African Gold Case

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Pawan Bhandal
100195140
Case: African Gold, Inc. – Ethics and AIDS in the Workplace 1. What aspect of the external environment is African Gold, Inc. confronted with? Give specific details for each one from the case. The three external environmental factors that African Gold was confronted with are: i. The ration of HIV/AIDS related deaths in the mining industry are 24% in comparison to a 19.9% overall in the rest of South Africa. ii. The price of gold has dropped and the South African currency has strengthened which in turn has decreased profits. iii. The negative media coverage creates a negative image for the company. This may causes other businesses from refraining to do business with African Gold because of the negative association. 2. Which parts of the internal environment of the company are most affected by the external environment? Give details from the case to back up your choices. i. The high percentage of HIV/AIDS related deaths in the mines has decreased the labour force due to increase in absenteeism from sick employees or a loss of employees from their death. This directly decreases the amount of gold actually being mined (task). ii. Also, the increase in the HIV/AIDS related deaths are decreases the amount of employees available to work. iii. Due to a lack of employees the company cannot achieve its vision/mission of gold mining. iv. A decrease in the amount of people working may decrease motivation for the remaining employees as they may have lost friends and/or family to HIV/AIDS. The idea of the company potentially not paying for costs associated with their employees’ deaths may also decrease motivation of remaining employees. 3. Did African Gold make the right decision? Should an organization be expected to go beyond legally mandated benefits to help workers with a devastating illness like HIV/AIDS? I think African Gold made the right decision. From a business perspective, the HIV/AIDS is...
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