African Gold Case
Pawan Bhandal
100195140
Case: African Gold, Inc. – Ethics and AIDS in the Workplace 1. What aspect of the external environment is African Gold, Inc. confronted with? Give specific details for each one from the case.
The three external environmental factors that African Gold was confronted with are: i. The ration of HIV/AIDS related deaths in the mining industry are 24% in comparison to a 19.9% overall in the rest of South Africa. ii. The price of gold has dropped and the South African currency has strengthened which in turn has decreased profits. iii. The negative media coverage creates a negative image for the company. This may causes other businesses from refraining to do business with African Gold because of the negative …show more content…
association. 2. Which parts of the internal environment of the company are most affected by the external environment? Give details from the case to back up your choices. i. The high percentage of HIV/AIDS related deaths in the mines has decreased the labour force due to increase in absenteeism from sick employees or a loss of employees from their death. This directly decreases the amount of gold actually being mined (task). ii.
Also, the increase in the HIV/AIDS related deaths are decreases the amount of employees available to work. iii. Due to a lack of employees the company cannot achieve its vision/mission of gold mining. iv. A decrease in the amount of people working may decrease motivation for the remaining employees as they may have lost friends and/or family to HIV/AIDS. The idea of the company potentially not paying for costs associated with their employees’ deaths may also decrease motivation of remaining employees. 3. Did African Gold make the right decision? Should an organization be expected to go beyond legally mandated benefits to help workers with a devastating illness like HIV/AIDS?
I think African Gold made the right decision. From a business perspective, the HIV/AIDS is caused by a personal decision for unprotected sex. This is something that is not contracted directly from mining therefore it is the sole responsibility of the individual to ensure it doesn’t happen. The only things that may alter the business perspective is the fact that you want your employees to be well trained and knowledgeable therefore sex education should be provided as it seems to be an ongoing issue for South Africa. This could reduce the amount of employees dying and therefore African Gold can maintain their production of gold
mining. 4. What responsibility, if any, does African Gold have to its employees? Why or why not?
I believe that the responsibility of African Gold is to keep its employees well trained and educated to ensure they are well-rounded individuals. This will reduce the amount of HIV/AIDS related deaths and the company will then be able to maintain its mission as a gold mining company and at the same time reduce the costs associated with employee deaths. 5. What human resource challenges might a Canadian company face when operating globally?
Some of the challenges a Canadian company may face when operating globally are things such as follows: i. Laws ii. Cultural differences iii. Ethics iv. Language and literacy rates v. Public Heath vi. Housing/wages vii. Rules in the workplace
Any of these factors can pose as a challenge when working globally.
100195140
Case: African Gold, Inc. – Ethics and AIDS in the Workplace 1. What aspect of the external environment is African Gold, Inc. confronted with? Give specific details for each one from the case.
The three external environmental factors that African Gold was confronted with are: i. The ration of HIV/AIDS related deaths in the mining industry are 24% in comparison to a 19.9% overall in the rest of South Africa. ii. The price of gold has dropped and the South African currency has strengthened which in turn has decreased profits. iii. The negative media coverage creates a negative image for the company. This may causes other businesses from refraining to do business with African Gold because of the negative …show more content…
association. 2. Which parts of the internal environment of the company are most affected by the external environment? Give details from the case to back up your choices. i. The high percentage of HIV/AIDS related deaths in the mines has decreased the labour force due to increase in absenteeism from sick employees or a loss of employees from their death. This directly decreases the amount of gold actually being mined (task). ii.
Also, the increase in the HIV/AIDS related deaths are decreases the amount of employees available to work. iii. Due to a lack of employees the company cannot achieve its vision/mission of gold mining. iv. A decrease in the amount of people working may decrease motivation for the remaining employees as they may have lost friends and/or family to HIV/AIDS. The idea of the company potentially not paying for costs associated with their employees’ deaths may also decrease motivation of remaining employees. 3. Did African Gold make the right decision? Should an organization be expected to go beyond legally mandated benefits to help workers with a devastating illness like HIV/AIDS?
I think African Gold made the right decision. From a business perspective, the HIV/AIDS is caused by a personal decision for unprotected sex. This is something that is not contracted directly from mining therefore it is the sole responsibility of the individual to ensure it doesn’t happen. The only things that may alter the business perspective is the fact that you want your employees to be well trained and knowledgeable therefore sex education should be provided as it seems to be an ongoing issue for South Africa. This could reduce the amount of employees dying and therefore African Gold can maintain their production of gold
mining. 4. What responsibility, if any, does African Gold have to its employees? Why or why not?
I believe that the responsibility of African Gold is to keep its employees well trained and educated to ensure they are well-rounded individuals. This will reduce the amount of HIV/AIDS related deaths and the company will then be able to maintain its mission as a gold mining company and at the same time reduce the costs associated with employee deaths. 5. What human resource challenges might a Canadian company face when operating globally?
Some of the challenges a Canadian company may face when operating globally are things such as follows: i. Laws ii. Cultural differences iii. Ethics iv. Language and literacy rates v. Public Heath vi. Housing/wages vii. Rules in the workplace
Any of these factors can pose as a challenge when working globally.