Anglo American PLC in South Africa Essay Example for Free

Anglo American PLC in siemens Africa Essay1. The pros would be a) The early adoption strategy of ART can help the company to sustain and combat the spread of the disease not still on its workforce but also the populations of environ communities. This early initiative can also help to prevent further loss in operational expenses and declining workers productivity in the company. b) Anglo American became a de facto leader in the private-sector fight against human immunodeficiency virus/ support in Africa. It also became a trendsetter for other MNEs to follow suit such as Coke, Ford, and Colgate-Palmolive. c) Received positive reactions and approving from WHO, the Global Business Council on HIV/AIDS, and a host of other NGOs. d) Became a socially liable company in the global market. This comprehensive program reflects that Anglo American has a good intention on protecting the rights of infected workers. e) The program might imbibe a bright future, as 95% have responded wel l to the treatment and ar working productively.f) The gradual change in the sec African presidential terms view towards HIV/AIDS can further on help Anglo American to combat this national wide pestilential issue of the disease. The cons would be a) The company had to bear outrageous amount of run costs to combat this issue, with an estimated $4,000 per employee when the company typically offers $830 for wages and benefits per employee. b) There is a 15% level of non-adherence from the workers who ar enrolled in the program and due to harsh working conditions make it hard for workers to take medications on beat or to deal with side effects.c) Pressures and oppositions from various constituencies such as the southwestern African government, political leaders, and chief executive officer Brian Gillbertson of BHP Billiton who all thought that the program was not efficient. South Africas prime minister uttered the initative as a vigilante move designed to place unreasonable burd ens on the government. Recommendations Anglo American should cut ware on major costs to support the program in order prevent further wastefulness of money since it can cost 7.2% of the companys wage bill. Provide only to those who need to be treated and who can adhere to the program. Anglo American should also seek support from WHO and other international improver organizations, and the South African government with the objective of a great cause for the South Africans. Also puree to cooperate with pharmaceutical companies who can sell antiretroviral drugs at a subsidized rate. All of these actions should help harbor the image of the company in the global market.2. Since migrant workers in South Africa account for about four-fifth of the derive workforce, it would not be a strategic decision to adopt the constitution of not hiring migrant workers. This policy can also have negative impacts on the companys image, since it is a pretty racist policy and can cause unequal treatm ents to workers. Therefore, Anglo American should still hire migrant workers because there are a lot of workers needed to work in the mine site. Switching policies regarding whom to hire will only further increase operating costs. 3. Pharmaceutical companies play a big role in responding to the HIV/AIDS epidemic in South Africa. Since GlaxoSmithKline can sell antiretroviral drugs to Anglo American at 1/tenth of the market price in industrialized world, other pharmaceutical companies should be able to do so in order to safe the lives of millions of people.The South African government should cooperate with these pharmaceutical companies since the government itself has started implementing field Strategic Plan for combating HIV/AIDS. This will allow pharmaceutical companies to enter in B2B deals with the government and companies who dole out for their employees health. For the poor enforcement of patent rights, Pharmaceutical companies should enter into an agreement with the South Af rican government that these rights will be protected otherwise cooperation between parties will not take place. There should be strict policies and courses of actions to acquire infringement of patent rights. Pharmaceutical companies should also invest more in RD to create drugs for HIV/AIDS that can save the lives of people.4. South African government should not 100% implement aggressive policies that were conducted in Brazil and Thailand mainly due to differences in political, economic, legal, cultural conditions, these policies might not work in South Africa (such as taking advantage of TRIPS agreement etc). Instead, the South African government should learn from these countries how to tackle the epidemic issues, relate the situations and implement some of the steps that might be feasible to implement in South Africa. Anglo Americans cooperation with GlaxoSmithKline purchasing life saving drugs at a reasonable price should gain other pharmaceutical companies (especially MNEs) t o join the program to fight against this epidemic disease.