CASE STUDY ON
ANGLO AMERICAN PLC IN SOUTH AFRICA
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 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 from various constituency in South Africa .
• The workers union blamed it for not providing the treatment to the dependent of its employee.
• Competitor took advantage of the situation and blamed Anglo American PLC for not trying to attack the problem , rather than just containing it .
• Due to its initiative the South African government was afraid of the fact that the left or the retired employee of Anglo American PLC will be a burden on the government and hence the government criticized it .
• For Anglo American PLC the strategy of combating HIV/AIDS was becoming a waste of time , money and energy .
Recommendation to Anglo American regarding its HIV / AIDS policy are :
1. Continuing its HIV/AIDS eradication program : The company should continue the HIV /AIDS program as the government view towards combating the HIV / AIDS is changing, and such initiative will help the company in long run in earning good will for itself from its employee , government and shareholders .
2. Partnering with other organization : As HIV/AIDS is a national problem , it is beyond on companies capacity to fight it individually . Hence the company should try to partner with other major organization operating in South Africa , who are willing to come together to fight against HIV /AIDS . This will help it to develop reliable partner not only for the social cause but also for the business , which will help it to expand its market not only in South Africa but also in other counties too.
3. Focus on awareness : It should focus more on the spreading of awareness among its migrant and local workers , along with taking strict measures towards the employees who are not following the company policy . It should also try to spread the awareness among the other population too .
4. Participating Union member : It should also try to gain the support of the workers union in preventing the disease from spreading , by...
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