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IFC Against AIDS Protecting People and Profitability

IFC Against AIDS Protecting People and Profitability. Session Outline. Why IFC takes the AIDS crisis seriously The business case for action Risk triggers for the private sector Resources existing at IFC. Why IFC Takes AIDS Seriously. A priority for the development community

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IFC Against AIDS Protecting People and Profitability

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  1. IFC Against AIDS Protecting People and Profitability

  2. Session Outline • Why IFC takes the AIDS crisis seriously • The business case for action • Risk triggers for the private sector • Resources existing at IFC

  3. 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

  4. The Business Case • Reputation risk • Financial impact • Threat to company’s viability

  5. The Reputation Risk

  6. AIDS: Impact On Bottom Line • Medical and other benefits costs • Absenteeism and lower productivity • Labor turnover, recruitment and training costs • Experienced personnel • 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. SMEsViability • 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

  10. The Risk Is Highest When… • Migrant labor • Long-distance transportation • Well-paid workers • Targets of activists • Reliance on key jobs/individuals

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

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

  13. Intranet website

  14. External website

  15. “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

  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 Vlassis Tigkarakis - Program AnalystTel: (1-202) 473-1394, Email: vtigkarakis@ifc.org www.ifc.org/ifcagainstaids

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