Gender equality and fostering of sustainable businesses

Hoai Dinh - Executive director Vietnam Business Coalition for Women’s Empowerment

According to a survey of 13,000 enterprises across Asia-Pacific conducted by the International Labour Organization in 2019, 69 per cent of surveyed companies agreed that gender diversity initiatives enhanced business outcomes. 74 per cent of those that tracked the gender diversity’s impacts on management efficiency reported a 5-20 per cent increase in profits, and 57 per cent confirmed that having more women in leadership positions made it easier for them to attract and retain talent.

A working paper by the International Monetary Fund indicated that businesses with a larger share of women in senior positions have a significantly higher return on assets (ROA), even within narrowly-defined industries. Replacing one man with a woman in senior management or on the corporate board is associated with 8-13 basis points higher ROA.

Moreover, reports during the last two years by Harvard Business Review and McKinsey prove that companies with more equal, diverse, and inclusive cultures have been better at dealing with crises caused by the pandemic and sustaining a committed workforce to ensure a stronger recovery.

The significance of WGE is evident in attracting generations of people to work. Young people prefer to work for companies that reflect their values, accommodate flexible working, and respect diversity and inclusion. If companies don’t want to be left behind in the race for talent, they need to understand the importance of WGE and make it a permanent and practical part of how they work.

So, how can we consider if an organisation is gender-equal?

In Vietnam, there are still lots of misinterpretations of the WGE concept. Many confuse it with women’s empowerment activities which are often held twice a year, on March 8 and October 20. Another common unconscious bias influenced by Vietnamese social norms is gender-based job segregation, which leads to unequal distribution of female and male workers across job types and unexplained gender pay gaps.

Companies are not aware of gender issues at their workplaces, as they think they are doing enough and discrimination is not mentioned in any of their policies or statements. However, a true gender-equal workplace is much more than that.

WGE is when every member of the organisation has equal access to resources, opportunities, and benefits to thrive and progress at all levels. Companies committed to WGE hold themselves accountable for making sure that policies and practices are in place to eliminate both direct and indirect discrimination and work hard to build an inclusive corporate culture. It does not simply mean everyone is treated the same exact way, regardless of need or any other individual difference. It means everyone is provided with what they need to succeed.

The next question is how gender equality can be achieved in the workplace that is beneficial to businesses. The best starting point is to have a thorough understanding of how the organisation is doing in terms of these issues.

It is recommended that firms have their current WGE status assessed to be aware of their strengths and weaknesses and identify the gaps, using this to build suitable next steps.

The Vietnam Business Coalition for Women’s Empowerment (VBCWE) has had opportunities to conduct WGE assessment for large corporations in Vietnam including Deloitte, Alphanam, Traphaco, and more. When working with companies, we found out that beyond the issue of awareness, they really struggle in developing an effective set of actions. By understanding that WGE is not only about corporate social responsibility but a critical component of sustainable development, companies need to align efforts with business goals and apply a comprehensive strategy to get the best out of it.

In general, commitment from top leaders, adjustments in policies, and training and communications are essential to ensure success in implementation.

It is notable that WGE has started to be integrated into business awards and programmes, highlighting opportunities for companies to standardise their plans. In 2021, for the first time, businesses that are pioneers in related practices were honoured in the Program of Benchmarking and Announcing Sustainable Companies in Vietnam organised by the Vietnam Business Council for Sustainable Development under the Vietnam Chamber of Commerce and Industry.

Companies participating in the WGE sub-award were provided with a guiding framework to assess various labour policies. Being in charge of developing the set of related indicators with support from the Australian government-funded Investing in Women initiative, the VBCWE aims to apply international standards to local firms, helping businesses in Vietnam improve the work environment and ensure workforce wellbeing, enhance productivity, and enable sustainable growth.

WGE is good for business, but advancing it is a journey that requires long-term efforts and commitment. the VBCWE hopes to reach out more to companies in Vietnam, offering our expertise and helping them solve business problems through gender equality.