October 19, 2021
Introduction
Sustainable Development Goal (SDG 5) aims to, by 2030, achieve gender equality and empower all women and girls. Public and private sector policies and practice should contribute towards this realisation. Lately, there has been a debate on how multinational enterprises (MNEs) affect gender equality in the workplace in host countries. This is because they import new policies and practices into the host countries where they have affiliates. The introduction of the new norms, especially in developing countries can potentially have positive outcomes. This session took a deep dive into mechanisms through which MNEs transfer gender policies and practices to local firms, and the impact on gender outcomes, notably female employment and the gender wage gap with the aim to individualize the best policy measures and initiatives that can ensure foreign investment translates into real benefits for women.
Session Highlights
Achieving women economic empowerment is a collective process which should be driven by both public and private sector stakeholders. Gender equality and prosperity are the key principles that should be rooted in policy and practice. Specifically, MNEs carry norms of gender diversity from their home countries into the host countries. This enables spill over of best practices into the local markets, especially in developing countries where the gender gap is still wide. Additionally, MNEs can help women enterprises win huge business through targeted supply contracts.
During this session, the Panellists noted that the COVID-19 situation has exposed women to more exceptional challenges. For instance, the International Labour Organisation (ILO) forecasts a 13 million drop of women in formal employment in 2021 compared to 2019. Furthermore, the national lockdowns implemented during the pandemic had negative impacts, specifically on small scale women traders and put them at higher risks of sexual and gender based violence (SGBV).
Besides, women have been locked out of supply chains which lack gender disaggregated data, thus making it difficult to propose durable solutions. Moreover, women are concentrated in informal sectors which are outside global value chains (GVCs). Consequently, a World Bank Group study reports that globally, only a meagre 3.7 percent of women-owned enterprises win supply contracts with large corporations. The proportion is much lower for MNEs which transact with approximately 1 percent of the enterprises. Other notable challenges faced by women in business include low access to finance, long working hours and low pay, and eroded savings amid the pandemic. These have spilled over to the girl child through reduced access to education and exposure to SGBV.
To this end, a human-centred response should be put in place to help close the gender gap. MNEs can contribute to this initiative in several ways.
- Exporting gender responsive employment practices in their foreign affiliates.
- Closing the gender wage gap
- Appointing women to top managerial positions
- Dedicating a percentage of procurement/supplies opportunities to women led enterprises
- Tailor made products for women under corporate social responsibility
Accordingly, ILO MNE policy has provisions requiring respect of women rights. However, the progress of its uptake has been slow. National governments in host countries can expedite the uptake of such policies by creating a favourable environment for their adoption. On this, the Panellists opined that there exist government policies and strategies on women economic recovery, SGBV, zero-tolerance against women harassment, etc., which if well implemented, can enhance realisation of SDG 5 objectives.
In Costa Rica, for example, the government, in collaboration with the private sector, has rolled out gender education and technology programmes which promote skills development for women. The programme is closely implemented with the academia and MNEs which provide placements opportunities. This facilitates entry, or re-entry into the labour market. The programme also runs awareness creation initiatives by consolidating groups of women leaders from MNEs and local companies to share their experiences. This serves as an example to women and girls, and entices them to look for opportunities.
Several key recommendations on the linkages between MNEs and women empowerment were proposed by the Panellists. These included:
- Policies for MNEs to appoint women to boards and senior management roles in host countries,
- Incentivise MNEs and local companies to have women in senior leadership,
- Address women discriminatory practices, forced arbitration and Sexual and Gender based Violence (SGBV) laws,
- Mainstream gender measurement indicators into company performance indexing
- Gender parity be made a key mandate at the social and political levels,
- Include gender in business Key Performance Indicators (KPIs)/ corporate scorecards for the MNEs,
- Enhance mental health systems for women at the workplace and community level,
- Economic empowerment of women to be at the core of recovery plans. This will increase their participation in GVCs, and
- Move from commitment to action.
Many laws are in place but are not executed.
Opening
- Isabelle Durant, Deputy Secretary General, UNCTAD
Keynote address
- E. Mr. Andrés Valenciano, Minister of Foreign Trade, Costa Rica
On the panel were
- Ann Harrison, Dean of the Haas School of Business and Professor at Berkeley University
- Marie-France Paquet, Chief Economist, Global Affairs Canada
- Reema Nanavaty, Self-Employed Women’s Association (SEWA)
- Kristin Hull, CEO, NIA impact investing
- Mariët Westermann, Vice Chancellor, New York University, Abu Dhabi
- Åsa Regnér, Assistant Secretary General of the United Nations and Deputy Executive Director of UN Women
- Henriette Kolb, Head, Gender and Economic Inclusion Group, International Finance Corporation, The World Bank Groupe
- Vic van Vuuren, Director, Enterprise Branch ILO
- Ana Güezmes, Chief of the Gender Affairs Division, United Nations Economic Commission for Latin America and the Caribbean (ECLAC)
- Amelia U. Santos-Paulino, Chief of Investment Issues Section, Investment and Enterprise, UNCTAD
Moderator
- Lorraine Eden, Professor Emerita of Management in the Mays Business School of Texas A&M