IFC Against AIDS Protecting People and Profitability

1. IFC Against AIDS Protecting People and Profitability

2. Why IFC Takes AIDS Seriously • A priority for the development community • 95% of people infected live in developing countries • Most companies not aware of risks • Companies don’t know where to start • An integral part of IFC’s commitment to sustainable development

3. Presentation Outline • Impact of HIV/AIDS • Interactive Group Case Study • IFC Against AIDS services • Video case study: Odebrecht • Q&A

4. The Business Case • Reputation risk • Financial impact • Threat to viability, especially SMEs

6. Financial Impact • Medical and other benefits costs • Absenteeism and lower productivity • Labor turnover, recruitment and training costs • Loss of experienced personnel • Affected enabling environment • Shrinking markets

7. The Business Case Benefits vs. Costs • Boston University AIDS impact assessment on six corporations in South Africa and Botswana. • Six industries: mining, metals processing, utilities, agribusiness, retail, and media. • Findings: • 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%. • All six companies would have earned positive returns on their investments if they had provided antiretroviral drugs at no cost to HIV-positive employees. Source: Harvard Business Review, February 2003

8. The Business CaseBenefits vs. Costs Source: Roberts et al. 1997

9. Viability • 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 (the other two factors are crime andinadequate management expertise) Source: Xinhua News Agency, 11 July 2001 Original reseach by University of Port Elizabeth, South Africa

10. The Business Case • Reputation risk • Financial impact • Threat to viability, especially SME’s

11. When to contact IFC Against AIDS • The company relies on a workforce separated from their families for long periods of time • Mining, construction, shipping, trucking, and other industries employing migrant labor • Employees’ salaries tend to be higher than in the surrounding community • The sector can be a target for activists • Extractive industries, companies with a strong brand name, companies reliant on their “license to operate” • The company relies on key jobs/individuals • The loss of one of those key individuals can prove catastrophic • Large workforce • The magnitude of direct and indirect costs will be stronger

12. IFC Against AIDS Goal: Accelerate the involvement of private sector in fight against AIDS  Guidance  Training  Technical Assistance

13. Guidance • Risks and opportunity assessment • AIDS policy • Education and prevention • Occupational health and safety • Care and treatment • Community outreach • Evaluation and incentives • Leveraging partners

14. Intranet website

15. External website

16. IFC Against AIDS 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 (South Africa Office) Tel: +27-11-731-3062, Email: lenslin@ifc.org Noleen Dube- Program Officer (South Africa Office) Tel: +27-11-731-3059, Email: ndube@ifc.org Martin Lutalo - Program AnalystTel: (1-202) 458-1406, Email: mlutalo@ifc.org Bojan Ermanoski - Program Assistant Tel: (1-202) 473-5578, Email: bermanoski@ifc.org

17. In Conclusion “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

18. IFC Against AIDS Protecting People and Profitability