* Any views expressed in this opinion piece are those of the author and not of Thomson Reuters Foundation.
The potential impact of investing in the empowerment of women and girls cannot be underestimated. Research shows us that if women’s paid employment rates were raised to the same level as men’s, the United States’ gross domestic product (GDP) would be an estimated 9 percent higher, the Euro Zone’s GDP would climb by 13 percent and Japan’s would be boosted by 16 percent.[1] In 15 major developing economies, per capita income would rise 20 per cent by 2030.[2] Empowering women also benefits men and children, and is pivotal to the health and social development of families, communities and nations.
Women’s empowerment is not only a development goal in itself but also a key ingredient to achieving a wide range of sustainable development targets. When addressing global challenges it is imperative that the impacts on women and girls are considered and that the talents, skills and innovation of women and men are leveraged to bring lasting change.
For example, while women are more often the victims of hunger, according to the World Food Programme they also present the most effective solution to combatting and preventing hunger.[3] The Food and Agriculture Organization estimates that if women had the same access as men, agricultural output in 34 developing countries would rise by up to an average of 4 percent. This could reduce the number of undernourished people in those countries by as much as 17 percent. That translates to up to an astonishing 150 million fewer hungry people.[4]
Water and sanitation is another development priority with a strong gender dimension. Although women in many countries are responsible for ensuring their families have access to water for cooking, food preparation, personal hygiene and sanitation, efforts to improve water management often overlook the knowledge and skills of women.[5]
For women to reach their full potential and maximize their contribution to sustainable development, the many barriers to women’s and girls’ empowerment must be eliminated. Violence against women continues to threaten the safety, well-being and potential of women and girls across the globe. Women and girls represent 55 percent of the 20.9 million victims of forced labour worldwide, and 98 percent of the 4.5 million forced into sexual exploitation.[6]
The workplace also presents formidable barriers for women. Women constitute only 40 percent of the formal global labour force[7], and the gender gap at the leadership level is even greater with men making up 82 percent of all S&P 500 Board seats.[8] In the majority of countries, women’s wages represent 70 to 90 percent of men’s[9]. While often invisible, these gender stereotypes and biases deepen inequality and limit opportunities for both women and men.
EQUALITY MEANS BUSINESS
The private sector represents a major opportunity to help break down these barriers and create opportunities for women. The Women’s Empowerment Principles (WEPs), an initiative co-led by the UN Global Compact and UN Women, provide a roadmap for business on how to empower women in the workplace, marketplace and community – and elaborate how gender ties in to both corporate responsibility and sustainable development.
The business case for corporate action to promote gender equality and women's empowerment is stronger than ever. More than 800 business leaders have signed a CEO Statement of Support for the WEPs, recognizing that investing in women and girls is not only the right thing to do, it is the smart thing to do.
Companies with three or more women corporate directors from 2004 through 2008 outperformed those with no women on the board by 84 percent on return on sales, 60 percent on return on invested capital (ROIC) and 46 percent on return on equity.[10] Programmes to support female employees’ health have reported a return on investment as high as 4:1.[11] Companies that invest in women’s entrepreneurship and engage women-owned businesses in their value chains find that it broadens their talent pool, creates vendor competition and increases their competitive advantage.
Companies that support the WEPs are turning the dial by integrating gender equality into their corporate sustainability strategies. Specific actions by WEPs companies include a Mexican bank that offers a portfolio of financial solutions designed specifically for women in the local market and funds a foundation that supports women entrepreneurs; a large beverage company with a global initiative to enable the economic empowerment of 5 million women entrepreneurs across its value chain by 2020; and a United States software company that aims to improve gender representation, eliminate stereotyping imagery and ensure ethical marketing standards in all sales, promotional and advertising materials.
As the engine for job growth, technological innovation, capital creation and investment, twenty-first century business is critical to advancing women’s and girls’ empowerment. By leveraging the Women’s Empowerment Principles, companies can change the paradigm for private sector engagement and showcase how business can take action to empower women and promote gender equality.
Georg Kell is the executive director of the UN Global Compact, the world's largest voluntary corporate sustainability initiative with 8,000 corporate participants in 145 countries.
[1] Kevin Daly, 2007, “Gender Inequality, Growth and Global Ageing,” Global Economics Paper 154, Goldman Sachs. - See more at: http://www.unwomen.org/en/what-we-do/economic-empowerment/facts-and-figures#notes
[2] Calculation comprises Bangladesh, Brazil, China, Egypt, India, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Republic of Korea, Russia, Turkey and Viet Nam. Sandra Lawson, 2008, “Women Hold Up Half the Sky,” Global Economics Paper 164, Goldman Sachs. - See more at: http://www.unwomen.org/en/what-we-do/economic-empowerment/facts-and-figures#notes
[3] http://www.wfp.org/focus-on-women
[4] Food and Agriculture Organization, 2010–2011, The State of Food and Agriculture: Women in Agriculture: Closing the Gender Gap for Development, p. 40. - See more at: http://www.unwomen.org/en/what-we-do/economic-empowerment/facts-and-figures#notes
[5] http://www.un.org/waterforlifedecade/pdf/un_water_policy_brief_2_gender.pdf
[6] Figure derived from data based on a 2002-2011 reference period. International Labour Organization, 2012, “ILO Global Estimate of Forced Labour: Results and Methodology,” p. 14, Geneva. - See more at: http://www.unwomen.org/en/what-we-do/ending-violence-against-women/facts-and-figures#notes
[7] International Monetary Fund, 2013, “Women, Work, and the Economy” IMF Staff Discussion Note pg. 6, see more at: https://www.imf.org/external/pubs/ft/sdn/2013/sdn1310.pdf
[8] http://www.bloombergview.com/quicktake/women-boards
[9] International Labour Organization, 2009, “Global Employment Trends for Women,” p. 19. - See more at: http://www.unwomen.org/en/what-we-do/economic-empowerment/facts-and-figures#notes
[10] Pax Ellevate. (2014) “Why Invest in Women. See more at: http://www.paxellevate.com/fund/why-invest-in-women
[11] http://herproject.org/herhealth
