IWFSA: Equality of women in the workplace is good for business, here’s why

Gender equality in the workplace has been an ongoing issue globally, and South Africa is no exception. Irene Charnley, the President of the International Women's Forum South Africa, recently highlighted the disparities in gender representation on corporate boards and the need for tangible actions to bridge the gap. Of the 4,000 board positions on the Johannesburg Stock Exchange (JSE), less than a quarter are held by women. Even more concerning is the fact that less than 10% of female directors on the JSE are executives actively involved in managing firms. Charnley emphasized the importance of improving gender equality, particularly in leadership positions, as it is not only a matter of fairness but also a strategic business imperative. As the world continues to grapple with the impacts of the pandemic, Charnley underscored the need for a concerted effort to enhance female representation and participation in the workplace. She called for a paradigm shift towards achieving gender parity, with a specific focus on increasing the number of women in executive and leadership roles in both the private and public sectors. Charnley stressed that promoting gender equality is not only about equality but also about unlocking economic potential and driving business success. Numerous studies have shown a positive correlation between gender diversity in leadership and improved financial performance. For instance, a study on Fortune 500 companies revealed that firms with a higher percentage of women on their boards outperformed those with lower female representation in terms of return on equity and return on invested capital. The data is clear: gender diversity is not just a moral imperative; it is a profitable business strategy. Beyond financial gains, Charnley pointed out that achieving gender equality could significantly boost GDP growth, particularly in developing countries. She cited estimates suggesting that equal participation of women in the workforce could add trillions of dollars to the global GDP by 2025. However, despite the compelling evidence supporting the benefits of gender equality, progress remains slow. Charnley acknowledged that the current global procurement spending on women-owned businesses stands at a mere 1%, far below the ideal target of 50%. She called for a collective effort to drive change, starting with individual actions within companies. Charnley emphasized the importance of holding companies accountable for gender equality and urged women to demand transparency and action from their employers. Practical steps such as implementing fair pay policies, setting clear targets for procurement from women-owned businesses, and advocating for diversity in leadership are crucial to accelerating progress towards gender equality. It is evident that achieving gender equality in the workplace is not just the right thing to do—it is a fundamental driver of business growth and prosperity. As Irene Charnley aptly stated, 'Equality of women in the workplace is good for business' and it is high time for organizations to prioritize gender diversity and inclusion to unlock their full potential.