinking’s   can help Anglo American to gain political support in long run .

Cons of American’s adoptions of a strategy

    • Company’s   medical bill saw a steep rise – increasing it overall wage bill.

    • It faced problem...
 2 Because such a large % of its workforce consists of
migrant workers who are more likely to acquire & spread
HIV/AIDS, should Anglo American adopt the policy of not
hiring migrant workers? Should the South African govt.
close the doors to migrant workers?

• No, they should continue to hire migrant workers, as this

unequal treatment is against the companies norms & it will
denigrate companies image.
• However they should prefer local people while hiring as
migrant workers were 2.5 times more likely to contract the
disease.
• South African govt. could have taken such action to prevent
the spread of disease.
 3 What role do pharmaceutical companies play in
responding to the HIV/AIDS epidemic in South Africa?
What policies or courses of action would you recommend
to a company that produces HIV/AIDS drugs?
 4 Elsewhere in the chapter, we described the more
aggressive policies of the Brazilian & Thai govts in the
battle against HIV/AIDS. Should the South African
government adopt a similarly aggressive approach? Why
or why not?
Thank you !!