The potential impact of HIV/AIDS on the financial performances of S. A. companies

[摘要] ENGLISH ABSTRACT:Despite the seriousness of HIV and AIDS affecting productivity at workplaces, littleattention is being paid to the special needs of the infected people in the world of workand the ultimate reality this will have on the companies' financial health.HIV/AIDS retards economic development and business growth. The epidemic influencesthe workforce and markets in which business operates. Business must play a leading partin the internal response to HIV/AIDS pandemic. This is both an ethical imperative andthe key to business success. Most research conducted on the subject mainly concentratedon the effects of HIV and AIDS on productivity, emphasizing absenteeism as the directcause of low productivity.The costs of HIV and AIDS will be felt beyond the direct effect of the disease. Theindirect costs include the following:The increased costs of recruiting and training, given the extra deaths anddisabilities expected.The negative effect on staff moraleLoss of time as a result of management and labor meetings to discuss the AIDScrisis as it develops, this resulting in loss of turnover and profits.With the rising prevalence of HIV/AIDS, businesses should be increasingly concernedabout the impact of the disease on their organizations-concerns that should be wellfounded. At the broadest level, businesses are dependent on the strength and vitality ofthe economies in which they operate. HIV/AIDS raises the costs of doing business,reduces productivity and lowers overall demand for goods and services.The research process in this article focused particularly on workplace issues, which are akey dimension of the relationship between corporations and HIV/AIDS.Data collection was by both structured questionnaires and unstructured interviews,interviews with both management and workers' representatives and structuredquestionnaires with the general workforce. The questions asked were open-ended: 'IsHIV/AIDS a problem for your company now or in the future? and 'If HIV/AIDSimpacted on your company' financial performance would you act and why? Theresearch group consisted of four companies in different areas of operations: retail, serviceand manufacturing and the participants were chosen on the basis of certain inclusivecriteria: The number of employees employed.Length of service operation. Willingness to share certain financial information.A qualitative method of data analysis was used in the study and is described in detail. Thequalitative research method looks at the subjective meanings attached, descriptions,metaphors, symbols and descriptions of specific cases.It was found that despite the differences from one company to the other, the potentialimpact of HIV/AIDS on companies' financials went beyond the direct costs ofproductivity.As the debate over the availability of cheaper generic anti-retroviral drugs rages in thebackground, business is faced with the dilemma of significant investment to keep theirlabour force healthy and alive. This has to be weighed up against the high costs involvedin rehiring, retraining and re-incentivising their replacements.

[发布机构] Stellenbosch University