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

2.  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 Session Outline

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

5. The Reputation Risk

6. 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

7. 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% The Financial Risk: Impact on the Bottom Line

8.  Chilanga, Zambia’s largest cement factory saw a 15-fold increase in funeral-related absenteeism between 1992 and 1995. Source: Bloom et al. 2001 Source: Galloway et al. 1998  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. The Financial Risk: Impact on the Bottom Line

9. 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

10. 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

11. 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

12. Getting started and organized

13. Awareness, education and prevention

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

15. Partnerships and community outreach

16. Monitoring and evaluation

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

18. 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

19. Intranet website

20. External website

21. 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 Analyst Tel: +1-202-458-1406, Email: MLutalo@ifc.org Bojan Ermanoski - Program Assistant Tel: +1-202-473-5578, Email: BErmanoski@ifc.org

22. “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