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Anglo American Plc

2. What are the pros and cons of Anglo American adoption of an aggressive strategy in combating HIV/AIDS among its South African workforce? What recommendations would you give the company concerning its HIV/AIDS policy? Answer: Anglo American had huge investment in South Africa and was heavily hit by the HIV/AIDS epidemic. It was the first private company to develop a proactive strategy to combat the ravages of the disease on its workforce and thus effecting their operations. Pros of adoption of an aggressive strategy * The early adoption has helped to prevent further loss in operating expenses by providing ART in earlier stage. The company prevented higher loss by adopting the strategy; as if the worker is left untreated the loss would be more than that of the expense put on ART. * The future of Anglo American is bright as the Government has launched a national strategic plan in the later stage. This helps in political support for Anglo American in the long run. * Adopting the strategy the company achieves trust and commitment from ethical minded shareholders. * This strategy in later stage through word of mouth from the employees, who were responding well, will spread awareness and make everyone take a precautionary step. It got good response from WHO, Global business council for HIV/AIDS and other NGOs, this makes the company a socially responsible organization in Global business. Cons of adoption of an aggressive strategy * This program had spiralling costs for the company as the distribution of the medicines remained high. * It was unable to determine if its efforts are making a difference in underlying problem as one third of those receiving treatment dropped out * Harsh working conditions worsened the medication effect and its side effects. Migrant workers were more prone to get the disease and spread the disease in their respective villages * The company had to face opposition from the political leaders thus baring the high costs itself. * It also had to bear the cost of high level of absenteeism, retraining of replacement workers and offer hospital, medical and death benefits to employees. Recommendations * Awareness and the severity of the problem should be proved to the society through various campaigns. The company should negotiate well with the employees for testing them about the disease explaining the repercussions of it * The company should negotiate with the pharmaceutical companies for the drugs to be given in lower price with the support of government by not violating both patent rights and IPR. * It should collaborate with other MNEs and together raise funds by tying up with NGOs to decrease the disease. 3. Because such a large percentage of the workforce consists of migrant workers who are more likely to acquire and spread HIV/AIDS, should Anglo American adopt the policy of not hiring migrant workers?

Should the South African government close the door to migrant workers? Answer: No, the Anglo American should not adopt the policy of hiring migrant workers. Instead it should train and educate them about the serious levels of problem with the disease and its transmission. The company could take the following measures for hiring migrant workers and still protecting them from HIV/AIDS * The company should check the health conditions of the migrant frequently and take necessary precautions * A health and awareness campaign should be launched by the company through the migrants in their respective locations or places.

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The migrants can campaign and promote this in their locality. This will help as the residents can trust the person in their locality than the outsider, thus preventing it more. * Since migrants are prone to the disease more they should not be allowed initially to work in adverse conditions. Once they are used to the environment they can be allowed. * Migrants cannot be allowed to work closely with people affected by HIV/AIDS and should be kept in different department thus minimizing the effect in the initial stage.

No, Government should not close the doors to migrant workers. The following are the reasons * Since local people are affected badly with the disease the death rates have increased thus loss of human resources. This will affect the country very badly. Thus when human resources are migrating into this country the resources can be used. * To improve the condition of the people and for less death rate migrants are necessary. * If the outsiders are not allowed then there will be no proper trade happening in the country thus affecting all the factors of macroeconomics.

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