The one of the world’s largest mining companies focusing on
platinum, metals, diamonds, copper, nickel, iron ore, metallurgical and
thermal coal.
Corporate Social Responsibility (CSR)
The continuing commitment by business to behave ethically and
contribute to economic development while improving the quality of life of
the workforce and their families as well as of the local community and
society at large.
BUSINESS ETHICS
“Moral principles that guide the way a business behaves”
Ethical Action involves:
• Considering impacts both inside and outside organisation
• Distinguishing between right and wrong then make the ‘right’
choice
Examples
Ethical;
• Lawfully use copyrighted materials
• Following security and human rights principles
Unethical;
• Using child labor
• Engaging in bribery
Benefits of Acting Ethical
Seeing
shareholders return and social and environmental
responsibilities as commendatory activities, Anglo American ethical business
behavior affects the community and shareholders positively differentiating
itself from other contending mining companies.
For example, to operate at Ga Pila and Motlhotlo, South Africa, Anglo
American consulted with government and local communities to undertake
relocations.
Benefits To Local Communities;
• Creating better living conditions
The company built new villages with better houses and infrastructure
as well as more land for farming.
Benefits To the Company’s Shareholders;
• Trusted as a business that takes into account ethical approaches, Anglo
American gains competitive advantage over its competitors to be the
partner of choice for governments and communities.
• Attracting Long-term investors most of whom believe that social and ethical
issues are important for sustainable business, Anglo American has a strong
position on the stock market.
Reputation Enhanced
Taken into account local people needs and issues,
Anglo American engages local communities in its decision-making process.
The company tries to understand the perspectives and priorities of external
groups that are affected by its activities.
Such engagement enables Anglo American to receive a “Social
Licence” to operate in many developing countries such as South Africa,
Brazil and Chile. Positive image conveyed and trusts gained from place to
place over time, therefore the company’s reputation enhanced.
Continuity of Engagement
Since mining operations have big impacts on environment and
societies, it is critical for Anglo American to adopt fair and sound business
practice.
The company must keep its business in tune with the wishes of the
societies it serves, otherwise it runs the risk of alienating its shareholders,
stakeholders and customers. This would be bad for business, reducing growth
and potentially affecting profit.
Moreover, the engagement creates mutual dependences which
strengthen the company’s relationships with local governments and
communities ensuring its ongoing business to be sustainable.
The Balance of
Social, Economic and Environmental
Considerations
Business Principles: “Good Citizenship”
• Balancing investor returns with community well-being
• Being a good employer and steward
Tool: “Socio-Economic Assessment Toolbox: SEAT”
• Measures impacts of activities on the company
• Measures impacts of activities on communities
• Engaging with key stakeholders
• Improve contribution to development
Differentiate
Trusted
Strong Position
on Stock Market
Stakeholders
Benefit
Project Examples
Supports South African Government’s Black Economic Empowerment (BEE)
e.g. Supported the creation of Exxaro, the largest black owned and managed
mining company listed on the Johannesburg Stock Exchange.
Campaigns for AIDS education in South Africa
Provide free anti-retroviral drugs to HIV-positive employees as well as testing
and treatment programmes.
Minimised non-financial costs of Pebble Project in Alaska
Consulted widely with relevant parties and especially indigenous people to
run business without damage to local fisheries.
CONCLUSION
Business Ethics are guidelines for
morally correct behaviour
Acting ethically is doing what is morally right (regarded as good
business practice)
CSR is about responsibility to all stakeholders, not just shareholders
CSR is the continuing commitment by business to behave ethically
and to contribute to the sustainable development of society.
Organisations should establish CSR and use it together with other
strategies to build a positive image as a responsible business leading to
competitive advantage, and to reinforce brand loyalty.
RECCOMMENDATIONS
• There is a financial cost to act ethically and to establish CSR. Companies
have to consider their budget plans.
• CSR is highly recommended for companies operating businesses that have
effects on environment and/or society.
• The best way to be social responsibly is to engage local communities’
wishes and needs in decision-making process.
• CSR also offers direct benefits to the company itself i.e. positive image,
reputation and market expansion.