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Opinions on Tuesday, March 9, 2021
Columnist: Caroline berns
2021-03-09
The author
As individuals, families and organizations from around the world come together to celebrate International Women’s Day on March 8, many will focus on the ‘human’ element: celebrating women’s achievements, raising funds for focused charities. on women and raise awareness about the equality of women.
Doing so is vital, but it is not the whole story. Far fewer will focus on the business case for gender equality – the very fact that pushing for gender equality makes very strong business sense. Across the world, it may ultimately be this fact that helps companies take action to address gender equality.
Resilient and commercially viable organizations, as we all know, play a vital role in economic growth around the world and power national economies. Within these organizations, women, of course, account for half of the total employment potential, which means that developing the talents of women, in turn, increases the competitive advantage of a particular organization.
The statistics speak for themselves: A recent McKinsey study of 1,000 companies in 12 countries found that companies that had taken steps to improve gender equality were more profitable than national averages. A separate study of Fortune 500 companies by Catalyst found that organizations with high levels of gender equality in management positions had 35% more return on capital than companies that had not taken similar measures.
Additionally, an EY study of the world’s top 200 utilities found that companies with high levels of gender equality on their boards of directors had a higher return on investment. In fact, the top 20 most diverse utilities significantly outperformed the bottom 20, a difference that could be millions of dollars or more.
At a broader macro level, gender parity in labor markets would mean an additional $ 12 to $ 28 trillion added to global GDP. To put that in perspective, that’s roughly the value of the American and Chinese economies today, combined.
In the entire region, and indeed in the world, there is work to be done. The rapid pace of technological change means that women must continue to be highly represented in higher education, so that they can play an equal role in the economy of the future.
While governments in the region have collectively committed to gender equality to varying degrees and with multiple local programs underway, in the private sector there remains a worrying lack of real understanding of what equality means: there are several factors they must be taken into account. in terms of equal pay, such as bonuses and shares. Examining a wide variety of factors will ensure true gender parity.
We have already noted the enormous benefit to a company having women in leadership and executive positions. Here again, companies in the region must redouble their efforts. Part of this will mean nurturing young talents from an early age, encouraging them to take on additional responsibilities, and empowering them with the skills they need to be successful.
The Covid-19 pandemic, of course, has exacerbated the need to focus on these issues. The WEF’s 2020 Gender Gap Report, for example, found that while women made up 39% of the global workforce, they accounted for 54% of all job losses. The pandemic has also intensified the challenges that women already faced; Working mothers, for example, have always done a “double shift”: a full day’s work, followed by hours spent on housework and childcare. As a result of these dynamics, a McKinsey study conducted in association with LeanIn.Org in the US found that more than one in four women are contemplating what many would have considered unthinkable just a few months ago: change their careers or quit. the workforce. completely. In this environment, it is time to double – or even triple – efforts to ensure these issues are addressed.
This year, the theme for International Women’s Day is #ChooseToChallenge. In all sectors, that is what companies in this country and the MENA region in general must do: challenge and expose gender biases and choose to make a change.
Caroline Berns, Director of Talent Acquisition, Ericsson Middle East and Africa
