Anglo American Plc Case Study

1709 Words Oct 11th, 2010 7 Pages
CASE STUDY ON

ANGLO AMERICAN PLC IN SOUTH AFRICA

Submitted by

Kamlesh Bind

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 :- 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
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Thus enabling it to purchase drugs at subsidized rate .

2. Because such a large percentage of its workforce consists of migrant workers who are more likely to acquire and spread HIV /AIDS ,should the Anglo American adopt the policy of not hiring migrant workers ? Should the South African government close the doors to the migrant workers ?

Ans : Anglo American PLC is one of the largest goldmine company in South Africa employing around 1,20,000 employee in its main and subsidiary operation.

As mining workers require to work in harsh and unstable environment , the mining jobs are done majorly by the migrant workers which constitute around 4/5th of its work force . Considering a large part of its work force consisting of migrant , the Anglo American PLC should not adopt the policy of not hiring the migrant because :

a. Migrant as low cost labour : Migrant serve as a low cost labour to Anglo America , thus giving it the cost advantage in mining industry .

b. Hiring only local labour will won’t guarantee the reduction in HIV /AIDS cases , as the disease was spreading in every part of South Africa .

c. Pressure from the shareholder : It may also has to face the pressure from the ethical minded share holder as well as its own sense of moral responsibility.

The same reasons applies to the South African government ,
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