Gender equality is a fundamental human right. When respected by companies, it enables economies to grow and communities to thrive. However, at our current rate, it will take over 169 years to achieve gender equality in terms of women’s economic empowerment and participation.

The UN Global Compact Network Australia’s (UNGCNA) recent Forward Faster Forum, held before the National Banksia Sustainability Awards in Melbourne, brought together business leaders and change-makers to tackle gender equality – one of the five action areas of the UN Global Compact’s Forward Faster initiative.

UNGCNA Forward Faster Forum – Gender Equality fireside chat:

• Kate Dundas, Executive Director, UN Global Compact Australia
• Alex Davison, Chief Executive Officer, L’Oréal Australia and New Zealand

How will taking ambitious action on gender equality benefit your company?

Taking action toward gender equality can help to improve company performance. Some of the benefits to increased gender representation include:

• Studies show that increased gender representation in leadership positions leads to higher staff retention rates, increased company morale and job satisfaction.
• On average, long-run GDP per capita would be almost 20 per cent higher if gender employment gaps were closed.
• When board rooms are gender balanced, enterprises are 20 per cent more likely to have improved business outcomes.
• Gender equality in the workplace can help unlock more than $12 trillion in new market value link to the Sustainable Development Goals (SDGs).

The Forward Faster initiative’s Gender Equality targets are:

Target 1 – Equal Representation, participation and leadership across all levels of management by 2030.

Target 2 – Equal pay for work of equal value by 2030.

Key takeaways

Here are three key takeaways from the session.

1. Businesses need to promote more gender progressive policies

One key step that companies are encouraged to take under the Forward Faster Initiative is to create an enabling environment for gender equality. This includes establishing policies that create equal opportunity for both male and female employees to advance their careers. On top of this, Alex highlighted the benefits of diversity in the workplace and how this enables the delivery of products to a diverse clientele. Gender progressive policies such as adequate parental leave, career flexibility and part time roles, work life balance and succession planning can all assist in enabling diversity in the workplace.

Gender progressive policies also work to address some of the additional barriers that women face in the workplace. In the discussion, Alex explained how L’Oréal’s parental leave policy provides for 14 weeks leave to all employees, irrespective of their relationship to the child. To support employee work life balance, no emails or calls are to be sent out on weekends and Monday mornings are meeting-free to allow employees to use that time to plan for their week.

“It’s very important that senior leaders walk the walk” Alex Davidson, CEO of L’Oréal Group Australia and New Zealand

It isn’t unexpected that some employees may feel uneasy taking full advantage of these policies. Therefore, it is important that senior leaders set the tone, and that both male and female leaders utilise the leave provisions and model that doing so doesn’t have an adverse impact on career progression.

2. There needs to be a greater emphasis on transparency and corporate governance

Achieving gender equality in the workplace requires clear accountability. In practice, this means assigning responsibility for meeting the Gender Equality targets to senior leaders in the business. Another key mechanism is the use of incentives. Alex outlined how L’Oréal’s global CEO is compensated for gender equality targets – this sort of buy-in at the global level is what’s needed to meet ambitious gender equality targets.

“You get what you measure” Alex Davidson, CEO of L’Oréal Group Australia and New Zealand

It is impossible to address the pay equity gap without adequate reporting frameworks. Kate and Alex’s discussion highlighted the importance of measuring and reporting on pay performance. L’Oréal achieves this with the use of the international EDGE Standard which works to identify any pay equity gaps in the company. Alex highlighted the importance of transparency throughout this process, with L’Oréal’s Paris group releasing their disappointing results from the EDGE reporting, accepting full responsibility.

3. Men need to take a more active role in reaching the targets, so they too can feel the benefits of gender equality

“Everyone has skin in the game” Alex Davidson, CEO of L’Oréal Group Australia and New Zealand

Promoting gender equality in the workplace is everyone’s responsibility, and encouraging both male and female employees to take action can accelerate progress towards the Forward Faster gender equality targets. Kate and Alex’s discussion highlighted the important role that men play in this process. Alex emphasised the need for diversity at L’Oréal and involving men in the discussions around gender equality. Progressive policies aren’t only beneficial for women – and by modelling inclusive behaviour, men can create a more accessible environment for women in the workplace.

“Whenever we make changes, we explain the benefits” Alex Davidson, CEO of L’Oréal Group Australia and New Zealand

Companies can also hedge against pushback to gender progressive policies by including all men in the conversation. Having senior leadership model desired behaviour – such as taking advantage of parental leave and flexible work provisions – can also serve as an important enabler, encouraging all employees to view the changes as positive steps towards a more sustainable and equitable working life.

The UNGCNA was proud to deliver this forum discussion on how to promote gender equality as a part of the UN Global Compact’s Forward Faster initiative. The two targets centring around equal pay and equal representation are important goals that every company should strive towards. The UN Global Compact’s Forward Faster Initiative is equipped with action guides for companies to utilise in accelerating their movement towards gender equality and other sustainability targets.

The UN Global Compacts Forward Faster Initiative

The UN Global Compacts Forward Faster Initiative was launched on 18 September 2023 and focusses on five areas of action where companies can make the biggest, fastest impact across the 17 Sustainable Development Goals by 2030. The five areas of action are:

1. Gender Equality
2. Climate Action
3. Living Wage
4. Finance and Investment
5. Water Resilience.

As part of the UNGCNAs Forward Faster Forum, the fireside chat on Gender Equality explored the opportunities, operations and necessary policy drivers for businesses to engage gender equality at a systemic level.

Join the companies taking action

Is your company ready to move Forward Faster and take ambitious action? Right now, only 15% of the SDGs are on track for 2030. We’re calling on all companies to commit to one or more targets today. Join L’Oréal Group Australia and New Zealand and 25 other Australian Companies in the pledge to move Forward Faster. Sign up here.

Contributors:

• Connor Gall, Business and Human Rights Intern, UN Global Compact Network Australia
• Julia Bourke, Senior Coordinator, UN Global Compact Network Australia

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