IFC Against AIDS Protecting People and Profitability

1. IFC Against AIDS Protecting People and Profitability

2. Session Outline • Why does IFC care about HIV/AIDS? • What is the “business case”? • What is “IFC Against AIDS”?

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: Three categories of risks • Reputation risk • Financial impact • Threat to company’s viability

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 • 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. 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 (the other two factors are crime andinadequate management expertise) Source: S. Eeden et al. – 2001

10. 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 sensitive 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

11. IFC Against AIDS • Has dedicated resources to work with clients • Will develop a fruitful relationship with clients to manage HIV/AIDS in their workplace and community • Integrates HIV/AIDS, malaria and TB in its approach • Promotes partnerships between clients and NGO and other partners • Systematically extracts lessons learnt from its efforts

12. IFC Against AIDS The mission of IFC Against AIDS is to protect people and profitability by being a risk management partner, HIV/AIDS expert and a catalyst for action where HIV/AIDS threatens sustainable development. Development & Research Guidance Africa Training Africa M&E M&E M&E M&E M&E M&E M&E GENDER GENDER GENDER GENDER GENDER STIGMA & DISCRIMINATION STIGMA & DISCRIMINATION Demonstration effect

13. Pre-engagement Client identification: nature of deal, sector, country, internal stakeholders Mapping out IFC team & value-add IFC Against AIDS Guidance: Client Engagement Process • Sustainability and maintenance • M&E and program transition: • Consolidation of lessons learned • M&E and progran evaluation • Bridge plan of action • Feedback to management • Implementation and partnership • Program execution and consolidation of partnership: • Client and NGO implement the program • Eventually IFC Against AIDS develops supervisory role • Feedback to management • Foundations of an HIV/AIDS program • Infrastructure and assessment: • Assessment of programmatic conditions • Senior management buy-in • Partnership with service providers • Roles • IFC Against AIDS: • Assist client with evaluation of program; evaluation of NGO; refine tools and approach; senior management meeting • Client: • Extend the reach of the program to customers, suppliers and partners; • develop “bridge” plan of action; • evaluate the program at conclusion • NGO: • Work with client on evaluation of program; proposal to client for next programmatic phase; continuation of implementation • Roles • IFC Against AIDS: • KAP survey with client; training on IFC Against AIDS tools and approach for service provider; senior management meeting • Client: • Develop workplan and negotiate contract with NGO; encourage staff participation • NGO: • Proposal to client for services; participate in training on IFC tools and approach; implement services; regular reports to client (and IFC) • Roles • IFC Against AIDS: • First mission to client; assessment of program conditions; senior management meeting; referrals to service providers; AIDS Committee training • Client: • Identify AIDS Committee members and schedule training; identify Focal Point; draft and adopt policy statement; draft Roadmap for Action; develop a budget including in-kind contributions Months 0-6 Months6-12 Months12-18

14. IFC Against Aids: Training Program • Pre-Engagement: • Identification of clients to be enrolled in the Training Program (companies with 50-500 employees) by sector and country/region • PEP Africa constituencies • MSI, SME Service Centers • IFC portfolio clients • SME clients and SMEs in the supply chain of larger clients or that are key constituencies of strategic clients Goal of the IFC Against AIDS Training Program: To build the capacity of SME’s and IFC portfolio clients on HIV/AIDS through a training program, to prevent and mitigate the impact of the disease on their businesses SME Training Program: Initial Training • One full day • Maximum of 15-18 companies per cohort • Maximum of 25 participants per cohort • Modular, interactive, including case studies and PLWHA talk • Participants develop their own company’s HIV/AIDS action plan for the next four months Follow-Up Process • Formal: Cohorts meet with facilitator every four months • Informal: Via telephone or e-mail • Some face-to-face meetings also when feasible • Business Case Drives • Interactive presentations to SME business owners • Enrollment of company representatives in the Program • Involvement of partner organizations 12 month period • Other Training Initiatives: • Facilitators (within the PEP Africa-IFC Against AIDS project) • AIDS Committees within client companies • Service Providers (NGOs identified to partner with clients) • Senior managers within IFC client operations • IFC staff • Partner organizations (training of trainers) • Cross-cutting themes in theTraining Program and Initiatives of IFC Against AIDS: • Monitoring and evaluation • Gender • Stigma and discrimination

15. Intranet website

16. External website

17. “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 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 Ilídio Silva - Consultant (Maputo)Tel: +1-258-84-3070-360, Email: IDasilva1@ifc.org