Corporate Responsibility: In Developing World, Social Programs Aimed at Women Bring Greater Returns for Companies

A McKinsey study reports that more than two-thirds of companies are engaged in programs to encourage growth in developing markets, but not all are terribly effective. This study suggests that programs which focus on women actually generate better outcomes in terms of specific program goals and development objectives. This is for a number of reasons: one is that an extra year of secondary school for women increases their wages by 10-20 percent. Another reason is that women who earn income are more likely than men to reinvest a large portion of their earnings into the health, education and well-being of their families.

Looking at companies that focus their social programs on women, there appears to be a business case for supporting these development programs. Most respondents who focus their efforts on women report that the focus has boosted profits or soon will do so. Currently only 19 percent of companies’ development programs focus on women, and those companies say that the focus on women is usually targeting current and future employees. Of the companies that are not currently focusing on women, two-thirds say they were not aware of the social impact of their programs, or have never considered focusing on women as a distinct priority. The study suggests that companies that do not already do so can make their programs more effective for communities and themselves simply by incorporating a focus on women.

“How Helping Women Helps Business,” McKinsey Quarterly, January 2010; http://www.mckinseyquarterly.com/How_helping_women_helps_business_2513