How to spend with a gender focus
At WGHA we believe the organisations that make up our industry can utilise their purchasing power to advocate for change by adopting procurement principles that actively support gender equity.
The United National Women’s Empowerment Principle number 5 states:
Implement enterprise development, supply chain and marketing practices that empower women
Next month we will detail more information on marketing practices, our focus for now is why and how you should adopt gender smart procurement in your organisation. An important part of empowering women is via corporate procurement.
Gender-smart procurement will allow female owned businesses greater opportunity to supply to our industry. It will encourage our industry suppliers to consider their own internal workforce and policies to ensure they are promoting gender equitable work practices and addressing gender imbalances.
In today’s global economy, “less than one per cent of spending by large businesses on suppliers is earned by women-owned businesses” (UNWOMEN). The sheer size of and volume of corporate purchasing means that corporations have the potential to dramatically influence the way suppliers and supply chains operate.
Why adopt Gender focused Procurement Policy?
- 1/3 of global businesses have female owners, they received 1% of corporate procurement spend
- Women control about $20 trillion in annual consumer spending. Companies with inclusive sourcing practices will be better positioned to access this spend.
- McKinsey study confirmed that gender responsive procurement has a positive impact on profitability.
- Consumers are concerned with corporate social responsibility and gender inclusive procurement translates into enhanced company reputation with stakeholders.
- Diversified supplier base promotes innovation and increased market penetration, drives competition.
Gender responsive procurement is a win for both the organisation and the female suppliers. The business case for supplier diversity report can be read HERE.
WGHA advocate for 40:40:20 gender representation, so today, take action to ensure your procurement occurs from:
- Women led businesses with 40:40:20 board of directors
- Women owned businesses with 40:40:20 ownership
Are the representatives of suppliers 40:40:20 if not, what is the supplier doing to address the imbalance?
WGHA supports the use of supplier gender equity statements in the procurement of goods. We encourage as a first step the adoption of this statement:
“This organisation considers female representation at the Board level and senior management in the consideration of the suppliers we utilise. We expect our suppliers, where appropriate to have policies that address gender imbalances at all levels in their organisation.”
We recommend you read the Femeconomy toolkit GE through procurement and commit to Stage 1 and Stage 2 in 2021 – prepare the business case and conduct a baseline analysis.
We also recommend you read the UNWOMEN_the-power-of-procurement-how-to-source-from-women-owned-businesses-en” or the WGEA_Gender_procurement_Insights_0
Further resources at WeConnect International, which links women owned businesses with buyers.