It is a public limited company that operates globally and one of the worlds biggest mining companies is Anglo American, situaded in United Kingdom. primary sector are the main concers of Anglo American and there by it operates in primary sectors such as mining and agriculture. Anglo American operations are done in the first stage of economy though out the world and carries extensive operation in africa whit seventy six percent of its employees in it . Anglo American set out an example of important role player in the world economy with about seventhousand employees in UnitedKingdom.base metals , ferrous , platinum , coal and industrial materials are the five main raw material produced by Anglo American.
Question number 1: “what are business ethics? give two examples of business practices that satakeholders would regard ethical and two that might be considred unthethical”. answer: business ethics refers to the moral sector of individuals desicions(Ferrel and Fraeddrich,1994) business ethichs are honesty or to be more precised moral values that direct a way to business behaviour. the distinguish between honesty and dishonesty and making the right choice involves business to be ethical .
There is no single case of an unethical behaviour in a work place so supprisingly that there is no silver bullet preventing it. organizations take several steps to emphazie employee about ethical behaviour as it creates a culture which recongnize employees to do the right thing. two examples of ethical behaviour are i)when producing any demerit good organizations should plant trees or conduct some CSR works like British American Tobacco (BAT) did in the capital city of bangladesh(dailystar newspaper,2009).
And ii)business should be thankful to its employees working in an organization and treat them fairly. two examples of unethical behaviour oe work could be i) the selection process which can send clear message to the employees and if the selection process is not carried out fairly then stakeholders will reard it as an unethical work. and ii) and if organizations imitate the appearance of claimant’s goods example, Reckitt and Cloeman Vs Borden (1990) question number 2 “The benefits of ethical business behavior affect the business itself and the wider community.
Taking an example of an Angolo American business projects, identify the benefits to the local community and to the company’s shareholders” answer:Anglo American ensures in protecting the human rights of its employees and the native people where Angla American operations are carried out . therefore the organization contributes in voluntary principle on security and human rights. these code on conduct are to ensure that the organiation handeled the security of exisiting employees working in unstable countries like nigeria and also making sure that there is no negative impact on local people.
Thus in guidance to both private and public security they assigned to protect the mining operation or oil and gas facility by investigation , monitoring and controlling. the company assist the principles of unversal declaration of human rights and the benifits gained by the local community and the company shareholders are that the operation is carried without accidents, as they are protecting their employees the employees can confidently work, it also decreases negative impact local people thereby the local people dosenot crate any problems , eventually eliminating occupational hafaserd and making the whole compnay efficient.
These benifit make the Anglo American to be in a strong position and enabling longterm investors ,such as pension funds that run investment for millions of ordinary people in the United Kingdom, believe that it is important for a company to consider social and ethical issues and the financial satement is not the main concern if a business want to be sustainable. question number 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?
” Answer:the stake holder engagement process uesd by Anglo American allows the organization to be aware of thr perspective and priorities of external groups which involves them in decision making process and its is due to the activities of the organization. Anglo American has developed a process to assist its operations at the local level which is knowns as Socio Economic Assessment Toolbox(SEAT), these process or toolbox enable the organization for helping the employees at manager level to calculate the impact of acitvities on the company and communities.
This process also enhanse mine contribution to develop and to connect with the legislative body and the stakeholders. disagreement and divisions in the communities can occur as sometimes communities have to be resettled due to goverment premition in order to be accesed for important mineral deposit. the be practice for international sets out aquantity of resolution stages in a methord which inclusds the necessitate for designed discussion, fair compensation ,the result of restoring and pleasing to the eye of people occupation in their new locations .
Two relocations in the villages of Ga Pila and Mothotlo in southafrica was started by Anglo American with the aid of local goverment and tribal leadership. after consultating with native people for an era several years of agreement with each hoousehold wrer done in the two new relocations . new villlagers were now able to built improved houses and infrastructure offering more land for farming This engagement is to be a ongoing process as they did not want to face those problems which can arise from the communities and stakeholders.
Therefore anglo american follows these methords to reduce the effect of negative impact on their business operation. question number 4 “Some business decision involves a careful balance of social, economic and environmental. Evaluate how Anglo American achieves that balance, using examples from the case study. ” answer: Anglo america did manage to achive the balance of social, economic and enviourmental . the in Anglo American’s word “Good Citienship’’ which is the codes of behaviour , it sets out thee caore values and standards of Anglo American.
The Orgazztion had taken some initiatives like i)the extractive industries transparency initiative which is a global standard designed to ensure that companies publish what they pay for raw materials and goverments publish the revenues that they recieve. ii)the united nations global compactis the means by which business worldwide can caomplement the objectives of the united nations through adherence to ten core principles covering human rights and etc. and iii) global reopting initaiative which a framework used by companies to produce susutainability reports about their activities.
Anglo American has involvement to the voluntary principles on security and human rights , the purpose of this was to set out vales and practice to gaurantee that company’s focuses on the security of empolyees and operation in ustable countries like nigera . ethics and profit gose hand in hand and this statement is deabatable but look in to Anglo’s account clearly states that they take business ethics seriously. . Anglo uses a tool-box named SEAT (Socio-Economic Assessment Toolbox) which facilitates managers to calculate the impact of activities done on the society and the organization.
Anglo American uses the stakeholder’s engagement which enables the organization to understand the perceptions and priorities of external groups who are effected by the organization activities and factor them into a decision-making processes. Anglo America has been a vaital contributor for AIDS education in south africa . and the company was the 1st major company to announce to provide free anti-retroviral drugs to HIV-positive employees . and now Anglo now operates the largest workplace for HIV/AIDS education, voluntary testing and treatment program in the world .
After running the program for five long years the studuies shown was that the program has sucessfully reduced deaths rates and the attendant loss of skills and cutting absence rates by improving the health of infected workers. Anglo America participated in project which was a gold and copper mining project . the name of the project is “the pebble project alaska” which is good example of non-financial costs and this project provided new recuitment in alaska. Anglo’s main objective is to offer strong returns to the stakeholders by not risking the expense of social, environmental and economic .