This sample essay on Btec Hnd Business provides important aspects of the issue and arguments for and against as well as the needed facts. Read on this essay’s introduction, body paragraphs, and conclusion.
They provide goods/services and seek to make a profit and maximize the wealth its owners/shareholders. These are mainly larger organizations Han sole traders and partnerships, and may have more stakeholders, depending on how large they are. The survival of the large organizations does not depend solely on making a profit but on other factors as well such as public perception.
They aim to be socially responsible and take into account the environmental impact of their business operations.
Large organizations also seek to increase their market share as well as seeking to increase shareholder wealth. Not-for-profit organizations are mainly public sector and voluntary sector organizations. Public sector organizations are state owned ND provide essential goods ‘services free of charge or below cost price such as the NASH.
They provide public goods and merit goods which the private sector would not provide, such as highway maintenance; or not enough would be provided by the private sector such as education and healthcare.
Voluntary sector organizations also exist not to make a profit but to provide services that are not provided sufficiently by the private and public sectors, especially community services. Anglo American is a large private sector, public limited company, seeking to maximize profits and ‘generate strong investor turns’ (noncommercial. Com). Their motive is not just to generate strong returns but also be socially responsible towards its employees and the communities it operates in.
They also aim to be environmentally friendly and minimizes the negative effects on the environment. Anglo American is one of the world’s largest mining companies. It operates globally from South America, Asia to Australia. 1. 2 The stakeholders of Anglo American include investors, employees, communities, government bodies, business partners such as suppliers and customers; and non governmental organizations. Each seeks a different objective from Anglo American.
INVESTORS Investors seek to maximize their return on their shareholdings. Anglo American has not managed to increase earnings from the investments. Earnings per share have fallen from 2. Up in 2007 to 1. Up at present. (http:// www. Characterizations. Com/Company-Snapshot. Asps? Cusp=C826E1860) IMPOSES Employees expect a safe working environment from Anglo American, who will look after their well being. To a large extent, Anglo American is fulfilling this objective.
It aims to be an ’employer of choice’ by focusing on key areas such s safety of employees, ‘equality and diversity’ of the workforce, having good labor relations, ensuring talent is recognized and developed amongst its workforce, developing skills of the workforce by helping ‘individuals acquire basic innumeracy and literacy skills’ and ‘develop employees non-mining skills so that they are employable outside of the industry after mine closure’ (nonagenarian. Com).
Anglo American also aims to alleviate the housing problems of its workforce by providing them with housing. Health and well being of employees is one of their ‘core values’ too and is met by providing occupational health management. COMMUNITIES Communities expect Anglo American to be socially responsible and look after the community it operates in. It expects local employment in Anglo American. To a large extent, Anglo American has fulfilled this objective. It has created jobs through enterprise support schemes in the countries it operates in.
A percentage of Anglo American’s pre-tax profit is spent on social investment projects with the aim of helping to ‘alleviate poverty, promote health and education, and foster community development’ (noncommercial. Com). $128. 6 million was spent on local communities in 2011. Anglo American Group Foundation distributes grants to charities in the host countries to ‘develop sustainable livelihoods through the projects it supports’ (noncommercial. Com). A wide range of causes is supported by the foundation.
GOVERNMENT BODIES Governments expect prompt payment of taxes from Anglo American. They would like to receive as much as possible from them. Anglo American is fulfilling this objective. It paid and collected $5 billion in tax in 2011. These include payroll taxes and VAT as well as corporation tax. It pays tax in many countries, 77% of which in developing countries. BUSINESS PARTNERS Suppliers expect a long contract with Anglo American. Anglo American seeks a safe and healthy working environment with good labor practices, ethical and sustainable development when choosing suppliers.
To enable suppliers to meet the business principles of Anglo American, it launched the supplier development programmer, to achieve the necessary standards required by Anglo American from its suppliers. No’s No’s expectations are met by Anglo American through its financial and general support of organizations such as CARE Brazil and working with them on local development programmer. 1. 3 Anglo American has corporate social responsibilities to fulfill. It also needs to be environmentally responsible, especially due to the nature of its business, extracting scarce natural resources.
As it is an ‘energy intensive’ company, it seeks to reduce wattage and improve efficiency. It strives to identify ‘energy saving and emission reducing measures and implement them in their business operations. They also plan to use ‘innovative technologies’ to reduce energy usage. They have 20% share in MOB Energy which is seeking ways of ‘entrapping CA from power station flue gases’. They have reduced emissions y 6% from 2010. It also strives to use water efficiently and uses WET (Water Efficiency Target Tool) to ensure water savings targets are met.
Anglo American, amongst its many environment strategies, also seeks to manage waste produced from its operations by looking to find alternative Ways of using the ‘material that remains after extraction’. Anglo American meets its social responsibilities by engaging with the local communities and No’s and providing local development programmer such as health and employment initiatives. It uses SEAT (Socio-Economic Assessment Tool) to identify ‘key social and economic impacts that need to be managed’ (noncommercial. Com), and also find areas where improvement can be made. Task 3 3. The main aim of competition policy used by governments is to ensure markets work better and to achieve a high level of economic efficiency by ensuring a healthy level of competition in the market. It does so by ensuring business do not collude to fix price or form cartels and limit supply, which was the case of the famous diamond cartel a decade ago involving Anglo American and De Beers. Competition policy in the ASK, namely Competition Act 1 998, made this illegal. It also has encouraged fresh competition and made it harder for large companies to merge and become near to monopolies.