Authors: Podolny, Joel; Bahl, Kanika; Newsome, John
Source: Stanford University
The ballooning HIV/AIDS rate in South Africa is exacting an increasing toll on the profitability of South African businesses. This note takes a look at the impact of the epidemic at the macroeconomic and business levels, examining the negative macroeconomic repercussions of the disease and how these can impact overall business profitability. Also examines the increased worker costs that the disease incurs (for example, through higher benefit payments, reduced productivity, increased recruitment and training, etc.). Finally, considers potential firm responses to the epidemic, profiling South Africa companies such as JD Group and Eskom, which have taken definitive but very different approaches to dealing with the impact of HIV/AIDS on their businesses.