Xuxu
KWANTLEN POLYTECHNIC UNIVERSITY
BUSI 1250 HRM 1
Case: African Gold, Inc. – Ethics and AIDS in the Workplace
Henry Goldstone, head of Human Resources for African Gold, Inc. in South Africa, examined the stack of newspaper and business magazine clippings on his desk. In the last few weeks, there had been numerous stories about the company’s decision not to continue paying transport, coffin, and funeral costs form employees dying from non-mining causes. The decision was linked to the depletion of the funding source normally used to cover these costs. In the last two years, the fund had decreased rapidly because of the increasing number of HIV/AIDS deaths among the miners working for African Gold. The company planned to continue its education programs on HIV\AIDS for employees.
Although African Gold did not have exact figures of the prevalence of HIV/AIDS among its present labour force, recent company data indicated that, country-wide, there was an average of 20 funerals a month for workers who had succumbed to the disease. The average cost of a funeral is 10,000 rand (about $1250). Additionally, the costs of the company’s medical aid and disability programs were also skyrocketing because of HIV/AIDS-related diseases (e.g. tuberculosis, pneumonia). Goldstone also realized that these amounts would be even higher if the costs of absenteeism, productivity losses, recruitment and training were calculated. The increased costs were coming at a time when the profits of many gold-mining companies were failing because of the growing strength of the South African currency (i.e. the rand). The price of gold in real terms fell 6 percent over the last few quarters. Decreasing profits hit smaller mining companies like African Gold greater than the largest companies.
The number of HIV/AIDS-related deaths as a proportion of total deaths in South Africa had virtually doubled from 4.6 percent to 8.7 percent between 1997 and 2001. South Africa has one of he fastest
BUSI 1250 HRM 1
Case: African Gold, Inc. – Ethics and AIDS in the Workplace
Henry Goldstone, head of Human Resources for African Gold, Inc. in South Africa, examined the stack of newspaper and business magazine clippings on his desk. In the last few weeks, there had been numerous stories about the company’s decision not to continue paying transport, coffin, and funeral costs form employees dying from non-mining causes. The decision was linked to the depletion of the funding source normally used to cover these costs. In the last two years, the fund had decreased rapidly because of the increasing number of HIV/AIDS deaths among the miners working for African Gold. The company planned to continue its education programs on HIV\AIDS for employees.
Although African Gold did not have exact figures of the prevalence of HIV/AIDS among its present labour force, recent company data indicated that, country-wide, there was an average of 20 funerals a month for workers who had succumbed to the disease. The average cost of a funeral is 10,000 rand (about $1250). Additionally, the costs of the company’s medical aid and disability programs were also skyrocketing because of HIV/AIDS-related diseases (e.g. tuberculosis, pneumonia). Goldstone also realized that these amounts would be even higher if the costs of absenteeism, productivity losses, recruitment and training were calculated. The increased costs were coming at a time when the profits of many gold-mining companies were failing because of the growing strength of the South African currency (i.e. the rand). The price of gold in real terms fell 6 percent over the last few quarters. Decreasing profits hit smaller mining companies like African Gold greater than the largest companies.
The number of HIV/AIDS-related deaths as a proportion of total deaths in South Africa had virtually doubled from 4.6 percent to 8.7 percent between 1997 and 2001. South Africa has one of he fastest