Presentation on theme: "The Business of Empowering Women November 18, 2009 Presentation at the World Bank’s GAP Event Working Women: Better Outcomes for Growth CONFIDENTIAL AND."— Presentation transcript:
The Business of Empowering Women November 18, 2009 Presentation at the World Bank’s GAP Event Working Women: Better Outcomes for Growth CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of McKinsey & Company is strictly prohibited
McKinsey & Company | 1 McKinsey & Company’s Social Sector Office helps the world’s leading institutions develop and scale up solutions to major societal challenges Global Public Health Economic Development Philanthropy Education Climate Change
McKinsey & Company | 2 The Business of Empowering Women is a further contribution to the mission of our Social Sector Office Presents a case for why and how the private sector should economically empower women in developing countries 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 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 The World Bank and PSLF collaboration ▪Member of the Global Private Sector Leaders Forum of the World Bank Group’s Gender Action Plan (PSLF) ▪Important insights provided by the PSLF team and member organizations Informs impactful action by the private sector at each stage of women’s lives The Business of Empowering Women… …and draws on:
McKinsey & Company | 3 The case for economically empowering women: Economically empowered women… …create healthier and more productive societies …help private sector organizations achieve their aspirations and ▪ 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 ▪ Women’s 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
McKinsey & Company | 4 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 Private sector development Poverty reduction Education Access to law and justiceAccess to law and justiceAccess to law and justiceAccess to law and justice Total Health outcomes improvement Note: Total includes private sector organizations whose engagement includes gender equality/women’s economic empowerment Percentage selecting Does your company’s engagement in the issues selected by you as key to economic growth in developing countries and emerging markets focus specifically on women?
McKinsey & Company | 5 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 30 Newly opened markets and fairer trade Improved relationship with international NGOs or multilaterals An increase in employee productivity and retention in developing and emerging economies An increase in the pool of skilled and accessible labor 66 64 An increased ability to recruit talent in developed countries 57 38 Creation of new markets or expansion of existing markets 58 An improved relationship between the company and government officials 40 Enhanced brand reputation59 Percentage selecting In what ways did or will such engagement with women generate higher profits for your company (72% reported link to their organizations’ increased profitability) ?
McKinsey & Company | 6 Employment InfancyChildhood Income readiness Entrepreneurship Financial security LeadershipAdolescenceInfancyChildhood Income readiness Employment Entrepreneurship Financial security LeadershipAdolescence What the private sector can do to make a difference: Impactful actions to drive economic empowerment of women at each stage of their lives ▪ Provide education, vocational training, and employment opportunities – Support educational scholarships or training opportunities that lead to higher levels of education and/or better employment – Provide training in high-demand, well-paid vocational skills ▪ Build self-esteem and confidence – Help deliver programs to increase self-esteem – Provide mentors to advise and serve as role models ▪ Create opportunities for women – Make women aware of employment opportunities and how to obtain the skills required to capture them – Actively recruit women for jobs – Advocate for and enforce non- discriminatory hiring policies ▪ Help retain and develop women – Support the needs of women in the workplace (e.g., with maternity and family leave, healthcare benefits, childcare) ▪ Extend credit to female entrepreneurs, on terms that recognize the unique challenges and circumstances facing women in the developing world ▪ Advocate for credit standards, property rights protections, and asset documentation rules that do not disadvantage women ▪ Help provide secure (preferably on- site) savings accounts for employees ▪ Provide financial literacy training, including retirement strategies ▪ Support extension of healthcare, disability, and retirement benefits to women Income readiness Employment Financial security Entrepreneurship
McKinsey & Company | 7 Moving forward: Supporting women’s economic empowerment is a good business and more private sector organizations will join in Performance improvement Stated need of local communities Additional value to be generated Don’t know Other Media/NGO pressure Global giving trends Corporate tradition/culture Employee interest Personal interest of CEO/board/ senior management Percentage of respondents 67% of our survey respondents expect their engagement with women in developing countries to increase over the next 3 years Which of the following reasons, if any, would be the most likely to compel your company to engage with a women- specific focus in developing countries and emerging markets?