1. Social Environment: Anglo American PLC in South Africa
Case study
2/24/2012
Group-B
Nithya.B (1225111305)
Chaitanya .G (1225111319)
Hrushikesh.P (1225111321)
Nidhi Singh(1225111335)
Anusha.S (1225111347)
Shesh Tiwari (1225111351)

2. 1. What is the issue?
The case is about Anglo American PLC which is the largest gold miner and its
role in implementing ART program to HIV infected employees as its south
asian operations.From the case we can see that the sub Saharan Africa is home
to just over 10% of world’s population and to 60% of all people was infected
with HIV.
One of the biggest challenged that they were facing was the encouraging
participation among a migrant and largely ignorant workforce under harsh
conditions in an unstable environment.
Some of the South Africans refuse to be tested or to admit that they have
infected for fear of discrimination by managers, fellow employees etc.
Harsh working conditions often make it hard for workers to make medications
on time or to deal with certain side effects. Many of the people came from
isolated villages which were located hundreds of miles away. They were more
prone to diseases and were taking with them back to their villages.
There were also problem of pressure from various constitutions. They were
under failig to provide free treatment to dependen t of its employees.
The Union were also accusing the company of helping to foster working
condition that created the problem.
2. Why is he issue important?
The issue is important because anglo American controls over 25% of all shares
traded on the South African stock market an due to huge investment in South
Africa.The per capita growth was also decreasing per year and consequences
included both diminishing population and shrinking economies with GDP’s
deflating anywhere from 20% to 40 %.
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3. 3. What are controllable/uncontrollable variables?
As most of the workers in the company are affected by HIV/AIDS the
company promoted program prevention initiatives by educating, creating
awareness and distribution of condoms to the labors. And also distributing
freely the antiretroviral therapy to HIV infected employees.
The uncontrollable variables are more than controllable variables as we all
know that 60 percent of population in south Africa is affected by HIV and
also to control the infection the Anglo American PLC cannot able to stop the
infection most of the employees in their company are severely affected by
HIV. About more than 23% of employees are affected by HIV. Probably the
cost of ART distributing for free to the employees is also becoming
expensive.
Due to more absenteeism, constant replacement of workers, hospitalization
and death benefits the cost is more to bear by the company.
And also the employees refuse to be tested due to fear of discrimination by
managers, fellow employees and society.
As there was a rumor on the medicine the affected employees are not
agreeing to participate or use the medicine.
And also most of the company employees are from villages to travel from
such a long distance with infection is quite hard.
No government support is major failure of prevention of HIV.
4. Who are all the interested parties in the issue and why?
Employees, management of the company and government are the interested
parties in the issue.
This issue is totally related to HIV prevention and to control the HIV the
management is aiming for a long term result. Employees who are affected
are major cause to the management and company. So management is
involved in this issue and started initiatives to prevent HIV to the employees.
The government of South Africa is not at all bothered upon the issue and
proposing false statements on the company without supporting them.
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4. 5. What alternative approaches can be taken to address the issue?
Steps That Can Be taken (RECOMMENDATIONS)
Providing health care, antiretroviral treatment, and support to a growing
population of people with HIV-related illnesses.
Reducing the annual toll of new HIV infections by enabling individuals to protect
themselves and others.
Coping with the impact of millions of AIDS deaths3 on orphans and other
survivors, communities, and national development.
(1) Provision of Voluntary HIV Counselling & Testing (VCT)
The provision of voluntary HIV counselling and testing (VCT) is an important part
of any national prevention programme. It is widely recognised that individuals
living with HIV who are aware of their status are less likely to transmit HIV
infection to others, and are more likely to access treatment, care and support that
can help them to stay healthy for longer.
(2) Mother-to-child transmission of HIV
If a woman is supplied with antiretroviral drugs, however, this risk can be
significantly reduced. Before these measures can be taken the mother must be
aware of her HIV infection, so testing also plays a vital role in the prevention of
MTCT.
The country lacks with the antiviral drugs so it should take care to see that they
buy sufficient amt of drugs
The involvement of government is more required in awareness programme where
as the African government shows the least interest in the wealfare of the people
The African government should also be able to convince the various pharmacy
companies to provide the drug at cheaper rate than in the market WHO should be
taking care of this as its main motto is to attain standard health standards in the
world
(3) International support
Africa requires support from various countries who can provide them with
antiretroviral drugs for the increasing the average life of the people
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5. (4) Domestic commitment
More money is needed if HIV prevention and treatment programmes are to be
scaled up in Africa. In order to implement such programmes, a country’s health,
education and communication systems and infrastructures must be sufficiently
developed.
(5) Reducing stigma and discrimination
HIV-related stigma and discrimination remains an enormous barrier to the fight
against AIDS. Fear of discrimination often prevents people from getting tested,
seeking treatment and admitting their HIV status publicly.
(6) Helping women and girls
In many parts of Africa, as elsewhere in the world, the AIDS epidemic is
aggravated by social and economic inequalities between men and women. Women
and girls commonly face discrimination in terms of access to education,
employment, credit, health care, land and inheritance. These factors can all put
women in a position where they are particularly vulnerable to HIV infection. In
sub-Saharan Africa, around 59% of those living with HIV are female. The
proportion is even more inequitable for young people, with women making up 70%
of young people in the region living with HIV.
6. What objectives, policies, strategies, tactics and actions would be taken
with each?
The main objective of the company is to get awareness of HIV/AIDS and
educate about the disease as well as prevention.
The leaders of Anglo American Company were discussing about HIV in
daily safety bulletins, and mine-based awareness campaigns led by more
than 250 trained wellness peer educators are regularly staged.
Policies were extend to improve voluntary counseling, testing and care-and-
wellness programs and the services of all programs were extended to cover
not only the families of employees but also the population of surrounding
communities.
Anglo American employs 100,000 people in South Africa. It has the world's
largest workplace program for the prevention, counseling, voluntary testing
and treatment of HIV.
The main strategy that the company used is Voluntary counseling. Thermal
coal HIV/AIDS program which is a part of VC
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6. Care, treatment and support : Thermal Coal, in line with the Anglo
American policy, began to provide affected employees with free anti-
retroviral treatment (ART) in 2002 – a decision that has saved many lives.
According to a study by the Aurum Institute, an internationally recognized
research and health systems management organization, Thermal Coal’s ART
program is responsible for keeping an estimated 240 people alive.
Out of this figure, 229 of the lives saved are current employees who would
likely have died or have been unable to work if not for the program.
The company aim to effectively manage the impact of HIV/AIDS on
operations and to make a positive contribution towards minimising the
social, economic and developmental consequences of this epidemic.
7. What are the potential effects on sales and profits and the likelihood of
those occurrences?
At the end of 2010, 3,965 employees were receiving antiretroviral
therapy (ART), approximately 33% of those employees whom we
know are HIV-positive. Ultimately, all HIV-positive employees will
need ART, so we anticipate, and are planning for employees starting
treatment.
Economic lost $7 billion annually and around 2% of GDP as result of
AIDS- related works deaths. It will continuously reduce per capital
growth by 1% to 2% per year and worst effected countries, cut annual
GDP growth is 0.6% by 2010.
The consequences which include both diminishing populations and
shrinking economies with GDP deflating from 20 to 40 %.
8. Choose one of the alternatives and defend why your choice is best.
All recommendation given below are important in a continent like Africa
because in Africa on an average 1000 people get effected due to HIV and
800 people die due to which the GDP of Africa decreases by 2% every year ,
so they need to follow all recommendations for growth and development of
the country. As every knows that” Health is a Wealth”.
9. What are the future implications on the interested parties if your
recommendation is implemented?
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7. Implication on recommended parties
The effect on life expectancy. In many countries of sub-Saharan Africa, AIDS
has erased decades of progress made in extending life expectancy. Average life
expectancy in sub-Saharan Africa is now 54.4 years and in some of the most
heavily affected countries in the region life expectancy is below 49 years.
The effect on households. The effect of the AIDS epidemic on households can be
very severe, especially when families lose their income earners. In other cases,
people have to provide home based care for sick relatives, reducing their capacity
to earn money for their family. Many of those dying from AIDS have surviving
partners who are themselves infected and in need of care. They leave
behind orphans, who are often cared for by members of the extended family.
The effect on healthcare. In all affected countries, the epidemic is putting strain
on the health sector. As the epidemic develops, the demand for care for those
living with HIV rises, as does the number of health care workers affected.
The effect on schools. Schools are heavily affected by AIDS. This a major
concern, because schools can play a vital role in reducing the impact of the
epidemic, through HIV education and support.
The effect on productivity. The HIV and AIDS epidemic has dramatically
affected labour, which in turn slows down economic activity and social progress.
The vast majority of people living with HIV and AIDS in Africa are between the
ages of 15 and 49 - in the prime of their working lives. Employers, schools,
factories and hospitals have to train other staff to replace those at the workplace
who become too ill to work.
The effect on economic growth and development. The HIV and AIDS epidemic
has already significantly affected Africa's economic development, and in turn,
has affected Africa's ability to cope with the epidemic.
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