The one of the world’s largest mining companies focusing on platinum, metals, diamonds, copper, nickel, iron ore, metallurgical and thermal coal. Corporate Social Responsibility (CSR) The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

BUSINESS ETHICS “Moral principles that guide the way a business behaves” Ethical Action involves: Considering impacts both inside and outside organisation Distinguishing between right and wrong then make the ‘right’ choice Examples Ethical; Lawfully use copyrighted materials Following security and human rights principles Unethical; Using child labor Engaging in bribery

Benefits of Acting Ethical Seeing shareholders return and social and environmental responsibilities as commendatory activities, Anglo American ethical business behavior affects the community and shareholders positively differentiating itself from other contending mining companies. For example, to operate at Ga Pila and Motlhotlo, South Africa, Anglo American consulted with government and local communities to undertake relocations.

Benefits To Local Communities; Creating better living conditions The company built new villages with better houses and infrastructure as well as more land for farming. Benefits To the Company’s Shareholders; Trusted as a business that takes into account ethical approaches, Anglo American gains competitive advantage over its competitors to be the partner of choice for governments and communities. Attracting Long-term investors most of whom believe that social and ethical issues are important for sustainable business, Anglo American has a strong position on the stock market.

Taken into account local people needs and issues, Anglo American engages local communities in its decision-making process. The company tries to understand the perspectives and priorities of external groups that are affected by its activities. Such engagement enables Anglo American to receive a “Social Licence” to operate in many developing countries such as South Africa, Brazil and Chile. Positive image conveyed and trusts gained from place to place over time, therefore the company’s reputation enhanced. Reputation Enhanced

Since mining operations have big impacts on environment and societies, it is critical for Anglo American to adopt fair and sound business practice. The company must keep its business in tune with the wishes of the societies it serves, otherwise it runs the risk of alienating its shareholders, stakeholders and customers. This would be bad for business, reducing growth and potentially affecting profit. Moreover, the engagement creates mutual dependences which strengthen the company’s relationships with local governments and communities ensuring its ongoing business to be sustainable. Continuity of Engagement

The Balance of Social, Economic and Environmental Considerations Business Principles: “Good Citizenship” Balancing investor returns with community well-being Being a good employer and steward Tool: “Socio-Economic Assessment Toolbox: SEAT” Measures impacts of activities on the company Measures impacts of activities on communities Engaging with key stakeholders Improve contribution to development Differentiate Trusted Strong Position on Stock Market Stakeholders Benefit

Supports South African Government’s Black Economic Empowerment (BEE) e.g. Supported the creation of Exxaro, the largest black owned and managed mining company listed on the Johannesburg Stock Exchange. Campaigns for AIDS education in South Africa Provide free anti-retroviral drugs to HIV-positive employees as well as testing and treatment programmes. Minimised non-financial costs of Pebble Project in Alaska Consulted widely with relevant parties and especially indigenous people to run business without damage to local fisheries. Project Examples

Business Ethics Business Ethics are guidelines for morally correct behaviour Acting ethically is doing what is morally right (regarded as good business practice) CSR CSR is about responsibility to all stakeholders, not just shareholders CSR is the continuing commitment by business to behave ethically and to contribute to the sustainable development of society. Organisations should establish CSR and use it together with other strategies to build a positive image as a responsible business leading to competitive advantage, and to reinforce brand loyalty. CONCLUSION

There is a financial cost to act ethically and to establish CSR. Companies have to consider their budget plans. CSR is highly recommended for companies operating businesses that have effects on environment and/or society. The best way to be social responsibly is to engage local communities’ wishes and needs in decision-making process. CSR also offers direct benefits to the company itself i.e. positive image, reputation and market expansion. RECCOMMENDATIONS