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

 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

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

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

The Reputation Risk

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

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

 Chilanga, Zambia’s largest cement factory saw a 15-fold increase in funeral-related absenteeism between 1992 and Source: Bloom et al Source: Galloway et al  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

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

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

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

Getting started and organized

Awareness, education and prevention

HIV/AIDS in clinical settings and OH&S

Partnerships and community outreach

Monitoring and evaluation

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

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

Intranet website

External website

IFC Against AIDS Sabine Durier - Program Leader Tel: , Gillette Conner - Program Officer Tel: , Tish Enslin - Program Officer (Johannesburg) Tel: , Noleen Dube - Program Officer (Johannesburg) Tel: , Martin Lutalo - Program Analyst Tel: , Bojan Ermanoski - Program Assistant Tel: ,

“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