GlobalCompactGermany

The UN Global Compact is the world’s largest and most important initiative for responsible corporate leadership. The vision of the UN Global Compact is an inclusive and sustainable global economy based on its ten universal principles – today and in the future.The Global Compact Network Germany (DGCN) helps companies and organizations to orient their strategies and activities on sustainability goals and on the vision of the UN Global Compact.The number of German signatories of the UN Global Compact is increasing in the German Global Compact Network: At the time of writing, the total number was 430 companies, ranging from DAX enterprises and SMEs to very small specialist companies, plus organisations from civil society, academia and the public sector. In the Network, they can get information about all the topics concerning corporate responsibility, the sharing of ideas and cooperation on practice-oriented solutions.For more information visit: <a href="http://www.globalcompact.de">www.globalcompact.de&l…;

Equality is business

Employment
Gender
SDGs
Education
29. Aug 2017

Gender Equality – Business Opportunity and Social Impact

Women and girls account for more than half of the world´s population, but their integration into the labor force is not proportional. Whereas three quarters of men are integrated, only 50% of women of working age participate in the global labor force (Source: UN Women 2015). This results in a huge unused economic potential for businesses. An equal participation of women and men in the formal economy would add an estimated 28 trillion USD to the global GDP (Source: McKinsey Global Institute).

Women's empowerment has verifiable impacts on the productivity and profitability of the company itself. Companies with a diverse workforce are 22% more productive, have 27% higher profitability and 39% higher customer satisfaction (Source: Cumulative Gallup Workplace Studies). Increased women's empowerment can lead to higher delivery reliability by minimizing risks such as fluctuation and work loss. It also strengthens a company's attractiveness and reputation as employer, which can reduce the cost of recruitment and achieve staff retention. Continuing to engage in women's empowerment further increases a company's attractiveness to investors, who correlate gender equality and future growth.

Investment in women's empowerment is more than a good business practice: it is a global priority. Since the introduction of the Agenda 2030 for Sustainable Development 2015, which lays out a path for all nations to work collectively towards a sustainable future, gender equality has been seen as a global challenge that needs be tackled with the indispensable help from the global economic sector. The UN Global Compact ranks gender equality among the Top 10 global opportunities and it is ranked the third most likely to be pursued by business. Combating inequalities will be of the utmost importance in the coming years, and business can ensure their products and services contribute to battling inequalities rather than further entrenching them. (Source: UNGC Global Opportunity Report 2017).

Companies investing in gender equality directly help to reduce poverty and contribute to economic growth and a sustainable future. An emphasis on gender equality will strengthen communities because women with a stable salary are more likely to reinvest the salary in their families and communities than men. This contributes to more stable and better-educated societies for the next generation.

Options for action are versatile

Many companies have already embraced the importance of gender equality within their own business and set good examples for other companies to follow and find inspiration. The focus of the engagement lies in several areas. The

Best-practice examples can be found in the publication “Empowering Women in Global Supply Chains” of the German Global Compact Network
Best-practice examples can be found in the publication “Empowering Women in Global Supply Chains” of the German Global Compact Network

publication “Empowering Women in Global Supply Chains” of the German Global Compact Network mentions some of them, for instance:

  • Considering risks for women in global supply chains

Improved working conditions for women can increase the productivity and minimize the risk of the company. For example, the provision of a kinder garden and a hospital for factory workers and their families in a Vietnamese industry company reduced the rate of absence and employee fluctuation. Furthermore, labor disputes lessened, costs decreased and the productivity increased sustainably.

  • Partnerships with women-owned female-owned businesses

To ensure competitiveness and high quality products, an international beverage producer strives for a diversification of its suppliers, with a special focus on female-owned businesses at every stage of the value chain, from producers, distributors and retailers to recyclers or artisans. For that, they provided a versatile training program for women to train their business skills and knowledge about financial transactions (e.g. how to open up a bank account). With this knowledge, businesses owned by women constitute a powerful and long-lasting partner for the company.

Where to start? - Women's Empowerment Principles Gap Analysis Tool

While the importance of gender equality and women's empowerment to a company cannot be overstressed, for a company these values may be difficult to implement throughout the business operations. To help companies to come up with a strategic plan to identify strengths, gaps, and opportunities to improve the companies´ performance on gender equality, a joint initiative of the UN Global Compact, UN Women and the Inter-American Development Bank developed the Women's Empowerment Principles Gap Analysis Tool (WEPs Tool). Grounded in the Women's Empowerment Principles (WEPs), the tool helps companies to assess current policies and programs, highlight areas for improvement, and identify opportunities to set future corporate goals and targets.

With an 18-questions questionnaire, companies are able to assess themselves confidentially in their performance on gender equality and identify ways for improvement.

Stakeholder Workshop of the German Global Compact Network and UN Women National Comittee Germany (September 2016)
Stakeholder Workshop of the German Global Compact Network and UN Women National Comittee Germany (September 2016)

The tool was developed by over 170 businesses in collaboration with institutions like the German Global Compact Network and the UN Women National Committee Germany, who organized a stakeholder workshop for its elaboration.

Topics covered by the assessment include: commitment to a gender equality strategy, equal pay, recruitment, supporting parents and caregivers, women’s health, inclusive sourcing, and advocacy for gender equality in communities of operation. Each question is organized according to a management model, which guides companies of all sizes through the process of formally committing, implementing & action, measuring, communicating progress, and taking action. Furthermore, the assessment results offer best practice examples and the possibility to benchmark against peers and industry standards.

The self-assessment takes about 2-3 hours, is easily done online and is free of charge. How does your company perform in women empowerment to use its full potential and contribute to a more sustainable and equal economic future? Find out at: weps-gapanalysis.org/

This blog is a part of the September 2017 series on Empowering women, in partnership with SPRING.

Read the full series for insights on business models that empower girls and women, a new analysis of gender impacts of value chain interventions, tips on gender-lens investing and many inspiring personal stories from women.

This post was also published at the website of the German Global Compact Network: www.globalcompact.de/de/newscenter