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IFC Against AIDS Protecting People and Profitability Bangkok, September 12, 2005

IFC Against AIDS Protecting People and Profitability Bangkok, September 12, 2005. Session Outline. Why does IFC take AIDS seriously? What is the “business case”? Risk factors for private sector operations What can companies do? “IFC Against AIDS” Apollo Tyres program in India.

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IFC Against AIDS Protecting People and Profitability Bangkok, September 12, 2005

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  1. IFC Against AIDS Protecting People and Profitability Bangkok, September 12, 2005

  2. Session Outline • Why does IFC take AIDS seriously? • What is the “business case”? • Risk factors for private sector operations • What can companies do? • “IFC Against AIDS” • Apollo Tyres program in India

  3. The Business Case: Three categories of risks • Reputation risk • Financial impact • Threat to company’s viability

  4. The Reputation Risk

  5. The Financial Risk:Impact on the Bottom Line • Medical and other benefits costs • Absenteeism and lower productivity • Labor turnover, recruitment and training costs • Loss of experienced personnel • Impacts on the enabling environment • Shrinking markets

  6. The Financial Risk:Impact on the Bottom Line Harvard Business Review, February 2003: • The annual "AIDS tax" on business was as much as 5.9% of the corporations' labor costs • Workplace AIDS programs would reduce this “AIDS tax” by as much as 40.4%

  7. The Financial Risk:Impact on the Bottom Line • A major industrial company based in KwaZulu-Natal, South Africa recorded a 31% increase in the number of ill-health retirements between 1995 and 1997; of these retirements, 17% of them were due to AIDS. Source: Galloway et al. 1998 • Chilanga, Zambia’s largest cement factory saw a 15-fold increase in funeral-related absenteeism between 1992 and 1995. Source: Bloom et al. 2001

  8. Risk to the Viability of Small Enterprises • A study of 209 small businesses in South Africa identified HIV/AIDS as one of the three main factors that cause nearly 80% of South African start-up SMEs to fail every year Source: S. Eeden et al. – 2001

  9. Risk factors for private sector operations • Workforce separated from families for long periods of time: • Transportation, mining, construction, agribusiness • Migrant labor, seasonal labor • Transit areas • Employees’ salaries higher than surrounding community • The company relies on key jobs/individuals • Large workforce

  10. What can companies do? • Getting started and organized: the foundations of a program • Awareness, education and prevention in the workplace • HIV/AIDS in clinical settings and occupational health and safety • Partnerships and community outreach • Monitoring and evaluation

  11. Getting started and organized

  12. Awareness, education and prevention

  13. HIV/AIDS in clinical settings and OH&S

  14. Partnerships and community outreach

  15. Monitoring and evaluation

  16. IFC Against AIDS Goal: Accelerate the involvement of private sector in the fight against AIDS  Awareness  Guidance  Training  Financing

  17. IFC Against AIDS • Serving IFC clients • Focus on sub-saharan Africa and India • About 25 projects in Africa • 152 companies trained in Africa • One program in India (four companies to date) • Development in Russia and China

  18. Intranet website

  19. External website

  20. IFC Against AIDS http://www.ifc.org/ifcagainstaids Sabine Durier - Program Leader Tel: +1-202-473-4176, Email: SDurier@ifc.org Gillette Conner - Program Officer Tel: +1-202-473-4040, Email: GConner@ifc.org Tish Enslin - Program Officer (Johannesburg) Tel: +27-11-731-3062, Email: LEnslin@ifc.org Noleen Dube - Program Officer (Johannesburg) Tel: +27-11-731-3059, Email: NDube@ifc.org Martin Lutalo - Program AnalystTel: +1-202-458-1406, Email: MLutalo@ifc.org Bojan Ermanoski - Program AssistantTel: +1-202-473-5578, Email: BErmanoski@ifc.org

  21. “It is inevitable that a firm doing business in the developing world will pay for AIDS. It is just a question of when and how much.” Lee Smith Former President, Levi Strauss International

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