A proposed reporting framework for HIV/Aids disclosure by listed South African companies

Abstract

This article proposes a disclosure framework for the reporting of HIV/Aids-related information in annual reports to address the lack of consistency in current disclosure practices. A literature review was undertaken to determine business risks and responses relating to the disease, followed by an empirical investigation into voluntary disclosure on HIV/Aids by companies listed on the JSE Securities Exchange. The investigation consisted of a thematic content analysis for the period 1998 to 2004. The results of both the literature review and the empirical investigation are used to recommend a disclosure framework that companies can use when reporting on HIV/Aids in their annual reports. The framework recommends the disclosure of HIV/Aids risks and responses by organisations.

Social and environmental accounting as symbolic and substantive means of legitimation: The case of HIV/AIDS reporting in South Africa

“…Nationally, the negative effects of the AIDS pandemic manifested in a number of ways; annual GDP fell as active labour force numbers fell (Barako et al, 2010), tax revenues shrunk while healthcare costs increased substantially (Du Bruyn, 2008), and average life expectancy was drastically shortened (CIA Factbook, 2011). Corporate SA was also affected by the AIDS epidemic through a variety of channels, including increased absenteeism leading to lower productivity and high incidences of labour turnover, resulting in the loss of skilled labour and thus increased costs of recruitment and training (Dickinson, 2004;Du Bruyn, 2008). These effects did not only contributed directly to the erosion of the competitiveness of SA companies, but also impacted negatively on their profitability and sustainability (Fig, 2005;Rampersad, 2010).…”

“…Whilst we find that many companies tend to vaguely acknowledge that HIV/AIDS will have an impact on their economic performance, they have not provided detailed assessments of this likely impact. Lawrence andSamkin (2005) andDu Bruyn (2008) asserted that this absence of disclosure could be related to the negative consequences for the market if inaccurate or confidential information was to be released. In addition, and as suggested by O'Donovan (2002) and Mahajan et al (2007), a symbolic strategy of concealment of financial information may be appropriate to avoid any criticism from certain constituents that the company is not sufficiently contributing (in financial terms) to their 'cause '.…”

The Relationship between Corporate Sustainability Disclosure and Firm Financial Performance in Johannesburg Stock Exchange (JSE) Listed Mining Companies

“…Furthermore, the Global Reporting Initiative [26] emphasized on firms to understand the social and environmental impact of HIV/AIDS on their ordinary activities to adopt a strategic plan to address it. Moreover, the JSE and the Institute of Chartered Accountants encouraged a formal approach for HIV/AIDS disclosure by firms [27].…”

Impact of Epidemics on Enterprise Innovation: An Analysis of COVID-19 and SARS

“…Epidemics affect daily life and production activities. Studies have found that during an epidemic period, the labor participation rate, labor productivity, total wage income, and human capital decrease significantly [5,6], while the redundancy rate, the employee absenteeism rate, and operating costs increase significantly [7,8]. In addition, the International Labour Organization has suggested that acquired immune deficiency syndrome (AIDS) directly reduces the average working life of employees and increases the non-business expenses of enterprises, such as medical care, funerals [9], and others.…”

“…Let f k denote the crowding-out effect of the cost of epidemic prevention. From Equation (8), the firm incurs an increased marginal cost of production due to the crowding-out effect. In other words, the cost of epidemic prevention increases the marginal cost c incurred by the firm in its production process.…”