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South Africa: Corporate Aids Battle 'Must Be Extended'

Stephen Gunnion

2 December 2008

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Johannesburg — THE mining and banking sectors have the most advanced HIV/AIDS strategies among SA's largest listed companies, but more needs to be done to promote health and safety training in the workplace, says a report on how big business is tackling the pandemic.

The report, entitled Positive Corporate Response to HIV/AIDS: A snapshot of large-cap South African companies, and released by research firm EIRIS, gives an overview of the effect of HIV/AIDS on businesses and looks at what companies are doing to build awareness, prevention and treatment programmes for employees and the community.

It is aimed at providing investors with guidance on the potential risks HIV/AIDS pose to the companies so they can encourage them to address them.

According to the report, 7,7-million new infections were recorded globally last year, with SA's infection rate growing 18%. A 2006 study by the International Labour Organisation said 24-million workforce members aged 15 to 64 years lived with HIV or AIDS globally, with almost 67% residing in Africa. SA had about 3,7-million workers with HIV/AIDS.

The EIRIS report, released to coincide with World Aids Day yesterday, surveyed the top 40 companies listed on the JSE as part of a broader programme of emerging market research, which included the exchange's Socially Responsible Investment index.

It said the direct costs to businesses of HIV/AIDS included the increased cost of health insurance, employee benefits, funeral and pension costs, recruitment and training costs, and decreased productivity and profitability. Other effects included increased absenteeism, high rates of employee turnover, low employee morale, and loss of skill and experience.

The report said 85% of the top 40 companies had a global HIV/AIDS policy covering confidentiality, nondiscrimination and commitment to development programmes for treatment and prevention. About 82,5% of companies conducted a risk assessment in relation to HIV/AIDS, assessing its effect on productivity, profitability, workforce, health costs and efficiency.

"Whilst this is encouraging it may be of concern to investors that six of the top 40 companies do not have adequate public policies," said report author Dani Law. "Only 67,5% of top 40 companies demonstrate evidence of occupational health and safety training or procedures covering prevention of HIV transmission."

The mining and banking sectors stood out with their approach to HIV/AIDS. While mining companies were faced with a high incidence of the infection due to the large number of migrant workers employed, companies in the financial sector were driven to implement a strategy due to the effects on skills availability, health of the workforce and the potential negative effect on customers.

Standard Bank said most of the markets it operated in, particularly in Africa, were hard hit by HIV.

"That has probably been one of the key drivers on why it is of such strategic important to us," said head of corporate health Peter Philip. He said the group had broadened its focus to include wellness in the workplace, which addressed other health risks .

He said this had direct economic spin-offs in the long term for the bank. While it was difficult to measure some of the costs of the HIV/AIDS pandemic -- such as absenteeism -- health insurance was more affordable for healthy workers. "HIV/AIDS is a risk to sustainability in the long run."

Anglo American CE Cynthia Carroll said the group had taken the lead among businesses worldwide with its efforts to tackle HIV/AIDS. However, in the face of increasing infection rates globally, she said: "We must continue to ensure that we spread our experience of tackling HIV/AIDS across our operations globally and to innovate in order to provide effective solutions within a confidential environment and with zero tolerance of discrimination."

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