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Driving Meaningful Impact out of International Women’s Day

Successful companies not only meet their customers’ needs, they invest in innovation and new markets, build communities, and ensure they have a diverse staff. In today’s marketplace, companies play a critical role as corporate citizens and can be trusted partners with the public sector. A focus on gender equality, diversity, and women’s leadership is not just a philanthropic goal, it is central to business success and must be integrated into business operations.

Companies that are committed to equality and sustainability — both internally and externally — can expand market share, and burnish their reputation as good citizens, as consumers look for products reflecting their values. Globally, almost two-thirds of consumers prefer to buy from companies that reflect their personal values and beliefs.

Diverse teams increase profitability, innovation, and the ability to identify new markets and opportunities. A McKinsey and Co study found that companies in the top 25 percent for gender diverse executive teams were over 20 percent more likely to exceed average profitability. Diverse teams help companies benefit from different viewpoints and avoid missteps, such as Gucci’s launch of a sweater during Black History Month that reinforced racial stereotypes and Apple’s programming of Siri to respond inappropriately to user questions about sexual harassment.

There are other concrete steps that companies can make to achieve meaningful success through their equity strategies. Companies should buy more goods and services from women-led and other diverse businesses. Companies should identify barriers in their own systems, such as cumbersome and lengthy application processes, that prevent diversity in supply chains. For example, Walmart leverages its size and scale to source more from women-owned businesses, but this type of supply chain diversification doesn’t have to be limited to large organizations.

Companies can also partner with the public sector to develop strong enabling and legal environments critical to women’s success, including skill development and laws that make it easier for women to access quality education, child care, and health care. Legal frameworks that ensure non-discrimination, and protect against sexual harassment, assault and violence are good for business as they help attract and retain talent.

Enhancing enterprise-wide equality and diversity are not only the right thing for organizations to prioritize, but this effort is foundational to business success.

StartUps: Embedding a Focus on Gender From Day One

Businesses ignore women — and a focus on gender — at their peril. Everyone from startup founders to CEOs of Fortune 500 companies needs to promote women’s leadership, create safe and fair workplaces, support and engage women in the community, and ensure that their products and services reflect the differential experiences, and needs, of women and men.

When women’s participation in the labor force increases, GDP rises. When women start businesses, communities flourish. When companies have more gender diversity at the top, they are 21 percent more likely to experience above-average profits.

Startups founded by women are more profitable. According to the Vinetta Project, startups founded by women are 20 percent more likely to be revenue generating and there is a 35 percent higher return on investment (ROI) when financing a company founded by women.

Founding teams that include a woman outperform their all-male peers by 63 percent, according to First Round Capital,comparing performance data in their portfolio over a 10 year period. Women founders create companies targeted at new market niches. Many of the most innovative and promising women-led startups focus on how to manage and ease the time burdens women face. For example, in 2014, Kate Ryder founded Maven Clinic, an online platform connecting consumers with doctors, nurses and other healthcare professionals with appointments in real time and a starting price of $18.

I spoke recently on a panel, “Women=Change,” held during DC Startup Week, a festival of programming for founders and entrepreneurs. The standing-room session addressed how focusing on women and gender can increase profitability and sustainability as well as how to concretely build this approach into business planning and development.

Four of my key takeaways:

Good news: investors are looking to invest more in women-led companies. In 2017, only two percent of venture funding went to women-led startups and ventures. That needs to change. But, more funds are investing in companies led by diverse founders. The Helm plans to only invest in women-led companies, and Backstage Capital announced a $36 million fund investing exclusively in companies led by black women founders.
Building a strong ecosystem is essential. Founders and new ventures need what is called an “ecosystem”: a supportive culture, enabling policies and laws, availability of financial and human capital, venture-friendly markets for products, and a range of institutional and infrastructural supports. In order to create such an ecosystem, government, business, financial institutions, investors and mentors must work together. More good news: there are groups bringing together these key actors, such as BEACON DC, a community-led campaign to make Washington, DC the most influential and supportive city for women entrepreneurs in the United States.
Have tough conversations early. If you have issues with people assuming your male co-founder is in charge, or one of your male colleagues takes credit for your ideas, have that uncomfortable conversation early (and often). Discuss this with your co-founder (or employee) to ensure your leadership role is acknowledged. Be clear about who will represent the firm at conferences, and meetings, and how those presentations will be structured.
Simple actions create a more inclusive culture. Rethink your recruitment and selection process. Job descriptions can be unintentionally biased by using phrases that emphasize an aggressive business culture. Use gender neutral titles, check the use of pronouns, and emphasize your commitment to diversity of all kinds. Hire people whose skill sets complement yours. Post jobs in multiple forums. Commit to the slate of candidates you interview being gender-balanced.

If you can embed this approach into your firm’s culture from day one, you are building for growth and sustainability. These actions can take time and thought, but in the end, will save you from playing catch up.

Women’s Economic Empowerment: Measuring Progress & Championing Results

In April, World Bank President Jim Kim and Ivanka Trump made a case in the Financial Times for the importance of closing the gender pay gap, increasing access to finance for women, and enacting regulatory and legal policies to increase women’s economic participation. These goals cannot be achieved without businesses committing to action, and many already have done so. These actions make their workplaces more fair and create an advantage in the race to attract and retain talent, while also increasing their bottom line and shareholder value. Highlighted here are principles and indices that have been developed over the last decade to mark, report on, and reflect the depth of companies’ commitments to women’s empowerment.

Certifications and Reporting

Economic Dividends for Gender Equality (EDGE) Certification. EDGE, a global business certification standard, was launched at the World Economic Forum in 2011. EDGE applies business discipline to achieving workplace gender equality, focusing on metrics and accountability. It assesses policies, practices and data across five areas: equal pay for equivalent work; recruitment and promotion; leadership development; flexible work; and company culture. There are three stages of EDGE certification:

● EDGE Assess: The company makes a public commitment to a strong gender balance across the talent pipeline, pay equity, a solid framework of gender equality policies and practices and an inclusive workplace culture. The company identifies a concrete action plan.

● EDGE Move: The company has implemented a framework for change and achieved significant milestones on the key issues, and commits to sharpening its action plan.

● EDGE Lead. The company has a strong gender balance across the talent pipeline, pay equity, a solid framework of gender equality policies and practices and inclusive workplace culture, and puts gender equality to work for business results.

EDGE works with more than 150 companies and organizations in over 40 countries. Examples include SAP, L’Oréal, Asian Development Bank, and the IFC.

Women’s Empowerment Principles (WEPs). The WEPs were established by UN Women, in conjunction with the UN Global Compact, the business community and governments in 2010. The WEPs emphasize the business case for corporate action to promote gender equality and women’s empowerment. Each principle is accompanied by concrete actions. In brief, the principles are to:

1. Establish high-level corporate leadership for gender equality.

2. Treat all women and men fairly at work.

3. Ensure the health, safety and well-being of all workers.

4. Promote education, training and professional development for women.

5. Implement enterprise development, supply chain and marketing practices that empower women.

6. Promote equality through community initiatives and advocacy.

7. Measure and publicly report on progress to achieve gender equality.

Principle 7 underscores the importance of accountability. To date, 1,450 plus companies have signed onto the WEPs from across the globe, including Alcoa, ANN Inc., Coca-Cola entities, Deloitte, Hilton, Merck, and Pepsi. The G7 and the US Chamber of Commerce also promote the WEPs.

Indices of Progress

PAX Ellevate Global Women’s Index Fund. To say PAX has been a trailblazer in this field is an understatement. This fund invests in companies that are leaders in advancing women through gender diversity. Companies are rated by PAX World Gender Analytics, with representation of women on boards and in senior management receiving the highest weights. Other factors include whether the company has a woman CEO, a woman CFO and is a signatory to the WEPs.

Equileap. Launched in 2017, this analysis compares corporate progress towards gender equality across sectors. The Gender Scorecard examines 19 data points in four categories: gender balance in leadership and workforce; equal compensation and work/life balance; policies to promote gender equality; and commitment to women’s empowerment. The highest score possible was 35, and top performers received 22 points. In addition to measuring progress, the scorecard allows investors to see which companies are doing well by their employees; employees to obtain critical information when making career decisions; and governments to identify role models. Companies ranking highest were L’Oréal, Pearson, National Australia, Sodexo, BTG and Telia; the highest-ranking U.S. company was Merck. Highest ranked countries were Norway, Sweden, the Netherlands, Finland and the UK. Top sectors were communications, finance and utilities.

Bloomberg Financial Services Gender Equality Index (GEI). In 2016, Bloomberg unveiled GEI to showcase what the biggest financial players are doing to promote gender equality. It includes 52 best-in-class public companies in the financial industry in terms of providing opportunities for women. GEI was created to satisfy investor demand, as a growing number are looking to gender equality data to inform investment decisions.

Driving Meaningful Impact out of International Women’s Day

StartUps: Embedding a Focus on Gender From Day One

Women’s Economic Empowerment: Measuring Progress & Championing Results

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