HIVAIDS

A Closer Look at Business Education DECEMBER 2006 ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ : HIV/AIDS INTRODUCTION: The statistics are still staggering: last year approximately 3.1 million deaths worldwide were attributed to AIDS. 1 With about 5 million new infections last year, the total global population of people living with HIV/AIDS is estimated at 40 million. 2 While two-thirds of those afflicted reside in sub-Saharan Africa, infections continue to rise in each region of the globe. 3 It’s not surprising, then, that firms are eyeing fast-emerging economies such as Brazil, Russia, India and China and noting the potential negative impact of this disease on their bottom line. In addition to obvious issues of workplace productivity and morale, firms are increasingly confronting valuation concerns in high-prevalence areas.4 Outside factors also play a role, with the U.S. consumer demanding more substantial action from businesses on this issue: more than two-thirds believe that companies should be actively fighting AIDS. 5 Many firms are weighing the question of internal program development and implementation versus reliance on public health programs in their host countries. Yet while fifty percent of business leaders expect AIDS to have an affect upon their firms’ operations within five years, less than ten percent have actually taken the steps to conduct a quantitative HIV/AIDS risk assessment.6 It’s feasible, then, to think that the issue of HIV/AIDS and specifically its impact upon business performance is soon to be an essential element of a comprehensive business education. While some classes do exist that address AIDS in several disciplinary perspectives within business, most are elective courses; the integration of AIDS-related matters into core coursework is relatively unexplored. This issue of A Closer Look investigates how B-schools and their curricula are presently tackling this issue. THE BOTTOM LINE: ■ ■ For many firms, HIV/AIDS in the business realm is slowly changing from a philanthropic issue to one of risk management. Multi-sector teamwork is necessary to combat the disease’s effect in many nations. It is clear that collaborative problem-solving is barely broached in relation to HIV/AIDS in most business schools. Opportunities for core course integration are numerous, including marketing, strategy, operations/supply chain management, just to name a few. Yet, core coursework that addresses HIV/AIDS in some way is quite rare. ■ “AIDS Epidemic Update: December 2005”, Report from UNAIDS/World Health Organization, pp.76-80. . 2 ibid. 3 ibid. 4 “HIV/AIDS Beyond Africa: Managing the Financial Impacts”, Study by F&C Asset Management and UBS. May 2005, pp. 4247. . 5 “U.S. Consumer Survey on AIDS”, Conducted on behalf of the Global Business Coalition on HIV/AIDS, Nov. 9, 2004. Press release for this study available at: 6 “Business & HIV/AIDS: A Healthier Partnership?” Executive Summary 2005-2006 from World Economic Forum, p. 4. . 1 A Closer Look A FACULTY POINT OF VIEW: at Business Education _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ The Aspen Institute Business and Society Program recently organized and facilitated a dialogue on HIV/AIDS as it is being addressed in business school education. Participants examined the topic from their unique expertise and perspectives, reflected on curriculum development and student demand, engaged with the idea of collaboration between business and academia, and much more. You’re invited to listen to the conversation, archived by Caseplace.org, by clicking here or visiting www.Caseplace.org/usr_doc/HIV-AIDS_Discussion.mp3. Contributors included: ▪ Dr. Witold Henisz, Associate Professor at the Wharton School, the University of Pennsylvania ▪ Dr. Jan du Toit, Director of the Africa Centre for HIV/AIDS Management at the University of Stellenbosch, South Africa ▪ Dr. Brenda Zimmerman, Director of both the Health Industry Management Program and the HIV/AIDS Strategy Studies for MBA Students at the Schulich School of Business, York University ▪ Celina Gorre, Technical Manager at the Global Business Coalition on HIV/AIDS ▪ Dr. Mary Gentile, Independent Consultant for the Aspen Institute ▪ Justin Goldbach, Fellow at the Aspen Institute Business and Society Program ▪ Amy Lawrence, Senior Program Manager at the Aspen Institute Business and Society Program and Director of Caseplace.org Of special note- and underscoring the importance of discussion amongst colleagues- are many new teaching materials that came to light in this dialogue and weren’t previously known to some other participants: a strategic simulation for students titled “The AIDS Crisis” recently conducted by Booz Allen Hamilton; a new online class from Dr. du Toit; and a forthcoming case study on DeBeers from Dr. Zimmerman. NOTABLE COURSEWORK: The following excerpts from course descriptions are drawn exclusively from Beyond Grey Pinstripes, a research survey conducted biennially by the Aspen Institute. ■ Columbia University, Strategy Formulation (Core Course) “One of the most important recent developments in business strategy is the realization that nonmarket actors — governments, nongovernmental organizations (NGOs) and the court of public opinion — can be as important as competitors, customers and suppliers in determining firm performance. In the core strategy class, we study these problems in the context of the pharmaceutical industry’s response to the AIDS crisis in Africa and two main impacts. First, the availability of medications to combat communicable diseases has tremendous consequences for public health and economic development in all nations of the world. Second, the pharmaceutical industry’s response may be critical to its own long-term prospects, as the AIDS pandemic continues to cause governments and NGOs to question the virtues of systems for protecting intellectual property rights for human therapeutics.” University of Vermont, Fundamentals of Legal Environment of Business (Core Course) Of three social impact sessions in the course, one focuses upon “social, moral and ethical” considerations related to the strategy of “pricing…AZT AIDS drugs.” ■ -2- A Closer Look ■ at Business Education _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ University of Stellenbosch, Strategic HIV/AIDS Management (Elective Course, last offered 2004) “The general aim of this course is to acquire a basic knowledge and understanding of HIV/AIDS as a strategic business issue, and to enable students to take proactive steps to manage the risks effectively in order to reduce the economic impact of the epidemic. At completion of the module, students will be able to apply this knowledge and insights in generating a HIV/AIDS strategic plan for a particular company.” Emory University, Customer Behavior (Elective Course) d dddddddddddddddddddddddddd “Students do a social marketing project. This project requires that the students come up with a marketing campaign for a social marketing initiative or sensitive issue. The instructor positions the subject by having students read a case about AIDS and the failure in curbing the spread of the disease, and then the success of ad campaigns dealing with the promotion of condom use for the prevention of AIDS. The key points for students to take away from this case and use in their subsequent projects are to think about who they might offend, who might be opposed and how they can gain ‘buy-in’ from these groups.” University of Western Ontario, Operating Manager (Elective Course) In this course, students “Use a case in Operating Manager Course that deals with AIDS in the workplace. This case asks students to think of the differentiating characteristics of HIV/AIDS compared to other human diseases, what management's responsibilities are in helping PWA’s [Persons With AIDS] cope, and what specifically would they do in the position of the case decision maker. The students are asked as well to read something current about HIV/AIDS and bring their understanding to class. The class typically starts with an "up-date" on the status of HIV/AIDS from a medical, social, economic, or political standpoint.” McGill University, Managing Organizational Politics (Elective Course) “When dealing with power "around" organizations, at the level of inter-organizational domains (a broader concept than 'industry', as it incorporates all types of organizations, including NGOs and regulatory bodies) one is talking about the social impact of business. In the second session, we discuss business and politics: how firms and industry associations are actors in the political and social system as well as in the economic system. During the session on 'domain transformation', the case study we used addressed the success of AIDS treatment activists in getting the institutions of commerce (i.e. pharmaceutical companies), government and science to reform their ways in a manner that PWA’s [Persons With AIDS] found more socially responsible.” For additional courses on related subjects, search 1,672 descriptions at Beyond Grey Pinstripes. ■ ■ ■ NOTABLE TEACHING MATERIALS: Materials referenced are meant to represent the diversity of related teaching resources available at Caseplace.org. All are offered for free download to registered faculty members. ■ Case Study: Volkswagen in the Global War Against HIV/AIDS (UN Global Compact Learning Forum) This case study shows how the VW group and its Brazilian and South African branches are organizing themselves to fight HIV/AIDS throughout their workforces as well as they look for ways to cooperate with national and regional communities in prevention and treatment of this terrible disease. Case Study: Anglo American (A) (Stanford University) In 2001, Dr. Brian Brink, senior vice president of Anglo American, a massive South African mining conglomerate, was debating how to confront the ravages that extremely high HIV/AIDS ■ -3- A Closer Look at Business Education _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ rates were taking on Anglo's workforce and overall productivity. According to the firm's best estimates, 21% of Anglo American's workforce was HIV-positive in 2001. Specifically, Dr. Brink was debating the merits of adding a potentially costly antiretroviral component to the existing HIV/AIDS program. Looks at the economic impact of HIV/AIDS on the Anglo workforce; examines the strategic, cost/benefit, and corporate social responsibility issues involved in offering the antiretroviral drug program to workers; contrasts Anglo's programs with its key competitors; and considers the financial, implementation, and political challenges involved in launching the antiretroviral program. ■ Teaching Module: HIV/AIDS and Strategy, prepared by Dr. Mary Gentile When the challenges of HIV/AIDS in developing countries are integrated into Management Education, they are often addressed in Business & Society courses or Business Ethics courses. However, this teaching module provides a set or readings for students as well as some background readings for faculty that illustrate the importance and relevance of raising this topic in core Strategy courses. Many corporate challenges presented by HIV/AIDS – the integration of so-called “non-market” forces into corporate strategy deliberations; pricing decisions; public policy positions (e.g., with regard to Intellectual Property Rights, tax incentives, etc.); stakeholder relationships; reputation; collective industry actions; and product development commitments – are key strategic challenges. This collection of readings includes four case studies and nine additional readings. ONGOING QUESTIONS: ■ ■ What stimulus is needed to get programs with no or little class time on this topic to take notice? What impediments exist? Assuming new best practices for firms tackling AIDS develop in economically strategic areas such as Brazil, China, and India, will these ideas transfer at all to economically disadvantaged regions such as sub-Saharan Africa? Can academics aid in facilitating this transfer, perhaps by disseminating generalized templates of best practice? Hypothetically, what would happen if top-10 business recruiters expected MBA graduates to have basic knowledge of the business strategy implications of AIDS? Alternatively, what would happen if top-tier business schools emphasized AIDS as a stand-out feature in their educational offerings? ■ RESOURCES: BeyondGreyPinstripes.org – World’s biggest MBA database, including detailed records on 1,672 courses, 1,730 extracurriculars, and 216 research articles at 128 schools on six continents. CasePlace.org – A free and practical on-line resource for up-to-date case studies, syllabi, and innovative teaching materials on business and sustainability. Created for the educators who will shape our next generation of business leaders! _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ A Closer Look is a monthly series of briefing papers on topical issues in MBA education, based on the research and programs of the Aspen Institute. The Aspen Institute Business and Society Program works with senior corporate executives and MBA educators to prepare business leaders who will effectively manage the financial, social, and environmental impacts of the private sector. Contact Justin.Goldbach@aspeninstitute.org to order reprints or to offer feedback. -4-