EQUALITY MEANS BUSINESS Launch of the Women s Empowerment Principles 9 March 2010 The Levin Institute, New York City Women s Empowerment Principles in Brief 1. Establish high-level corporate leadership for gender equality. 2. Treat all women and men fairly at work respect and support human rights and nondiscrimination. 3. Ensure the health, safety and well-being of all women and men workers. 4. Promote education, training and professional development for women. There are many reasons why gender matters but you do need the right tool for different stakeholders for the global business community, it s essential that we work together to realize the Women s Empowerment Principles Equality Means Business Inés Alberdi, Executive Director UNIFEM We see the Women's Empowerment Principles as pointing the way to best practice by elaborating the gender dimension of good corporate citizenship, the UN Global Compact, and business' role in sustainable development Georg Kell, Executive Director, UN Global Compact 5. Implement enterprise development, supply chain and marketing practices that empower women. 6. Promote equality through community initiatives and advocacy. 7. Measure and publicly report on progress to achieve gender equality. Photo credit: UN Photo/Devra Berkowitz 1
EQUALITY MEANS BUSINESS On 9 March 2010, business, civil society, Government and academia representatives from around the world convened at the Levin Institute in New York City to launch the Women s Empowerment Principles Equality Means Business (WEPs) i. The event, titled Equality Means Business, introduced the Principles, explored their practical relevance for business, and investigated how best to build support for the spirit of the WEPs. Presentations and remarks from the event are available at: http://www.unglobalcompact.org/issues/human_rights/equality_means_business.html ABOUT THE WEPS The Women s Empowerment Principles offer guidance on empowering women in the workplace, marketplace and community. They are the result of collaboration between the United Nations Development Fund for Women (UNIFEM) and the United Nations Global Compact. The development of the Principles included an international multi-stakeholder consultation process, which was launched in March 2009. Sub-titled Equality Means Business, the Principles emphasize the business case for corporate action to promote gender equality and women's empowerment and are informed by real-life business practices and input gathered from across the globe. Rather than being prescriptive or a new initiative to which business is asked to subscribe, the Women's Empowerment Principles seek to point the way to best practice by elaborating the gender dimension of the UN Global Compact and corporate sustainability as well as the role business can play to promote sustainable development. In addition to being a useful guide for business, it is hoped that the Principles will inform other stakeholders, including Governments, in their engagement with business. MEETING HIGHLIGHTS Why Gender Matters and the Business Case for Women s Empowerment The first two sessions highlighted the latest research and resources making the business case for gender equality. Both sessions set the stage for the Women s Empowerment Principles why we need them, why now with a focus on how businesses can make or strengthen their own specific case for further action to empower women within their organizations. 2
The Business Case It was noted that the business case for the empowerment of women has strengthened significantly in recent years. Research now confirms that companies that invest in women s empowerment and rights show an increase in profits, and that there is a significant correlation between competitiveness and those companies and countries that have narrowed their gender gaps. Diversity makes business sense because it maximizes a company s access to skills, perspectives and markets. Relevance of the Financial Crisis Attention was drawn to the impact of the recent financial crisis, which has demonstrated that markets cannot function adequately without an ethical grounding. The financial crisis has caused people to take note of gender disparities and has given weight to arguments calling for gender equality. Women s Empowerment and the MDGs It was noted that it is impossible to achieve the Millennium Development Goals (MDGs) without full participation by women and equal opportunity. Companies alone cannot change entrenched norms, but business does have the ability to create options for women in the workplace, marketplace and community. Moreover, business has a responsibility not to exacerbate existing discrimination. Changing Attitudes, Engaging Leaders: This session explored how business can and does lead by example, highlighting innovative corporate initiatives and programmes aimed at changing cultures within the company and beyond. Misconception that Gender Diversity is No Longer an Issue Participants reported that although gender equality has yet to be achieved, a surprising number of people believe that it is no longer an issue. This disconnect between the persisting gender gap and the belief that it no longer exists is a key challenge that must be addressed. While it was noted that young women in particular tend to believe that gender inequality is an issue of the past, many other women around the world continue to experience such inequality. Gender disparities may be less apparent at the entry level in many workplaces, but it is still there and typically grows wider the higher in the organization one looks. The Glass Ceiling is Lower than We Thought Although progress has been made, female representation declines significantly the higher one looks at an organization s ladder. Participants discussed the 50-30-10 trend, which suggests that while many firms have achieved equal employment at lower levels of the organization, female representation in middle-management positions tends to drop to 30 per cent and further drops to 10 per cent at top levels. Participants agreed that true gender equality would require 50 per cent female representation throughout an organization. Gender Fatigue Speakers noted that both men and women have expressed tiredness regarding the issue of gender inequality. In particular, those in middlemanagement positions are often reluctant to address issues beyond diversity and 3
inclusion programmes and sometimes act as reluctant gatekeepers to progress. More effort must be made to solicit middle-management support for targeted gender diversity programmes and initiatives. Engaging Men Both women and men must be made aware of the benefits of gender diversity. It is imperative that an us vs. them relationship not develop and that men are included as partners in the fight for gender diversity in the workplace, marketplace and community. The importance of educating men about the business case for diversity and providing them with supporting data was discussed. In addition, men who champion inclusion should be recognized. Government A consistent theme that arose during the day was that Governments can help encourage companies to act on their commitments to gender equality and can push companies to develop programmes aimed at empowering women. Countries such as Finland, Canada, Spain and Norway have adopted federal regulations regarding gender diversity. Similarly, the Australian Government has encouraged companies to address gender issues including by releasing reports on pay parity and requiring all companies on the Australian Securities Exchange to list their gender objectives. The United Arab Emirates Government also encourages employment and opportunities for women and, in an effort to lead by example and change attitudes, has appointed several women to high-level posts both domestically and abroad. As these examples show, in some cases, Governments have progressed beyond business in terms of women s empowerment. The WEPs allow these Governments to engage with the private sector on opportunities for progress. Participants emphasized that international principles and global corporate responsibility initiatives, such as the UN Global Compact, are also helping to change attitudes and mainstream corporate responsibility. Women in Leadership Positions Appointing women to leadership positions remains a key challenge for many businesses. While many companies have achieved gender equality at entry levels of their organization, only 30 per cent of mid-level positions and 10 per cent of top-level positions are held by women. Women are also underrepresented on boards despite research that suggests that companies with women on their boards outperform those that do not have female representation. Across the world, the number of women in 4
high level positions in academia and politics also remains low. As a result, the voice of women is not adequately heard. For instance, it was noted that less than 20 per cent of participants at the World Economic Forum are women; this number has not increased since 2005. Women as Role Models It is difficult for young women to become what they can t see. It was noted that in most organizations, the ideal worker is still considered to be able-bodied, heterosexual and male. Female role models can help young girls build their self-esteem and recognize their true potential. Cultural Context Participants noted that although the Women s Empowerment Principles are globally applicable, they will have different impacts in different parts of the world. Thus, they will need to be approached in a way that is sensitive to local conditions. Investors The concept of sustainable investment includes investing in companies that invest in women. Participants noted that investment firms increasingly insist that corporations integrate women s empowerment into their corporate responsibility commitments. Academia Participants recognized the importance of raising awareness of gender issues on campuses and particularly in MBA programmes. Workplace Practices to Empower Women: There is much that is being done and much more that can be done to empower women in the workplace. This panel examined how to make the goals of the Women s Empowerment Principles a reality in the workplace. It highlighted existing workplace policies, practices and programmes aimed at empowering women and explored how the WEPs can serve as a tool to maximize impact. Creating Inclusive Corporate Cultures The challenges involved in creating an inclusive corporate culture were discussed. While some companies recognize that difference is valuable and that a woman s vision can help improve a company s bottomline, it remains difficult for companies to address prejudices and stereotypes that are ingrained in the company culture and society more broadly. Exclusive environments may force women to believe that they must become part of the boys 5
club or adopt masculine business behavior in order to succeed. Creating formal and informal networks for women, developing mentorship opportunities and providing resources to cultivate the skills, talents and confidence of female employees will help create an inclusive corporate culture, resulting in increased productivity. The need for and value of female role models was also mentioned. Learning From Example Participants noted the value in sharing good practices and lessons learned. In this way, organizations in both the public and private sector can learn from each other s experiences addressing gender issues. The document Companies Leading the Way: Putting the Principles into Practice provides a brief introduction to successful polices and practices implemented by companies around the world. (http://www.unglobalcompact.org/docs/issues_doc/human_rights/resources/co mpanies_leading_the_way.pdf) Strategic Policies and Programs Speakers and participants agreed that strategic and targeted efforts are needed to empower women and address gender inequality. Commitment alone is not enough. Company programmes and efforts such as seeking senior management commitment to equality, creating networking and mentoring opportunities for women, tracking and monitoring progress, offering flexible work options and investing in and encouraging female entrepreneurs are critical to achieving gender equality. These actions are also captured in the WEPs, which participants pointed to as a key framework and tool to help drive and operationalize corporate gender equality commitments. Non-Traditional Jobs for Women Depending on specific social/cultural contexts, women may be restricted or discouraged from applying for or obtaining certain positions. Efforts must be made to expand the range of work opportunities for women and encourage women to consider non-traditional jobs. Similarly, men should not be discouraged from considering positions that have traditionally been held by women. Industry Specific Challenges Participants noted that companies operating in various sectors face industry-specific challenges. Empowerment Along the Value Chain: Procurement practices and the value chain present another key opportunity for business to empower women, yet gender is often overlooked in value chain 6
analyses. This session discussed the significance of gender in value chains and looked at the application of the Women s Empowerment Principles in this context. Working with Women Suppliers in the Supply Chain Speakers discussed the impacts and benefits of building relationships with womenoperated suppliers. Empowering women by providing them with employment and income can have far reaching effects on the community. Moreover, there is a strong business case for hiring women-operated suppliers, particularly in light of the correlation between the success of women and business success,. Companies may also consider encouraging the development of indirect relationships with female-run sub-suppliers. Recognizing the Needs and Expectations of Women Workers Participants noted that the needs and wants of female workers are not always the same as male workers and highlighted the importance of asking women at the working level what their expectations are and what they consider to be important in order to provide them with the support they need to thrive. Investing in Women s Health Speakers discussed the business case for investing in the health of women, especially in the developing world. It was noted that investing in the health and health education of female employees results in decreased absenteeism and increased productivity. According to a 2007 study, factories reaped a return of 3 USD for every 1 USD invested in women s health training and services. ON THE RECORD: TRANSPARENCY AND REPORTING: Lack of Transparent Gender Reporting Although many companies now recognize the business case for gender equality and have launched programmes and initiatives aimed at empowering women, few are monitoring their performance or communicating their progress in a transparent way. However, companies that do report on their progress have found that doing so helps to set gender goals and targets. Being able to communicate progress can also create a competitive advantage. Data is Critical Participants noted data can help build the business case for gender equality, drive accountability, help create benchmarks and mainstream gender issues so that the empowerment of women is viewed as a business driver, rather than solely as a component of a company s CSR strategy. Data can also help fight stereotypes that impede the advancement of women. For instance, data Slide from PowerPoint presentation made by Ms. Saadia Zahidi, Director and Head of Constituents, World Economic Forum 7
collected by Infosys militates against the misconception that women are unlikely to return from long sabbaticals. Choosing Indicators Participants recognized that it is important to be inclusive when reporting on gender. For instance, companies should not only consider the total number of women employees, but rather, should also consider what positions are held by women in their company. In addition to quantitative data, companies should monitor employee perceptions regarding gender issues through qualitative data collection. The Global Reporting Initiative (GRI) also suggests looking at what existing indicators can be reported on from a gender perspective. Remedies and Consequences for Non-Performance In order for gender reporting to be effective, companies should ensure that remedies and mechanisms are in place to address any shortcomings that may become apparent as a result of the reporting exercise. Participants also recognized the value of setting deadlines and appointing individuals within the organization to ensure that progress is monitored and inadequacies are addressed. FINAL THOUGHTS AND NEXT STEPS: Speakers highlighted the importance of the Women s Empowerment Principles as a tool for mainstreaming women s issues into business practices and integrating the gender dimension into the corporate sustainability agenda. Participants were hopeful that the WEPs will provide a strategic framework for companies, providing them with a menu of concrete ways to address gender disparities within their organizations and beyond. Many participants offered to disseminate the WEPs to their networks as well as referencing them in their own work. Photo credit: Matt Hawk i The Women s Empowerment Principles, the product of a collaboration between UNIFEM and the UN Global Compact informed by an international multi-stakeholder consultation, are adapted from the Calvert Women s Principles. The Calvert Women s Principles were originally developed in partnership with UNIFEM and launched in 2004 as the first global corporate code of conduct focused exclusively on empowering, advancing and investing in women worldwide. 8