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Doing business with integrity: the experience of AngloGold Ashanti in the Democratic Republic of Congo *
Author(s) -
Kapelus Paul,
Hamann Ralph,
O'Keefe Edward
Publication year - 2005
Publication title -
international social science journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.237
H-Index - 43
eISSN - 1468-2451
pISSN - 0020-8701
DOI - 10.1111/j.1468-2451.2009.00711.x
Subject(s) - mistake , democracy , transparency (behavior) , corporate governance , stakeholder , investment (military) , human rights , business , payment , public administration , law , public relations , accounting , political science , finance , politics
One of the most prominent illustrations of the challenges and complexities faced by companies operating in weak governance zones has been that of AngloGold Ashanti (AGA) in the Democratic Republic of Congo (DRC). A payment made by AGA exploration staff to a rebel group accused of committing extensive human rights abuses was seen by leading non‐governmental organisations as an illustration of corporate irresponsibility and was used to argue that companies such as AGA should not be operating in such areas in the first place. The company admitted that a mistake had been made, but argued that the interests of local people and the DRC in general are better served by its remaining in the area. This case study argues that investing and re‐entering the DRC during the period of conflict was an incorrect decision and that a more risk‐averse approach ought to guide investment decisions in such circumstances. The company's decision to remain in the area is difficult to assess, though there are indications that it is contributing to improved governance by establishing a local multi‐stakeholder forum and, at the national level, support for the Extractive Industries Transparency Initiative.