Private Sector
Business Day, 04 October 2002, 'Many firms' response to AIDS disappointing'
Financial Services Reporter
MORE than 75% of 500 SA companies surveyed by finance group Sanlam have no idea
of the prevalence of HIV/AIDS in their organisations, and more than 60% of these
firms have no strategy to manage the disease.
This will alarm analysts, given the recent pressure on companies to report on
HIV/AIDS prevalence within their organisations as part of their corporate governance
responsibilities.
Sanlam polled the 500 firms as part of its retirement funds survey, which was
released yesterday.
It concluded that besides the ignorance of prevalence, 46% of companies had
no AIDS policy whatsoever and 85% did not offer voluntary AIDS testing.
At the same time, Sanlam warned that AIDS could result in retirement fund premiums
being increased fourfold.
Sanlam Wealth Management head Kobus Hanekom said the effect of AIDS could be
limited if employers were to implement an AIDS policy.
Group actuary Rob Rusconi said that the survey highlighted a disappointing response
from the private sector to the AIDS epidemic.
"Proactivity is needed here; heads must be taken out of the sand,"
Rusconi told business leaders assembled in Midrand yesterday.
He praised companies that made announcements over the last few weeks, detailing
how they plan to deal with the epidemic.
In the past few weeks Kumba Resources, Old Mutual and Anglo American all announced
measures to deal with the disease among their staff.
In many instances, this includes introducing HIV-testing procedures and providing
access to AIDS treatments.
Rusconi admitted that the larger companies had made the biggest strides in implementing
AIDS policies, while the smaller organisations had lagged behind.
Retirement funds were also expected to feel the effects of HIV/AIDS.
While 86% of pension fund trustees said they had seen little effect from the
epidemic on these funds so far, 40% of them expected a significant effect over
the next few years.
The measures that companies are taking to deal with AIDS are seen as a core
element of good governance.
The Johannesburg Securities Exchange SA is expected to release guidelines on
AIDS reporting next year. This will mean that companies will have to reflect
what measures they are taking to deal with the disease alongside their financial
statements.
SA would be the first country to insist on AIDS reporting of this kind anywhere
in the world.
The JSE's director of new business and general counsel, Nicky Newton-King, said
companies would also be judged according to how they respond to the AIDS epidemic
in the new socially responsible investment index being launched by the JSE.
It is expected to be launched early next year, rating companies on nonfinancial
grounds, including empowerment initiatives and AIDS programmes.