Q1) What is the impact of AIDS on businesses? HIV/AIDS is having an increasing impact on businesses. Increasingly, businesses are becoming aware of the impact HIV/AIDS that will have on their profitability. One of its first impacts is that of increase operational costs. As employees become sick the cost of providing health care rises. Death benefits increases and recruiting and training costs grow as the company tries to replace lost personnel. At the same time, it reduces company income by lowering worker productivity and increasing absenteeism. HIV/AIDS usually affects people who are young. Watching increasing numbers of colleagues die before their time is depressing and difficult. Often, workers are afraid of colleagues who are infected, not least because they fear they too might be affected by it. The result is an atmosphere of tension, suspicion, and recrimination within the workforce. One of the epidemic's most damaging features is its impact on morale. This loss in morale is not, however, inevitable. Even with an increasing number of infected and affected workers, proactive businesses have been able to discuss HIV/AIDS issues, reduce the stigma associated with infection, and ensure that workers remain productive. As HIV infection progresses to AIDS, affected workers are likely to be absent from the workplace more and more often. The periods of absenteeism may affect the productivity of the firm, especially if the worker occupies an important position in the organisation and consequently is more difficult to replace him. Absenteeism may also result in extra work for healthy workers who have to stand in for sick colleagues. In some companies, healthy workers were increasingly working extra hours to compensate for the time lost by their sick colleagues. The result was that companies not only paid more extra hours but also exhausted the healthy workers. Working long hours can produce stress among employees, which may result in a decline in both the quantity and quality of the final product. Not only do HIV-affected organisations lose their workers as a result of absenteeism or AIDSrelated deaths, but they also experience an increase in their medical benefits and costs. At the present time, it is difficult to measure the impact, as most countries are still in the early stages of the epidemic. Organisations that have a health programme may find themselves responsible for substantial medical costs. The insurance scheme of the organization may become more expensive as insurance companies in-crease the costs of coverage in response to high HIV prevalence rates in firms. Higher costs could impede saving for investment. Some organisations have reduced employee benefits, restructured employment con-tracts, outsourced less-skilled jobs and changed production technologies to require fewer workers. AIDS deaths may lead directly to a reduction in the number of available workers, since the deaths occur pre-dominantly among workers in their most productive years. As younger, less experienced workers replace experienced workers, worker productivity may be reduced. The impact of AIDS also depends on the skills of affected workers. In the event that skilled workers who occupy important positions in the firm become sick or die from AIDS, the company may lose its institutional memory²the know-how accumulated through many years of experience. Morale and productivity of the remaining workers may also suffer as co-workers fall ill and die. Equally important in the increase of costs may be the growing demand for training and recruitment to replace the ailing personnel of the firms.


this will almost certainly impact on the worker. The companies producing those goods may find themselves with a shrinking market. At present it has become a much broader threat to communities. An employee diagnosed by HIV/AIDS faces several problem in the organisation like People with HIV become stigmatised and face harm and discrimination in the organization. inevitable. Until now. its impact is increasingly being felt within the social economic development of our society. proactive businesses have been able to discuss HIV/AIDS issues. HIV/AIDS will also damage businesses in ways that are harder to quantify. Those affected include women. and ensure that workers remain productive. This 2 .Another impact of the HIV/AIDS epidemic in the community is the impoverishment of households. however. pre-occupation with family issues. reduce the stigma associated with infection. suspicion. if one of the families is. Uncontrolled. workers are afraid of colleagues who are infected. Even with an increasing number of infected and affected workers. but other regions are increasingly feeling its effects. which ultimately will lead to declining profits. HIV/AIDS has enormous implications for world health and global economic development. It has been acknowledged globally that HIV/AIDS is not only a health issue. The company has to pay agency fees to recruit new staff. UNAIDS estimates that at the start of 2001. absenteeism as a result of having to attend to the family member's needs all of these and more will impact on the worker's productivity. Watching increasing numbers of colleagues die before their time is depressing and difficult. medical expenses of the HIV infected employees and new recruitment for replacement. Africa has been the worst affected region in the world. as it will take some time for a new person to get train and get results out of him. There is down time when the vacancy is not filled.HIV/AIDS is an unusual chronic disease because its impact is greatest on young adults in the most productive years of their life. Q2) Do you agree that businesses in the near future would be actively interested in addressing the issue of AIDS? Justify your answer. technicians and civil servants at all levels. HIV/AIDS usually affects people who are young. the HIV/AIDS epidemic is likely to result in increased costs and declining productivity for firms. and recrimination within the workforce. To sum up. businesses and the economy. What should also not be forgotten is that where a worker might not be HIV-positive. agricultural and industrial workers. The costs of finding and recruiting new staff will begin to escalate. Existing staff spend their productive time selecting and interviewing new people. which may eventually lead to declining profits for the organisations involved in the production of the goods. Businesses in near future would be actively interested in addressing the issue of AIDS. It becomes difficult to the organization to replace such employees. As HIV+ workers become sick and die.36 million people were living with HIV/AIDS. The result is an atmosphere of tension. Often. which leads to a decline in the demand for some types of goods. over 6 million adults and children are now infected. At times the key team player or a good employee who gets affected with HIV/AIDS will also be a great loss to the organization. The organizations have to spend unexpected unbudgeted money for recruitment. not least because they fear they too might be affected by it. children. One of the epidemic's most damaging features is its impact on morale. This loss in morale is not. for example. The organization have to bear a lot of loss due the constant absenteeism. Impact is on productive youth . Concerns about the family member. Most people who die of AIDSrelated illnesses die in their late 20s and 30s. In Asia. A) Yes. costs to the worker and hence lower morale.

recruitment costs for new staff ± advertising and training. Organisations like Pepsi. HIV/AIDS robs the global labor force of workers and saps productivity and profitability not only by causing death and illness. efforts should be made to disseminate results while protecting the privacy of infected persons within the company. Prevention programmes usually include AIDS education for workers and their families.all lead to loss in the business. other corporate resources. business must play an active and substantive role in promoting AIDS awareness and associated programs with positive messages that encourage workers to come forward. had started various CSR efforts against HIV/AIDS. HIV/AIDS has enormous implications for world health and global economic development. Partnering with an NGO can help a 3 . The ABC Corporation has to start a partnership with NGO. Bajaj Auto. and a decline in worker morale. HIV testing for new and existing staff and funeral costs. discuss what steps should ABC corporation take to initiate. but also by diverting healthy workers' time to care for HIV-infected relatives. loss of tacit knowledge. Hence. health and safety. Many companies regard this information as too sensitive to release. will create a big loss not only for the company but also the society in the whole. staff churn. Business can play a substantial role in such programs. loss of skills. 3: ABC corporation wants to partner with an NGO and address the issue of AIDS around its factory. Many Business organizations are already paying a key role in spreading awareness in HIV/AIDS. Larsen & Toubro. All of these add up to major costs and a loss in productivity. Titan Industries. over 6 million adults and children are now infected. etc. Standard Chartered. Indirect costs include absenteeism. for example. (SAIL). So the corporation is looking for a NGO partnership only for itsfactory workers. As the saying goes prevention is better than cure. such as established organizational structures and training capacities. Steel Authority of India Ltd. Experts felt that in addition to money. as they have realized if action not taken on time. treatment of sexually transmitted diseases (STDs) and distribution of condoms. TATA Tea. in fact. In Asia.. Some companies have increased medical care and instituted prevention programmes to help workers avoid contacting the virus. medical insurance. manage and sustain its partnership with the NGO. Africa has been the worst affected region in the world. for instance. Businesses organisations and governments have generally embarked on information or educational campaigns to reduce the amount of risky behaviour by the target audiences. By 2010 an estimated 20 million workers may be infected with AIDS. Studies on the impact of HIV/AIDS con-ducted within companies will be beneficial to policymakers only if the results of the studies are made available. The response of businesses to the HIV/AIDS epidemic has taken many forms. Direct costs can include impacts on insurance. The business houses have already started taking initiative to fight against this epidemic HIV/AIDS. but other regions are increasingly feeling its effects. could be effectively utilized to fight this epidemic HIV/AIDS have both direct and indirect impact on Business. Business corporations could make a major difference in this area as they had the resources and expertise to fight against AIDS. and typically these campaigns include billboards warning against risky behaviour or brochures describing the medical and epidemiological aspects of AIDS. retirement funds. Until now. Many companies are attempting to cut costs and prevent new HIV infections at the same time. A) ABC corporation wants to address the issue of AIDS around its factory.

Here the organization wants to address the AIDS issue. build common expectations about the project. The project design phase starts with an initial concept and ends with the signing of an agreement or other way of formalizing the work plan and ground rules for the partnership. it may be most productive to focus on goals and objectives. Perhaps the most important consideration when entering into a business-NGO project is the investment of time required to design and initiate the project. The corporation should be clear about its goals and objectives. services and value chain will be involved A project generally has three phases²design. Ensure agreement is reached on the specific project timeline. especially in early discussions. For businesses. The NGO must enjoy complete independence from the company. In developing an agreement. It must demonstrate competence and good results overtime. the ³bottom line´ includes more than just profits. The organization can give its premises to the NGO¶s to use. NGOs have been at the centre of the global response. The organization can also give product and service support if the organization is producing products in the similar lines. In this case the product will be medicines. including committing funds for medicines for AIDS victims. The scope of work should address a key part of the company¶s business and should define which areas of the company¶s operations. This phase also enables the partners to get to know each other. customers and other stakeholders want to see progress on a broader range of measures. A well-structured project can create lasting changes and leave a legacy of innovations for others to adopt. AIDS care. The team usually consists of top officials of the company.company address issues that it may not have the expertise. NGO¶s have an understanding of civil society and related issues the organization wants to address. It must be capable of forming multilateral partnerships. The company can support the NGO by sending employees as volunteers for programme they are conducting for the factory workers. including environmental and social performance. condoms. Financial support will be given by the organization to run the project successfully. Providing free condemns to employees. committing 4 . companies and non-governmental organizations (NGOs) are joining forces. this in turn facilitates not only the designing of more responsive programmes but also encourages the communities to participate in planning and take action. This team sees that the NGO it is getting associated satisfy a number of basic conditions like:The NGO should have a stable and reliable reputation. The mutual trust created during this period will help the project run efficiently once it is under way. and commit sufficient resources to it. scope of work. This also makes the employees aware of the problems related to the disease. NGOs understand better the different perspectives and operational experiences of working with communities. but may continue for many months as both parties evaluate the resources required. execution and measurement of results. products. It should be structured professionally. businesses and NGOs can achieve their mutual goals while benefiting the workers. It might be for medical camp or organizing workshop. Since the beginning of the HIV/AIDS epidemic. The start-up period often begins with the initial contact between a business and an NGO. The ABC corporation first of all will form a team to address this issue of AIDS. Discuss expectations for how the team will work together to meet the timeline. Investors. It must have a development capability in order to be able to advance the project to a bigger scale. Companies and NGOs may work on different timeframes. skills or resources to manage on its own. Financial support will be like giving funds for medicines for HIV/ AIDS victims. Corporations can contribute toward the fight against AIDS in various ways. By working together constructively. time line. providing a lead role in many countries in building effective strategies for HIV prevention. Each phase is crucial to success. To achieve such goals.

Businesses and NGOs typically operate under different organizational cultures and may have different expectations. it improves the image and credibility of both organizations. providing free condoms.funds for awareness campaigns against HIV/AIDS. The success of a partnership depends to a great degree on the strength of the project around which it is organized. 5 . When a partnership between a trusted NGO and a well-known company delivers tangible results.

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