The Business of Health - The Health of Business

Geneva, 13 March 2006 - Ill-health and disease impair business performance by hampering individuals, communities and markets. The examples gathered in this publication ( 1.2 MB) by the WBCSD and IBLF serve to illustrate the business case for corporate action on health and demonstrate how companies can positively and imaginatively engage with these issues to create business advantages.

Traditionally, promoting good health and ensuring adequate access to health services has been a function of government. However, it is increasingly apparent that companies are paying greater attention to ensuring the well-being of their employees.

In addition to ensuring safe working environments, protecting the health of employees means business faces the challenge of dealing with infectious diseases like malaria and HIV/AIDS, as well as chronic conditions, such as heart disease, stroke, diabetes and cancer.

In fact, chronic diseases are projected to account for 60% of all deaths in 2005 – some 35 million people. While death rates for all chronic diseases rise with increasing age, nearly 45% of chronic disease deaths occur under the age of 70 and directly impact working populations.

The business case

Health concerns burden corporate competitiveness through absenteeism, decreased "on the job" productivity and employee turnover. In developed countries, employers often foot the bill for health insurance. Business leaders are increasingly aware of the challenges: CEOs in the US ranked healthcare costs as their number one economic pressure, while McKinsey predicts that by 2008, the healthcare costs of Fortune 500 companies will be greater than their net profit.

As the examples profiled in this publication show, the costs associated with workplace health programs provide a powerful economic incentive for engagement. For example, workplace interventions for chronic disease control in industrialized societies have proven effective at reducing the associated costs, with an average return on investment of US$ 3 for each US$ 1 invested.

The experience of companies in anticipating and addressing health challenges in the workplace provides compelling evidence for further action in this field.

A changing context

International trade and industry partnerships, and ever-expanding supply chains and business activities in developing countries increasingly influence business’s role in global health challenges. Many businesses today rely more heavily on intellectual capital, making the health of employees, on which creativity and innovation depend, critical for business success.

At the same time, the short-term expectations of shareholders are often at odds with the long-term investment needed to address important health issues. Companies are under greater scrutiny than ever due to the spread of information through the Internet and mass media.

Access to information makes corporate reputations increasingly fragile and the management of employee health potentially has a direct impact on a company’s good name. Managing health is therefore a must for companies that wish to develop into robust organizations capable of long-term growth.

Together, the WBCSD and IBLF member companies represent over 15 million employees and reach up to three billion customers every day – all of which can provide of an enormous opportunity to influence knowledge, understanding and behavior with regard to health.

Companies can directly help their employees lead healthier lives through the careful design of interventions, such as benefit programs, smoking and safety policies, as well as food service facilities. Many of these programs can be extended to their families and the communities in which they live. This contributes to a reduction in the use and costs of healthcare systems, improved health and quality of life and investment in future generations.

In the field of corporate health and wellness, it is apparent that different approaches exist and are targeted at different problems. However, cohesive action and understanding of the benefits of health for business remain incomplete.

Health action

Research shows that companies that invest in health benefit from increased productivity and morale, as well as lower absenteeism and health costs. Corporate engagement in health initiatives in the marketplace and community can also improve reputation and help companies find business opportunities.

The experiences of the WBCSD and IBLF in working on these issues reflect a number of recurrent lessons underpinning effective interventions:

1. Be proactive
   A positive preventive approach to health can help cut costs and avoid problems before they arise. This includes identifying and articulating the business case for action.
2. Look for opportunities in the marketplace
   By exploring the options for applying company expertise to health issues, many businesses can find commercial advantages.
3. Adapt to local concerns
   Specific industries, regional and cultural differences and the varied health issues of target groups need tailored interventions.
4. Impact the wider community
   The health problems of a workforce are likely to reflect broade health concerns in the community, and internal approaches can be leveraged for wider community impact.
5. Work in partnership
   Taking collaborative action and working with other companies as well as local authorities and civil society can help set standards, increase impact and influence. Collaboration can also help build local capacity.
6. Measure and evaluate
   It is clear that there is a strong business case for investing in the health of employees. By measuring and evaluating programs companies can raise awareness and further promote the case for increased corporate action on health.

The examples gathered here are not an exhaustive review of corporate action on health. They have been chosen to illustrate the range and scope, in both geography and type, of business engagement on these issues. They serve to show how companies are creatively turning good health, previously viewed as simply a cost, into a business opportunity and competitive advantage.

Most importantly, the case studies represent the perspective of the companies themselves and by sharing their experiences the WBCSD and IBLF hope to inform, inspire and encourage more businesses to involve themselves in the business of health

• The Business of Health - The Health of Business ( 1.2 MB)

Author WBCSD/IBLF Publication Date 13 Mar 2006 Document Type WBCSD news Issue/Topic Business Role/CSR Source WBCSD/IBLF Include In RSS WBCSD News & Updates		1.2 MB Click here to order