Social Environment: Anglo American PLC in South AfricaCase study

2/24/2012

Group-B

Nithya.B (1225111305)

Chaitanya .G (1225111319)

Hrushikesh.P (1225111321)

Nidhi Singh(1225111335)

Anusha.S (1225111347)

Shesh Tiwari (1225111351)

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. 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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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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(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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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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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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