IFC Against AIDSProtecting People and Profitability

Session OutlineSession Outline

Why does IFC care about HIV/AIDS? What is the “business case”? What is “IFC Against AIDS”?

Why IFC Takes AIDS SeriouslyWhy 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: The Business Case: Three categories of risksThree categories of risks

The Reputation RiskThe Reputation Risk

The Financial Risk:The Financial Risk:Impact on the Bottom LineImpact 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

The Business Case The Business Case Benefits vs. CostsBenefits 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

The Business CaseThe Business CaseBenefits vs. CostsBenefits vs. Costs

Source: Roberts et al. 1997

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 and inadequate management expertise)

Source: S. Eeden et al. – 2001

Risk to the Viability of Small Risk to the Viability of Small EnterprisesEnterprises

When to contact IFC Against When to contact IFC Against AIDSAIDS

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

IFC Against AIDSIFC 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

IFC Against AIDSIFC Against AIDSThe 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.

Demonstration effect

GuidanceAfrica

TrainingAfrica

Development & Research

M&E

GENDER

STIGMA & DISCRIMINATION

M&E M&E M&EM&E M&EM&E

GENDER GENDERGENDERGENDER

STIGMA & DISCRIMINATION

Pre-engagementClient identification: nature of deal, sector, country, internal stakeholders

Mapping out IFC team & value-add

Foundations of an HIV/AIDS program

Infrastructure and assessment:

• Assessment of programmatic conditions

• Senior management buy-in

• Partnership with service providers

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

Sustainability and maintenance

M&E and program transition:

• Consolidation of lessons learned

• M&E and progran evaluation

• Bridge plan of action

• Feedback to management

IFC Against AIDS Guidance: IFC Against AIDS Guidance: Client Engagement ProcessClient Engagement Process

Months 0-6 Months 6-12 Months 12-18

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

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: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

IFC Against Aids: Training ProgramIFC Against Aids: Training ProgramGoal 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

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

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

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

Business Case Drives Interactive presentations to SME business owners Enrollment of company representatives in the Program Involvement of partner organizations

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

12 month period

Intranet websiteIntranet website

External websiteExternal website

“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

IFC Against AIDSIFC Against AIDShttp://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