Corporate Responses

According to a World Bank report – Corporate Responses to HIV/AIDS – HIV/AIDS has a direct impact on companies’ profitability in hard hit countries. In the worst case scenario the economic effects are observed in greater absenteeism and staff turnover, higher recruitment and training costs, and higher costs in medical care or insurance coverage, and retirement funds. Assessing the economic impact of AIDS is difficult, but the report points out that that some of the hardest-hit countries with generalized epidemics may forfeit 2 percent or more of annual GDP growth.

“As India emerges as a global economic power, it is important that Indian businesses pursue business practices and policies that are in the best interest of the community at large,” said Mariam Claeson, the World Bank’s HIV/AIDS Coordinator for the South Asia Region. "Businesses have much to offer and to gain from early decisive action to prevent HIV and reduce the cost and social impact of AIDS.”

Even in countries with overall low HIV prevalence, such as India, the mere cost of treating people living with HIV and AIDS will be a huge economic and social burden to society. Early decisive action by companies, that reach a large share of the population at risk, pays off.

Case Studies from India

Despite the important role that Indian businesses can play in the fight against AIDS and in tackling stigma associated with AIDS among its workforce, only a small share of the private sector — around 70 companies — are engaged in fighting HIV/AIDS. The report says by playing a more active role, together with government and civil society, companies have an opportunity to exercise leadership in a way that helps millions.

This report features five case studies illustrating approaches that private and public sector companies have used in HIV and AIDS interventions in India. These companies include Reliance Industries Limited, Transport Corporation of India, Delhi Metro Rail Corporation, DCM Shriram Consolidated Limited, and Hindustan Lever Limited.

The report says the heterogeneous nature of the epidemic in India suggests that there is no one strategy for Indian businesses in the fight against HIV. Businesses that employ groups most at risk, such as truckers, may need to implement targeted interventions. But all businesses can contribute to curbing the epidemic through a set of activities such as generating awareness about HIV and AIDS; reducing stigma; pursuing high-level advocacy efforts; creating an HIV policy for the workplace; and providing referrals for counseling and testing.