Anglo-American Case Study Essay
1. What are business ethics? Give two examples of business practices that stakeholders would regard as ethical and two that might be considered unethical. Having good business ethics is having a sense of responsibility for both the community and the environment. It is essential to be aware of the impact the company has on both the above mentioned. ‘Microsoft recognises the importance of corporate social responsibility to business competitiveness.
Oliver Roll, Director of Marketing, Microsoft One of the ways that Microsoft supports freedom of expression is by helping individuals, nonprofits, and issue and political campaigns use technology for civic engagement in their countries and communities.
As one example, Get Online Egypt is a nationwide campaign to help people benefit from computers and the Internet. (MICRISOFT) We could not ignore business ethics influence on the company reputation. A lot of companies are ready for everything to save their responsible reputation.
For example: Greenpeace has found high radiation contamination levels in the streets of the mining village Akokan (Nigeria), where the majority of the Areva`s workers live with their families.
What is even more disturbing is that this just year AREVA claimed that those same streets were safe. In one area Greenpeace tested, the radiation was almost 500 times higher than norms. (According Greenpeace) For example Shell managed to get agreement from the Irish government and then proceeded on the preliminary work for the laying of the pipelines off the coast of county Mayo.
West Ireland. From 2002 until the present date this has caused much sorrow and anger in the local community, who consist mainly of fishermen and farmers. They feel bitter about both the loss to the environment and to their livelihood. This is in one of the most clean environments in Europe. 2. The benefits of ethical business behavior affect the business itself and the wider community. Taking an example of an Anglo American 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 ocal 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 aware that the world’s resources are in limited supply. Anglo American has set out an International best practice. Consultation is automatically given when there is a need for re-location with fair compensation handed out. Notably two villages in South Africa, which had to be relocated after a few years of negotiation) now are placed in better homes with more land. If this nogiation hadn’t taken place Anglo American couldn’t have gone ahead with gaining access to important mineral deposits. 4.
Some business decisions involve a careful balance of social, economic and environmental considerations. Evaluate how Anglo American achieves that balance, using examples from the case study. Sustainable business is the only route to take. Up until the present, the majority of people have been thinking in the short term only, unwilling to think about the consequences of their daily abuse of the environment. Sustainable business thinking is the only long term solution. In order for the business to continue it must take into consideration the environment and the local community.
From the social point of view the better the company performs the more employment it can offer this is of great benefit to the local community it is equally important once the workers are in place to create good working conditions and fair practice About a quarter of the benefits of the Anglo-American business in South Africa have gone supporting black economic empowerment group (B. E. E) It also aims to have at least 40% of its managers drawn from the ranks of previously disadvantaged ethnic groups.
The Anglo-American company supports the principles set forth in the Universal Declaration of Human Rights. After many years of consultation with the local people new villages have been built with better houses and infrastructure and more land for farming. The relocation program was voluntary. The relocation program at Motlhotlo is still under way but at Ga Pila 98% of those living in the old village took up the offer to move to the new village. (According Anglo American case study)