Anglogold Ashanti: Analysis of Csr Strategy

AngloGold Ashanti An summary of CSR schema & consummation Essay 1 By S. BLIDI ELLIOTT Index No. EMBA 10110042 cover ethical motive, Social Responsibility and Governance Course No. EMBA 663 Lecturer Dr. Judy N. Muthuri Date folk 28, 2012 Word Count 5,709 This hear is the outgrowth of a two-part series comminutedly exa exploit the incarnate social responsibility (CSR) dodge and death penalty of AngloGold Ashanti (AGA). This offshoot essay analyses the follows CSR dodging and activities against the yard sticks go forthd by the gold coast line of products recruit and the Global Reporting Initiative (GRI).In analyzing AGAs strategy, we explore the likely motivating factors driving the each(prenominal)iances CSR activities and how these drivers inform AngloGolds responsiveness to environmental, social and some otherwise stakeholder income tax returns. In evaluating AGAs CSR describe and performance, we represent a back prove of the friendship followed by an overvi ew of the callers CSR strategy and abridgment of whether that strategy conforms to accepted standards.This essay is written in partial fulfillment of the course requirements of the Ethics, Social Responsibility and Governance module (EMBA 663) of the Executive Masters in Business Administration architectural plan of the Ghana Institute of Management and Public Administration. ANGLOGOLD ASHANTI AN OVERVIEW AngloGold Ashanti is a multinational corporation headquartered in randomness Africa with various minelaying trading operations in ten countries hand out across Africa, Asia, and the Americas. The callers primary activity is aureate mining, though silver and uranium, among other by products, ar produced in the process of extracting the gold from the ore bodies.In 2011, AngloGold account sales of $6. 6 billion from 4. 33 million ounces of gold produced with a workforce of close to 70,000 persons across four continents. AGA is a truly global fraternity with market capital ization of $16. 2 billion and listings on beginning exchanges in AngloGold Ashanti depth psychology of CSR Strategy & Performance rogue 2 Johannesburg, Accra, London, Sidney and New York. The come with is bulk owned by sh atomic number 18holders in the USA (47. 9%) and South Africa (27. 9%), with the rest of the shares distributed by dint ofout the world, including a 1. % shareholding by the Government of Ghana (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. Like others in the industry, AGA has benefitted from recent increasing demand for gold as a store of time value. This demand has been driven over the last few years by the worldwide economic downturn and banking crisis which have made investors funny of unstable currency and equity markets.This essay focuses on AGAs operations in Ghana, where the smart set operates two mining puritanicalties in the west of the country at Iduapriem and Obuasi. These operations account for 11. 8% of the societys global production and revenues (AGA Sustainability Report, 2011 22) Located in the Ashanti and Western Regions of Ghana, Iduapriem and Obuasi were the main targets of the merger between AngloGold Limited of South Africa and Ashanti Goldfields Limited of Ghana to form the current company, AngloGold Ashanti, in 2004.SUSTAINABILITY STRATEGY AngloGold Ashanti provides extensive, publicly available information about what the company calls its sustainability strategy and weapons platforms. The companys Sustainability Report 2011 sustainable Gold (www. aga-reports. com/11/sustainability-report/home) is one part of AGAs Integrated Report 2011 Pure Gold which similarly includes the companys yearbook Financial Statements and a Mineral Resources and Ore Reserve Report. The company says its Integrated Report is in shape with South Africas King Code on integrated Anglo Gold Ashanti compend of CSR Strategy & Performance rogue 3Governance 2009 (http//african. i melodic themecms. dk/IOD/KINGIII/kingiiicode/) which mandates companies operating in South Africa to issue a triple bottom line report on pecuniary and sustainability performance. The King III Code further emboldens companies to tailor their sustainability reports according to the Global Reporting Initiatives (GRI) Sustainability Reporting Guidelines (www. globalreporting. org/reporting/latest-guidelines/g3-guidelines).AngloGold Ashanti appears to have gone to enceinte lengths to remain compliant with the intent of King III Code by presenting sustainability and financial data as an integral part of the companys presidency and line strategy with strong emphasis on the companys responsiveness to stakeholder issues. The companys compliant posture is also evident in its reported reliance on the GRI Guidelines, the normals of the UN Global Compact (http//www. unglobalcompact. org/), and th e Sustainable Development Framework of the industry body, the International Council on Mining and Metals (ICMM) http//www. icmm. com/our-work/sustainable- festering-framework). While AGA does non specifically mention the Ghana Business Code, acceptance of the principles of the UN Global Compact amounts to acceptance of the Ghana Code which is nuzzlely a verbatim rendition of the Global Compact. AngloGold Ashanti in its Sustainability Report 2011 expresses a mission to To create value for our shareholders, our employees and our traffic 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 experience to enhance the rescue of value. This mission relation gives early perceptiveness that the companys CSR strategy is largely driven by an instrumental motivation (Maignan & Ralston, 2002 498) to achie ve performance objectives creating value. A reading of the companys value statement enhances this impression of a firm focused on CSR as a means to achieve strategic business objectives. AngloGold Ashanti Analysis of CSR Strategy & Performance Page 4AngloGolds stated values are nigh aligned with the 10 principles of the Ghana Business Code (Ghana Business Code, 2006). The firms commencement exercise value statement Safety is our first value1 speaks of health and safety at the workplace in alignment with the principles on pitying rights and advertise standards of the Ghana Business Code and the UN Global Compact. The molybdenum value statement We treat each other with dignity and respect deals with honesty and ethical business and social practices and is aligned with the human 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 concerning the compan ys value for diversity and its respect for the environment. Two of the companys value statements are specially noteworthy as they speak outright to the companys sustainability strategy. In value statement 4, the company declares We are accountable for our actions and undertake to deliver on our commitments. This statement goes to the core of what some writers (eg.Crane, Matten & Spence, 20085) see to be an essence of collective social responsibility companies being accountable for negative impacts 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 respect is a powerful statement of commitment by the company to go beyond the scope of its legal and economic responsibilities into the higher realms of Carrolls Pyramid of CSR (Branco & Rodrigues, 200710). See Appendix for full text of AngloGold Ash antis Mission, Vision and value Statements AngloGold Ashanti Analysis of CSR Strategy & Performance Page 5 AngloGold Ashantis Sustainability Report 2011 is a centralized, group level report, but its supplementary sustainability data and country reports provide a localized perspective of the companys CSR performance, with particular reference to its performance in Ghana.ANGLOGOLD ASHANTI CSR REPORTING AND THE GRI The Global Reporting Initiative was seduceed in 1997 with a mission to provide a common framework for CSR reporting based on globally accepted principles, concepts and metrics (Hedberg & Malmborg, 2003 155). The Guidelines give firms a template for the content and presentation of their CSR reports to enable comparison with other much(prenominal) reports. The Guidelines are divided into two parts covering the reporting principles and guidance and the standard disclosures (https//www. globalreporting. org/resourcelibrary/G3-Guidelines-InclTechnical-Protocol. df). role 1 of the Guidelines give guidance to firms on how to de boundaryine the content of reports based on principles of materiality, stakeholder inclusiveness, sustainability context and completeness. This Part also intends to help firms maintain the quality of their reports with discover to accuracy, timeliness, reliability and clarity. The overall objective is for reports to not only present the issues affecting individual firms, but how the firms social, economic and environmental performance contributes to sustainable development at the global level.Part 2 of the guidelines covers standard disclosures expected of companies in terms of their strategy and profile, salute of centering to CSR issues and a common set of performance indicators. Disclosures on strategy are intended to establish the link between the firms business strategy and its governance and sustainability performance. AngloGold Ashanti appears to have embraced the GRI Guidelines in an effort to communicate its affixation to widely accepted CSR principles and processes. Hedberg andAngloGold Ashanti Analysis of CSR Strategy & Performance Page 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 using a globally respected template that would lend credibility 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 keeping with the Standard 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 CEO Mark C utifani (AGA Sustainability Report, 201112) outlining the companys vision and how this vision link with the companys business strategy and sustainability performance.He outlines key focus areas for the companys strategy, including health and safety for employees and business stakeholders, minimizing the environmental impact of operations, rampart of human rights, maintaining efficiency in production, controlling costs, maximizing returns and delivering value to community stakeholders. AGA believes these strategic focus areas are consistent 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 duty perspective (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 regimen for granted (AGA Sustainability Report, 201113). This pressure from local communities, particularly communities around the AngloGold Ashanti Analysis of CSR Strategy & Performance Page 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 engagement with a wide range of stakeholders including the Extractive Industries Transparency Initiative (EITI) and the United 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 s ustainability trends of concern to the company is the issue of resource patriotism which AngloGold describes as the tendency for governments to demand more(prenominal) returns from companies twisty in extractive industries (AGA Sustainability Report, 201113). This resource nationalism is expressed through mining code revisions, increased royalty ayments and tax incomees, 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 body of water system. The company commits itself, in its 2011 report, to improve its performance in the areas of water and land use, waste disposal and environmental management. In conformity with the GRI, these commitments are expressed as performance targets which the company considers to be inhering for its long term survival.AngloGolds sustainability report provides extensive information profiling the c ompany 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 efficiency, greenhouse gas emissions and cyanide certification (AGA Sustainability Report, 2011 6-7). The issue of water is of critical concern at AngloGolds Ghana operations, because of what the company describes as Ghanas high levels of rainfall and water run-off which make implement ation of closed loop topology systems for recycling water unfeasible.Gold mining operations require huge quantities of water which brings these operations into competition with community agricultural programs for this often scarce resource. AngloGold admits that mismanagement of water supply and quality 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 quality 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 being put into place to address these shortcomings through what AGA calls its Global Strategy for Water Security. The GRI guideline s 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 internationally accepted standards and protocols, AngloGold Ashanti Analysis of CSR Strategy & Performance Page 9 particularly the International Labour musical arrangement (ILO) Tripartite Declaration Concerning Multinational Enterprises and Social Policy, the Organization for frugal Cooperation and Development (OECD) Guidelines for Multinational Enterprises, the United Nations Universal Declaration of Human Rights and the United Nations Conventions on Civil, Human, Political, Social and Cultural Rights.AngloGolds close adherence to the GRI Guidelines may be laudable, but leaves questions as to the companys motivations. 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 good and e stablished 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 little if any verification of reports is done by GRI, Hedberg and Malmborg suggest the Guidelines may lack a certain credibility which may negatively impact the company in the long term (2003 163). Given the in a higher place 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 issues that drive AGAs CSR strategy and activities.STAKEHOLDERS Branco and Rodrigues in their paper on stakeholder theory and CSR maintain that stakeholder theory is inescapable if one wants to discuss and analyze CSR (2007 5). Maignan & Ralston, in discussing CSR motivations, speak o f a negative duty approach by which companies engage in CSR activities because of legitimacy issues and stakeholder pressure (2002 498). woods (1991703-705) in her corporate social performance model, 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 resolve to and satisfy 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 multiple stock exchanges, AngloGold Ashanti must tread carefully in order to be responsive to conflicting stakeholder issues while maintaining its focus on its fiduciary responsibility 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 allow its operations to be palmy 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 AngloGold pursues stakeholder engagement, and indeed its entire CSR strategy, because it is compelled to do so by stakeholder expectations and pressure, and not out of any altruistic principles.This explains the strong motivation for the company to manage stakeholders to avoid negative impacts and r isks 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 evidence of dramatic changes in the core operating philosophies (200862). AngloGold Chairman Tito Mboweni, in a sustainability statement in the companys Integrated Report (20118) says being a good corporate citizen, as we seek to be, is a prerequisite for being a successful miner and that governments and their citizens are entitled to expect not only a fair fiscal return but also a mutually respectful and beneficial relationship between them and the companies.He however goes on to caution that pushed too far, though, raised taxes and royalty rates will begin to discourage enthronization and reduce the overall value of the industry to both s ocieties and shareholders. The regulatory environment is becoming increasingly complex 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 such 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 uttered the benefits of its mining activities for communities and national economies, the increased community activism about access to and fair value received for scarce natural resources, and increased demand for higher tax and royalty payments to governments. AngloGold reports that it is responding to this stakeholder issue by developing a general framework to approach development in a more organized and systematic way.The company reports that it has in creased its community investments in partnership with communities and local government administrations in an effort to demonstrate the benefits of what the company calls liable mining. These measures can be seen as the companys attempt to secure 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 legion(predicate) years been mined by community members.The conflicts that have resulted from small-scale mining encroachments on AngloGold concession areas have led to charges of human rights violations against the company. These violations have included allegations of deaths resulting from AngloGold credentials interventions in illegal mining activities on the companys concession area. In response to this stakeholder issue, A ngloGold 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 address 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 Exchange Commission (SEC) to establish rules requiring certain companies to disclose their involvement with conflict minerals, particularly from the Democratic Republic of Congo where AngloGold maintains gold mining operations http//www. sec. gov/news/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 Health 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 issue 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 Fund to Fight Aids, Tuberculosis and Malaria to enable the company step up intervention across Ghana. Ghanas Daily Graphic newspaper reported in folk 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, especia lly in Ghana where the companys contamination 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 situation 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 review 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 Berne 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 people with its gold mining in Ghana. To extract 30 kg (66 lb) of gold, 6,000 tons of rock are mined every 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 cultivated 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 wonder 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 environmenta l and human rights record in Ghana should be seen in the context 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 remedy environmental concerns, but the EPAs AKOBEN class (http//www. epaghanaakoben. org/) in 2010 gave AngloGold AKOBENs lowest 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 Centre for Environmental Impact Assessment (CEIA) which alleged that discharge from AngloGold operations in Obuasi and Ta rkwa had polluted some 262 streams with resulting high incidence of keratosis, other skin diseases and type 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 productiveness 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 productiveness 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 bear upon populations (20121). These negative reports tend to give credence to a criticism of CSR reporting as being window dressing fa r removed from actual performance. Haigh and Jones point 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 competitors out of fear of losing market assign (20062). The Haigh and Jones argument does not detract from woodland 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 basis of the social responsibility principles motivating the company, the extent to which t hat 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 companys 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 compan ys good-hearted 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 prospect 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 resultant stakeholder issues.AngloGolds Sustainability Report 2011 is a volition to the depth of environmental scanni ng 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 CSR 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 tripping conclusion to reach th at 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 multitude of issues that the company tries to address, using the GRI Guidelines and other international standards, in its Sustainability Report 2011. The universal 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 profits 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 August 2012. 5 -10 AngloGold Ashanti. 2011b. Sustainable Gold. www. aga-reports. om/11/sustainabilityreport/home, first accessed August 2012. 22 AngloGold Ashanti. 2011c. Sustainable Gold. www. aga-reports. com/11/sustainabilityreport/home, 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 experience to enhance the delivery of value. AngloGold Values