Case Study on Principle # 1 - Human Rights
To support and respect the protection of international human rights

Name of Company: Daimler Chrysler, South Africa 

Background & situational context 
Daimler Chrysler is one of the largest auto manufacturers in the world, with manufacturing 
operations in over 37 different countries. 

The presence of Mercedes-Benz in the Republic of South Africa dates back over a century. 
In 1999, various business entities were brought together in one company, Daimler Chrysler South Africa (DCSA), 
and became wholly owned by DaimlerChrysler AG. 

In a national economy based largely on mining and agriculture, DCSA is recognized as one of the 
leading South African manufacturing companies. 
In 2001, DCSA accounted for 4,453 employees and produced 52,444 passenger cars. (Ref.1). 

Problem
The HIV/AIDS epidemic has had a substantial impact in the Republic of South Africa. 

Out of a total South African Population of 43.8 million in 2001, UNAIDS estimates that 
11.5% of the population are living with HIV/AIDS, while the adult prevalence rate is between the 
age group 15-49 is even higher at 20.1%. (Ref. 2) 

The same agency estimates that 360,000 people died of the because of the disease in the year 2001 alone. 

In many countries, including South Africa, HIV-testing is not carried out on a regular basis, thus prolonging 
the discovery of the virus and delaying possible treatment. 

Another problem relating to the accessibility of test sites is that they could be scarce or difficult to reach. 

Some companies have tried to fight HIV/AIDS in the workplace by requiring mandatory and open testing, compromising the right to privacy of the individual and directly discriminating 
against employees and would be employees affected with the HIV/AIDS virus. 

DCSA has been affected by the spread of HIV/AIDS, like most of other companies in South Africa. 
The company estimates that the economic impact of HIV/AIDS in 2001, as a result of infections and deaths, was 
"a staggering R9.3 million [about US $1.1 million] in direct and indirect costs to the company (40 percent as death and disability payments and 36 percent due to productivity loss)".(Ref. 3). 

Actions taken
DCSA first reacted to the HIV/AIDS epidemic in the early 1990’s. 
However, it was not until 1996 that the company implemented its first workplace policy on HIV/AIDS, after extensive discussions between 
management, health services and the Unions (NUMSA). 

The main goals of DCSA’s workplace policy on HIV/AIDS is to prevent new infections in the workplace and among dependents, 
provide the best possible care for those living with HIV/AIDS and ensure that the company systematically and progressively 
addresses all HIV/AIDS related concerns and issues. 

One of the main reasons Delta Electronics encouraged the creation of the “Delta Labour Union” is the company’s management respect for the workers’ right to form and join trade unions. 
Herein, Delta takes into consideration the Labour Standards (ILS) formulated in the International Labour Conventions Number 87 and 98. 
These Conventions are not directly addressed to employers, but to governments of member countries of the International Labour Organisation (ILO), but they can, on a voluntary basis, serve as managerial guidelines and sources of policy and strategy formulation at the enterprise level. 

According to Dr. Clifford Panter, DCSA HIV/AIDS coordinator, there was no dedicated program funding or monitoring until 1999. During 1999 and 2000, as one of the first expressions of a more comprehensive approach to the HIV/AIDS issue, DCSA Medical fund started to provide anti-retroviral drugs for affected employees. Building on existing HIV/AIDS programmes, a comprehensive public-private partnership was also formed in 1999/2000 with the German Agency for Technical Cooperation (GTZ). Daimler Chrysler South Africa has budgeted R6 million (or about US$733,000) over a three-year period starting in 2000 for its HIV/AIDS programmes. 

Together with Government Departments, UNAIDS, and trade unions, DCSA now has the following programmes to combat HIV/AIDS; 
        1.  An education project, which is designed to provide employees, their families and their immediate communities with information through HIV/AIDS kiosks, the DCSA Intranet Help Desk, peer education and other forms of educational activities. Additionally, condoms are made available and distributed. 
        2.  Anonymous HIV-testing to employees. 
        3.  Standardized voluntary counselling for those employees affected with the disease. The company also offers training to the councillors on HIV/AIDS related issues. 
        4.  Health care coverage to provide anti-retroviral drugs to staff affected with the virus. 

Results 
Because of the nature of the HIV/AIDS virus and the ongoing nature of the fight against HIV/AIDS, it is very difficult to determine accurately the outcomes and impact of the company’s efforts. However, while some results are more difficult to find, others are easier to quantify. For instance, about 1,750 employees have taken advantage of the anonymous HIV/AIDS testing (Oct. 2002), 180 employees were trained as peer educators on HIV/AIDS issues and 137 employees and family members are receiving treatment for the virus (August 2002). In addition to these quantifiable outcomes, it should be noted that through the various aspects of the project, the company is addressing some very important human rights. Most notable among these are; 
*The right to the highest attainable standard of physical and mental health 
*The right to information and education 
The right to privacy 
The right to be free from discrimination in the workplace 

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1 DaimlerChrysler South Africa (2001): Group Annual Report. Pretoria, South Africa 
2UNAIDS/WHO (2002) : Epidemiological Fact Sheet South Africa. 2002, update (www.unaids.org) 
3http://www.warmafrica.com/index/geo/5/cat/5/a/a/artid/239 date accessed 15-08-2003 

UN Global Compact Resource Package