The Business of Empowering Women

Presentation at the World Banks GAP Event Working Women: Better Outcomes for Growth November 18, 2009

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McKinsey & Companys Social Sector Office helps the worlds leading institutions develop and scale up solutions to major societal challenges

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The Business of Empowering Women is a further contribution to the mission of our Social Sector Office
The Business of Empowering Women
Presents a case for why and how the private sector should economically empower women in developing countries Informs impactful action by the private sector at each stage of womens lives

and draws on:

External Insight More than 50 interviews with social and private sector experts and leaders engaged in this field Review of leading research and action on the topic McKinsey insight McKinsey Quarterly Global Survey of 2,300 senior private sector executives worldwide Our analysis, expertise and experience, including our work on women and private sector engagement The World Bank and PSLF collaboration Member of the Global Private Sector Leaders Forum of the World Bank Groups Gender Action Plan (PSLF) Important insights provided by the PSLF team and member organizations
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The case for economically empowering women: Economically empowered women

create healthier and more productive societies and help private sector organizations achieve their aspirations

83% of our survey respondents indicate that growth in developing countries and emerging markets is important to their companies success over the next 10 years Womens economic empowerment creates a multiplier effect that benefits women, the societies they live in, and the next generation Gender gaps in education and employment have been shown to inhibit economic growth

Our research found three key links between economically empowered women and better company performance

Large, often very large, markets

A talent source and a global talent

advantage

Enhanced reputation and brand

72% of our survey respondents note a direct link to their companies current (34%) or expected (38%) profitability

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Only one fifth of respondents report that their companies efforts focus specifically on women

Engagement focuses specifically on women Engagement does not focus specifically on women

Does your companys engagement in the issues selected by you as key to economic growth in developing countries and emerging markets focus specifically on women?

Percentage selecting Poverty reduction

27 24 21 18 12 73 76 79 82 88

Access to law and justice

Education

Health outcomes improvement Private sector development

Total

19

81

Note: Total includes private sector organizations whose engagement includes gender equality/womens economic empowerment

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But out of those who do, more than two thirds have seen or expect to see higher profits as a result, via a number of ways
Percentage selecting An increase in the pool of skilled and accessible labor An increase in employee productivity and retention in developing and emerging economies Enhanced brand reputation 66

In what ways did or will such engagement with women generate higher profits for your company (72% reported link to their organizations increased profitability) ?

64
59 58 57 40 38 30

Creation of new markets or expansion of existing markets An increased ability to recruit talent in developed countries An improved relationship between the company and government officials
Newly opened markets and fairer trade Improved relationship with international NGOs or multilaterals

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What the private sector can do to make a difference: Impactful actions to drive economic empowerment of women at each stage of their lives

Infancy

Employment Provide education, vocational training, and employment opportunities Support women Create opportunities for educational scholarships Extend credit to or on- of opportunities that female Make women training employment Help provide secure (preferablyawareentrepreneurs, on lead terms that recognize the levels challenges opportunitiesto higher to obtain the skills and how site) savings accounts for employees unique of education and/or better employment the andliteracy to capture them circumstances Income Financial Provide financial requiredtraining,facing women in Childhood Adolescence Leadership readiness recruit security developing world women for jobs high-demand, Actively Provide training in including retirement strategies Advocate for credit enforce non- skills Advocate forwell-paid vocational and Support extension of healthcare, standards, property discriminatory and disability, and rights protections, hiring policies retirement benefits to asset documentation Build self-esteem and confidence rules that do not disadvantage women women develop women Help retain and Help deliver programs to increase self-esteem Entrepreneurship Support the needs of women in the workplace Provide mentors toand family (e.g., with maternity advise and serve as role childcare) leave, healthcare benefits,models

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Moving forward: Supporting womens economic empowerment is a good business and more private sector organizations will join in
Percentage of respondents Additional value to be generated
25 15 10 10 9 6 4 3 5 13

Which of the following reasons, if any, would be the most likely to compel your company to engage with a womenspecific focus in developing countries and emerging markets?

Stated need of local communities

Performance improvement Personal interest of CEO/board/ senior management

Employee interest
Corporate tradition/culture Global giving trends Media/NGO pressure Other Dont know

67% of our survey respondents expect their engagement with women in developing countries to increase over the next 3 years
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