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
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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
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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:
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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
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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
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?
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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
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) ?
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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
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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?
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