ANGLO AMERICAN

Business Ethics 1. Ethics is the principles of conduct governing an individual or a group. It is the study of morality. 2. Morality is the standards that an individual or group has about what is right and wrong, or good and evil. 3. Moral norms can usually be expressed as general rules or statements, such as Always tell the truth. Moral values can usually be expressed as statements describing objects or features of objects that have worth, such as Honesty is good and Injustice is bad. Business ethics, in other words, is a form of applied ethics. It includes not only the analysis of moral norms and moral values, but also attempts to apply the conclusions of this analysis to that assortment of institutions, technologies, transactions, activities, and pursuits that we call business. Business ethics investigates three different kinds of issues: systemic, corporate, and individual. Systemic issues in business ethics are ethical questions raised about the economic, political, legal, and other social systems within which businesses operate. Corporate issues in business ethics are ethical questions raised about a particular company. Individual issues in business ethics are ethical questions raised about a particular individual or particular individuals within a company. Acting in an ethical way involves distinguishing between right and wrong and then making the right choice. It is relatively easy to identify unethical business practices. Unethical Unethical behavior is any action that is aimed at taking advantage of another without their knowledge or consent. Most define this as manipulating someone without their persmission. Unethical actions are not necessarily illegal. - For example, companies should not use child labour. - For instance, revealing confidential information, stealing the ideas of others, copying software, and punching the time clock from home are unethical behaviors. Unauthorized copying of software--software piracy--is stealing. Ethical

Ethical behavior is behavior that is appropriate. It is based on morals. Ethical behavior is the right way to behave. It is choosing the right and good.

An ethical business also recognizes its responsibility for minimizing the non-financial costs.

The Pebble Project in Alaska is a good example of the way that Anglo American takes account of non-financial costs. Anglo American has made it clear that it will only seek to proceed with the project if it can be done without damage to the local fisheries. It will also give priority to the recruitment of local people. In South Africa, the company has been a major campaigner for AIDS education. It was the first major company in South Africa to announce that it would provide free anti-retroviral drugs to its HIV-positive employees.

4. Benefit to the local community and to the company shareholder -Anglo American is involved in health care of communities such as AIDS testing and provision of new local services like schools and clinics. -The company help the local communities to resolve issues and to develop some initiatives like small business or partnership with local farmers. -The company help the local communities to create social-economical environment -Anglo American is taking part into account social and environmental issues preserving wildlife -Anglo American has a significant role in supporting good governance initiatives and boosting the opportunities available to the communities associated with its mines 3. How is Anglo American engaging with local communities? - Recently Anglo American has had to undertake two such relocations in South Africa at the villages of Ga Pila and Motlhotlo. New villages have been built with better houses and infrastrucre and more land for farming, Anglo American is backing the South African government in this process.

-The company is supporting black economic empowerment deals (BEE). Through this process, Anglo American has sold 26% of its assets in South Africa to BEE groups. -For example, Anglo American was instrumental in the creation of Exxaro. This is now the largest black-owned and managed mining company listed on the Johannesburg Stock

Exchange. It also aims to have at least 40% of its managers drawn from the ranks of previously disadvantaged ethnic groups. In South Africa, the company has been a major campaigner for AIDS education. It was the first major company in South Africa to announce that it would provide free anti-retroviral drugs to its HIV-positive employees. 4. How Anglo American keep the balance of social, economic and environmental considerations? Anglo American establishes goals each year for sustainable development. These goals include:

working without fatal accidents eliminating occupational diseases increasing diversity in the workplace increasing the benefits of mining for local communities increasing energy efficiency.

By working towards these goals, Anglo American hopes to gain a competitive advantage. By demonstrating a more caring and sustainable approach, the company is able to differentiate itself from rival mining companies. It makes Anglo American more likely to be the partner of choice for many governments and communities in the developing world. It also helps with its position on the stock market. Most long-term investors, such as pension funds that run investments for millions of ordinary people in the UK, believe that it is important for a company to consider social and ethical issues and not just the financial bottom line if a business is to be sustainable. Anglo American sees shareholder returns and social and environmental responsibilities as complementary activities. This puts the company in a stronger position. All stakeholders benefit shareholders, employees, governments, local communities and suppliers.