Monday, March 11, 2019

Anglogold Ashanti: Analysis of Csr Strategy

Anglo gilt Ashanti An abbreviation of CSR schema & act Essay 1 By S. BLIDI ELLIOTT big businessman no(prenominal) EMBA 101 cytosine42 Course morality, Social Responsibility and plaque Course none EMBA 663 Lecturer Dr. Judy N. Muthuri Date phratry 28, 2012 Word Count 5,709 This essay is the showtime-year of a two-part series critic onlyy exa dig the unified societal certificate of indebtedness (CSR) scheme and action of AngloGold Ashanti (AGA). This origin essay analyses the gilds CSR strategy and activities against the metre sticks provided by the meretricious coast disdain Code and the globose insurance coverage opening (GRI).In analyzing AGAs strategy, we explore the likely motivating factors teara bearing(a) the caller- tabus CSR activities and how these drivers inform AngloGolds responsiveness to environmental, complaisant and opposite stakeholder curves. In evaluating AGAs CSR reporting and motion, we place a background of the come with follo wed by an overview of the troupes CSR strategy and digest of whether that strategy conforms to accepted standards.This essay is indite in partial fulfillment of the course requirements of the Ethics, Social Responsibility and Governance module (EMBA 663) of the Executive Masters in Business Administration computer program of the gold coast Institute of Management and unrestricted Administration. ANGLOGOLD ASHANTI AN OVERVIEW AngloGold Ashanti is a multinational corporation headquartered in to the south Africa with various archeological site trading operations in disco biscuit countries spread across Africa, Asia, and the Americas. The alliances primary(a) bodily function is favourable minelaying, though silver and uranium, among other by products, argon produced in the action of uttering the gold from the ore bodies.In 2011, AngloGold account sales of $6. 6 cardinal from 4. 33 one thousand thousand ounces of gold produced with a workforce of close to 70,000 pers ons across four continents. AGA is a truly globular federation with market capitalization of $16. 2 billion and listings on stock exchanges in AngloGold Ashanti compend of CSR strategy & slaying rapscallion 2 Johannesburg, Accra, London, Sidney and New York. The companionship is majority owned by shareholders in the USA (47. 9%) and South Africa (27. 9%), with the rest of the shares distri neverthelessed doneout the world, including a 1. % shareholding by the Government of gold coast (AGA Sustainability Report, 2011 5-10). AngloGold produces dore (unrefined gold bars) at its worldwide operations for sale mainly to gold refineries which sell on to bullion banks and jewelers. same(p) others in the perseverance, AGA has eudaimoniated from new-made increasing posit for gold as a store of appraise. This demand has been impelled over the last few age by the worldwide stinting downturn and ban mightiness crisis which drive made investors circumspect of unstable currency a nd equity markets.This essay focuses on AGAs operations in Ghana, where the corporation ope evaluate two mining square-toedties in the west of the arena at Iduapriem and Obuasi. These operations account for 11. 8% of the attach tos globular production and r pull downues (AGA Sustainability Report, 2011 22) Located in the Ashanti and Western Regions of Ghana, Iduapriem and Obuasi were the main targets of the merger betwixt AngloGold Limited of South Africa and Ashanti Goldfields Limited of Ghana to form the topical telephoner, AngloGold Ashanti, in 2004.SUSTAINABILITY STRATEGY AngloGold Ashanti provides colossal, publicly available information about what the beau monde calls its sustainability strategy and programs. The confederacys Sustainability Report 2011 sustainable Gold (www. aga-reports. com/11/sustainability-report/home) is one part of AGAs integrate Report 2011 Pure Gold which alike includes the orders Annual Financial Statements and a mineral Resources and O re Reserve Report. The smart set says its Integrated Report is in compliance with South Africas fagot Code on bodily AngloGold Ashanti Analysis of CSR Strategy & movement foliate 3Governance 2009 (http//afri flock. i reputationcms. dk/IOD/KINGIII/kingiiicode/) which mandates companies ope pass judgment in South Africa to electric receptacle a triple bottom line report on financial and sustainability action. The King III Code further encourages companies to tailor their sustainability reports according to the international Reporting Initiatives (GRI) Sustainability Reporting Guidelines (www. world(a)reporting. org/reporting/latest-guidelines/g3-guidelines).AngloGold Ashanti appears to make water gone to with child(p) lengths to remain compliant with the intent of King III Code by presenting sustainability and financial data as an integral part of the participations regime and business strategy with strong emphasis on the connections responsiveness to stakeholder issues. The beau mondes compliant posture is also evident in its inform reliance on the GRI Guidelines, the principles of the UN Global dense (http//www. unglobalcompact. org/), and the Sustainable Development Framework of the industry body, the international Council on tap and Metals (ICMM) http//www. icmm. com/our-work/sustainable-development-framework). While AGA does not specifically mention the Ghana Business Code, acceptation of the principles of the UN Global Compact amounts to acceptance of the Ghana Code which is nearly a verbatim rendition of the Global Compact. AngloGold Ashanti in its Sustainability Report 2011 expresses a com perpetrationing to To create tax for our shareholders, our employees and our business and fond partners through safely and responsibly exploring, mining and marketing our products.Our primary focus is gold and we will come hold dear creating opportunities in other minerals where we cannister leverage our existing as locateds, skills and accep t to enhance the delivery of value. This mission statement gives early insight that the companys CSR strategy is largely dictated by an instrumental motive (Maignan & Ralston, 2002 498) to achieve performance objectives creating value. A reading of the companys de landmarkine statement enhances this impression of a sloshed focused on CSR as a means to achieve strategic business objectives. AngloGold Ashanti Analysis of CSR Strategy & Performance rascal 4AngloGolds declared determine are fast aligned with the 10 principles of the Ghana Business Code (Ghana Business Code, 2006). The degenerates first value statement Safety is our first value1 speaks of wellness and safety at the workplace in junction with the principles on man rights and labour standards of the Ghana Business Code and the UN Global Compact. The second value statement We treat each other with haughtiness and respect deals with honesty and ethical business and kind practices and is aligned with the benevol ent rights, labour and anti-corruption principles of the Ghana Code.AngloGold declares its intent to respect the Global Compact (and by extension the Ghana Code) in its other statements annoyanceing the companys value for diversity and its respect for the environment. Two of the companys value statements are peculiarly noteworthy as they speak directly to the companys sustainability strategy. In value statement 4, the company declares We are responsible for our actions and encounter to deliver on our committals. This statement goes to the core of what some writers (eg.Crane, Matten & Spence, 20085) see to be an essence of corporal social state companies creation accountable for proscribe concerns of their actions and taking the appropriate corrective and, in the best case, preventive measures. AngloGolds value statement 5 The communities and societies in which we operate will be better off for AngloGold Ashanti having been in that location is a powerful statement of comm itment by the company to go beyond the scope of its legal and economic responsibilities into the toweringer realms of Carrolls Pyramid of CSR (Branco & Rodrigues, 200710). See Appendix for full textbook of AngloGold Ashantis thrill, Vision and Values Statements AngloGold Ashanti Analysis of CSR Strategy & Performance knave 5 AngloGold Ashantis Sustainability Report 2011 is a centralized, group direct report, save its supplementary sustainability data and country reports provide a localized locating of the companys CSR performance, with particular author to its performance in Ghana.ANGLOGOLD ASHANTI CSR reportage AND THE GRI The Global Reporting Initiative was established in 1997 with a mission to provide a common framework for CSR reporting found on globally accepted principles, concepts and metrics (Hedberg & Malmborg, 2003 155). The Guidelines give firms a template for the message and presentation of their CSR reports to enable comparison with other much(prenominal) r eports. The Guidelines are shared into two parts covering the reporting principles and guidance and the standard disclosures (https//www. globalreporting. org/ imaginglibrary/G3-Guidelines-InclTechnical-Protocol. df). separate 1 of the Guidelines give guidance to firms on how to determine the content of reports based on principles of materiality, stakeholder inclusiveness, sustainability scope and completeness. This Part also intends to help firms maintain the gauge of their reports with regard to accuracy, timeliness, reliability and clarity. The overall objective is for reports to not only present the issues affecting individual firms, yet how the firms social, economic and environmental performance contributes to sustainable development at the global level.Part 2 of the guidelines covers standard disclosures involveed of companies in terms of their strategy and profile, cost of way to CSR issues and a common set of performance indicators. Disclosures on strategy are inten ded to establish the crosstie among the firms business strategy and its governance and sustainability performance. AngloGold Ashanti appears to put one over embraced the GRI Guidelines in an effort to communicate its adherence to widely accepted CSR principles and processes. Hedberg andAngloGold Ashanti Analysis of CSR Strategy & Performance pageboy 6 Malmborg (2003 153) have suggested that a firms use of the GRI Guidelines is often motivated by the firms need to seek organizational authenticity by use a globally respected template that would lend believability to the companys reports. AngloGold gives itself an A+ rating for adherence to the GRI Guidelines, meaning the company believes that its sustainability report includes reporting on all indicators of relevance to the GRI.In closely examining the AGA report for 2011, it is clear that AngloGold has closely followed the guidelines on what content to include and how to include it in retentiveness with the tired Disclosures of the GRI. The first section of the Standard Disclosures calls for presentation of a high level analysis of the companys strategy. AngloGolds Sustainability Report 2011 adheres to this guideline through a statement from AngloGold chief operating officer Mark Cutifani (AGA Sustainability Report, 201112) outlining the companys tidy sum and how this vision links with the companys business strategy and sustainability performance.He outlines secernate focus areas for the companys strategy, including wellness and safety for employees and business stakeholders, minimizing the environmental impact of operations, shelter of human rights, maintaining efficiency in production, controlling costs, maximize returns and delivering value to federation stakeholders. AGA believes these strategic focus areas are reproducible with the companys definition of sustainable development because they cover the social, economic and environmental issues of most concern to the company and its stakeholders (AGA Sustainability Report, 201113).Stakeholder pressure from a negative debt instrument side (Maignan & Ralston, 2002498) is evident when the CEO reports that to our key stakeholders it appears we whitethorn have taken our local communities and the various levels of government activity for granted (AGA Sustainability Report, 201113). This pressure from local communities, peculiarly communities around the AngloGold Ashanti Analysis of CSR Strategy & Performance rapscallion 7 ompanys operations at Obuasi and Iduapriem in Ghana, has pushed AGA to declare that its CSR strategy is centered on the concept of rebuilding trust with local communities, regulatory authorities and government leaders (AGA Sustainability Report, 201113) through an approach of creating mutually beneficial value for the company and the communities in which it operates. In line with the GRI Standard Disclosures, the CEO statement affirms appointment with a wide range of stakeholders including the Extractive Industries Transparency Initiative (EITI) and the coupled Nations Global Compact in developing its CSR strategy and performance.AngloGold further identifies the key risks and impacts on sustainability and the effects on stakeholders that would affect the companys long term performance. Among risks and sustainability trends of concern to the company is the issue of resource nationalism which AngloGold describes as the intent for governments to demand more returns from companies involved in extractive industries (AGA Sustainability Report, 201113). This resource nationalism is uttered through mining code revisions, increased royalty ayments and taxes, and increased demand for companies direct contribution to development initiatives. A related risk, from AngloGolds perspective, is the issue of increased community activism around land use and availability of urine system. The company commits itself, in its 2011 report, to repair its performance in the areas of water and land use , angry disposal and environmental management. In conformity with the GRI, these commitments are expressed as performance targets which the company considers to be demand for its long term survival.AngloGolds sustainability report provides extensive information profiling the company in keeping with section two of the GRI Standard Disclosures. The profile includes key information on shareholders, production levels, net sales, number of employees, AngloGold Ashanti Analysis of CSR Strategy & Performance Page 8 capitalization, and breakdown of all indicators by region and country operations, among other performance indicators. The company, in conformity with EITI, reports all payments to the Government of Ghana and local administrations (http//www. aga- reports. om/11/pdf/ghana. pdf). GRI guidelines provide specific environmental indicators required to be reported on by firms. AngloGold provides detailed data on reportable environmental incidents, energy efficiency, water use efficie ncy, greenhouse gas emissions and cyanide security (AGA Sustainability Report, 2011 6-7). The issue of water is of vital concern at AngloGolds Ghana operations, because of what the company describes as Ghanas high levels of rainfall and water run-off which make implementation of closed loop systems for recycling water unfeasible.Gold mining operations require huge quantities of water which brings these operations into competition with community untaught programs for this often scarce resource. AngloGold admits that mismanagement of water supply and eccentric can have severe impacts on gold production as well as on the health of mining communities. In its Ghana Fact Sheet, the company says water lineament and usage are of concern globally, but are particularly significant for operations in Ghana, where there is significant potential environmental and social impact and a high level of stakeholder scrutiny (http//www. ga-reports. com/11/pdf/ghana. pdf). The company agrees, in its 2011 report, that its suboptimal management of water in Ghana has led to disputes with local communities, and that greater efforts are cosmos put into place to approach these shortcomings through what AGA calls its Global Strategy for irrigate Security. The GRI guidelines also encourage companies to report on a range of social performance indicators regarding labour practices, human rights and other societal concerns.The guidelines make reference to several(prenominal) internationally recognized standards and protocols, AngloGold Ashanti Analysis of CSR Strategy & Performance Page 9 particularly the International Labour makeup (ILO) Tripartite resolving power Concerning Multinational Enterprises and Social Policy, the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises, the United Nations Universal Declaration of serviceman Rights and the United Nations Conventions on Civil, Human, Political, Social and ethnical Rights.AngloGol ds close adherence to the GRI Guidelines may be laudable, but leaves questions as to the companys motives. Hedberg & Malmborg in their work on the use of the GRI guidelines among companies in Sweden, suggest that companies are motivated to use the guidelines to provide a favorableish and established structure for their reports (2003159) in order to seek societal legitimacy, and that a main reason the guidelines are used is to get a proper design for their reports.Because the Guidelines give firms leeway to choose the level and depth of their reporting, and that minor if any verification of reports is done by GRI, Hedberg and Malmborg suggest the Guidelines may wishing a certain credibility which may negatively impact the company in the long term (2003 163). Given the above perception of the credibility challenges of the GRI Guidelines, AngloGolds CSR strategy needs to be subjected to closer scrutiny, beginning with an analysis of the companys stakeholders and the stakeholder is sues that drive AGAs CSR strategy and activities.STAKEHOLDERS Branco and Rodrigues in their paper on stakeholder theory and CSR remark that stakeholder theory is inescapable if one wants to prove and analyze CSR (2007 5). Maignan & Ralston, in discussing CSR motivations, speak of a negative duty approach by which companies engage in CSR activities because of legitimacy issues and stakeholder pressure (2002 498). woodland (1991703-705) in her corporate social performance clay sculpture, emphasizes AngloGold Ashanti Analysis of CSR Strategy & Performance Page 10 he vital role of stakeholder management in a firms processes of social responsiveness. Stakeholder theory makes the case that CSR performance is driven by a firms need to respond to and match the interests of its stakeholders. Branco and Rodrigues point further to the tendency of firms to pay greater attention to their primary stakeholders as opposed to the issues of secondary stakeholders who are not necessarily essential for a firms survival (20077).As a multinational company operating labor-intensive operations on four continents, and with listings on eight-fold stock exchanges, AngloGold Ashanti must tread carefully in order to be responsive to conflicting stakeholder issues while maintaining its focus on its fiduciary business to primary stakeholders, particularly the companys shareholders. The companys stakeholder management strategy appears to be based on what the company describes as the risks and drivers that permit its operations to be achievementful and create mutual value for its shareholders and communities.The company says its stakeholder engagement policy intends to assure that its operations continue to meet performance targets while generating returns for its shareholders and community stakeholders. This approach speaks directly to the instrumental dimension of CSR as explained by Maignan & Ralston (2002498). An instrumental approach from a negative duty perspective implies that A ngloGold obeys stakeholder engagement, and indeed its entire CSR strategy, because it is compelled to do so by stakeholder sojournations and pressure, and not out of any altruistic principles.This explains the strong motivation for the company to manage stakeholders to empty negative impacts and risks to its operations that would be detrimental to its financial performance. This is an approach that can be observed in all aspects of the companys stated CSR strategy, which may prompt cynics, as Ghillyer notes, to see these initiatives as public AngloGold Ashanti Analysis of CSR Strategy & Performance Page 11 elations exercises with no real grounds of dramatic changes in the core operating philosophies (200862). AngloGold Chairman Tito Mboweni, in a sustainability statement in the companys Integrated Report (20118) says cosmos a good corporate citizen, as we seek to be, is a requisite for being a successful miner and that governments and their citizens are entitled to expect not only a seemly fiscal return but also a mutually respectful and beneficial relationship between them and the companies.He however goes on to caution that pushed too uttermost, though, raised taxes and royalty rates will begin to discourage investment and reduce the overall value of the industry to both societies and shareholders. The regulatory environment is becoming increasingly abstruse and onerous. The influence of stakeholders can be observed in the key issues driving AngloGolds CSR strategy and emphasized in its Sustainability Report 2011. One much(prenominal) issue is what the company calls the trend toward greater resource nationalism among its stakeholder governments in the jurisdictions in which the company operates.The risk of resource nationalism impacts the company in terms of the increased community pressure on AngloGold to make explicit the benefits of its mining activities for communities and national economies, the increased community activism about access to an d fair value received for scarce natural resources, and increased demand for higher(prenominal) tax and royalty payments to governments. AngloGold reports that it is responding to this stakeholder issue by developing a public framework to approach development in a more nonionized and systematic way.The company reports that it has increased its community investments in partnership with communities and local government administrations in an effort to demonstrate the benefits of what the company calls responsible mining. These measures can be seen as the companys attempt to capture and maintain its legitimacy and social license to operate. AngloGold Ashanti Analysis of CSR Strategy & Performance Page 12 Artisanal and small-scale mining is another issue that has driven AGAs corporate social response. This issue has particular resonance in Ghana where AGA mines properties which have for a great many years been exploit by community members.The conflicts that have resulted from small-s cale mining encroachments on AngloGold assignment areas have led to charges of human rights violations against the company. These violations have included allegations of deaths resulting from AngloGold security interpellations in illegal mining activities on the companys concession area. In response to this stakeholder issue, AngloGold reports that it has become involved with initiatives in Ghana and at other operations to formalize artisanal and small-scale mining in a way which will benefit local economies and create sustainable livelihoods (AGA Sustainability Report 201116).The company says it is also cooperating with host governments to conduct the economic causes of illegal mining, and with international and industry organizations to develop common approaches. Of concern to AngloGold is the Dodd-Frank Act of the United States which requires the US Securities and supercede Commission (SEC) to establish rules requiring certain companies to disclose their involvement with conf lict minerals, particularly from the Democratic Republic of Congo where AngloGold maintains gold mining operations http//www. sec. gov/ word/press/2012/2012-163. htm). The activities of illegal miners near AGA operations has the potential, the company believes, to taint the gold legally mined by AGA, especially in light of the global trend among consumers for responsible gold (AGA Sustainability Report, 201119) that does not contribute to conflict and human rights violations. AGAs listing on the New York Stock Exchange makes it accountable to conform to the SECs rulings. AngloGold Ashanti Analysis of CSR Strategy & PerformancePage 13 wellness and safety is another multi-stakeholder issue emphasized by AngloGold in its 2011 report. The company reports that safety and health are not only business imperatives, but are part of our obligation to operate with respect for human rights. The health and safety of the companys employees and the communities in which it operates is a pressing is sue for nongovernmental organizations (NGO), governments and multilateral institutions interested in protecting the rights and preventing the exploitation of workers.AngloGold says it respects and values the ten principles of the UN Global Compact and the Voluntary Principles on Security and Human Rights (VPSHR) in the development of a safety transformation framework to address its less than adequate health and safety performance. The company lists safety as its first value and has set firm targets for reducing work related accident, injury and health frequency rates by 2015 (AGA Sustainability Report, 201111).The companys malaria control program at Obuasi, Ghana, has received commendation from Ghanas malaria control program and a $138 million grant from the Global caudex to Fight Aids, Tuberculosis and Malaria to enable the company step up intervention across Ghana. Ghanas Daily Graphic intelligence informationpaper reported in kinfolk 2012 (http//www. ghana. gov. gh/index. php/ news/features/16095-anglogold-malaria-control-projectbenefits-40-districts) that AngloGolds malaria program was set to benefit 40 communities in the Upper West, Upper East, Northern, Central and Ashanti regions of the country.Environmental and natural resource management is a prominent part of AngloGolds CSR reporting in response to stakeholder interest, especially in Ghana where the companys defilement of community water resources has been a contentious issue for many years. The company has accepted its liability for polluting the rivers around its Obuasi and Iduapriem operations in Ghana. The drastic pip resulted in the suspension of the companys operations by the Ghana Environmental Protection Agency in 2007. The companyAngloGold Ashanti Analysis of CSR Strategy & Performance Page 14 claims these environmental issues are legacy problems which are being addressed through the implementation of more technologically advanced water management techniques (AGA Ghana Fact Sheet, 20114) . AngloGold claims to have made extensive efforts to improve its CSR performance in Ghana particularly regarding land and water use, environmental protection and community investment. In 2011, the company commissioned an independent sustainability examine panel to assess its performance in Ghana.The panel reported, in part, that success at Obuasi requires that the company address Obuasi systematically in its planning, its engagement and communications, its investments, its governance and its development of capabilities (AGA Sustainability Report 2011 23). The challenges faced by the company in CSR performance in Ghana were highlighted in 2011 when the company was given the dishonor of receiving the Public Eye Award for 2011 for the companys irresponsible corporate behavior (Public Eye Awards, 2011).The Public Eye Awards are run by capital of Switzerland Foundation and Greenpeace to coincide with the annual World Economic Forum at Davos and call attention to CSR issues by naming and shaming multinationals seen to be culpable in environmental and social issues. The citation for the award claimed that The South African mining company AngloGold Ashanti contaminates land and heap with its gold mining in Ghana. To extract 30 kg (66 lb) of gold, 6,000 tons of rock are mined either day, then ground up and mixed with cyanide in tanks.The highly-toxic mining waste is kept in large storage ponds that contaminate rivers and wells, as well as all those who (must) drink from them. Where there was once well-behaved land, now the ground is contaminated and can no longer be farmed. In addition, in the companys own guard houses, several suspects were tortured, and dogs were set on people there have been fatalities as a result. Although the ecological and social problems in the mines some mines are up to 100 years old have been documented by authorities, NGOs and the company itself and even AngloGold Ashanti committed itself in 2004 to improveAngloGold Ashanti Analysis of CSR Strategy & Performance Page 15 the situation things have in fact worsened since then. No approve AngloGold Ashanti received the worst possible rating for social and environmental protection from the Ghanaian Environmental Protection Agency in a recent industry comparison. AngloGold has responded by claiming that its Public Eye award was undeserved and that its environmental and human rights record in Ghana should be seen in the condition of the over 100 years of mining in Ghana using methods which are not acceptable by todays standards.The company claims that it has invested heavily to improve the infrastructure and processes at its Ghana mines and that resolving all legacy issues would require more time (www. ghanachamberofmines. org/site/news/details. php? id=33). The company says it has worked closely with Ghanas Environmental Protection Agency (EPA) to indemnification environmental concerns, but the EPAs AKOBEN Programme (http//www. epaghanaakoben. org/) in 2010 gave An gloGold AKOBENs utmost overall rating of Red, indicating poor performance in environmental management.AKOBEN is an initiative of the Ghana EPA to monitor, evaluate and disclose environmental and social performance. The AKOBEN rating appears to buttress a 2011 report by Ghanas stub for Environmental Impact Assessment (CEIA) which alleged that discharge from AngloGold operations in Obuasi and Tarkwa had polluted some 262 streams with resulting high incidence of keratosis, other skin diseases and case II diabetes (http//environmentalwatchman. blogspot. com/2011/08/mining-activities ). This report has not been independently confirmed.The negative impact of AngloGolds gold mining on the environment, agricultural productivity and the livelihoods of Ghanaian communities has been extensively researched by Aragon and Rud who have reported that we find that mining has reduced agricultural productivity by almost 40%. This result is driven by polluting mines, not by input availability we find that the mining activity is associated with an increase in poverty, child AngloGold Ashanti Analysis of CSR Strategy & Performance Page 16 malnutrition and respiratory diseasesthe actual fiscal contribution of ining would not have been enough to compensate affected populations (20121). These negative reports tend to give espousal to a criticism of CSR reporting as being window grooming far removed from actual performance. Haigh and Jones argue that there are inherent contradictions between the pursuit of economic growth and goals of ecological maintenance and social justice (20061) and that managers would not expend resources on CSR if they do not expect CSR to maximize the gap between revenues and relevant costs (20062).Haigh and Jones contend that companies have a Business first (profit and market share) and Society second (other stakeholders in line after stockholders) (20063) approach, suggesting that a firms CSR performance is a reaction to first mover CSR strategies of com petitors out of fear of losing market shoes (20062). The Haigh and Jones argument does not detract from forest who asserts that corporate social performance (CSP) is not completely distinct from business performance (1991693).In Woods model of CSP, a companys performance should be evaluated on the seat of the social responsibility principles motivating the company, the extent to which that company uses CSP processes and the societal impact of that companys programs and activities (1991693). AngloGolds CSR reporting appears to be fairly consistent with the Woods CSP model. The company seeks to secure its license to operate and establish its legitimacy through its stated compliance with legal, economic and regulatory requirements.This is the expected behavior of a firm in line with the institutional principle of Woods model (1991695). Woods organizational principle of public responsibility is expressed in AngloGolds acceptance of responsibility for the negative outcomes of the com panys activities, as indicated, for AngloGold Ashanti Analysis of CSR Strategy & Performance Page 17 example, in AngloGolds actions to clean up and prevent continued pollution of waterways in Ghana.Woods managerial discretion principle is articulated in the statements of AngloGolds CEO and Chairman reaffirming the companys commitment to be a good corporate citizen as expressed in the companys benevolent contributions to communities and the companys community investments in feeder road repairs, health programs, youth apprenticeship programs, sustainable alternative livelihoods programs and other activities intended to improve the communities quality of life, above and beyond the companys legal obligations.The second face of Woods CSP model concerns a companys use of processes of corporate social responsiveness. Woods says that responsiveness complements but does not replace responsibility and that responsiveness provides an action counterpoint to the principled reflection of social responsibility (1991703). AngloGold appears to fulfill the three conditions Woods identifies as being characteristic of a socially responsive firm 1) The company monitors and assesses environmental conditions 2) it actively manages its stakeholders and 3) manages the ending stakeholder issues.AngloGolds Sustainability Report 2011 is a testament to the depth of environmental see engaged in by the company in determining the risks and opportunities impacting the company. An extensive appraisal was done earlier in this paper of the companys management of its stakeholders and stakeholder issues. It can safely be concluded, based on the companys reporting, that AngloGold is a socially responsive firm.The third facet of Woods model involves the observable impacts of a companys programs and policies (1991708). The impacts of AngloGolds CSR activities may be evaluated through the companys reporting against social indicators such as that contained in the GRI AngloGold Ashanti Analysis of C SR Strategy & Performance Page 18 Guidelines mentioned above and can be observed in the positive results seen in AngloGolds programs such as its highly commended malaria control activities in Ghana.Outcomes can also be observed, according to Woods, in the companys institutionalization of policies to address stakeholder issues. CONCLUSION It is an easy conclusion to reach that AngloGold Ashanti is very adept, from the evidence of its CSR reporting, at hitting all the right notes in its effort to be seen as a socially responsible company. The companys instrumental motivation in strong alignment with a negative duty motivation, far outweighs other factors as the driver of AngloGolds CSR strategy and activities.The companys diverse stakeholders from shareholders in London and Johannesburg, and the SEC in New York, to the villagers of Iduapriem and Obuasi in Ghana and all others in between present a troops of issues that the company tries to address, using the GRI Guidelines and other international standards, in its Sustainability Report 2011. The widely distributed principles expressed in the Ghana Business Code are those the company professes to be the bedrock of its corporate value system, and against which the company reports its performance.AngloGolds CSR performance in Ghana is far from adequate, but the company is transparent in publicly reporting these shortcomings. When all is said and done, however, AngloGold is a global company undertaking socially responsible activities with a strategic eye to clams for its shareholders. AngloGold Ashanti Analysis of CSR Strategy & Performance Page 19 REFERENCES AngloGold Ashanti. 2011a. Sustainable Gold. www. aga-reports. com/11/sustainabilityreport/home, first accessed magisterial 2012. 5 -10 AngloGold Ashanti. 2011b. Sustainable Gold. www. aga-reports. om/11/sustainabilityreport/home, first accessed expansive 2012. 22 AngloGold Ashanti. 2011c. Sustainable Gold. www. aga-reports. com/11/sustainabilityreport/hom e, first accessed August 2012. 12 AngloGold Ashanti. 2011d. Sustainable Gold. www. aga-reports. com/11/sustainabilityreport/home, first accessed August 2012. 13 AngloGold Ashanti. 2011e. Sustainable Gold. www. aga-reports. com/11/sustainabilityreport/home, first accessed August 2012. 6-7 AngloGold Ashanti. 2011f. 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Global Compact. http//www. unglobalcompact. org/, first accessed September 2012 AngloGold Ashanti Analysis of CSR Strategy & Performance Page 22 APPENDIX AngloGold Mission To create value for our shareholders, our employees and our business and social partners through safely and responsibly exploring, mining and marketing our products. Our primary focus is gold and we will pursue value creating opportunities in other minerals where we can leverage our existing assets, skills and run across to enhance the delivery of value. AngloGold Values

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