External Analysis External Analysis External Analysis Summary Opportunities

External Analysis

External Analysis

External Analysis Summary Opportunities low wages many social issues unaddressed undiscovered/underexploited mines Threats Increased vandalism and theft Increased pollution Increased scrutiny by international activists

Internal Analysis

Internal Analysis About Barrick Operates in 5 continents Listed on multiple stock exchanges Spun off TZ business - ABG IPO on LSE 1995 - TZ exploration; 1999 - mining activities begin 4 main gold mining sites in the Lake Victoria Zone in TZ Core vision and values: “To continue finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner”

Internal Analysis Operations Analysis advanced exploration technological systems relies on TZ government and legal system 2008 - established mining institution operates in a more sustainable and responsible manner than other global mining corporations promotion of CSR activities

Internal Analysis Social Processes follows global corporate social responsibility standards established a “community department” to oversee social development initiatives entrepreneurship programs healthcare accessibility corporate ambassadors commitments inconsistent with the perception of its behaviors by some stakeholders

Internal Analysis Human Capital Corporate culture of socialization in human resource management (HRM) training department in each mine recruited university graduates for administrative work in corporate offices manual labourers worked alongside experienced expatriates and locals Integrated Mining Technical Training program (IMTT) Global Succession Planning Program (GSPP)

Internal Analysis Summary Strengths strong corporate culture and HR management able to harness advanced technology and global expertise Weaknesses CSR efforts perceived negatively by local communities; negative corporate image reliance on TZ government to sustain business viability poor cultural understanding and communication with stakeholders

Alternatives

Alternative 1 Leave TZ –refocus resources PROS CONS ● ● Eliminates ethical issues company might have in TZ Provides ability to reallocate resources more efficiently to existing projects (increase efficiency) Recoup investment by selling off assets ● ● ● It might not be possible to find mineral deposits that would yield profitable operations in industrialized countries Competitors will take over mineral extraction rights in TZ and might be even less ethical than ABG Potential financial losses, investment losses if potential buyer not secured Leave sites in worse state (damage to environment, social programs)

Alternative 2 Follow regulation & hire security to protect operations PROS CONS ● ● ● Control the population and prevent destruction of the mining sites Less money invested into the community hence a more profitable bottom line Potentially costly Socially unacceptable, promoting hostility Even with hired security, operations might still be vulnerable

Alternative 3 Enhance CSR activities to reduce Tensions PROS ● Increases welfare of local residents ● Long-term sustainability ● Cooperative working environment, leading to higher productivity CONS ● Potentially costly ● Might not completely satisfy local communities whose livelihoods are affected by mining operations

Metrics Recommendation-Choose Alternative 3 Alternative 1 Alternative 2 Alternative 3 Impact on Employees - o + Impact on Government - o + Impact on Company o + O Impact on Local Communities - x + Impact on Environment + o O Recommended Action ✓

Implementation

0 -6 months Short term • Stop the nightly mining • Involve locals in decision-making process in social programs. • Assign a liaison between the corporation and local communities to ensure that efforts and funds are being properly allocated to maximize the benefit to local communities. • Strengthen communication between management/employees and locals.

0 -6 months Short term • Involve locals in decision-making process in social programs. • Community-based entrepreneurship should focus on fishing/agriculture related activities since 90% of the workforce in TZ is employed in that industry • Provide adequate solutions to those who lost their homes and land (Habitat for Humanity) • Continue investing into the Kilimanjaro mining institution and train locals to replace expatriates.

6 -24 months Medium term • Move higher on the civil learning graph • Create a cultural training program, to be used during orientation, for the management team and expatriates • Increase environmental preservation efforts • Assigning the community leader the task of finding people in the community that can spread the message on how to be “green” and help the “cleanup” process.

24+ months Long term • Bridge the gap between level of labor required and education • Make sure that with all the efforts invested, in the last 2 years, Barrick develops a “deep understanding, integration, and [builds] a trusting relationship”. • If conflicts are resolved consider changing the current security to employ locals to help the Tanzanian economy.