Making a golden reputation shine even brighter
About Client / Project
One of the world’s leading gold mining companies, with operations in Ghana and throughout Africa.
Problem / Opportunity
The client’s major need was to enhance its reputation and deepen its relationships with stakeholders in Ghana.
The client also was confronted with several challenges with serious implications for its reputation, such as allegations of human rights abuses which were often arising from the past and operational difficulties that had the potential to affect its reputation negatively. The client, like all the major gold companies, also suffered financial challenges due largely to the falling prices of gold. Client also had a peculiar challenge of dwindling productivity and production due to its mine which has existed for over a century with mining practices that were not modernized.
The company was faced with difficult issues, such as terminating a contract with a company that had provided it mining services for decades and the need to reduce significantly the number of employees to enable it reduce the high cost of running its mine.
Creative Solution / Strategies Used
Stratcomm Africa worked with the client to develop of a communication and reputation management strategy, based on extensive research involving identifying and mapping all AGA’s stakeholders.
This strategy was integrated into client’s overall strategic goal, building on its situation at the time and its future plans. Stratcomm Africa developed a clear picture of the client, its stakeholders, their perception of the company, their expectations, etc.
Even as the mines in Ghana faced serious challenges, stakeholder expectations were still very high. The livelihood of whole communities and their individual members were dependent on theses mines. For employees (salary and allowances), for the community (social investments including royalties), shareholders (dividends) for government (taxes, royalties and dividends) and for the media (advertising spend) there were expectations that could not be met with the commercial realities that the company was facing.
Stratcomm Africa developed a communications plan for the company that focused on stakeholder engagement and explaining the realities associated with over a century of mining at Obuasi in particular. The structure and content of town hall meetings arranged periodically by client were thoroughly reviewed by Stratcomm Africa on each occasion to ensure that intended messages were effectively communicated.
Outcome / Impact
The clear outcome of Stratcomm Africa’s involvement in managing client’s reputation in relation to government, the media and crisis management was systematic and regular engagement between the company and its stakeholders, leading to the deepening of goodwill for client based on an understanding of the company’s circumstances. An analysis done using the company’s stakeholder engagement framework indicated that it scored 100 per cent on the stakeholder front for government and made considerable impact in its media engagement.
As a result of this, key stakeholders in government and the media better appreciated the real challenges confronting the company and were more sympathetic to the cause of the client. This plan was so well managed such that employees who were to be directly affected by the announced retrenchment of staff and particularly the mine workers union were very supportive and the union publicly and unprecedentedly openly expressed support for the exercise, even indicating that they had been involved in discussions with the client from the onset and were well informed about the challenges facing the company and the way forward.
Stratcomm Africa’s work for client earned recognition at the 2013 Institute of Public Relations Awards as the PR organization of the Year, Extractive Industry. Client also expressed delight at the work Stratcomm Africa undertook for it.