How investors can promote gender equality in companies
Gender-lens investing study by DEG and OeEB
Making use of the positive impacts of female managers
Investors as role models and facilitators
To enable women to take advantage of economic opportunities, companies must champion equality. This is also worthwhile from a business perspective. Investors in companies can play an important role here. These are the findings of a recent study on the transformative
impact of gender-lens investing jointly commissioned by DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH and the Austrian development bank OeEB. The study was based on an in-depth literature review, interviews and portfolio analyses. The publication is centred around three case studies focussing on customers of DEG and OeEB.
“This research shows that development finance institutions and other investors can have a positive influence by actively driving gender equality in the private sector and counteracting structures that perpetuate inequality. The findings of the study will help us systematically develop our activities in this context,” says Katharina Thier, who oversaw the study for DEG.
The case studies cover different regions and sectors. At TBC Bank in Georgia, a universal bank with around 2.6 million customers, 70% of the organisation’s staff of almost 8,000 are female. UMKA, a cardboard manufacturer based in Serbia, operates in a traditionally male- dominated industry. While roughly 88% of its employees are men, women nevertheless occupy around 35% of all management positions. The third company, Kandeo, provides financial services to SMEs in Columbia, Mexico and Peru and aims to increase the proportion of women in the companies in its portfolio. For example, the proportion of female managers in a Columbian leasing company rose from 12.5% to 67% during the period of Kandeo’s involvement.
A main focus of the study, which was carried out in collaboration with the consultancy firm Syspons GmbH, was the role that female managerscan play in strengthening the position of women in companies. The case studies confirm that women in management provide diverse perspectives in decision-making, function as role models and provide orientation to women seeking to advance their careers.
To reap these positive impacts, engagement is needed in four areas. Alongside a clear commitment by the entire management team, these are equal opportunities in areas such as salaries; well-being and safety in the workplace; and appropriate training and development. Measures aimed at achieving greater equality should also include the responsibility of men: Raising awareness of inequality and appropriate conduct, or concrete measures such as allowing men to take parental leave, can contribute to transformation in the long term.
When working with their customers, development finance institutions and other investors can help gender-lens investing have a transformative impact. “They should also set an example themselves and incentivise equality in the companies. It is also advisable to provide technical assistance and build networks,” says Katharina Thier.
The study is available at www.deginvest.de.
Cologne, 8 March 2022
No. 03
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