In its recently released report on transformation, Anglo American takes a position of optimism on the subject, based on its performance in 2008. The mining conglomerate is encouraged by the milestones attained in some of the key endeavours that form part of its transformation strategy.
"This report records Anglo American's many vehicles of positive change in a manner that I believe is factual and contemporary, noting not only our successes but also the issues and challenges that we still need to overcome through innovative thinking and intensified effort. I am extremely proud of our progress and of the dedication and commitment of our people to making a genuine contribution to the benefit of South Africans," said CE Cynthia Carroll.
WHAT IT MEANS
 250 projects get R76,8m support
R1,3bn spent helping 228 businesses
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Underpinning this is a people-centred legacy of philanthropy, left by Anglo American founder Sir Harry Oppenheimer. As such, the transformation strategy is driven by Anglo American's concern for its people, their families and communities in the vicinity where the company operates. This is discernible in the key focus areas: local enterprise development, safety, diversity and HIV/Aids - all of which illustrate interest in the well-being of its stakeholders.
The Anglo American transformation effort is driven by the company's guiding values, with safety topping the list as paramount in addressing the fatalities that have dogged the mining industry and still continue to do so. In the year under review a Safety in Action programme - "a company-wide team conversation that focuses on taking personal action for improving safety" - was introduced. It has resulted in random, voluntary acts of cautioning by staff, about safety awareness when in the company premises. These have effectively become company culture. Furthermore, a first fatality-free month across all operations was achieved, contributing to a 44% decline in fatalities to 24 from 43 in 2005.
This "proactive stance" led to the group engaging other stakeholders in the first ever Anglo American Tripartite Safety Summit. This attracted the interest of the former department of minerals & energy, the National Union of Mineworkers and other industry stakeholders.
"We are striving to make a lasting contribution to the communities associated with our operations and we recognise that our long-term success is dependent upon collaborating with all stakeholders," says Pre Rungasamy, head of transformation at Anglo American SA.
He says in the company's pursuit of a zero harm environment, "we continue to look for a sense of urgency in our overall approach. We also want to embrace the concept of well-being among our people, so that we not only strive for the absence of harm, but also the promotion of a healthy, active and natural way to live."
HIV/Aids
Anglo American became a trailblazer for providing ARVs (antiretroviral medication) during Manto Tshabalala-Msimang's tenure as health minister.
Knowledge - Programmes to deal with HIV/Aids have been set up
This was at a time when that was controversial to do. It took a moral decision and, as a result, is now in good stead to influence the course of HIV/Aids in SA. Support programmes are in place for employees and their families and also women as well as the broader communities where the company operates.
To date, Anglo American has achieved a 77% voluntary counselling and testing (VCT) rate among employees on an annual basis. This surpasses government's HIV/Aids & Sexually Transmitted Infections Strategic Plan for 2007 to 2011 to have 70% of South Africans voluntarily tested for HIV by 2011. There is now more care and understanding for those who test positive. This is from the intense awareness programmes, which have actually removed the stigma from testing positive.
Anglo American also includes families of its employees in the programme. The decision "was based largely on the understanding that HIV/Aids cannot be managed effectively when only one family member receives care for a disease that affects the entire family".
Other programmes already in place are partnerships with external stakeholders such as funders, contractors, suppliers and service providers. This includes a relationship with Richard Branson's Virgin Unite, which supports a satellite clinic set up in Bushbuckridge, Limpopo, among others. Through the Anglo American Chairman's Fund, R10m was donated to health and HIV-related services in disadvantaged communities, with 28 community-based projects benefiting.
Diversity
With its global footprint and growth aspirations, Anglo American offers both exciting and fulfilling employment propositions. In terms of embracing diversity, the proportion of historically disadvantaged South Africans (HDSAs) in management stands at 42,34%. This meets and exceeds the mining charter's requirement of 40%. Initiatives have been put in place to increase the number of women in mining and also to address their particular needs, including physical, health, work, culture and workplace environment needs. By the end of 2008, the number of women in management at Anglo American SA rose from 15% to 18,1%.
A challenge, however, remains given the nature of the industry and the harsher working conditions, especially in gold and platinum industries. To try to address the problem, Anglo American is considering setting up a bursary fund that will attract women in jobs that require less physical labour such as artisans, geologists and mining engineers.
Corporate social investment (CSI)
With the global economic crisis having an adverse effect on economic activities across the board, a number of companies are cutting their budgets as a result. Anglo American is bracing itself for the reality and a sharp increase in financial requests ensuing from that.
During 2008 the Anglo American Chairman's Fund supported 250 projects, spending R76,8m on CSI, which is 9,5% more than R68,7m donated the previous year. A bulk of the fund, 42% to be precise, focused on education and "health and HIV/Aids related services to disadvantaged SA communities". It committed R21,7m during 2008, with 55 projects being funded.
For the eighth year in a row, Anglo American showed its mettle with a first place for the excellence of its CSI grant-making activities. It beat 65 corporates in a national survey conducted by CSI analytical organisation Trialogue.
Enterprise development
Small business development spans 20 years at Anglo American. The transformation initiative for enterprise development is driven by a dedicated unit called Anglo Zimele.
In the year under review, the initiative reported impressive activity in the communities receiving support from its three funds: the Supply Chain Fund, Anglo Khula Mining Fund and the Small Business Start-up Fund. It has "supported 228 businesses, which provided jobs to nearly 10 419 people and collectively turned over R1,3bn during the year, representing a 30% growth from R1bn in 2007". So far 381 businesses have been funded through Anglo Zimele, which makes it a leader in enterprise development.
The Supply Chain Fund targets wholly black-owned businesses for procurement. The Anglo Khula Mining Fund - a joint venture between Anglo Zimele and the department of trade & industry - seeks to get black people into mining by funding the high-risk end of the business.
The Small Business Start-up Fund performs a transaction a day and targets mining communities with a specific focus on the youth and women entrepreneurs in any type of business. The entrepreneurs should be living in the mining communities within an approximate 50 km radius of the mines to qualify for funding. "We are trying to get our communities to be entrepreneurs," says Nick van Rensburg who heads Anglo Zimele.
To assist small & medium enterprises (SMEs), 11 business hubs were created in the areas where Anglo operates in SA. Sponsored by Anglo Platinum, Anglo Coal and Kumba Iron Ore, these offices have experts who help with business plans, financial tools and access to the Internet and other services.
"Anglo Zimele gets involved with its investee companies at boardroom level because we can give effect to transformation by reinforcing business ethics that Anglo American subscribes to," says Van Rensburg. He says the business development team also teaches the entrepreneurs about principles to help them keep track of the cash flow in order to make a profit - for instance, arranging payment terms with creditors such that it takes 50 days rather 30 to repay debts.
The Small Business Fund assists people who are "unbankable" and therefore provides funding at prime -5, (currently this is 6%) to make it more affordable. "We do not ask for collateral, or deposit, instead we fund assets which remain ours until they are fully paid up," says Van Rensburg. Many businesses with contracts have been funded, but also businesses that offer retail services.
So far, the repayment rates are impressive, sitting at between 84% and 94%, especially with women entrepreneurs. The rates are used to determine when businesses get into trouble. A small network of mentors is in place to assist where necessary.
What with the economic meltdown forcing a number of small businesses to close down? In this case the effects are minimal because the loans are small.
Much progress has clearly been attained at Anglo American, but it has not been without challenges. "In the core business, for instance," says Van Rensburg, "in the rural areas, there are virtually no women who are interested in technical opportunities such as engineering. Disabled people, because of the harsh nature of the industry find it more difficult to be employed."
Says Rungasamy: "From a holistic view, transformation if it is applied in an authentic and natural way, will impact the whole country and not just Anglo."
