5 Social and Environmental Responsibility

8/6/2019 5 Social and Environmental Responsibility

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Social and EnvironmentalSocial and EnvironmentalResponsibilityResponsibility

Anglo AmericanAnglo American

http://www.youtube.com/watch?v=U7p9EbqFPmUhttp://www.youtube.com/watch?v=U7p9EbqFPmU

http://www.youtube.com/watch?v=8nOnbIWfiGQ&mohttp://www.youtube.com/watch?v=8nOnbIWfiGQ&mode=related&searchde=related&search==


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Review:Review:-- StakeholdersStakeholders ShareholdersShareholders

LendersLenders Business CustomersBusiness Customers

Final customersFinal customers

SuppliersSuppliers EmployeesEmployees

Past EmployeesPast Employees

RetireesRetirees CompetitorsCompetitors

NeighborsNeighbors

Immediate communityImmediate community The National SocietyThe National Society

The world SocietyThe world Society

Corporate ManagementCorporate Management CEOCEO

Board of DirectorsBoard of Directors

GovernmentGovernment Special interest groupsSpecial interest groups


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Case StudyCase Study

IntroIntro

Help society prosperHelp society prosper

Provide goods and services to consumersProvide goods and services to consumers

Provides jobs and income for workersProvides jobs and income for workers

Train their employeesTrain their employees

Pay taxes to support government spendingPay taxes to support government spending

Provide returns to shareholdersProvide returns to shareholders

Money to PensionersMoney to Pensioners


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OutlineOutline

One of the 20 largest companies on LondonOne of the 20 largest companies on London

stock exchangestock exchange Employees 8,000 people in the UKEmployees 8,000 people in the UK

Has operations in 40 countriesHas operations in 40 countries

Employees over 100,000 people world wideEmployees over 100,000 people world wide


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What it ProducesWhat it Produces

Base metals, i.e. copperBase metals, i.e. copper

Ferrous metals, i.e. ironFerrous metals, i.e. iron

PlatinumPlatinum

CoalCoal

Industrial materialsIndustrial materials

45% stake in De Beers45% stake in De Beers


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ActivityActivity

Most is Primary IndustryMost is Primary Industry

Extracting martial's from the ground throughExtracting martial's from the ground through

mining and quarryingmining and quarrying

That will be used in the SecondaryThat will be used in the SecondaryIndustryIndustry

Make steel to build cars, ships,Make steel to build cars, ships,


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GoalGoal

A.A. is to contribute to Sustainable dev. throughA.A. is to contribute to Sustainable dev. through

being socially and environmentally responsiblebeing socially and environmentally responsible It can do this through high performance in 5It can do this through high performance in 5

overlapping areas.overlapping areas.

SocialSocial

NaturalNatural

HumanHuman

ManufacturedManufactured FinancialFinancial


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5 Areas5 Areas SocialSocial

Increase the skills and life chances of the people in theIncrease the skills and life chances of the people in thecommunities where it does business.communities where it does business.

NaturalNatural Working to decrease energy usage, and minimize the impactWorking to decrease energy usage, and minimize the impact

on water and conserving biodiversityon water and conserving biodiversity

HumanHuman Developing employees and achieving top performanceDeveloping employees and achieving top performance

ManufacturedManufactured Transforming natural capital into infrastructure, processTransforming natural capital into infrastructure, process

products and waistproducts and waist

FinancialFinancial Looking at financial performance as more than just $ forLooking at financial performance as more than just $ for

shareholdersshareholders


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Sustainable DevelopmentSustainable Development

Passing on to the future generations aPassing on to the future generations a

stock ofstock ofcapitalcapitalthat is at least as greatthat is at least as greatas the one our generation inherited.as the one our generation inherited.

It is based on respect for.It is based on respect for. One another, everybody shares the planetOne another, everybody shares the planet

Future generations (intergenerationalFuture generations (intergenerational

equality)equality) For nature itselfFor nature itself-- for plants, animals, all lifefor plants, animals, all life


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Natural ResourcesNatural Resources

Often the only way that poor countriesOften the only way that poor countries

can get foreign investmentcan get foreign investment

We all use natural resources forWe all use natural resources for

Heating our homeHeating our home Going to work or schoolGoing to work or school

Leisure activitiesLeisure activities


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Key PrincipalsKey Principals

Be ethical, efficient, and create value forBe ethical, efficient, and create value for

shareholdersshareholders Create meaningful employmentCreate meaningful employment

Reduce environmental foot printReduce environmental foot print

Increase innovationIncrease innovation

Contribute to building society where it worksContribute to building society where it works


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Examples of Principals in PracticeExamples of Principals in Practice

Health and safetyHealth and safety-- (Employee) accidents(Employee) accidents--

Zero repeatsZero repeats

Conserve waterConserve water-- (Local community)(Local community)

HIV/AIDS treatmentHIV/AIDS treatment-- (employees) for 4,500(employees) for 4,500

employeesemployees

Technology transfer and capacity buildingTechnology transfer and capacity building--(community)(community)

Work with farmers, beekeepersWork with farmers, beekeepers


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ProjectsProjects

Improve land around mineImprove land around mine

Improve environmental habituate in UKImprove environmental habituate in UK

Contribute financially to communities where itContribute financially to communities where it

operatesoperates

Mining should be a catalyst to wider dev.Mining should be a catalyst to wider dev.

Help create new small businessesHelp create new small businesses

SchoolingSchooling

Were named mining sector leader by theWere named mining sector leader by thedown Jones Sustainability Indexdown Jones Sustainability Index


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Pressure of Social and EnvironmentalPressure of Social and Environmental

ResponsibilityResponsibility

InternalInternal-- pushed by managementpushed by management-- to useto use

resources in most efficient way.resources in most efficient way. Safety, Development of the business,Safety, Development of the business,

Community expectations, HIV/AIDS, ClimateCommunity expectations, HIV/AIDS, Climate

ChangeChange ShareholdersShareholders-- they want long termthey want long term

profitability but have learned fromprofitability but have learned frommanagement that they must give to themanagement that they must give to thecommunity if they want to keep miningcommunity if they want to keep mining

Recruit good peopleRecruit good people


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External PressuresExternal Pressures

Legislation i.e. UK ParliamentLegislation i.e. UK Parliament

Foreign governmentsForeign governments-- they own the miningthey own the miningrights, some put in laws but cant enforcerights, some put in laws but cant enforcethemthem

International StandardsInternational Standards-- UN. Global CompactUN. Global Compact--

International Labor OrganizationInternational Labor Organization

NGONGOss

CustomersCustomers-- some demand high ethicssome demand high ethics

Pressure GroupsPressure Groups--Amnesty International,Amnesty International,


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Benefits to BusinessesBenefits to Businesses

Win trust of communitiesWin trust of communities

Respect from governmentsRespect from governments

Loyalty of customersLoyalty of customers

Helps to recruit new peopleHelps to recruit new people


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The Three Bottom linesThe Three Bottom lines Continuous profitsContinuous profits

Respect the environmentRespect the environment

Take a wider social responsibilityTake a wider social responsibility


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Where does the money go?Where does the money go? What does it tell you?What does it tell you?

Most jobs are in AfricaMost jobs are in AfricaMost distribution is in AfricaMost distribution is in Africa

Half of the Suppliers are in AfricaHalf of the Suppliers are in Africa

Does it?Does it?


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DeBeersDeBeers

How is your company perceived?How is your company perceived?

What they want you to think when you feelWhat they want you to think when you feel

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zLzEzLzE

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aAaA

A company is more than just what it sellsA company is more than just what it sells


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Perceived by the PublicPerceived by the Public What does the public think?What does the public think?

Mining takes place inMining takes place in BotswanaBotswana,, NamibiaNamibia, South, SouthAfrica andAfrica and TanzaniaTanzania

War DiamondsWar Diamonds--Angola, Sierra Leone, Liberia, IvoryAngola, Sierra Leone, Liberia, Ivory

Coast, the D.R. of Congo, Republic of Congo,Coast, the D.R. of Congo, Republic of Congo,

2000 It was the diamond industry that took steps to2000 It was the diamond industry that took steps to

address the conflict diamond problem, stopping theaddress the conflict diamond problem, stopping the

trade in conflict diamonds.trade in conflict diamonds.

http://www.youtube.com/watch?v=FjfjxQP6sPohttp://www.youtube.com/watch?v=FjfjxQP6sPo


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.. Cease purchasing rough diamonds fromCease purchasing rough diamonds from

AlrosaAlrosa as of 2009.as of 2009. De Beers enjoys a monopoly in BotswanaDe Beers enjoys a monopoly in Botswana

and almost virtual monopoly in diamondand almost virtual monopoly in diamond

supply in the rest of the world. There aresupply in the rest of the world. There areother diamond mines owned by smallother diamond mines owned by smallcompanies with less control on thecompanies with less control on the

market. None of the companies are ownedmarket. None of the companies are ownedby Africansby Africans


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.. De Beers currently holds a legal exemption inDe Beers currently holds a legal exemption in

South Africa from the mandatory dustSouth Africa from the mandatory dustsuppression method of spraying water whensuppression method of spraying water whendrilling, on the grounds that the dust in its minesdrilling, on the grounds that the dust in its minesis uniquely harmless. However, dust in ais uniquely harmless. However, dust in a

diamond mine can cut and scar the lungs ofdiamond mine can cut and scar the lungs ofmineworkers.mineworkers.

InInAugustAugust 2007 British charity2007 British charity War on WantWar on Wantpublished a report accusing De Beers parentpublished a report accusing De Beers parent

companycompanyAnglo AmericanAnglo American of profiting from theof profiting from theabuse of people in the developing countries inabuse of people in the developing countries inwhich the company operateswhich the company operates


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Perceived by the PublicPerceived by the PublicOr is it something like this?Or is it something like this?

http://www.youtube.com/watch?v=JsfwEj6yhttp://www.youtube.com/watch?v=JsfwEj6yqSAqSA

http://www.youtube.com/watch?v=juya0rp9http://www.youtube.com/watch?v=juya0rp9

ZOoZOohttp://www.youtube.com/watch?v=OiNhttp://www.youtube.com/watch?v=OiN--

EqwIYJIEqwIYJI

http://www.youtube.com/watch?v=wWrUo8http://www.youtube.com/watch?v=wWrUo8sYxSssYxSs

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5 Social and Environmental Responsibility