The Business of

Empowering Women

Presentation at the World Bank’s GAP Event

Working Women: Better Outcomes for Growth
November 18, 2009

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McKinsey & Company’s Social Sector Office helps the world’s leading
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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 Informs impactful action by the
the private sector should private sector at each stage of
economically empower women in women’s lives
developing countries

…and draws on:

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

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The case for economically empowering women: Economically
empowered women…
and
…create healthier and more
productive societies
▪ 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
…help private sector organizations
achieve their aspirations
▪ 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 Percentage selecting
company’s
Poverty reduction 27 73
engagement in the
issues selected by Access to law
24 76
you as key to and justice
economic growth in Education 21 79
developing
Health outcomes
countries and 18 82
improvement
emerging markets Private sector
focus specifically 12 88
development
on women?

Total 19 81

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

Percentage selecting

An increase in the pool of skilled and

66
accessible labor
In what ways did An increase in employee productivity and
or will such 64
retention in developing and emerging economies
engagement with
Enhanced brand reputation 59
women generate
higher profits for Creation of new markets or expansion of
58
your company existing markets
An increased ability to recruit talent in
(72% reported link 57
developed countries
to their An improved relationship between
organizations’ 40
the company and government officials
increased
Newly opened markets and fairer trade 38
profitability) ?
Improved relationship with international
30
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

Employment
▪ Provide education, vocational training, and
employment opportunities
– Support educational scholarships or
▪ Create opportunitiestraining
for women
opportunities that lead to higher
▪ – Makecredit
Extend
▪ Help provide secureand women to aware
female
(preferably on-site)
ofentrepreneurs,
employment opportunities
on terms
how to obtain
levels
the
of education
skills required
and/or
to
better
capture them
that recognize the
savings accounts for employees employment unique challenges and
– Actively recruit women for jobs
▪ Provide financialcircumstances
literacy
Income
– training,
Advocate for
facing
–and
women
including
Provide
enforce
in the developing
training in high-demand,
Financial
non-discriminatory hiring well-
Infancy Childhood Adolescence world
retirement strategies Leadership
▪ policiesfor creditpaid
readiness
Advocate
vocational
standards,
skills
security
property rights
▪ Support extension of healthcare, disability,
protections,
and retirement▪benefits and asset documentation rules that do
to women
Help retain and
not disadvantage ▪ Build
develop self-esteem
women women and confidence
– Support the needs – Help deliver in
of women programs to increase
the workplace (e.g., self-
with maternity and family leave, healthcare benefits,
esteem
childcare) – Provide mentors to advise and serve as
Entrepreneurship
role models

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

Additional value to be generated 25

Which of the Stated need of local
15
following reasons, if communities
any, would be the Performance improvement 10
most likely to Personal interest of CEO/board/
10
compel your senior management
company to engage Employee interest 9
with a women- Corporate tradition/culture 6
specific focus in
developing Global giving trends 4

countries and Media/NGO pressure 3

emerging markets?
Other 5

Don’t know 13

67% of our survey respondents expect their engagement with women in

developing countries to increase over the next 3 years
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