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Mba I Sem Paper 1

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  • December 2010
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Masters in Business Administration (MBA-4sem)
Sub: Corporate Practices Management
Course Code: 06 Subject Code: MB03 All Cases are Compulsory CASE 1 Business ethics and corporate social responsibility Introduction Anglo American is a world leader in mining. It is a UK-based plc that operates in many countries around the globe, including Africa, Europe and the UK. It extracts metals, such as copper and platinum, and coal and its Tarmac business produces asphalt and concrete for roads. Mining can have a big impact on the environment and involves governments, as resources are owned by nations. Mining operations therefore usually require a licence. There may also be pressure groups involved so it is vital for mining companies to gain support from the communities in which they work. To underpin this, they must act ethically. Business Ethics Ethics are the moral guidelines that businesses follow. They include not being involved in ‘wrong’ practices, like child labor , but supporting ‘right’ practices, like causing as little harm as possible to the environment. This is known as CSR or Corporate Social Responsibility. Many companies create Codes of Practice for operating in other countries and communities. Anglo American has helped to develop a number of these to ensure fair treatment of people, communities and the environment. It balances these needs against the business need to make a profit. An important part of this process is called stakeholder engagement , which allows it to understand other groups’ concerns better. It uses a tool called SEAT (Socio- Economic Assessment Toolbox) to engage with stakeholders. Marks: 80 20 Marks for Presentation


Why act ethically? If a business acts in a way that upsets customers, countries or communities, this will have an adverse affect on its profits. It therefore must stay in tune with the wishes of the communities where it works. For example, in South Africa, the government is transferring ownership of some resources...

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