Business Ethics and Corporate Social Responsibility: An Anglo American Case Study

From the case study of “BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY: AN ANGLO AMERICAN CASE STUDY”, list, identify and discuss the benefit accrued by the company from the perspective of Business Ethics, Corporate Governance and Social Responsibility.

1. INTRODUCTION

Business ethics are moral principle that guide the way a business behaves. In the same principle that determine an individual action to apply in business. Acting in an ethical way involves distinguishing between right and wrong and how making the right choice. For the example, the company should not take a child labour, unlawfully use copyright material and not engage in bribery. In this case, study Anglo Amerika was the company that manage the mining operation. They have 76% employees in Africa and the major employer in the Europe.  Most the mineral resources belong to nation states, Anglo American seeks to adopt fair and sound business practice. They want to get Social Licence to develop mining operation.

1. BUSINESS ETHICS

Business ethics is the study of proper business policies and practices regarding potentially controversial issues, such as corporate governance, insider trading, bribery, discrimination, corporate responsibility and fiduciary responsibility.

In the case of Anglo American has responsibility with their stakeholders and need their support to fulfil the organisation objective. For example, in Anglo American has treat staff and respect the local community to make sure they easily recruit new employees. In stakeholder view, the idea of sustainability is the ability to achieve their own need.

In the business, law was the important things in the any of business. In Anglo American case study, this called good citizenship because of social responsibility Anglo American and the extern to which they meet legal, ethical and economic responsibilities, as established by shareholder. For example, Anglo American business support the Extractive Industries Transparency Initiative (EIT) is a global standard designed to ensure that companies publish what they pay for raw material and governments publish the revenues that they receive. Second is The United Nations Global Impact is the means by which businesses worldwide can complement the objectives of the United Nations through adherence to ten core principles covering human rights, labour rights, environmental good practice and anti-corruption. Lastly, The Global Reporting Initiative (GRI) was framework used by companies to produce sustainability reports about their activities. They follow this code to practice in sector of mining, and practices the regulation in their company.

Anglo American also contributed to the Voluntary Principles on Security and Human Rights. This code sets out the principles and practices for ensuring that a company need to ensure the security of its employees and operations.

1. CORPORATE GOVERNANCE

Corporate Governance is a set relationship among company management, Board of Director and Stakeholders. Corporate Governance to ensure that have clear division responsibilities, avoid from duplication responsibilities.

 In business, all company must need to make profit, it also happen in Anglo American to aim these objectives. However, their main aim to make sure not sacrifice the social, environmental and moral considerations to continue this business in long term even also taking account of the other stakeholders such as governments employees, suppliers, communities and customer.

In the Corporate Governance Anglo American was played an active part in initiatives such EIT, Global Compact and GRI. They also transform the people’s lives and alleviate poverty through generating economic growth. Produce the goods, services that customer want, and create new job for the communities in the places they operates.

The importance of Corporate Governance in responsibility. Every business that we have run, responsibility toward country, people and environmental need to taking care. In this case the Anglo American have play importance role in their responsibility by communities giving a new places, new job and in the employees healthy. They have do many things to make sure the communities not suffering because of the mining operations.

Other things, Anglo American also take the responsibility for minimising the non-financial cost. For example, the gold and copper mining project in the Pebble Project at Alaska. This could provide new jobs and revenues to the Alaskan economy in the time when oil and gas revenues have been falling. However, some people worry that can damage the fish stocks and wildlife. The way Anglo American actions by consulting widely and through a structured process with local people, politicians businesses and indigenous people. Anglo American has made it clear that the project if it can be work without damage the local fisheries. Also give the priority to the recruitment of local people.

Anglo American also follow the rules and regulation in that country by paying taxes, contribute to the government revenue that can build the finance school, hospitals and other public services. Anglo American also make a deal with many different levels of interest when setting up new project. This includes the owners of the land and the people in the services area.

1. CORPORATE SOCIAL RESPONSIBILITY

In social responsibility, Anglo American contributed the Voluntary Principles on Security and Human Rights. This code sets out principles and practices for ensuring that a company’s need to ensure the security of its employees and operations in volatile countries does not adversely affect upon the local population. So that, both of sector private and public security assigned to protect the mining operation, training human right, monitored how they work and controlled it.