The Business of Empowering Women

November 18, 2009

Presentation at the World Bank’s GAP EventWorking Women: Better Outcomes for Growth

CONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission of McKinsey & Company is strictly prohibited

McKinsey & Company 2 |

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 3 |

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 4 |

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 5 |

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

27

24

21

18

12

19

73

76

79

82

88

81

Private sectordevelopment

Poverty reduction

Education

Access to law

and justice

Total

Health outcomes improvement

Note: Total includes private sector organizations whose engagement includes gender equality/women’s economic empowerment

Percentage selectingDoes 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 6 |

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 andretention in developing and emerging economies

An increase in the pool of skilled andaccessible labor

66

64

An increased ability to recruit talent indeveloped countries

57

38

Creation of new markets or expansion ofexisting markets

58

An improved relationship between the company and government officials

40

Enhanced brand reputation 59

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 7 |

Employment

Infancy ChildhoodIncomereadiness

Entrepreneurship

Financial security

LeadershipAdolescenceInfancy ChildhoodIncomereadiness

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

Incomereadiness

Employment

Financial security

Entrepreneurship

McKinsey & Company 8 |

Moving forward: Supporting women’s economic empowerment is a good business and more private sector organizations will join in

13

5

3

4

6

9

10

10

15

25

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?

McKinsey & Company 9 |