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How investment pays dividends

With up to 25 per cent of its work­force infect­ed with HIV, min­ing giant Anglo Amer­i­can faced a cri­sis in south­ern Africa. Increas­ing num­bers of work­ers were get­ting sick and dying, pos­ing a seri­ous threat to the busi­ness.

“Hav­ing made big invest­ments in our employ­ees, we sud­den­ly lost key peo­ple in key jobs,” says Dr Bri­an Brink, the company’s chief med­ical offi­cer. “We were even train­ing two peo­ple for key posi­tions, to ensure that we had a back-up.”

With break­through Aids treat­ment being rel­a­tive­ly new, expen­sive and some­what untest­ed, gov­ern­ments had oth­er pri­or­i­ties, so in 2002 the com­pa­ny made the deci­sion to offer free HIV tests to all its employ­ees and free treat­ment to all in need. In 2008 this pol­i­cy was extend­ed to depen­dents. As one of the world’s largest min­ing com­pa­nies, Anglo Amer­i­can already owned and oper­at­ed health ser­vices at most mines, so it was an exten­sion of its exist­ing work.

Such has been the suc­cess of the pro­gramme that the com­pa­ny now invests £6.3 mil­lion (US $10 mil­lion) a year in test­ing, treat­ment, care and sup­port, vol­un­tary coun­selling, pre­ven­tion and com­mu­ni­ty health ini­tia­tives. The treat­ment cost in 2007 worked out at £80 ($126) per employ­ee per month, but saved the com­pa­ny £139 ($219) per month. More recent analy­sis shows sim­i­lar sav­ings.

HIV is a mas­sive con­straint on busi­ness and eco­nom­ic growth in devel­op­ing economies

This comes from a mas­sive reduc­tion in days lost through sick­ness, reduced cost of treat­ing asso­ci­at­ed ill­ness­es, reten­tion of skills, and recruit­ing and train­ing few­er new peo­ple. There are also broad­er ben­e­fits in improve­ments in staff morale, employ­ee rela­tions and union rela­tions. The com­pa­ny made an ear­ly deci­sion on eth­i­cal grounds not to test peo­ple before recruit­ing them. “We work with­in a com­mu­ni­ty and must take what comes with it,” says Dr Brink. “Any­way, try­ing to exclude peo­ple who are HIV-pos­i­tive doesn’t work, because they could be infect­ed the next day.”

He pas­sion­ate­ly believes that busi­ness­es must work togeth­er and with gov­ern­ments, non-gov­ern­men­tal organ­i­sa­tions and unions to con­front the dis­ease threat. “It is a mas­sive con­straint on busi­ness and eco­nom­ic growth in devel­op­ing economies,” he says. “With huge pop­u­la­tions, they are the emerg­ing mar­kets of the future, where busi­ness oppor­tu­ni­ties are going to be cre­at­ed.”

Although busi­ness under­stands sus­tain­able devel­op­ment and gets involved in envi­ron­men­tal issues, it doesn’t yet see that health is a big and vital com­po­nent of sus­tain­able busi­ness. Anglo Amer­i­can pro­motes GBCHealth, the New York-based glob­al busi­ness coali­tion, as a forum to try to get more busi­ness­es involved. One busi­ness on its own will not make a dif­fer­ence to the epi­dem­ic and so far only a few com­pa­nies have made sim­i­lar invest­ments.

Dr Brink says that the time is now right for busi­ness­es to get togeth­er to make a col­lec­tive invest­ment. “We now have the tools,” he says. “We ful­ly under­stand the nature of the epi­dem­ic and how it is trans­mit­ted, and we can eas­i­ly diag­nose and treat it.” Key to deal­ing with the epi­dem­ic is pre­vent­ing new infec­tions, which is why the com­pa­ny doesn’t just work with employ­ees, but also their depen­dents and the com­mu­ni­ties in which they live. The lat­est research shows that peo­ple being treat­ed are 96 per cent less like­ly to trans­mit the infec­tion, so ear­ly treat­ment is very effec­tive in pre­ven­tion.

In addi­tion to its annu­al invest­ment, the com­pa­ny is also giv­ing the Glob­al Fund to fight Aids, Tuber­cu­lo­sis and Malar­ia £633,000 ($1 mil­lion) a year for three years. It is also giv­ing a sim­i­lar amount to the Glob­al Alliance for Vac­cines and Immu­ni­sa­tion. Dr Brink does not describe these as “dona­tions” and instead sees the mon­ey as a long-term busi­ness invest­ment in health over 30 years. He believes that vac­cines are one of the best invest­ments a busi­ness can make in health.

With near­ly ten years hind­sight, Anglo Amer­i­can can see that its invest­ment in treat­ing Aids has been an extra­or­di­nary suc­cess. “It is with­in our grasp to kill the epi­dem­ic,” says Dr Brink. “It is in all of our inter­ests not to leave it to some­one else, but to approach it col­lec­tive­ly. We must find all the peo­ple infect­ed with HIV and pro­vide care, sup­port and treat­ment for them to stop the infec­tion being passed on.”

This will require a sig­nif­i­cant imme­di­ate invest­ment, but Dr Brink says that Michel Sidibé, the exec­u­tive direc­tor of UNAIDS, recent­ly sum­marised it very suc­cinct­ly when he said: “Pay now or pay for­ev­er.”

GLOBAL FUND’S BILLIONS

“There was a sense that things should be done in a new and dif­fer­ent way,” says Jon Liden, direc­tor of ommu­ni­ca­tions at the Glob­al Fund to fight Aids, Tuber­cu­lo­sis and Malar­ia. “Rather than only gov­ern­ments get­ting togeth­er to fight Aids, peo­ple want­ed organ­i­sa­tions rep­re­sent­ing suf­fer­ers and busi­ness to join them. It would com­bine best prac­tices from busi­ness and pub­lic devel­op­ment, and avoid the worst mis­takes.”

The Glob­al Fund is an inter­na­tion­al financ­ing insti­tu­tion estab­lished in 2002 with the sup­port of the Unit­ed Nations and G8 major economies. It has com­mit­ted £14.2 bil­lion (US $22.4 bil­lion) in 150 coun­tries to sup­port large-scale pre­ven­tion, treat­ment and care pro­grammes, dis­persed against achieve­ment of agreed tar­gets.

This includes just under a quar­ter of all inter­na­tion­al invest­ment in Aids pro­grammes world­wide, includ­ing sup­port for more than half of all peo­ple on Aids treat­ment. About half of the grants are dis­trib­uted out­side gov­ern­ment, to mis­sion­ary hos­pi­tals, non-gov­ern­men­tal organ­i­sa­tions, pri­vate doc­tors, com­mer­cial organ­i­sa­tions and oth­ers.

Com­pa­nies invest­ing through the Glob­al Fund are able to demon­strate in the devel­op­ing nation­al mar­kets that they are not just there to make mon­ey, but to con­tribute to the country’s long-term well­be­ing. Com­pa­nies are increas­ing­ly scru­ti­nised for their social prac­tices, which can help to insu­late them from a cri­sis.

“The Glob­al Fund has been a high­ly suc­cess­ful exper­i­ment in pro­vid­ing devel­op­ment assis­tance in the 21st cen­tu­ry,” says Mr Liden. “In ten years we have learnt and shared valu­able lessons in how the pub­lic and pri­vate sec­tors can work togeth­er in health­care and beyond”.