ADVOCACY BRIEF

PROCUREMENT’S
STRATEGIC VALUE
Why gender-responsive procurement makes business sense© 2022 UN Women. All rights reserved.
Produced by the Economic Empowerment Section of
UN Women
The views expressed in this publication are those of theauthor(s) and do not necessarily represent the views of
the United Nations Entity for Gender Equality and the
Empowerment of Women (UN Women), the United Nations
or any of its affiliated organizations.
The contents of this report additionally do not necessarilyreflect the views of NAMA Women Advancement andMary Kay, Inc., UN Women’s two strategic partners for thedevelopment of this report.
Suggested citation: UN Women. 2022. “Procurement’s
strategic value: Why gender-responsive procurement makes
business sense.” New York: UN Women.
Author: Jocelyn Chu (UN Women)
Editor: Andy Quan
Design and layout: Oliver Gantner
Cover photo: A baker prepares bread for packing anddistribution to schools in Kyrgyzstan, which purchase
600 of the 5,000 units of bread the bakery produces daily.
UN Women/David Snyder.

ADVOCACY BRIEF

PROCUREMENT’S
STRATEGIC VALUE
Why gender-responsive procurement makes business sense

ECONOMIC EMPOWERMENT SECTION
UN WOMENNew York, April 2022

ACKNOWLEDGEMENTS
This report is a product of the Women’s Entrepreneurship Accelerator (WEA). WEA is a multipartner initiative on
women’s entrepreneurship convening six United Nations agencies (the International Labour Organization (ILO),
International Trade Centre (ITC), International Telecommunication Union (ITU), United Nations Development
Programme (UNDP), UN Global Compact (UNGC) and UN Women) and Mary Kay, Inc. to empower 5 million women
entrepreneurs by 2030.
The ultimate goal of the initiative is to maximize the development impact of women’s entrepreneurship in achieving
the Sustainable Development Goals (SDGs) by creating an enabling ecosystem for women entrepreneurs aroundthe world.
This publication is a contribution to UN Women’s “Stimulating Equal Opportunities for Women Entrepreneurs”
flagship programme, which champions gender-responsive procurement as a strategic lever for supporting women’s
entrepreneurship. UN Women thanks NAMA Women Advancement for its support of the flagship programmeand Mary Kay, Inc. for its support of the WEA-affiliated activities that fall within the programme.
UN Women also gratefully acknowledges the participants in UN Women-led interviews, webinars, the communityof practice and the survey on gender-responsive procurement, as well as valuable contributions and peer review
from Jamila Belabidi (Procter & Gamble), Belisa de las Casas (formerly at WEConnect International) and Aude
Coquatrix, Lina Al Qaddoumi, Megan Galvin and Lauren Gula (all of UNGC). UN Women thanks survey translators
Nelly Kempf and Lisbeth Woodington as well as Anna Falth and Diana Ranola of the Women’s Empowerment
Principles (WEPs) Secretariat and the aforementioned UNGC colleagues for disseminating the survey. UN Women is
grateful to its fellow founding UN partners in WEA (ILO, ITC, UNDP and UNGC) for their collaboration. This publication
benefited from the collaboration with UN Women colleagues Anna Gollub, Katja Freiwald, Leia Grossman,
Meral Guzel, Tayna Leite, Seemin Qayum and Viktoria Smirnova, and was produced under the overall supervisionof Jade Cochran.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSE

IIIABBREVIATIONS AND
ACRONYMSIV

B2BBusiness-to-business

B2C

Business-to-consumer

BCG

Boston Consulting GroupCEO

Chief Executive Officer

CPO

Chief Procurement Officer

CSR

Corporate social responsibility

DE&I

Diversity, equity and inclusion

ESG

Environmental, social and governanceGDP

Gross domestic product

GEM

Global Entrepreneurship Monitor

GRP

Gender-responsive procurement

ILO

International Labour Organization

ITC

International Trade Centre

MCB

Marketing and consumer business

PPE

Personal protective equipment

RFPs

Request for proposals

SDGs

Sustainable Development Goals

SMEs

Small and medium-sized enterprises

WBENC

Women’s Business Enterprise National Council

WEA

Women’s Entrepreneurship Accelerator

WEPs

Women’s Empowerment Principles

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSE

KEY
DEFINITIONSGender-responsive procurement (GRP): The sustainable selection of services, goods or public works from womenowned or women-led enterprises and/or those having gender-responsive policies and practices for employees andsupply chains.
Gender-responsive businesses: Businesses that meet criteria for integrating gender equality and women’s
empowerment tenets in their policies and practices that are in alignment with international norms and standards.
To be considered gender-responsive, comprehensive compliance with the Women’s Empowerment Principles (WEPs)
and International Labour Organization (ILO) labour standards would be required.
Supplier diversity: A formal programme which promotes procurement from businesses that are at least 51 per centowned and operated by a traditionally underrepresented or underserved individual or group.1
Supply chains: The direct sequence of activities to produce goods, often from the perspective of buyers.
Tier 1 suppliers: Directly contracted suppliers that provide services, goods or public works to the business.
Tier 2 suppliers: A business’ indirect suppliers, who are contracted by their direct, Tier 1 suppliers.
Value chains: “[T]he full range of activities that are required to bring a product or service from conception, throughthe intermediary phases of production (involving a combination of physical transformation and the input of various
producer services), delivery to final customers, and final disposal after use”. 2
Women’s Empowerment Principles (WEPs): The Women’s Empowerment Principles are a set of principles offering
guidance to businesses on how to promote gender equality and women’s empowerment in the workplace,marketplace and community.
Women-owned business: 3 A legal entity, that at a minimum: 1) is at least 51 per cent owned by one or more women;
2) is unconditionally controlled by one or more women over both long-term decision-making and the day-to-day
management and administration of the business operations; and 3) is independent from non-women-owned
businesses.
Women-led business: A legal entity in any field that has a minimum of 50 per cent women-identified representationin management with senior-level, strategic decision-making abilities.

1.

Bateman, Barrington and Date 2020; Worthington 2009.

2.

Kaplinsky 2004.

3.

While various organizations have their own definitions of women-owned businesses, this publication uses the UN system’s standard definition.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSEVFOREWORDS
UN Women
The COVID-19 pandemic has exacerbated existing
inequalities including gender inequalities. At the sametime, the world is facing increasing economic insecurity,
supply chain interruptions and accelerating climate andenvironmental crises.
We stand at a crossroads and the global community—
including the private sector—now faces a choice,in the words of the UN Secretary-General, between“breakthrough or breakdown”. The world cannot
continue business as usual, and the private sector must
rethink traditional business models—not only to staycompetitive, but also to contribute to a more sustainable
future.
The Economic Empowerment Section of UN Women is
proud to produce this report, which makes the evidencebased case that procurement can be a force for positivesocial and economic outcomes when gender-responsive
policies and practices are adopted. It calls upon theprivate sector to take on gender-responsive procurement(GRP) as a way to embed and practise the values of the
UN Sustainable Development Goals (SDGs) to not only
strengthen their businesses but also promote women’s
empowerment in the context of a changing world.

UN Women’s work leverages the transformative powerof GRP while taking on a holistic approach in promoting
women’s economic empowerment, especially aware of
the breadth of challenges women entrepreneurs face.
This approach underpins UN Women’s programmes andinitiatives, including on decent work and entrepreneurship.
Achieving gender equality and the empowerment of
women is the responsibility of everyone. UN Women
cannot do this work alone. We call upon all, including theprivate sector, to step up for gender equality and women’s
empowerment. We stand ready to support as partners
those who want to start their GRP journeys.
New challenges require new solutions and supporting
gender-responsive policies and programmes in all
business functions, including in procurement, is a crucial
way in which companies can strengthen their businesses
and face today’s pressing issues.
Jemimah Njuki

Chief, Economic Empowerment Section, UN WomenPROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSE

VIINAMA Women Advancement
At a time when we must expand the pool of humanresources and talents to tackle the long-term impactsof the COVID-19 pandemic, exacerbated climate change
issues and stymied economic growth, it is unfortunatethat the economic potential of women, one half of theworld’s population, continues to be unharnessed. Studies
have highlighted time and again that economies built
on a foundation of inclusivity power responsible andsustainable growth worldwide.
To ensure women entrepreneurs’ rightful place ineconomic life and build an ecosystem that will fueltheir economic empowerment, 4 it is vital to offer equal
opportunities to women-owned enterprises to accessmarkets. As stated in the 2021 joint ILO–UN Women
Report, Rethinking Gender-Responsive Procurement:
Enabling an Ecosystem for Women’s Economic
Empowerment, both the public and private sectors’
sourcing policies and practices, if shaped in a genderresponsive manner, can offer a strategic entry point towomen entrepreneurs and women-owned businesses
into local and global economies.
What would happen if organizations made concerted
efforts to procure from women-owned businesses
and engage in gender-responsive supply chain andinvestment practices? NAMA Women Advancement(NAMA)’s response took the form of funding UN Women’s
Flagship Programme Initiative, launched in June 2018,
which has revealed the impact of such measures on
inclusive and sustainable economic growth andemployment.

4.

UN Women and International Labour Organization (ILO) 2021.

The project, implemented in partnership with UN Women,
governments, the private sector, investors, civil society,female entrepreneurs and women’s enterpriseassociations, has had an impact especially in South
Africa and the United Arab Emirates and has had an
overwhelmingly global reach through high-level advocacy
and dialogue for gender-responsive procurement andwomen’s enterprise development.
Her Highness Sheikha Jawaher bint Sultan Mohammed
Al Qasimi, Chairperson of NAMA and a global championof equality, once beautifully encapsulated why the 2030
Agenda’s promise to leave “no one behind” should be a
strategic and collective goal: “Integrating women in theeconomic domain and investing in their development will
create a ripple effect that will benefit not just individual
women but families, communities and nations aroundthe world.”
Gender-responsive procurement is one of the manygoals we need to achieve in this journey, for it not only
improves the lives of women and girls around the world
but also has a positive ripple effect on societies. It fuels
an opportunity to expand into new markets, diversify
supply chains, boost productivity and grow the economy.
As we step up efforts to build long-term systemicchanges, I call upon the private sector to integrate
women into global value chains and make our sharedgoal of equality a reality.
H.E. Reem BinKaram

Director, NAMA Women Advancement

Mary Kay, Inc.
Gender-responsive procurement (GRP) is a powerfulinclusion strategy that provides an opportunity toreshape the narrative around women’s contributions toeconomy and society. Consider this:•Women own one third of all businesses
worldwide5 but make up just 1 per cent of
global procurement of large corporations.6•

In 108 economies, women cannot run abusiness in the same way as men.7•

COVID-19 has disproportionately impacted
women-owned businesses.

Despite these alarming facts, women entrepreneurs
remain the solution for many challenges the world
faces today. Data show that an increase in women
entrepreneurship leads to economic growth, sustainable
development and healthier social inclusion.
The world needs a greater understanding of GRP—it
benefits all of us. That’s why this report is so timely.
Mary Kay, Inc. is honored to co-sign this report. We believe
the effects of GRP are far-reaching and span beyond
women’s economic empowerment. GRP also affects
corporate profitability, risk mitigation, innovation andsustainability. When women entrepreneurs are excluded
from the procurement pipeline, companies risk leaving
a considerable amount of talent, creativity and expertiseon the table.

5.

World Bank 2020.

6.

Vazquez and Sherman 2013.

7.

World Bank 2021b.

GRP is a winning business strategy as well as a powerful
catalyst for change.
Together with six United Nations Agency partners
through the Women’s Entrepreneurship Accelerator(WEA), we are seeking to create awareness and to callon the global business community to implement GRP
strategies, and to commit to raising the percentage ofwomen-owned and led businesses and gender-responsive
businesses across value chains.
We can do better than 1 per cent. If every CEO or Chief
Procurement Officer (CPO) reading this report commits
to engaging just 2 or 3 per cent of procurement towomen-owned businesses, imagine the multiplied
impact—for women, businesses, communities andeconomies across the globe.
This is a historic opportunity. Women can’t wait any
longer. Our world can’t wait any longer.
Let’s do it!
Deborah Gibbins

Chief Operating Officer, Mary Kay, Inc.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSEIXTABLE OF CONTENTSACKNOWLEDGEMENTSIII

ABBREVIATIONS AND ACRONYMSIV

KEY DEFINITIONSVFOREWORDSVII

EXECUTIVE SUMMARYXIII

INTRODUCTION

1

Procurement’s strategic value1

Box 1: The Sustainable Development Goals and the private sector

2

Defining gender-responsive procurement4

Box 2: Introducing the Women’s Empowerment Principles

5

UN Women and gender-responsive procurement5

Box 3: UN Women’s holistic approach to supporting women’s entrepreneurship6

Box 4: The COVID-19 pandemic and women’s entrepreneurship

7

INCREASED REVENUE AND REDUCED PROCUREMENT SPEND

9

Case Study I: Investing in GRP and its impact on the bottom line: Gulf African Bank

10

GREATER SUPPLIER AVAILABILITY AND RESILIENCE

15

FIGURE 1: Proportion of companies which reported that GRP contributed to increased knowledge of their Tier 1
and 2 suppliers
17
Case Study II: Leveraging GRP to build resilience: Bristol Myers Squibb

18

STRONGER BRAND REPUTATION

23

Case Study III: Achieving product differentiation through women’s empowerment: Arredo and Mediapila
Case Study IV: Driving brand loyalty through responsible sourcing: GANNI 50
MORE INNOVATION AND ADAPTABILITY

46

25
28
33

Case Study V: Harnessing diversity for a global brand: Microsoft

56

FIGURE 2: Proportion of companies which reported that GRP increased innovation and agility
IMPROVED SERVICE DELIVERY

34
37
39

Case Study VI: Utilizing the power of diversity for business and communities: Procter & Gamble

40

PROCUREMENT’S STRATEGIC VALUE
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XI

STRONGER MARKETS THROUGH ECONOMIC DEVELOPMENT AND INCLUSIVE GROWTH
FIGURE 3: Proportion of companies which reported that GRP contributed
to women’s economic empowerment
Case Study VII: Creating a gender-responsive telecommunications ecosystem in Kenya:
Safaricom, SBM Bank and Camusat 67
CONCLUSION

46
48
51

The future of gender-responsive procurement

52

Call to action

52

KEYS TO SUCCESS

54

Box 5: Key resources54

Box 6: WEConnect International and #Rise2theChallenge

56

BIBLIOGRAPHY

58

ANNEX

61

Methodology

XII

45

61

FIGURE 4: UN Women interviewees and survey respondents by region

61

FIGURE 5: UN Women interviewees by category

62

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSEEXECUTIVE SUMMARY
While gender-responsive procurement is a growing
practice, it is far from universal. Globally, 1 in 3 businesses
are owned by women,8 but women only win an estimated
1 per cent of the procurement spend of large corporations.9

1. Companies practising GRP benefit fromincreased revenue and reduced procurement
spend, owning to a broader range of suppliers,
many of which become customers.

This is a missed opportunity. The private sector spends
trillions in procurement, contributing to 72 per cent of
GDP in OECD countries, with a staggering 58 per centof capital flows being spent on supplier payments incorporations with revenue exceeding US$1 billion.10

2. Amid a challenging global context withincreased supply disruptions, GRP gives
companies the tools to build greater supplieravailability and resilience.
3. GRP strengthens companies’ brands tocustomers, peers, investors and employees,
which drives business and brand loyalty.

Meanwhile, the COVID-19 pandemic has exposed andexacerbated growing inequalities, shedding light on the
precariousness of progress for women and women’s
entrepreneurship.

4. GRP is correlated with more innovation andadaptability, allowing companies to better
respond to customers’ needs.

Gender-responsive procurement (GRP)—the sustainable
selection of services, goods or public works from womenowned or women-led enterprises and/or those having
gender-responsive policies and practices for employees
and supply chains—is a strategic way forward for womenand businesses alike.

5. GRP helps spur the influx of new diverse
talent, which can improve service delivery,
i.e. increases in efficiency, customer service
and productivity.

UN Women engaged over 350 stakeholders in 2021, of
which over 150 private sector companies were represented,
to buttress the conversation on and create an evidencebase for why businesses should adopt GRP.
The research found that companies are seeing six main
benefits to their business:

8.

World Bank 2020.

9.

Vazquez and Sherman 2013.

6. Companies adopting GRP principles
contribute to strengthened markets througheconomic development and inclusive growth,leading to new and expanding business
opportunities.
This report presents the business case for GRP throughthese six findings. It makes the case for companies tourgently rethink their procurement practices, framing
GRP as a way to create social and economic value amid
increasing economic uncertainty.

10.

Manyika et al. 2021.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSE

XIII

INTRODUCTION
Companies that promote gender equality through theirpolicies and practices can contribute to advancing
human rights and, as research increasingly demonstrates,
improve their business at the same time. A key means
to do this is through gender-responsive procurement(GRP), the sustainable selection of services, goods or
public works from women-owned or women-led
enterprises and/or those having gender-responsive
policies and practices for employees and supply chains.
For far too long, the gendered impacts of corporate
spending, which represents a sizeable portion of grossdomestic product (GDP) and trillions of dollars, havebeen unrecognized. For example, the business sector
in Organisation for Economic Co-operation andDevelopment (OECD) countries contributes to 72 percent of GDP, with a staggering 58 per cent of capital

flows being spent on supplier payments in corporations
with revenue exceeding US$1 billion. 11 Yet, women
entrepreneurs are notably absent from private sector
supply chains, representing a huge opportunity costfor women’s economic empowerment and inclusive
economic growth.
Globally, 1 in 3 businesses worldwide are owned by
women,12 but women only win an estimated 1 per centof the procurement spend of large corporations. 13
The potential of companies adopting GRP principles
suggests this strategy could be an influential facet of‘building back better’ as the world responds to the ongoing
impact of COVID-19 and growing inequality including
through re-examining business practices to recover andtransform economies.

“Gender inequality is the overwhelming injustice of our age
and the biggest human rights challenge we face.”
António Guterres, Secretary-General of the United Nations,remarks at the Observance of International Women’s Day, 6 March 2020

Procurement’s strategic value
While the market opportunities represented by
procurement and sourcing have long been recognized
as an engine for growth for small and medium-sizedenterprises (SMEs), good practice in GRP has been largely
undertaken by companies actively working for genderequality and is far from widespread. At the same time,
corporations, small and large, are recognizing thevulnerability of their supply chains due to practices that
do not reflect their consumers’ values of gender equality
and sustainable development, are risking non-compliancewith human rights and international standards (see Box 1)or are missing out on the substantial contribution thatwomen’s enterprises and gender-responsive enterprises
can make to businesses.

11.

Manyika et al. 2021.			

13.

12.

World Bank 2020.

Vazquez and Sherman 2013.

INTRODUCTION

1Making and publicizing a business case could help
convince more companies of all sizes to adopt GRP
policies and practices. That is the purpose of thispublication, which aims to advance the conversation
around sustainable procurement and supply chain
management by using quantitative and qualitative

evidence to show that businesses that adopt GRP standto benefit in both financial and social equity terms. It
provides businesses with a resource they can use tothink and act beyond the status quo of conventional
procurement policies and practices.

BOX 1

The Sustainable Development Goals and the private sector
The UN Secretary-General has called upon all stakeholders, including the private sector, to take urgent
action to achieve gender equality, women’s economic empowerment and support women entrepreneurs,
most recently in Our Common Agenda. 14 The agenda builds upon the Decade of Action, a renewed
commitment to the Sustainable Development Goals (SDGs), and recognizes the present as an inflection
point to envision and create a better future.
The global community is placing a spotlight on the choices and developments made by businesses and on
forging multi-stakeholder partnerships for advancing sustainable development (SDG 17). Although 71 percent of Chief Executive Officers (CEOs) agreed business can play a critical role in contributing to the SDGs,
only 21 per cent of CEOs said they were doing so, according to a 2019 UN Global Compact and Accenture
CEO survey.15
While business may view their own challenges as disconnected from those around the SDGs and genderequality, they are very much related. Inclusive and sustainable development is paramount for businesses
seeking to both stabilize themselves in a volatile economy and benefit from its future growth. Widening
gender inequalities hurt all companies, including women entrepreneurs vital to robust and resilient supply
chains and the businesses that rely on them.
In fact, business needs are becoming more aligned with sustainable development as environmental, socialand governance (ESG) issues attract more attention. The implementation of GRP allows companies topractise and institutionalize ESG values and importantly, contribute to women’s empowerment and the SDGs.
Through the adoption of GRP principles, businesses can make progress towards multiple goals, including
gender equality (SDG 5) and reduced inequalities (SDG 10) in addition to responsible consumption andproduction (SDG 12), eliminating poverty (SDG 1) and decent work and economic growth (SDG 8).

2

For this report, UN Women gathered information fromover 150 companies through interviews, surveys and acommunity of practice to hear the perspectives of thosealready undertaking GRP on how it supports women’s
entrepreneurship and the benefits received (see Annex

for details of the research methodology). It is the hopeof UN Women that sharing practical experiences,
examples and benefits in this report will encourage theprivate sector towards further uptake and use of GRP.

14.

15.

United Nations 2021.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSEUN Global Compact 2020.

This publication synthesizes the findings from
UN Women’s research under six main themes, as discussed
in the following chapters. First, companies reported that
GRP increased revenue and reduced costs by expanding
their customer base and increasing competition amongsuppliers, resulting in lower purchasing spend. Second,
GRP resulted in larger and more diverse pools of suppliers,
associated with increased supplier availability andlowered risk. Third, GRP strengthened brand reputation.
Customers, peers, partners and employees have
responded positively to companies’ uptake of GRP.
Fourth, by sourcing from a wider range of suppliers,
GRP increased companies’ innovation and adaptability,
as women-owned businesses are often smaller and thus

16.

more agile. Fifth, in line with this, companies reported
that GRP improved service delivery due to this greater
agility, but also because of aligned values and closer
working relationships. Lastly, companies’ GRP practices
and policies have contributed to local economic
development and inclusive growth, strengthening themarkets in which they work.
The six broad findings are complemented by casestudies that further illustrate the benefits of practising
GRP. The companies highlighted in the case studies
represent a diverse range of industries, size andgeographical regions.16

The case studies are not an endorsement of those companies or their policies and programmes by UN Women. They are intended to further the
discussion of GRP by highlighting the voices, experiences and perspectives of the companies themselves.

INTRODUCTION

3

Defining gender-responsive procurement
GRP took shape as companies began to pay attention
to socially responsible policies and practices, including
in sourcing and buying, and consequently consider
gender equality and women’s economic empowerment.
GRP thus started as a means for companies to sourcefrom women-owned businesses with the aim ofcontributing to women’s entrepreneurship by putting
more money in the hands of women. It has now evolved
to an understanding of procurement practices thatconsider the impact of companies on gender equality
more broadly. This approach advocates for creating
opportunities and outcomes not only for womenowned but also for women-led and gender-responsive
businesses. 17 A number of companies are paving theway for procurement’s expanded influence in diversity,
equity and inclusion (DE&I), including those highlighted
in this report’s case studies.
While no universal standard exists for businesses’ genderresponsiveness, GRP should consider, for example, decent
work standards such as fair wages, the percentage ofwomen and men in senior management positions,
whether the company has mechanisms to address and17.

4

respond to incidents of violence and harassment, andwhether the bidding companies are signatories to the
Women’s Empowerment Principles (WEPs) (see Box 2).
By weighing the gender-responsiveness of suppliers inprocurement bids, companies can prioritize the growthof businesses that promote gender equality and women’s
economic empowerment, including better working
conditions for all employees.
Applying GRP in the context of DE&I allows companies
to support diverse people by, for example, not only using
a gender lens in procurement policies and practices but
also considering and taking positive action to rectify
the various kinds of overlapping discrimination anddisadvantage that people face on the grounds of gender,
race, ethnicity, income, age, disability, and sexual
orientation and gender identity, among other factors(noting that none of these factors are exclusive). Further,drawing on the words of an interviewee, “the inclusionof one to the exclusion of another is not inclusion”.
The practice of GRP should lead to expanding supplier
diversity and broadening representation and inclusion.

This discussion is advanced in UN Women and ILO’s issues brief, Rethinking Gender-Responsive Procurement: Enabling an Ecosystem for Women’s
Economic Empowerment, UN Women and ILO 2021.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSE

BOX 2Introducing the Women’s Empowerment Principles
The Women’s Empowerment Principles are a set of seven principles
offering guidance to business on how to promote gender equality
and women’s empowerment in the workplace, marketplace andcommunity. Established by UN Women and the UN Global
Compact, the WEPs are informed by international labour andhuman rights standards and grounded in the recognition thatbusinesses have a stake in, and a responsibility for, gender equality
and women’s empowerment. Principle 5 on enterprise development,
supply chain and marketing practices provides a set of suggested actions
for companies to influence business partners through inclusive supply chain
policies and standards of engagement.
The WEPs are a primary vehicle for the corporate delivery of gender equality dimensions of the United Nations
2030 Agenda for Sustainable Development. By joining the WEPs community, Chief Executive Officers signal
a commitment to this agenda at the highest level of the company and to work collaboratively in multistakeholder networks to foster business practices that empower women. These include, for example,
equal pay for work of equal value, gender-responsive supply chain practices and zero tolerance against
sexual harassment in the workplace.

UN Women and gender-responsive procurement
UN Women has been working on gender-responsive
procurement since its establishment in 2010, supporting
both the public and private sectors, including governments,
civil society, enterprises and businesses in advancing
GRP. The WEPs, also created in 2010, laid the foundation
for UN Women’s engagement with the private sector,
providing a framework for supply chain management
through a gender lens. Procurement’s significant potential
to lead and drive change was further emphasized in 2015
by the Secretary-General’s High-level Panel on Women’s
Economic Empowerment, which convened experts

from around the world and identified action-oriented
recommendations to improve economic outcomesfor women. The recommendations were integrated
within UN Women’s flagship programme, “Stimulating
Equal Opportunities for Women Entrepreneurs”, whichchampions GRP as a strategic lever for women’s
empowerment (see Box 3). UN Women consolidated
its work on GRP in a guidance manual, The Power ofProcurement: How to source from women-owned
businesses, which provides the substantive basis for thepresent report.

INTRODUCTION

5

BOX 3

UN Women’s holistic approach to supporting women’s entrepreneurship
UN Women works holistically, recognizing that women entrepreneurs face specific physical, social andtime constraints within a larger gendered economic system characterized by structural inequalities anddiscrimination. The lack of procurement from women’s enterprises is principally due to two factors: women’s
undervalued and underpaid labour in most value chains and discrimination embedded in procurement
policies and practices that creates barriers to entry for diverse suppliers to participate on an equal footing.
UN Women promotes, advocates for and strategically leverages gender-responsive procurement (GRP) tocreate equal opportunities and outcomes for women, given its power to shape financial flows to favour
sustainable development and women’s economic empowerment. By doing this, UN Women contributes tocreating a demand for goods and services supplied by women-owned, women-led and gender-responsive
businesses. UN Women also works to create a robust supply by addressing the gender gap in access toentrepreneurial skills and finance. Such support enables women entrepreneurs to compete on an evenplaying field, for instance, through developing skills and capacity and providing equal access to financing,tools and resources.
This holistic work is being implemented as a key part of UN Women’s Strategic Plan, through the framework of
UN Women’s flagship programme, “Stimulating Equal Opportunities for Women Entrepreneurs”, implemented
since 2018. This work has been further amplified and uplifted through the Women’s Entrepreneurship
Accelerator (WEA) since its inception in 2020.
UN Women’s broader work in changing policies, systems and norms, such as those on care and domestic
work, property rights and labour rights and standards, aligns with its work on GRP, together advancing
women’s empowerment and gender equality.

The Power of Procurement was timely; companies big
and small are increasingly focusing on DE&I as well as
ESG considerations. Many companies interviewed forthis report highlighted the shift towards serious attention
to social and gender issues spurred by the COVID-19
pandemic (see Box 4) as well as global social justice6

movements, including #MeToo and Black Lives Matter.
The pandemic has intersected with the climate andenvironmental emergency to expose the fragility ofvalue chains and the urgent need to re-evaluate andrevise procurement policies and practices and rethink
traditional models of risk reduction.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSE

BOX 4The COVID-19 pandemic and women’s entrepreneurship
The onset of COVID-19 halted economies, decreasing global GDP by 3.5 per cent in 202018 and wiping out
livelihoods across the world. While the effects of the pandemic are widespread, they are not equal.
Inequalities have widened and groups already suffering marginalization and discrimination have beendisproportionately affected, including rural, indigenous and minority women and their businesses. Women
made up an estimated 47.6 per cent of job losses in 2020, despite accounting for only 38.9 per cent of global
employment before the pandemic,19 and women-owned businesses were more likely to close and stayclosed for longer during the pandemic and lay off more staff than those owned by men. 20 Companies
interviewed by UN Women corroborated this trend; a number of companies saw a reduction in women’s
entrepreneurship activity during the pandemic, and 20 per cent of an East African company’s women suppliers
shut down operations.
This gender gap is further exacerbated by slowing growth rates in women’s entrepreneurship; womenstarted fewer businesses than men in 22 of the 35 economies measured by the Global Entrepreneurship
Monitor (GEM),21 and the World Bank Enterprise Surveys found that in 41 countries, women-owned businesses
were more than twice as likely than male-owned businesses to have financing applications rejected. 22
Furthermore, the effects of the pandemic were uneven across different subsets of women entrepreneurs.
Micro-enterprises reported less access to public support,23 and black women were the least likely group in the
United States to receive capital requested, despite being the country’s fastest growing group of entrepreneurs.24
Adding to these setbacks in women’s entrepreneurship is that GRP initiatives have stalled due to changing
priorities and paused business operations. One large logistics company indicated their plans for expanding
supplier diversity to other countries were delayed as funds were diverted, and a food services company
stated that the pandemic halted the implementation of a GRP programme. Some companies interviewed
had to reduce their overall procurement spend, and more missed their internal diversity procurement targets,
affecting small and diverse businesses. One global hospitality company’s total spend was down 50 per centduring the pandemic, which disproportionately hurt diverse businesses as they were clustered in certain
categories, like catering, which saw the largest drop in demand in 2020.
Given this disproportionate effect of the pandemic on women entrepreneurs, recovery efforts to ‘build backbetter’ should prioritize and revitalize GRP. Doing so will tap into a large potential for growth and promotea more equal and sustainable recovery.

Procurement has conventionally been measured by its
delivery of uninterrupted supply of goods and services
and cost savings. This publication makes the case that
GRP allows companies to meet these objectives while
promoting gender equality and women’s economic

empowerment and entrepreneurship. In other words,
companies that adopt GRP as a supply chain management
strategy can accrue business benefits by engaging new
and diverse business partners at the same time asadvancing gender equality.

18.

World Bank 2021a.

22.

World Bank 2020, cited by Hyland et al. 2021.

19.

ILO 2021a.

23.

De Paz et al. 2021.

20.

Hyland et al. 2021.

24.

Rogers 2021.

21.

Global Entrepreneurship Monitor (GEM) 2021.

INTRODUCTION

71INCREASED REVENUE
AND REDUCEDPROCUREMENT SPEND
Companies often look to procurement to generate profit
through reduced margins, which has conventionally taken
the response, at least in part, of consolidating spend.
It may follow that diversifying spend would increase
margins, but in reality, UN Women’s research found that
including more women enterprises through genderresponsive procurement can increase revenue and reduce
procurement spend. While revamping procurement
practices may involve increased investment,25 a handfulof interviewees indicated that their companies’ GRP
programmes were associated with increased revenue
while a few others saw reduced purchasing spend in thelonger-term, resulting in positive returns on investment.
In fact, GRP enables more women’s enterprises andgender-responsive enterprises to compete for sustainablebusiness opportunities, contributing to businessdevelopment and growth. When businesses thrive, theirowners and workers earn income that makes them not
only attractive suppliers, but also potential customers.
On the other side of the ledger, companies that adopt
GRP to seek local, diverse businesses could see a
reduction in costs through mechanisms such as increased
competition and reductions in shipping, freight andlabour costs. Indeed, all improvements in businesspractice represent an initial investment before a company
can see returns, and GRP is no different.

25.

Supporting women entrepreneurs through GRP canthus be a key driver of revenue growth as procurementfrom women business owners and gender-responsive
businesses increases women’s buying power, boosting
their propensity to become future customers, which
widens companies’ sources of revenue.
Multiple case studies undertaken for this report illustrate
this effect. One of the most clear-cut came from a global
consulting firm which attributes their GRP programme’s
sustainability and continued success to the many women
SMEs that became clients after having won a contract
as a supplier. Several other companies interviewed,
including a leading logistics and shipping company, aconsumer goods giant and a financial services institution,
similarly confirmed that many of their suppliers become
their own customers. The consumer goods company,
especially, saw that developing a large and diverse baseof suppliers through GRP is a must, as women are often
the predominant buyers of basic products for the family.
The company found that their many women suppliersbought more consumer goods when their own businessrevenues grew. In their view, doing good is one thing,but GRP is essential to the business, as it will circle backas sales.

For example, investment in training procurement professionals on GRP and new software to track sex-disaggregated data.

1. INCREASED REVENUE AND REDUCED PROCUREMENT SPEND

9CASE STUDY I
INVESTING IN GRP AND ITS IMPACT ON THE BOTTOM LINE:
GULF AFRICAN BANK26
Gulf African Bank has prioritized gender equality and inclusivity in its supply chain since 2017,
resulting in both greater opportunities for women entrepreneurs and increased bank profits.
Gulf African Bank (GAB) began its journey with gender-responsive procurement in 2015, when it
became a signatory of the Women’s Empowerment Principles, signalling its commitment to inclusion
and a desire to unlock the power of diversity. With the support of UN Women, GAB chose to champion
WEPs Principle 5—inclusive supply chain policies and standards of engagement—as a way toaccelerate their efforts around gender equality. GAB first looked inwards, performing a baseline
study of their own supply chain, and the results prompted the bank’s leadership to make acommitment to change. In March 2017, GAB publicly committed to increase sourcing from womenowned businesses from the baseline amount of 4.5 to a target of 20 per cent.

“Becoming a more inclusive organization has continued to serve us excellently.
It has driven better performance internally and has enabled women-owned
businesses banking with us to unlock their full potential. By signing up as a WEPs
champion, we have been able to create real impact on the facet of gender equality
through progressive and measurable actions. However, achieving these strides has
not been devoid of challenges. We faced substantial setbacks in our journey toachieving gender diversity and realized that it was critical to ensure that everyone
recognizes that diversity in the workplace is an asset for both our staff and customers
and that varying perspectives form the fabric of a stronger, diverse institution.”
Saada Mohammed, Head of Commercial Banking

Over the past years, onboarding of women-owned businesses as suppliers to GAB has grownconsiderably. About 26 per cent of its procurement spend is with women-owned businesses, almost
6 times its rate in 2017. Most notably, gender-responsive procurement created a clear return on
investment; it opened up opportunities for women banking clients who became suppliers of GAB
and other businesses, and this led to the overall growth of the bank’s balance sheet. In fact, thebank saw a notable increase in its returns after less than a year from the launch of the programme.
Currently, the entire women’s banking segment contributes to about 25 per cent of its overall asset
and liability book of the bank. Gender-responsive procurement was truly a game changer.
26.

10This case study shall not be construed as an expression of any opinion on GAB and its programmes or as an endorsement of theactivities, products
and/or services of GAB on the part of UN Women.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSEYet this game-changing new model required tough work, including the revision of procurement
policies through a 360-degree analysis of the market. As a starting point, the bank reduced thenumber of pages in its tender forms and removed the 1,000 Kenyan shillings charge. GAB also decided
to shortlist women-owned businesses throughout the year so that women did not need to wait for
procurement cycles. These efforts lowered the barrier to entry and streamlined the supplier application
process. To attract more women suppliers, GAB worked with UN Women to hold forums to build
their capacity. The bank coached around 700 women in 3 regions in Kenya on the actual tendering
process and provided feedback while continuing communication through regular webinars andother discussions to create awareness of upcoming opportunities for suppliers. The bank also createdinternal awareness and buy-in for the programme. By the end of the 2017, the bank had onboarded
41 women entrepreneurs as prequalified suppliers, many of whom were then able to supply to otherbusinesses as well.
In all, the programme created business opportunities for local women-owned businesses while
growing the bank’s own customer base, thereby also increasing women’s financial inclusion with anumber of new suppliers contracted and invited to open bank accounts. The bank also created alimited partnership financing product for women and youth, which provided credit to womenowned businesses that won bids with GAB and other buyers. This allowed promising start-ups thatwere previously hampered by a lack of access to credit to grow in partnership with the bank. Many
women suppliers trained by GAB and UN Women have now become successful suppliers to othercompanies in the region.
Gender-responsive procurement was a win for both the bank and its women suppliers; the model
has been introduced to other banks in East Africa. Indeed, the lessons learned and principles applied
are useful not only for other banks of similar size, but by diverse companies across various industries.
Thanks: Gulf African BankFor further reading:• UN Women Eastern and Southern African Regional Newsletter• Video: Gulf African Bank–UN Women Meet the Buyer Forum

Photo: GAB. A procurement official walks women in business through thebank’s tendering process during the bank’s Meet the Buyer Forum.

The belief that diversifying suppliers necessarily increases
costs has been debunked. A study by the Hackett Group
found that companies with a heavy focus on supplier
diversity programmes saw a 133 per cent greater returnon procurement investments versus the average, in
addition to average cost savings of 20 per cent on buying
operations. 27 A number of companies interviewed
indicated that by broadening their supplier base, they
were able to find women-owned suppliers that weremore cost efficient, and over 30 per cent of respondents
in UN Women’s survey on GRP agreed or strongly agreed
that GRP reduced their total costs.28 So, contrary to somebeliefs, it can be seen that diversity in suppliers can leadto cost savings in procurement spend.
One way this occurs is through creating competition.
Widening and diversifying the availability of suppliers
through GRP—assuming consistent demand—reduces
prices. For example, one multinational cosmetics company
shared that it awarded a large contract to a more costeffective women-owned business after the company
decided to reopen the contract for bids. Growth of
SMEs spurred by GRP and investment in women’s
entrepreneurship could contribute to a more competitiveenvironment and a wider pool of suppliers, where
efficiency and cost savings are prioritized. As one
interviewee in media and entertainment stated, if thecompany always procured from the same vendors, itwould not be giving opportunities to others that may
be more cost efficient.

27.

12

Jones 2006.

In addition, smaller firms, many of which are womenowned or led, can be more affordable when comparedto those that are larger and more established. In otherwords, SMEs that do not yet have an established brandcan sometimes successfully deliver for a lower cost,benefiting from increased agility due to less overhead
and bureaucracy. In one UN Women interview, a woman
and LGBTIQ+-owned management consulting firmrecounted how the company won multiple contracts witha mobile telecommunication firm due to its competitive
rates and successful service delivery, outcompeting larger
and more expensive management consulting firms in
the process, which allowed the company to grow and hire
more employees while saving the telecommunication
firm money. Another company specializing ininfrastructure was able to save costs by outsourcing
tasks previously done in-house to women-owned
businesses the company had targeted and trained
through its GRP programme.
Importantly, women-owned or led businesses are notinherently cheaper. Instead, companies interviewed
shared how opening procurement processes throughsupplier diversity and GRP provided the opportunities
to consider a wider range of proposals, including thosefrom businesses that were more, equal and less expensive
than their existing suppliers.

28.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSE

This is in contrast to the 13.1 per cent of respondents that strongly
disagreed or disagreed that the adoption of GRP has reduced theircompany’s total costs.

“It can be difficult to obtain the necessary support to invest
in supplier diversity programmes. Business leaders often worry that
dedicating resources to this will impact procurement savings or even quality.
But our research clearly shows that this is not true.
Top performers are not seeing losses in efficiency, and quality often improves.
Overall, the risks to focusing on supplier diversity are quite low,
and the potential upside is significant.
In fact, up to 10 per cent of sales come with supplier diversity requirements,suggesting that the lack of such a programme can even result in lost revenue.”
Ms. Laura Gibbons, Research Director, The Hackett Group

Lastly, data from this research suggest that suppliers
found through GRP were more likely to be local. Thus,
by increasing companies’ local pool of suppliers through
GRP, companies could potentially reduce import, shippingand freight costs. Global value chains have long relied oncheap shipping to keep margins small, but recent events—
including ship congestion and shortages of materials
and labour—have upended supply channels, resulting

in shipping costs in 2021 up to 50 per cent higher thanthey were in 2020. 29 Bloomberg reported that “higher
shipping costs are here to stay”,30 yet even if transport
costs do eventually reach a lower equilibrium, the reduced
reliance on a small group of overseas suppliers could bea smart economic choice, as exogenous factors likesevere weather events can always drive up demand andprices again.

29.

30.

Ren 2021.

Ibid.

1. INCREASED REVENUE AND REDUCED PROCUREMENT SPEND

13

2

GREATER SUPPLIERAVAILABILITY
AND RESILIENCE
Gender-responsive procurement is an approachcompanies can leverage to adapt to the realities of anincreasingly volatile world, by expanding, localizing
and diversifying their current vendors and by gaining a
deeper understanding of how suppliers operate. Data
from this research suggest that companies practising
GRP were able to find a more varied group of suppliers,
mitigating risks caused by single source supply chains.
Suppliers found through GRP were more likely to belocal, making supply chains less likely to be impacted byextreme weather and other results of climate change.
Finally, the GRP process requires that a company look
more deeply into their suppliers’ practices and businessmodels, removing the focus on efficiency and cost
reduction and uncovering potential vulnerabilities inthe supply chain that can then be addressed. In short,
GRP is a tool companies can use to make their supply
chains more resilient and secure.
Because the priority in procurement is to guarantee
supply, using new businesses could be adding risk. Yet
within the context of climate change, COVID-19 andother supply disruptions, it is a risk in itself to not diversify
and expand suppliers. CVM Solutions found that the
majority of Fortune 500 companies’ procurement spend
is allocated to a dangerously small group of suppliers,
representing a huge risk if any one of the suppliers
unexpectedly terminates or even simply stalls activity.31

Moreover, manufacturing production centres are now
predominately concentrated in select geographicalareas as a means to minimize costs, yet these areas
may be more vulnerable to shocks like climate change—
representing another layer of potential weakness to
supply chains.32
This fragility became evident at the start of the pandemic,
due to the global dearth of personal protective equipment(PPE), which further intensified as COVID-19 swept
through the globe. The Deloitte 2021 Global Chief
Procurement Officer (CPO) Survey found that 56 per centof firms’ key suppliers went bankrupt or were severely
hampered in the previous year. 33 In the spring of 2021,
supply chains confronted yet another disruption as
traffic froze in the Suez Canal due to the lodged shipEver Given. The crisis showed how global trade has
become increasingly reliant on transportation througha small number of choke points, critical narrow passages
for maritime trade, which—along with ports—are further
threatened with increase extreme weather events andrising sea levels.34

31.

Foggin 2010, cited by UN Women 2017.

33.

Kilpatrick et al. 2021.

32.

Woetzel et al. 2020.

34.

The Economist 2021a.

2. GREATER SUPPLIER AVAILABILITY AND RESILIENCE

15

In fact, supply chain disruptions will become even morecommon as climate change increases the frequency andseverity of extreme weather events, and the effects
will vary by supply chain. For example, McKinsey Global
Institute predicts that hurricanes, with the potential todisrupt semiconductor supply chains in the Asia-Pacificregion will become two to four times more likely by
2040, while disruption of heavy rare earths production

from extreme rainfall may increase two to three times
by 2030. 35 Whatever the industry, it is clear that all
businesses will need to contend with weather-induced
supply disruption. Indeed, after decades of spend
consolidation, with procurement’s heavy focus on cost
reduction and efficiency while deprioritizing resiliency,
vulnerability to shocks have increased and will continue
to do so.

“Averaging across industries, companies can now expect
supply chain disruptions lasting a month or longer to occur every 3.7 years,
and the most severe events take a major financial toll.”
McKinsey Global Institute16

GRP could be integrated into companies’ efforts to build
resilience and diversify risk, increasing the available
suppliers to which companies have access and resulting
in reduced supply chain risk and more alternate suppliers
when needed. UN Women’s survey found that over 70
per cent of companies that practise GRP agreed orstrongly agreed that it increased supplier diversification.
Several companies also stated that larger vendor lists
and networks are beneficial for expanding their available
pool of suppliers, especially during crises. Companies
credited the Women’s Business Enterprise National
Council (WBENC) and other diverse business networks
with connecting them to suppliers open to business
when their usual vendors were unavailable in 2020, andmany others credited their existing women and diverse
suppliers with their ability to have continued production.

Another way in which GRP can reduce risk is by promoting
transparency and information-gathering from suppliers.
The majority of respondents to UN Women’s survey on
GRP agreed or strongly agreed that GRP allowed them tolearn more about their Tier 1 and 2 suppliers (see Figure 1),
suggesting that GRP can be used as a strategy to uncoverpotential risks, a pressing need for many companies. In
fact, only 22 per cent of CPOs surveyed as part of Deloitte’s
2021 Global Chief Procurement Officer Survey were able
to identify and predict risk arising from their suppliers“to a large extent” or “completely”. 36 Deeper review orbaseline analysis of companies’ current supply chainswith an ESG lens can, for example, help identify if key
suppliers are located in proximity to climate hazards.
As well, by determining whether a business is genderresponsive, companies can learn more information
about Tier 2 suppliers’ safety practices, policies on sexual
harassment and more, uncovering potential social andgovernmental risks (see Case Study IV for an example).

35.

36.

Woetzel et al. 2020.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSE

Kilpatrick et al. 2021.

FIGURE 1

Proportion of companies which reported that GRP contributed
to increased knowledge of their Tier 1 and 2 suppliers
The adoption of gender-responsive procurement in my company has...
...allowed our company to learn more
about our Tier 1 suppliers...allowed our company to learn more
about our Tier 2 suppliers

0%
11%

0%

5%

11%

8%

18%
21%
26%

29%

37%

 Strongly disagree

 Disagree

 Neutral

34%

 Agree Strongly agree

 Don’t know/Not applicable

Source: UN Women survey on GRP.
Note: Calculations in this figure are based on self-reported data collected from 38 companies that practise GRP.
Labels are rounded to the nearest per cent.

While finding and integrating new suppliers, including
manufacturers, into supply chains is a considerable
undertaking, the benefits of more diverse and local
suppliers can outweigh the risks of having limited andgeographically concentrated suppliers. In fact, diversifying
suppliers by contracting local women-owned and ledbusinesses and gender-responsive businesses can haveknock-on effects like economic development. Sourcing
from more local and regional suppliers can also be betterfor the environment due to reduced emissions and energy
usage from transportation and storage.

2. GREATER SUPPLIER AVAILABILITY AND RESILIENCE

17

CASE STUDY II
LEVERAGING GRP TO BUILD RESILIENCE:
BRISTOL MYERS SQUIBB 37
BMS’s commitment to diversity proved to be a competitive advantage during the pandemic,
allowing the company to access personal protective equipment and continue operations.
Bristol Myers Squibb (BMS), a global biopharmaceutical company dedicated to transforming patients’
lives through science, believes that diversity drives innovation and transformative business results.
It is this premise that drives the global growth of its supplier diversity programme, established 25
years ago; the programme has grown from the United States to the United Kingdom, Ireland, Canada
and Brazil, and is now expanding to other markets. In 2020, spurred by social justice movements in
the United States, the company announced a set of commitments to accelerate its robust equity
and diversity and inclusion (D&I) efforts, including a commitment to increasing its worldwide spend
to US$1 billion with diverse-owned suppliers, including women-owned businesses, by 2025.
At BMS, supplier diversity and gender-responsive procurement is truly integrated in the businessand is a shared objective across the enterprise. For example, senior managers are held accountable
to BMS’s commitment of spend with diverse suppliers, including women-owned businesses. BMS
also asks (if applicable) whether their Tier 1 suppliers have their own supplier diversity programme,a question that is factored into their requests for proposals (RFPs) and allows BMS to hold itself andits suppliers accountable. Moreover, to ensure its company’s diverse and youth voices are heard, thesupplier diversity team works closely with the company’s eight people and business resource groups(PBRGs), including the BMS Network of Women (B-NOW), the Black Organization for Leadershipand Development (BOLD), Differently Abled Workforce Network (DAWN) and the PRIDE Alliance.
The PBRG model connects diversity and inclusion indicators to business performance; supplier
diversity commitments are a part of the PBRG’s business plans. The teams collaborate on raisingawareness of the value of diverse suppliers across the company, promoting the inclusion of diverse
suppliers in sourcing activities, driving capacity and capability-building initiatives of diverse suppliers,
and implementing a programme to connect directly with suppliers from underrepresented andunderserved communities through skills-building, STEM education and more.

37.

18

This case study shall not be construed as an expression of any opinion on BMS and its programmes or as an endorsement of the activities, products
and/or services of BMS on the part of UN Women.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSE

BMS’s many investments in its diverse suppliers have translated into concrete benefits for the business,and this was evidenced during the COVID-19 pandemic. BMS, like many, made a mad scramble for
PPE in early 2020 to keep their employees safe and essential operations running to continue delivering
medicines to its patients. Stock was hard to come by, including from larger and more establishedsuppliers, but BMS’s extensive and diverse supplier network, resulting from its enterprise-widecommitment to D&I, became a competitive advantage.

“Our supplier diversity programme has not only made BMS better able
to compete in the marketplace and discover,develop and deliver breakthrough therapies for patients in the US
and around the globe, it has made us a more inclusive
and open-minded company and a more attractive place for the best
and the brightest to build their careers.”
Rondu Vincent, Executive Director, Supplier Diversity & Sustainability, Bristol Myers Squibb

ICE Safety Solutions, a woman and minority-owned business based in California, struggled during
the start of the pandemic like many businesses and had to lay off almost all of its staff. Despite this,the company was agile and able to pivot their business to supplying PPE, which BMS successfully
procured. BMS’s US$100,000 purchase was reinvested, keeping ICE Safety Solutions afloat, which
went on to supply urgently needed PPE for the National Basketball Association (NBA) Bubble,38 Twitterand other large corporations. In the end, BMS credits their ability to source and secure PPE during thestart of the pandemic to their expansive network and strong relationships with diverse supplierswith diverse capabilities, including ICE Safety Solutions.
The benefits of BMS’s investment in their diverse and women-owned suppliers is further demonstrated
by their supplier liquidity programme, introduced at the start of the pandemic. For procurement
teams, the top priority is consistent supply and successfully executed contracts, which COVID-19
threatened as businesses struggled. The supplier liquidity programme was thus quickly instituted
at the beginning of the pandemic to help ensure supplier’s financial health and continued production.
BMS reduced payment terms in some cases, resulting in a reduction of pay periods to 30 days or less
if suppliers qualified. This represented a win-win for BMS and their smaller suppliers, many of whomwere diverse and women-owned, as it kept businesses afloat while minimizing supply chain disruption.
The programme thus helped ensure continuous supply of medicines to patients, while allowing BMS
to continue supporting medical relief efforts around the world and research of effective treatments.

38.

The NBA Bubble congregated basketball players, coaches and staffers across the association together for three months in Orlando, isolating themfrom the outside world and COVID-19 to continue the 2019–2020 season.

2. GREATER SUPPLIER AVAILABILITY AND RESILIENCE

19

“Supplier diversity is not something we just check off on our to-do list.
Our programme and the goals we’ve set for ourselves reflect who we areas an organization and the role we want to play in society.”
Rondu Vincent, Executive Director, Supplier Diversity & Sustainability, Bristol Myers Squibb

The business case for BMS’s work in pursuing and undertaking gender-responsive procurement isclear: partnerships with diverse and women-owned companies propel the business forward, evenin times of turbulence, and as a result, diversity and inclusion will continue to be part and parcel ofthe company’s culture. Supplier diversity for BMS is more than checking off a box, it is centred on
partnering with purpose: championing economic empowerment through wealth and job creation in
the community, while fostering inclusive innovation and a supply chain that reflects the company’svalues, patients and diverse communities. Through meaningful partnerships that lift up the people
and communities in which BMS works, gender-responsive procurement is making an impact whilebuilding trust and supplying change for both BMS’s community and its business.
Thanks: Bristol Myers Squibb

For further reading:• Diversity beyond the workforce – How supplier diversity can benefit business, suppliers
and more: BMS program drives innovation and equity, helping patients and communities• Reflecting on the first anniversary of our BMS Commitments in diversity, inclusion
and health equity

Photo: ICE Safety Solutions. The CEO of ICE Safety Solutions, a woman andminority-owned business that provided PPE to BMS during the pandemic.

A few companies interviewed shared that they are
localizing their supply chains as part of their efforts tobuild resilience. One multinational consumer goods
company is reducing overreliance on a few suppliers in
the Asia-Pacific region by decentralizing their supply
chain, while using GRP as a tool to find more suppliers.
For them, the cost of losing customers from a lack ofsupply—who may or may not rebuy their brand after
finding alternates—is more than the savings they could
get from sourcing cheaply. A chemicals company in SouthAmerica, meanwhile, implemented a programme on
single source management to identify where only
one supplier provides a certain service or good. The
programme is actively developing new suppliers andproducts that can act as replacements or alternatives,
when needed.

It is within this context that companies can integrate agender perspective, ensuring that both resilience andwomen’s empowerment are built into value chains. For
example, many companies have implemented capacitybuilding and training sessions for potential local anddiverse suppliers, as part of their GRP and supplier
localization initiatives. This type of investment has provenuseful for both buyers and suppliers, often demonstratingthat women’s empowerment can advance hand in handwith supply chain and business development and greater
supplier availability. By training women’s cooperatives in
Latin America on better recycling practices, for example,
one multinational food and beverage company increased
the quality and availability of raw materials, strengthening
its packaging supply chain and reducing the risk of
supplier shortages.

2. GREATER SUPPLIER AVAILABILITY AND RESILIENCE

21

3

STRONGER
BRAND REPUTATIONAs ESG issues are receiving more attention, companies
are finding that they can strengthen their brand throughgender-responsive procurement, resulting in increased
business and brand loyalty from internal and external
stakeholders, including customers, peers, investors andemployees. In fact, there is a growing cost to companies
who are not adapting to the public’s expectations aroundcorporate responsibility. In the digital age when all
information is a click away, companies’ supply chainsare coming under increased scrutiny. Business practices
should align with how their brand presents itself to theworld and who their customers want to support. In short,supplier diversity and GRP have become a reputational
issue, where it is often a prerequisite for partnerships,
growth and employee satisfaction, and adopting GRP isa way to meaningfully move forward with a whole-oforganization approach on gender equality and women’s
empowerment.
Putting customers first is putting diversity first;
companies’ ecosystems, including suppliers, shouldreflect buyers, within which women are a key andgrowing demographic. It is estimated that womenaccounted for US$31.8 trillion in global consumer spendingin 2019, 39 and women often shoulder the responsibility
for household spending, with 89 per cent of womenreporting having primary or shared responsibility fordaily shopping needs versus 41 per cent of men. 40
McKinsey & Company predicts that US$30 trillion will
shift into the control of women in the next three tofive years in the United States, 41 and UBS projects thatwomen will drive a US$5.3 trillion consumer boom in
the next 10 years in China. 42

39.

World Data Lab 2020, MarketPro, cited by Catalyst 2020.

The choices involved with buying services and goods are
shifting and are not solely driven by price. Some discerning
customers, including women, prefer companies that
support women-owned businesses. WBENC found that
78 per cent of women will try a company’s products orservices and 80 per cent will solidify their brand loyalty
if they are aware of the company’s support to womenowned businesses. Moreover, over half of women will
give a company a second chance if expectations were
initially not met. 43 As more women are increasing theirbuying power, companies must ensure that they arecatering to consumers in all their diversity; one way to
do this is to source from women and gender-responsive
suppliers.
Around the world, responsible sourcing is gaining
attention. Consumers are more likely to buy from purposedriven brands, especially younger customers, whichview companies’ suppliers as part of the brand. A global
Nielsen survey found that 55 per cent of respondents
stated that they would pay more for products andservices from companies committed to positive socialand environmental impacts. 44 Meanwhile, a McKinsey& Company survey in Brazil of Gen Z consumers foundthat 70 per cent of respondents try to purchase products
from what they consider to be ethical companies and,notably, 65 per cent try to learn more about the originsof their purchases, including where and how they were
made. 45 Indeed, locally produced products have becomea large driver of purchases and brand loyalty.

43.

Vazquez and Sherman 2013.

40. Nielsen 2019.

44. Nielsen 2014.

41.

Pooneh et al. 2020.

45.

42.

UBS 2021.

Francis and Hoefel 2018.

3. STRONGER BRAND REPUTATION

23

GRP and responsible sourcing practices are tactics thatbuild brand reputation and loyalty. Many companies
interviewed cited growing customer sophistication
coupled with greater attention to ESG initiatives, andthe large majority of respondents (73.7 per cent) in the
UN Women survey on GRP agreed or strongly agreed

24

that GRP strengthened their companies’ reputation.
One multinational technology corporation reported anincrease in customer satisfaction as its supplier diversity
programme expanded and another software company
interviewed believes that their GRP practices contributed
to their sustained growth over the past decade.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSECASE STUDY III
ACHIEVING PRODUCT DIFFERENTIATION THROUGH WOMEN’SEMPOWERMENT: ARREDO AND MEDIAPILA 46
Arredo is investing in its supply chain by collaborating with Mediapila to empower women seamstresses,
resulting in a unique product line that resonates with the company’s socially conscious shoppers.
Arredo, a retail company established over four decades ago, with stores in Argentina and Uruguay,
is a B2C (business-to-consumer) company focused on home textiles, small furniture and decorative
objects. Within the company’s DNA is a commitment to the welfare of their employees, stakeholders
and society; human rights and the promotion of an inclusive society are fundamental values ofArredo, and the company is committed to gender equality both within the company and throughits supply chains.
To promote women’s economic autonomy and close economic gaps, Arredo began a partnershipwith Mediapila in 2018, a non-profit organization that promotes the employment of socially andeconomically vulnerable women through technical training and coaching. What began as a collaboration
to donate leftover textiles to Mediapila’s workshops and classes grew into a larger programme focusedon creating jobs and workplace inclusion through its cooperative.

“Donating is easy, but Arredo wanted to go further than that …
to build women’s skills to create more sustainable work.”
Fernanda Manuel, Arredo

Arredo’s “Economic Strengthening Programme for Women Entrepreneurs” focuses on investing in
women entrepreneurs and integrating them into its supply chain. It promotes the labour force
participation of Argentinian women from lower socioeconomic classes through its partnership withMediapila, which provides skills-building and personal development by building women’s capacity
in entrepreneurial skills such as agile production methods, budget creation and price-setting.
It is important to note that the integration of women seamstresses into Arredo’s supply chain requireda high initial investment; the costs of home goods from Mediapila were much higher than its
competition, a key consideration for any retail company when considering new sourcing possibilities.
46.

This case study shall not be construed as an expression of any opinion on Arredo and Mediapila and their programmes or as an endorsement of theactivities, products and/or services of Arredo and Mediapila on the part of UN Women.

3. STRONGER BRAND REPUTATION

25

Nevertheless, Arredo’s commitment to women’s economic empowerment kept the company at thenegotiating table. In the end, Arredo made the decision to pay a higher cost for these products whileproviding training on more cost-effective practices. The company also decided to absorb the extra
cost, selling the products at a competitive price with reduced margins and including their range of
products in their everyday line. By doing this, Arredo showed that it had decided to factor in social
in addition to financial gains into their business model.
Arredo now has a permanent production line through Mediapila’s seamstresses and has since seen
numerous benefits not only to its business, but to society at large. All the women that were trained by
Mediapila increased their earnings by 40 per cent to 50 per cent, with 8 out of 15 women increasing
their earnings by an average of 72 per cent in 2019. By becoming seamstresses and producing home
goods for Arredo, a number of women have been able to make the transition from informal to formal
work with a reliable salary.
Moreover, in 2019 alone, more than 16,000 home goods were placed in four of Arredo’s flagship stores,
which sold well due to their unique and captivating story. In fact, all the products sold under thisproject have a special tag that tells the tale of their production. The home goods are particularly
attractive to Arredo’s socially conscious customers and during key dates such as Mother’s Day.
Arredo’s journey has shown the value of gender-responsive procurement, and that their practices andprinciples can be followed by others who are interested in developing added socioeconomic value
for their businesses, women entrepreneurs and the community.
Thanks: Arredo and Mediapila

For further reading:• Arredo: Programa de Igualdad (Equality Programme)• Mediapila: Nuestro Trabajo (Our Work)

Photo: Mediapila. Women taking part in Arredo’s “Economic
Strengthening Programme for Women Entrepreneurs.”

Gender-responsive procurement has been shown to bea strategic marketing tactic for companies, which canhelp them reach new customers and differentiatethemselves from competitors. Attention to corporatesocial responsibility (CSR) within procurement is growing.
According to Deloitte’s 2021 Global CPO Survey, CSR has
become a main priority in procurement and is now more
likely to be formally measured within businesses. 47
One marketing team showcases the new womenowned businesses it procures from as part of its public
relations strategy on DE&I. Another company interviewed
explained how its women suppliers became ‘guerrillamarketers’: new suppliers spread the word about theirsuccess with the company, attracting more potential
women entrepreneurs, who previously had not applied
to requests for proposals. Word of mouth similarly
became a powerful advertisement for one bank in East
Africa: the positive culture for women arising from its
GRP practices gave the bank increased visibility and drove
traffic; women entrepreneurs would walk into the bankto inquire about its GRP programme and services.
Importantly, the benefits of GRP to brand reputation
extend to both business-to-consumer (B2C) and businessto-business (B2B) sales. Companies are increasingly
being asked by their peers and potential clients about
the sustainability and social impact of their businesspractices; one hospitality company interviewed statedthat a growing number of its clients are asking about
Tier 1 and Tier 2 reporting, while another pharmaceuticalfirm has been asked about its diversity spend by over47.

Kilpatrick et al. 2021.

48.

EcoVadis provides business sustainability ratings, with over 75,000
rated companies.

100 companies and counting. To these companies andmany others interviewed, the recent and stronger pull
to make progress on ESG issues has translated to theneed to scale up supplier diversity and GRP.
It is clear that more clients are seeking firms that practise
GRP, giving them greater market access and more
opportunities for business. Multinational companies
headquartered in North America and Europe in particular
spoke of the growing obligation from corporate customers
and governments on sharing spend with women-owned
and diverse suppliers along with ESG ratings, such as
EcoVadis, 48 before winning their business. Procuringfrom women-owned, women-led and gender-responsive
businesses thus opens the door to more markets,
including the European Union, whose countries havehigh standards in ethical and sustainable sourcing. 49
Investors are also looking more often at companies’
procurement practices. One smaller consulting firmshared with UN Women that to stay competitive larger
consulting firms are acquiring SMEs that are diverse tobroaden their appeal, as more and more customers arelooking to hire diverse firms.
Purpose-driven companies are more often seeking towork with other companies whose values align with
theirs, recognizing that their mutual work will be more
effective. Several companies interviewed commented
that partnering with suppliers that are not striving forthe same goals, such as gender equality, would mitigate
their own actions.

49.

IFC 2017.

3. STRONGER BRAND REPUTATION

27

CASE STUDY IV
DRIVING BRAND LOYALTY THROUGH RESPONSIBLE SOURCING:GANNI 50
The fashion house GANNI has experienced continued growth, even during the pandemic, by putting
its commitment to gender-responsive procurement into action.
At the heart of Copenhagen-based fashion brand GANNI’s business is a focus on planet, product,
people and prosperity. The company has vowed to do better, recognizing the inherent contradiction
between fashion consumption and sustainability and the prevalence of gender inequality anddiscrimination in the garment industry, where women account for approximately 80 per cent of theworkforce.51 GANNI committed to targets set out by the Sustainable Development Goals, namely
SDG 5 on gender equality, SDG 12 on responsible consumption and production and SDG 13 on climate
action. As part of its commitment to the SDGs, the company signed the Women’s Empowerment
Principles in August 2020, which provided the company with a formal framework for action, including
the road map on how to implement supply chain practices that empower women according to
WEPs Principle 5.

“We don’t identify as a sustainable brand.
We recognize the inherent contradiction between
the current fashion industry that thrives off newness and consumption,and the concept of sustainability.
So instead, we’re focused on becoming the most responsible version of ourselves.
Committed to making better choices every day across the businessto minimize our social and environmental impact.
We see this as our moral obligation.”
GANNI’s responsibility statement

In spite of this, the journey ahead in gender-responsive procurement was difficult. Fashion value
chains are convoluted and opaque; there could be over 10 suppliers per garment produced. Therefore,a first step to start promoting socially responsible sourcing was to learn more about suppliers

28

50.

This case study shall not be construed as an expression of any opinion on GANNI and its programmes or as an endorsement of the activities, products,
and/or services of GANNI on the part of UN Women.

51.

ILO 2019a.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSEwithin its supply chain; GANNI aimed in 2020 to have 100 per cent traceability in Tiers 1, 2 and 3 by
2021. The company reached out to its 144 suppliers in these tiers with 21 social, environmental andgeographical questions, but responses were difficult to attain and each round of questionnaire
distribution saw a decrease in responses. The company reassessed the situation and decided tosimplify the questionnaire with a focus on geographical locations so that its tracing could move
forward. As a result of this strategic follow-up, GANNI now has 100 per cent geographical traceability
in four tiers of its supply chain with plans to trace down to Tier 5 (raw materials) next. As the processcontinues, GANNI will investigate employee representation and ownership in its factories.
The company will use this information to perform country risk assessments with a gender focus,
e.g. utilizing gender-based harassment statistics, which will drive GANNI’s geographical priorities.
GANNI will work first with suppliers to find solutions to risks but will end relationships if necessary.
In doing so, GANNI will scale up its engagement with non-profit organizations in order to conduct
trainings on gender equality in the workplace and implement women’s empowerment programmes,
helping its suppliers become more gender-responsive by promoting women in leadership positions.
The information GANNI gathers will allow it to better prioritize women-led and gender-responsive
businesses, as well as those that are more environmentally sustainable. GANNI currently utilizes ascorecard with a section on responsible sourcing, which weighs heavily in its decision on whether
or not to move forward with a partnership; if a supplier has no social or environmental policy, forexample, they will not procure from that supplier, even if it proposes the best cost.
While this may seem counter to the bottom line, in reality, the company’s values have benefited thebusiness in many ways. The work GANNI has done in ensuring 100 per cent traceability and the
procurement of more sustainable materials has differentiated the brand in a crowded field. Thereis weight and a real commitment behind GANNI’s words and in fact, the company did not decreasesustainability spend during the pandemic. Customers responded positively; the brand did well, gained
momentum and grew, despite the global decline of consumer spending in apparel and fashion companies
during the COVID-19 pandemic. Moreover, GANNI believes its values have increased employee retention
and made the company more attractive as an employer, especially with younger generations like
Gen Z, which prioritize working for purpose-led companies.

“Consider supplier relationships like you do your friendships. You wouldn’t spend
time and energy with people that don’t share your values and have a similar
mindset, and supplier relationships are similar. It’s easier to align and grow withthose who share your values.”
Lauren Bartley, Head of Sustainability and Corporate Social Responsibility, GANNI

3. STRONGER BRAND REPUTATION

29

GANNI’s sustainable and responsible vision has also incentivized suppliers to scale up or continue
their gender-responsive practices, knowing that GANNI values and prioritizes gender-responsive
suppliers. For example, GANNI’s relationship has continued to grow with their supplier Sutek in
Turkey—a fellow WEPs signatory that provides trainings and other programmes targeted at its
women garment workers—due to the two companies’ shared visions and goals for the garment
industry. This alignment between businesses increases efficiency and sustains long-term relationships.
As today’s consumers become more conscious of the social and environmental impacts of theirpurchasing power, GANNI has proven that staying ahead of the curve, prioritizing planet, product,
people and prosperity is a business advantage that will pay social, environmental and financial dividends.
Thanks: GANNIFor further reading:• GANNI: Responsibility Report 2020
• WEPs in Action: Creating gender equality in fashion

Images: GANNI. Campaign images used to promotetransparency within GANNI’s supply chain.

GRP is a valuable way to exhibit real commitment to DE&I
within business networks and communities, including
employees. GRP is associated with greater employee
satisfaction, which affects retention and recruitment.
One European-based firm, citing younger generations’desire to work for a purpose-led company, attributes its
attractiveness as an employer to their DE&I initiatives,of which GRP is a main pillar. Millennials and Gen Zs
want to work for companies that are aligned with theirown values and have a purpose beyond profit, and infact, 15 per cent of those surveyed within Deloitte’s
Global 2021 Millennial and Gen Z Survey either left theirjobs or started new careers after reflecting on their values
and aspirations in the context of the pandemic.52

52.

A handful of other companies shared their employees’
enthusiasm and buy-in for GRP, with one stating thatits supplier diversity programme had helped it increase
employee retention and talent, while another shared how
GRP broke the glass ceiling for women in a traditionallymale-dominated company, boosting and motivating
women employees who saw women suppliers’ impact
and equal footing in critical meetings. This follows
findings from UN Women’s survey on GRP, where over76 per cent of respondents agreed or strongly agreed
that GRP had enhanced employee satisfaction.

Deloitte 2021.

3. STRONGER BRAND REPUTATION

31

4

MORE INNOVATION
AND ADAPTABILITY
Procurement from women-owned, women-led andgender-responsive companies through gender-responsive
procurement can drive innovation and adaptability,
two factors essential to business sustainability,competitiveness and growth. Women entrepreneurs
and business leaders have a wealth of underutilized
perspectives and expertise from which firms can benefit.
In the face of new risks, such as COVID-19 and climatechange, companies need to continually innovate andadapt to better serve and respond to clients’ changing
needs; GRP is a key way in which companies can do so.
There is a wealth of evidence that diversity brings greater
innovation due to differing perspectives and approaches.
For example, a study of over 4,000 companies foundthat gender diversity generates dynamics that leads toradical innovation,53 and a Boston Consulting Group (BCG)
study of over 1,700 companies demonstrated a strong
correlation between management teams’ diversity andinnovation, with more diverse teams deriving greater
total revenue from new products and services, signallinginnovation and adaptability.54
The connection between supplier diversity and innovation
also emerged as a prominent theme in UN Women’s
research. One food producer has come to rely on a womanowned supplier whose innovative recipes have allowed
the company to cater to its more health-conscious
customers, e.g. by reducing sugars without sacrificing
taste. Another company in health services is currently
piloting the use of windowed face masks as PPE,
produced by one of its diverse suppliers, which enables
those with hearing impairments to read lips. Meanwhile,over two thirds of respondents to UN Women’s survey
on GRP reported that GRP increased innovative solutions
53.

Díaz-Garcia et al. 2013, cited by International Finance Corporation(IFC) 2017.

within their companies (see Figure 2). Although womenare not intrinsically more innovative, UN Women’s
research found that supplying from more women anddiverse companies through GRP allows buyers to takeadvantage of a greater range of talent that otherwise
would not have been tapped.
For several interviewees, larger suppliers with longestablished relationships tend to become complacentand less able to look beyond the ways things have always
been done. Instead, companies reported that newer
suppliers recruited through GRP programmes were more
likely to introduce new ideas into businesses. This point
was emphasized in the few interviews UN Women
conducted with companies working in the technology
industry, where start-ups are frequently tapped forinnovation. A large computer manufacturer credited
their diverse suppliers for coming up with innovative
solutions that satisfy their global client base.
Indeed, increased diversity allows companies to staycompetitive and ultimately better serve their clients.
Women-owned, women-led and gender-responsive
businesses possess a critical perspective on how totarget and sell to women consumers, for example, andsuppliers representing diverse backgrounds can likewise
help companies understand and address differing
customer needs. Research found that “a team with amember who matches the ethnicity of the team’s client ...
is 152 per cent more likely to understand their client thana team lacking that representative.”55 It is with thisunderstanding that some companies interviewed
purposefully contract diverse teams, knowing that they
will be more responsive to the diverse needs of customers.

54.

Lorenzo et al. 2018.

55.

Hewlett et al. 2013.

4. MORE INNOVATION AND ADAPTABILITY

33

CASE STUDY V
HARNESSING DIVERSITY FOR A GLOBAL BRAND: MICROSOFT 56
Microsoft is creating change within its ecosystem by spearheading a more holistic view of procurement,
resulting in a stronger and more innovative brand that represents its diverse customers.
Microsoft’s supplier diversity programme has grown exponentially since its inception in 2006;
at the end of 2020, the company had spent US$6 billion with diverse suppliers—including US$426
million with women-owned businesses—up from US$600 million just 12 years before. The company
also recently committed to doubling the number of approved suppliers owned by Black and African
Americans and spending an additional US$500 million with those companies over the next three years.
To achieve this success, Microsoft modified its supplier policies and practices, ensuring inclusionof diverse-owned business in all requests for proposals and end-to-end procurement processes.
As part of this, the company is also re-evaluating its supplier selection processes and boosting market
assessment and outreach. These efforts are significantly expanding the number and breadth of diverse
suppliers in Microsoft’s ecosystem and deepening connections with existing suppliers, resulting in
longer-term and cross-company supplier relationships.
Microsoft’s ambition goes beyond solely empowering diverse and women business owners; it is using
its purchasing power through its multiyear supplier relationships to drive diversity, equity and inclusion(DE&I) in the industry as a whole. Indeed, Microsoft’s company ethos is predicated on creating theholistic societal change it envisions.

“Focusing solely on supplier diversity puts money in a few wallets
and doesn’t affect the specific industries you want to change,
especially industries that are dominated by large companies
like advertising and media. This is why
Microsoft started looking at our suppliers’ employee representation
to ensure the teams working directly on our business wereas diverse as the customers we want to reach.”
Kathleen Hall, Chief Brand Officer, Microsoft

56.

34

This case study shall not be construed as an expression of any opinion on Microsoft and its programmes or as an endorsement of the activities,
products and/or services of Microsoft on the part of UN Women.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSE

In 2014, Microsoft began tracking its suppliers’ employee representation, surveying its marketingand consumer businesses (MCB) on the composition of their employees by seniority (i.e. executive,
mid-level, professional and support), gender and race. While no diversity targets were formallyestablished between Microsoft and its MCB suppliers, the survey started a conversation andconveyed the value Microsoft ascribes to its suppliers’ diversity, equity and inclusion. Microsoft
shared best practices including making DE&I top of mind, both in front of the camera (i.e. castingof non-actors and diverse talent) and behind the camera, including collaborating with writers,
producers, directors and film- and videomakers through an ongoing dialogue with its core creativeand media agencies, as well as quarterly reporting on the representation of its teams.
The data Microsoft collected from its MCB suppliers were then compared with the industry averages
from census reports, to determine Microsoft’s impact on the industry over time. Microsoft’s advertisingand media suppliers in the United States are now on average 6 points ahead of the industry inwomen’s representation, and over the past 7 years, there has been a 10-point increase in women’s
representation at the executive level. In all, this work has proved the power of collective, coordinatedand strategic action to create change, and importantly, it has also allowed larger companies that
may be male-owned to participate and be part of the solution in the call for companies to improvetheir environmental, social and governance (ESG) impact.
Greater supplier DE&I has repeatedly proven its business value at Microsoft; work produced bydiverse suppliers has more impact, contributing to brand loyalty and increased sales. Microsoft’scommitment to DE&I has also set it apart in the tech world, helping the company attract and retain
top talent. In fact, Microsoft’s stock has grown over six times its worth since 2014, when the initiative
began. While increased profit cannot be solely ascribed to the company’s diverse MCB suppliers,
it is clear that Microsoft’s vision and work around DE&I are resonating, and the company’s story
corroborates the value of procuring not only from women- and diverse-owned businesses but diverse
companies themselves.
A cornerstone Microsoft commercial produced by a supplier’s diverse team was incredibly well-received
on social media due to its feature of two Black college students with natural hair—a styling choice thatwould not necessarily have been taken without having both diverse talent and leadership. It waswork like this created by Microsoft’s diverse ecosystem of suppliers over the past seven years thatearned Microsoft the 2021 Cannes Lion Creative Marketer of the Year honour for its brave, creativeand innovative marketing solutions.

4. MORE INNOVATION AND ADAPTABILITY

35

“There’s a huge amount of support from Microsoft’s stakeholders,
including customers and employees,
for driving change in our ecosystem through procurement.
For change to be meaningful, it must be sustainable and holistic.
We must put DE&I at the heart of our supplier management
by creating opportunities, learning from each otherand translating aspirations into reality.”
Terri Bowers, Group Program Manager Supplier Social Equity, Microsoft

The results of tracking MCB supplier employee representation were so successful, the initiative has
now been expanded to Microsoft’s top 100 suppliers, representing over 50 per cent of Microsoft’s
indirect spend. The company has also recently launched a mentorship programme, AMP’D, which pairs
Black and African-American suppliers with a Microsoft insider. The programme aims to improve thesupplier experience, optimize their visibility, increase their access to opportunities and provide themwith insight for navigating the company landscape. As seen, Microsoft believes that its suppliers
are an extension of its company and as such will continue to use its influence and the power of its
procurement to keep building a diverse ecosystem that reflects the world of its consumers anduphold its values.
Thanks: Microsoft

For further reading:• Inside Microsoft | Global Diversity and Inclusion at Microsoft• Welcome to Microsoft Procurement

Photo: Microsoft. A current advertisement produced by one of Microsoft’s suppliers
showing diverse, young gamers using Windows 11 and Intel-powered PCs.

Research conducted by UN Women has also highlighted
women’s and diverse enterprises’ adaptability.
UN Women’s survey on GRP found that 68.4 per cent ofrespondents either agreed or strongly agreed that GRP
from smaller or local vendors increased their companies’
agility and flexibility (see Figure 2). This may be attributed
to the relative novelty of women SMEs as suppliers andtheir smaller size versus larger more established andcomplex businesses, resulting in greater flexibility,
willingness and ability to pivot when needed.

As one GRP expert shared, if a company needs a large
purchase order, breaking up the order into smaller
increments would allow smaller, local and womenowned businesses to bid. While the cost may be higher,
it could be offset by reduced shipping and storage costs.
Importantly, more flexibility would be built into the
supply chain, as companies could then more easily
respond to unforeseen or changing consumer preferences
versus being stuck with huge potentially unsellable
quantities of stock in a warehouse.

FIGURE 2

Proportion of companies which reported that GRP increased innovation and agility
The adoption of gender-responsive procurement in my company has...

...Increased innovative solutions

11

0

11
11

0%

...Increased agility and flexibility

5%
3

10%

15%

20%

25%

 Disagree

30%

35%

40%

5
11
29

13
 Strongly disagree3732

 Neutral

 Agree Strongly agree

39

 Don’t know/Not applicable

Source: UN Women survey on GRP.
Note: Calculations in this figure are based on self-reported data collected from 38 companies that practise GRP.
Labels are rounded to the nearest per cent.

The adaptability of women SMEs became evident during
the pandemic; a number of companies from different
industries and geographical locations interviewed citedthe many women-owned businesses which pivoted

during COVID-19 to help keep their business operations
running, including those that began supplying muchneeded PPE (see Case Study II for an example).

4. MORE INNOVATION AND ADAPTABILITY

37

5

IMPROVEDSERVICE DELIVERY
A central factor in strategic supplier management, andby extension, sustained operations and business growth,is service delivery: whether or not suppliers procured
meet deliverables within a set budget and timeframe.
UN Women’s research found that gender-responsive
procurement can improve service delivery and has thepotential to revitalize a company’s value by bringing in
new suppliers who bring with them new energy, talentand productive capacity.

be SMEs, are often more eager for business, leading tobetter customer service and a willingness to learn andadapt. A number of companies also shared that SMEs
provide better customer service than larger firms dueto their smaller number of customers, and they may
also have a more specialized understanding of industry
fluctuations and needs.

All businesses interviewed by UN Women rated theirwomen-owned suppliers highly, with many companies
stating that GRP had significantly improved the qualityof service delivery, with increases in efficiency, customer
service and productivity. Companies reported thatwomen and diverse suppliers, which are more likely to

For one company based in the United Kingdom, a womanled smaller business was instrumental in helping tonavigate shipping PPE during Brexit and COVID-19. The
smaller size and context-specific expertise of the supplier
allowed the company to overcome complex and quickly
evolving challenges through one-on-one guidance, whenother shipping companies were tied up with othercustomers and unable to provide comparable service.
To onboard more women-owned businesses, an Indiabased food services company now procures from six
smaller bakeries rather than one large manufacturer,
leading to the chapatis, an Indian flatbread, being madeby hand rather than machine and resulting in tastierand softer bread. The improved product has increased
client satisfaction, resulting in renewed and longerterm relationships with both its clients and the chapati
suppliers.

57.

58.

This is corroborated by a study of 1,069 firms across
35 countries and 24 industries, which found that gender
diversity correlates to more productivity in contexts
where gender diversity is culturally important. 57
In addition, the Hackett Group found that “virtually
all diversity suppliers meet or exceed [companies’]
expectations, and top corporate performers in supplier
diversity experience no loss in efficiency”.58

Turban et al. 2019.

The Hackett Group 2017.

5. IMPROVED SERVICE DELIVERY39

CASE STUDY VI
UTILIZING THE POWER OF DIVERSITY FOR BUSINESSAND COMMUNITIES: PROCTER & GAMBLE 59
GRP has proven to be a win-win for P&G; through its purchasing power, the company is staying
competitive while driving social change.
Procter & Gamble (P&G)’s supplier diversity programme has been in place for 45 years and stems
from its commitment to have a positive impact and the knowledge that diversity fosters innovation.
The company has spent billions of dollars with diverse suppliers60 globally and spent more than US$2
billion in the last year across all diversity categories. P&G continues to add diverse-owned companies
to its supplier ecosystem every year and is on track to spend US$10 billion cumulatively with womenowned and led businesses by 2025.
P&G experiences have demonstrated that supplier diversity and women’s economic empowerment
are good for business; diversity drives innovation and creativity and creates competitive advantages
for P&G in the marketplace. P&G measured this competitive advantage in 2018, conducting a scaled
performance perception survey with its suppliers to evaluate relationship management, commercial
success and operational excellence, among other criteria. The data were then disaggregated byownership, and the results were noteworthy: P&G’s diverse suppliers outperformed non-diverse
suppliers in multiple areas like collaboration and competitiveness.
P&G’s efforts to support gender equality and women’s empowerment in its supply chains also benefits
its brands, especially as consumers seek more socially and environmentally conscious goods that
benefit from ethical and sustainable sourcing. P&G partnered with UN Women in 2018 to support
capacity-building for women entrepreneurs to enhance P&G’s and other potential companies’ endto-end supply chain in Egypt, Nigeria, Pakistan and South Africa. The programme directly benefited
more than 500 women in these four countries and highlights that businesses can contribute tocommon social goals, such as gender equality and women’s empowerment, while simultaneously
benefiting their reputation and business performance. According to P&G, customers’ appreciationof and preference for products from brands that are truly committed to the values they proclaim
have contributed to P&G’s continued success.

59.

This case study shall not be construed as an expression of any opinion on P&G and its programmes or as an endorsement of the activities, products
and/or services of P&G on the part of UN Women.

60. P&G considers diverse suppliers to be ethnic minority, women, LGBTQ+, Veteran or Person with Disability-owned, operated and controlled in the
United States and woman-owned, operated and controlled outside of the United States. For a full definition,
see https://pgsupplier.com/supplier-citizenship#supplier-diversity.

40

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSE

P&G believes that gender-responsive procurement benefits extend beyond the business, as its
supplier diversity programmes contribute to community and economic development. P&G’s survey
with diverse suppliers in 2015, which covered about half of its total direct diverse spend and focusedon calculating the socioeconomic impact of the programme in the United States, supported this.
The results suggest diverse business owners hire more diverse employees, indirectly benefiting
workers who have historically been underrepresented; data showed that their employees’ diverse
representation was 39 per cent versus the 33 per cent national average.61“We are striving to push, engage and inspire all companies
to have equal representation—not only the ones that are women-owned and led.”
Jamila Belabidi, Purchases Director – Global Women Economic Empowerment & Global Supplier Diversity, P&G

P&G’s drive to create an inclusive, gender-equal environment in the workplace, both within P&G
and the extended community P&G impacts, has led to the examination of its supply chain beyond
women and minority ownership to ensure that it is making an impact with its supplier—not only
those that are diverse-owned or led. This creates an opportunity for P&G to contribute to andbroaden goals around equality, inclusion and sustainability, such as the UN Sustainable Development
Goals and Women’s Empowerment Principles. Equality and inclusion (E&I) practices are consideredin sourcing events, and the company will be launching an E&I assessment in 2022 which will aim tostrengthen and harmonize E&I considerations across the organization’s procurement processes. P&G
also annually reviews its partners’ E&I initiatives and then works with them to scale up and advancetheir environmental, social and governance efforts, thus encouraging P&G’s suppliers to become
more gender-responsive by advocating for equal representation, unconscious bias trainings, the sharingof best practices and more. As a result, P&G is improving conditions for gender equality and women’s
empowerment in its supply chain, which includes business-owners and workers.

61.

United States Bureau of Labor Statistics 2014.

5. IMPROVED SERVICE DELIVERY41

“With almost 40 per cent of our spend represented by respondents,
we were proud to learn that 74 per cent of our respondents
have a written Diversity & Inclusion programme,
81 per cent have a process to monitor and assess equal pay
and 87 per cent have a corporate Community Impact programme or initiative.”
P&G’s 2020 Citizenship Report.

Through these efforts, P&G is helping to raise the bar on gender-responsive procurement, demonstrating
how the integration of gender-responsive practices not only leads to economic and community
development but also to a strengthened and more profitable business.
Thanks: P&G

For further reading:• P&G Supplier Citizenship• Creating a citizenship ‘ripple effect’ in Procter & Gamble’s supply chain

Photo: UN Women. Women business owners in Egypt share their stories as partof UN Women’s programme on capacity-building for women entrepreneurs.

In addition to experiencing better customer service,companies engaged through UN Women’s research
reported increased productivity due to the adoptionof GRP. In particular, working with gender-responsive
enterprises with aligned values and goals tends tosave time. A few companies interviewed prioritizedsuppliers based on shared purpose, which allows
partnerships to progress more efficiently. For example,
one fashion retailer sources from companies that alreadyhave existing programmes on responsible materials
and women’s empowerment. This saves the company
considerable resources, such as in capacity-building
around ESG issues, and helps ensure that all businesspractices follow their standards.
In this same vein, GRP can have the benefit of leading tolonger-term and more collaborative relationships, withshared values and goals nurturing trust, stability andgrowth. As a result of the retailer’s commitment to ESG
practices, its supplier relationships last an average of six
years, which has encouraged greater investment fromsuppliers and buyers in the relationships’ futures.

Similarly, some companies highlighted how theircapacity-building and outreach programmes withwomen-owned SMEs as part of their GRP activities
meant closer and more cooperative relationships, where
suppliers have become more attuned to company
expectations. One branch of a multinational company
based in the Asia-Pacific, for example, started recruiting
more women-owned businesses a decade ago. The
company first contracted a small marketing firm withlimited deliverables, simultaneously testing its capabilities
while investing capital into the business. The company
worked closely with the supplier and after repeatedsuccess and multiple additional contracts, the womanowned business has now grown to be one of thecompany’s top trusted marketing suppliers.
This case was a win-win and showcases how investments
in supplier relationships can improve service delivery; theclose working relationship built a strong and sustained
partnership with mutual understanding, where little
oversight and handholding is needed, driving productivity
and cost reduction, all while contributing to the supplier’s
successful growth.

5. IMPROVED SERVICE DELIVERY43

6

STRONGER MARKETSTHROUGH ECONOMIC
DEVELOPMENT AND
INCLUSIVE GROWTH
Businesses have a stake in economic development andinclusive growth, which creates new market opportunities,
capital investment and consumer demand, all of which
impact businesses’ strategic interests. Gender-responsive
procurement is a prudent business approach because
it increases supplier availability and competition,
contributing to the development of value chains andeconomic and inclusive growth more broadly.
The UN Women survey on GRP found that a large majority
of companies reported that their GRP programmes
contribute to the growth of SMEs, women’s labour force
participation and female entrepreneurship, along with
providing increased business opportunities for womenowned businesses. In fact, 80 per cent of companies
agreed or strongly agreed that their GRP programmes
contributed to women’s economic empowerment (seeFigure 3). UN Women interviews, meanwhile, uncovered
how companies can gain mutual benefit from contracting
women’s enterprises, working to build an inclusive
ecosystem that collaboratively develops women’s
entrepreneurship, strengthens the local economy andempowers women.

62.

World Bank undated.

GRP programmes often target local businesses which
are women and diverse-owned, either intentionallyor unintentionally, and many companies interviewed
shared how expanding procurement calls brings morebusinesses, including local suppliers, to the table. As aresult, several companies interviewed noted the impactof their programmes in their own communities. In fact,
once the companies saw the positive effects of their GRP
programmes in their local economies, they became more
motivated to continue and scale up GRP.
Women’s entrepreneurial activities are a significant driverof economic activity. Globally, 90 per cent of businesses
are SMEs and in developing countries 7 out of 10 jobs are
created by SMEs.62 Because one third of SMEs are womenowned,63 GRP, by bringing revenue to women’s enterprises,
can be a significant means of local income generationand decent employment opportunities, especially during
economic strife when jobs are scarce. In fact, 77 per centof survey respondents practising GRP agreed or strongly
agreed that their companies’ GRP initiatives contributed
to supporting local labour markets (see Figure 3).

63.

IFC 2014.

6. STRONGER MARKETS THROUGH ECONOMIC DEVELOPMENT AND INCLUSIVE GROWTH

45

“Economies flourish when women are engaged.
What is good for gender equality is good for the economy.”
Ms Sima Bahous, Executive Director, UN Women, UNGA event,Achieving gender equality – Women Powering the Economic Recovery

This finding is corroborated by information shared in a
UN Women interview with a large US-based firm. A study
commissioned by the company found that its supplier
diversity programme supported tens of thousandsof jobs and that every dollar spent in the programme

resulted in US$1.60 contributed back to the domestic
economy. In other UN Women interviews, companies
shared that as local diverse SMEs grow, they often supply
to other companies, showing that a corporation’s supportof one vendor may end up benefiting many.

FIGURE 3

Proportion of companies which reported that GRP contributed to
women’s economic empowerment
The adoption of gender-responsive procurement in my company has...
...contributed to the growth of small
and medium-sized businesses (SMEs)...contributed to greater
women’s labour force participation...increased
female entrepreneurship...increased business opportunities
for women-owned businesses...contributed to
women’s economic empowerment...contributed tosupporting local labour markets...contributed to more
inclusive and diverse value chains

5

3

21

58

11

5

5

21

58

11

5

5

18

58

11

5

3

5

3

53

18

5

32

11
47

42
10%

 Disagree

8

63

5
0%

 Strongly disagree32

20% Neutral

11
45

30%

40%

 Agree50%60% Strongly agree

70%

8
80%

90%

 Don’t know/Not applicable

Source: UN Women survey on GRP.
Note: Calculations in this figure are based on self-reported data collected from 38 companies that practise GRP.
Some companies did not respond to all questions.
Labels are rounded to the nearest per cent.

46

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSE

100%

By continuing to exclude or ignore women’s enterprises,businesses are failing to access valuable and underutilized
resources. One interviewee summarized this as follows:when procurement opportunities are exclusionary,potential suppliers do not grow, which prevents othercompanies from also expanding, constraining capital
flows and eventually stalling more businesses. In fact,
gender gaps represent a huge opportunity cost foreconomic growth. BCG found that global GDP could riseby 3 to 6 per cent or US$2.5 to US$5 trillion if womenparticipated equally with men in entrepreneurship,64and McKinsey & Company found that US$28 trillion
could be added to global annual GDP in 2025 if women
played an identical role in labour markets as men. 65
Research modelling the effects of women’s economic
participation projected that income per capita would

fall by 10 per cent in the short run without women’s
entrepreneurship due to a decrease in average
entrepreneurial talent. Output per capita would also fall,but by 47 per cent in the short run, without women in
the labour force.66 In addition to the negative effects ongender equality and women’s empowerment, this could
represent a major loss of revenue for businesses globally.

64. Unnikrishnan and Blair 2019.

66. Cuberes and Teigner 2016.

65.

Indeed, in the age of COVID-19, company profits willcontinue to suffer without a sustainable and inclusive
economy with diverse value chains, of which GRP canplay a significant role (see Figure 3). Keeping women in
the workforce is in the best interest of the economy ingeneral and the bottom line of individual companies,
and GRP may be one way to achieve this participation.

McKinsey Global Institute 2015.

6. STRONGER MARKETS THROUGH ECONOMIC DEVELOPMENT AND INCLUSIVE GROWTH

47

CASE STUDY VII
CREATING A GENDER-RESPONSIVE TELECOMMUNICATIONSECOSYSTEM IN KENYA: SAFARICOM, SBM BANK AND CAMUSAT 67
Safaricom, SBM Bank and Camusat, with the support of the International Trade Centre, reformed theirprocurement policies and practices, helping local women-owned businesses to grow and creating amore inclusive and self-supporting telecommunications ecosystem.
Safaricom, a leading communications company in Kenya and home of the famous mobile money
service M-PESA, puts transforming lives at the core of its work. It believes that the role of businessextends beyond making profits, and as such has committed to delivering innovative products andservices in the framework of the Sustainable Development Goals. In 2017, as part of its commitment
to SDG 10 on reducing inequalities, Safaricom conducted an analysis of its operations, including its
supply chain, finding that only 2.7 per cent of their Tier 1 suppliers were women. Safaricom swiftly
decided to set an internal target to raise that number to at least 10 per cent.
Safaricom then made various changes, including updating its procurement policy, reserving categoriesof spend for women-owned businesses, issuing a public call advertising its procurement opportunities
for women entrepreneurs in 2018, and delivering a series of trainings with partners to build potential
women suppliers’ capacities, which included providing tender feedback. The company also collaborated
with the International Trade Centre (ITC) as part of its SheTrades programme, which built the capacityof women-owned businesses in Kenya through training and coaching in topics such as crisis
management, cloud computing and opportunities in emerging markets, and connected them tomarkets. Once more women started succeeding in winning contracts, Safaricom formed partnerships
with Absa, Equity Bank, Citibank and SBM Bank, negotiating financing and invoice discounting for
its new suppliers. Businesswomen were thus able to gain credit from the banks as soon as theyreceived an invoice from Safaricom, allowing them to kick-start their work without delay.
These types of collaborations, as part of Safaricom’s Women in Business programme, contributed toan ecosystem conducive to gender-responsive procurement, driving others to strive for and benefit
from more inclusive sourcing. Safaricom and SBM Bank, for example, were introduced as part of the
SheTrades Programme, which connected like-minded companies interested in supplier diversity
programmes and gender-responsive procurement. As a result of this growing local momentum,
SBM Bank conducted a baseline survey in 2019 of its sourcing from women entrepreneurs and

67.

48

This case study shall not be construed as an expression of any opinion on Safaricom, SBM Bank and Camusat and their programmes or as anendorsement of the activities, products and/or services of Safaricom, SBM Bank and Camusat on the part of UN Women.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSE

committed to raising its procurement spend from 2 to 10 per cent by 2022. Employees of the bankactively participated in a series of webinars that aimed to sensitize and prepare SheTrades’ partners
to create a framework that facilitated the adoption of inclusive business practices along supply chains.
SBM Bank was also able to benefit from Safaricom’s database of women-owned businesses andhas successfully procured from a number of women-owned businesses on the list. Moreover, SBM
Bank lobbied other companies within its network to likewise give opportunities to their womenowned businesses clientele. Companies thus worked in tandem to support the sustainable growthof local women-owned businesses, leading to a stronger and more diversified supplier base in Kenya.

“One of the biggest criteria for partners ismaking sure that their values are aligned.”
Margaret Kimani, SBM Bank

Significantly, Safaricom continued to build its gender-responsive procurement ecosystem by extending
its support to its Tier 1 suppliers, which were encouraged to promote gender-responsive practices
within their own procurement processes and uphold their values, creating a community of practicethat drove collective action. Safaricom’s partnership with Camusat—a market leader in telecom
infrastructure—as a Tier 1 supplier, which began in 2017 as part of its flagship project in fibre, wasthus another logical fit; one of Camusat’s core values is diversity, and the company aims to create
sustainable jobs directly and indirectly through its supplier and subcontracting partners. Its
procurement strategy relies on purchasing from local suppliers: in 2020, 96 per cent of its suppliers
around the world were local, a key way it promotes local economic development. Thus, when
Safaricom called for its suppliers in fibre-optic cabling to help build women entrepreneurs’ capacity,
Camusat stepped up to the plate. Camusat already had a system in place to ensure inclusivity,
focused on cultural diversity and gender equality within its workforce, and this aligned well with
Safaricom’s vision to build capacity for women-owned businesses. Together, Safaricom and Camusat
generated greater community impact by deciding to include more women in their supply chains.
However, there are not many women, let alone women-owned and led businesses, in the fibre-optic
space, and the proposition to contract from women in this historically male-dominated industry
was a challenge. Nevertheless, as part of its commitment to and in alignment with company policies
on inclusion, Camusat worked hard to change attitudes in the telecommunications space; it had
conversations with its employees and partners to challenge the norms of which it was so accustomed.

“The most important thing to do is
to give women the tools to succeed.”
Macharia Kinga, Camusat

6. STRONGER MARKETS THROUGH ECONOMIC DEVELOPMENT AND INCLUSIVE GROWTH

49

To start its journey, Camusat took a risk and subcontracted one women-owned business working
in rural water piping, a similar field to fibre-optic cabling. Camusat’s supervisors worked with herteam, building the capacity of the business with the necessary skills in laying fibre optics, and as aresult, the project was delivered successfully. This success led to more women-owned companies
being subcontracted using the same model; now 10 of the company’s 15 subcontractors in Kenya
are women-owned businesses and 45 per cent of all of Camusat Kenya’s suppliers are women.
The positive results of these collective efforts in increasing women suppliers are plentiful. For one,because the newly onboarded women did not have preconceived ideas of how the business would
be done, they were more agile, willing to learn and responsive to company values, for example,
putting health and safety first. In fact, the women’s enterprises’ openness to learning resulted inhigher quality outputs. Women-owned businesses are Camusat’s highest-rated suppliers, based on,among other things, technical skills, health and safety, and procurement practices. A bigger supplierbase has also allowed the business to further specialize through outsourcing, which has led to better
margins as in-house supplier management is low.
The women entrepreneurs are now so successful, they are working with Safaricom’s, SBM Bank’s and
Camusat’s competitors as well, which has increased supplier diversity in the local economy, reducing
risk and increasing innovation. By working together to deliver on shared values and goals, Safaricom,
SBM Bank and Camusat succeeded in creating a self-supportive and more inclusive ecosystem.
Thanks: Safaricom, SBM Bank, Camusat and ITC

For further reading:• Safaricom: Pre-Qualification for Women-Owned Businesses• Beth Muthui on How SBM Bank is Enabling Women Entrepreneurs• Camusat: Corporate Social Responsibility

Photo: Safaricom. Safaricom’s Women in Business programme held capacitybuilding workshops on financial management and financial access for SMEs.

CONCLUSION
The influence of the private sector on the realization ofhuman rights, meeting international labour standards,
maintaining and improving human and environmental
health, and sustaining economies and societies is vast.
As such, companies can have a central role in advancing
gender equality in value chains, markets and local andglobal economic development through the adoptionof gender-responsive procurement. As the preceding
sections of this report have outlined, in addition toadvancing gender equality and women’s empowerment,
GRP strengthens businesses in six main ways.
Firstly, companies reported increased revenue andreduced procurement spend. Multiple case studies
showed how women-owned suppliers became
customers themselves, adding a new stream of revenue
for businesses. Other companies shared how supplier
diversity and/or GRP initiatives lowered purchasing costs
due to increased competition within supplier pools.
A second finding is that GRP results in greater supplieravailability and lower risk, particularly in relation to supply
interruption. As supply chain disruptions have become
more common due to, among other things, COVID-19
and climate change, many companies shared how theirdiverse business networks allowed them to continue
operating while managing risks associated with single
sourcing.

The fourth main benefit is increased innovation as aresult of undertaking GRP, as companies sourced froma wider range of talent and experiences show greater
innovation and adaptability, given that women-owned
businesses tend to be smaller but more agile.
Fifth, UN Women’s research found that companies
implementing GRP saw improved service delivery, withincreases in efficiency, customer service and productivity.
A number of buyers reported benefiting from genderresponsive suppliers due to aligned values, while others
profited from closer working relationships with womenowned SMEs as a result of GRP programmes with a focus
on training and capacity-building.
The final main finding involves GRP’s impact on economic
development and inclusive growth, which benefits
companies by increasing supplier availability, capitaland competition through the promotion of women’s
entrepreneurship.

UN Women’s research also found that GRP has led tostrengthened brand reputation with customers (bothB2B and B2C), peers, partners and employees. As greaterattention is paid to ESG issues, strategic companies are
ensuring that their supply chain reflects their values
around ethical and sustainable sourcing.

CONCLUSION

51

The future of gender-responsive procurement
More than half a century after the start of supplier
diversity initiatives, a host of companies are setting
ambitious goals and raising their spend with womenand minority-owned businesses. Over 60 per cent of
UN Women GRP survey respondents have or aredeveloping formal programmes to procure from womenowned businesses. The Hackett Group reports that
7.2 per cent of companies’ current average spend isdedicated to diverse-owned businesses, which is
expected to increase by more than 50 per cent by 2025.68
Furthermore, women-owned businesses are the top
category for targeting within inclusive procurement
programmes.69

This evolution is broadening the impact of companies’
purchasing power beyond benefiting only womenbusiness owners to supporting gender equality inbusiness practices and bringing positive changes to
employees, customers and community members at large.
Sourcing from gender-responsive businesses allows all
suppliers, not only those that are diverse-owned, tobe a part of the movement towards gender equality.
Borrowing one East African interviewee’s words, buying
from women-owned businesses without promoting
inclusivity would be undermining his company’s impact
on gender equality.

Companies have begun not only sourcing from womenowned businesses, but also from women-led and genderresponsive businesses, using their influence to generally
shift norms and practices within their supply chains.

Call to action
Procurement needs to be valued beyond only reducing
company costs by consolidating spend. Greater publicattention towards social issues has opened the door tochanging corporate behaviour. The cumulative effects
of recent events have shown the need for companies todiversify their supply chains by broadening their pipelines
and increasing local and regional procurement to better
ensure continued operations, even during unexpectedsupply chain disruptions.
The need to deliver in an increasingly challenging
world is reflected in companies’ greater expectationsof procurement professionals and leaders. The Deloitte
Chief Procurement Officer Survey in 40 countries foundthat CPOs are being given more priorities beyond only
cost savings against a backdrop of growing expectations.70
Companies are more and more counting on procurement

The COVID-19 pandemic has heightened the urgency torethink business as usual. In many countries, fragile
progress on women’s employment was all but wiped
out. Women’s employment growth in 2021 has been
insufficient to raise women’s labour force participation
rates to pre-pandemic levels,71 and men remain more
likely to start businesses than women.72 The widening
economic gender gaps from the pandemic coupled withwomen’s centrality to sustainable development andeconomic growth should motivate all concerned toembrace measures for women’s economic empowerment,
including GRP.

68.

The Hackett Group 2021b.

71.

UN Women and UN DESA 2021.

69. The Hackett Group 2021a.

72.

GEM 2021.

70.

52

divisions to address business needs like resiliency, brandreputation, sustainability and more. Adopting GRP is a
way that CPOs and their teams can deliver on these
expectations.

Kilpatrick et al. 2021.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSE

While the pandemic has brought attention to thebarriers that women face in the workforce, it alsopresents an opportunity to ‘build back better’ by putting
gender equality and sustainability at the centre ofrecovery and transformation. GRP programmes canleverage women’s ability and potential to contribute tosupporting and reinvigorating women’s and genderresponsive enterprises. In fact, women- and men-owned
businesses report similar levels of optimism in returning
to pre-pandemic levels in the near future.73
Additionally, the Global Entrepreneurship Monitor
found that a significant proportion of entrepreneurs
were propelled to start new businesses because of thepandemic,74 many of whom in the United States are
women and minorities.75 This has the potential to spur

73.

Hyland et al. 2021.

74.

GEM 2021.

the growth of entrepreneurial activity, which GRP
can cultivate to support inclusive recovery. Women
entrepreneurs are available as suppliers and can help
businesses rebuild.
GRP is not only the right thing to do, it is the smart thing
to do. As several companies across all regions reported,businesses that practise GRP derive a multitude ofbenefits, from increasing brand loyalty to enhancing
supplier availability and minimizing risk. The review
and analysis of business practices and ‘building backbetter’ in the age of COVID-19 thus represents anopportunity to increase adoption of GRP by the private
sector, helping to ensure that gains made in women’s
economic empowerment are not erased, but sustained.

75.

A recent study of 1,199 women business owners by Gusto and the
National Association of Women Business Owners (NAWBO) in the
United States found that 47 per cent of businesses started by womenin 2020 were minority-owned. Pardue 2021.

CONCLUSION

53

KEYS TO SUCCESS
Changing procurement policies and practices is no easytask. While this report’s main objective is to describe
the benefits noted by companies undertaking genderresponsive procurement practices, with a focus on the‘why’ of GRP, this section supplements the discussion

with the many resources available that speak to the‘how’ (see Box 5). The paragraphs that follow highlightthe strategic steps companies can take to aid theimplementation of GRP, which emerged in the courseof interviews and other research for this report.

BOX 5

Key resources•

UN Women. 2017. The power of procurement: How to source from women-owned businesses.
Corporate Guide to Gender-Responsive Procurement•

UN Women. 2020. Gender-Responsive Procurement: A Transformative Strategy for Creating
Better Systems for Women’s Entrepreneurship webinar•

UN Women. 2020. Gender-Responsive Procurement: Guidance Note•

UN Women. 2021. Rethinking Gender-Responsive Procurement: Enabling an Ecosystem for
Women’s Economic Empowerment•

UN Global Compact and UN Women. Undated. The Women’s Empowerment Principles Gender
Gap Analysis Tool•

UN Global Compact and UN Women. Undated. Women’s Empowerment Principles•

UN Global Compact. Undated. Decent Work Toolkit for Sustainable Procurement•

UN Global Compact. Undated. Improving Wages to Advance Decent Work in Supply Chains•

UN Global Compact and UNICEF. 2020. Family Friendly Workplaces: Policies and Practices to
Advance Decent Work in Global Supply Chains

It is firstly important to understand the businesscase for GRP, recognizing GRP’s intrinsic value to strong
business foundations, apart from CSR considerations.
As shared by one multinational consumer goods company,
greater buy-in from business leaders sharpens company
priorities, which then affects the allocation of resources
and potential for success. Thus, getting the necessary54

sponsorship for GRP, particularly from the CEO, alongwith a commitment to and road map for GRP in
business plans, is critical for driving the uptake of GRP.
This finding from interviews was reflected in otherresearch for the report; 40 per cent of members of a
UN Women-led community of practice on GRP ranked
high-level leadership as the most important factor in the

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSE

implementation of GRP, 76 and 55 per cent of respondents
in UN Women’s survey on GRP stated that the adoptionof GRP was driven by C-suite/senior management.
Furthermore, interviews emphasized the importanceof CEO leadership to support continued prioritization,
momentum and ambition in the face of economic shocks
like COVID-19.
It is likewise important to set goals, monitor and evaluate
procurement operations to troubleshoot problems
when needed and ensure progress. Borrowing thewords of a technology executive in an interview with
UN Women, “if it’s not measured, it won’t change.” Hence,the second step in implementing GRP is conducting abaseline analysis of current spend and then setting atarget and time frame. In male-dominated fields, one
multinational company interviewed suggested setting
targets for joint ventures and/or diverse companies
established with the company’s support. Because
conducting a baseline analysis requires significant effort,
one company interviewed recommends breaking up thework, delegating the task to business units. This allows
the business units to set their own strategies, e.g. byasking whether companies are women-owned or led
within requests for quotes or proposals.
As a third step, companies should put commitments into
action. Companies interviewed shared that GRP should
be integrated in cross-company business strategies, withall business units responsible for GRP, rather than having
only one dedicated team responsible for GRP’s success.
Because GRP practice exists on a spectrum and depends
on companies’ positions, a few companies recommended
starting small and within what is feasible, taking onother items further along companies’ GRP journeys.77
As part of their business strategies, highly successfulcompanies interviewed, for example, have dedicatedsupplier diversity and GRP teams or procurement
manuals, which provide support across the company
and helps identify women-owned, women-led andgender-responsive businesses.

Fourthly, companies interviewed underlined theimportance of training employees, including buyers,
supply chain leaders, communications teams and quality
control professionals on GRP. It is through training that
employees company-wide will be aware of and become
allies for GRP. Several companies shared that theirprogramme’s success relied on the provision of staff
training to all their procurement teams so that employees
understand the value of GRP. Indeed, each buyer within
a company represents an opportunity to make an
impact for gender equality and the business within
supply chains.
The fifth recommended step arising from interviews
concerns performance management. A few managers
interviewed underlined the importance of tying
compensation and/or performance reviews to supplier
diversity and GRP goals, so that employees are accountable
to the companies’ values and goals across all portfolios.
Another company interviewed shared how progress on
GRP is measured regularly, in this case every quarter,
which has supported their success. Meetings are heldwith the leadership team to share progress, i.e. evolution
in spend, and any success stories that may be helpful
for other businesses units. Based on progress, companies
can make informed and evidence-based decisions todetermine business strategies, and importantly, revise
policies and practices when goals are not met.
It is important to note that improving procurement
practices is complex and requires more than goodwill.
It demands a change in corporate culture that needs
to start from the top as well as from the bottom,
particularly from the procurement specialists to generate
the evidence showing that GRP really does generatechange. Together, these actions shift business culture,
where all employees believe in the intrinsic power ofdiverse value chains and view GRP as more than an
obligation.

76.

High-level leadership was followed by multi-stakeholder partnerships (34 per cent) and staff capacity and awareness (20 per cent).

77.

For suggested steps in GRP based on companies’ stages of maturity, see Women’s Forum for the Economy and Society 2020.
Unmasking the value of women’s economic empowerment in supply chains, p. 14.

KEYS TO SUCCESS

55

BOX 6

WEConnect International and #Rise2theChallenge
WEConnect International is a member-led, global non-profit that brings motivated, large corporate, multilateraland government buyers together with qualified women-owned suppliers around the world. It works withover 140 multinational buying organizations, with over US$1 trillion in annual purchasing power combined,that have committed to sourcing more products and services from women-owned businesses based inover 130 countries. WEConnect International identifies, educates, registers and certifies women’s businessenterprises based outside of the United States that are at least 51 per cent owned, managed and controlled
by one or more women. WEConnect International provides certification in almost 50 countries that
represent over 60 per cent of the world’s population.
On International Women’s Day, 8 March 2021, WEConnect International launched the #Rise2theChallenge
campaign to urge multinational buying organizations to publicly commit to a specific spend target or relevant
project to advance opportunities for women-owned businesses around the world. Examples of commitments
to date include:•

US$10 billion in spend with women-owned and -led businesses by 2025 by Procter & Gamble•

US$500 million in annual spend with women-owned businesses by the end of 2025 by Intel•

10 per cent year-over-year spend growth with women-owned businesses within indirectspend by Logitech•

5 per cent spend of procurement budget towards integrating women-owned businesses into
the supply chain of Moody’s Corporation•

EUR 2 billion in spend with diverse suppliers, including women-owned businesses, by 2025,
as part of a new programme for a more inclusive society from Unilever.

Companies continue to commit, and all participants will be celebrated on 8 March 2022. For more informationand to join the challenge, visit: https://weconnectinternational.org/rise2thechallenge/

Investment is needed to train procurement professionals,
change procurement policies and practices, and bringon board new suppliers, and to do so, businesses needto change the way procurement is done to level theplaying field for women in all their diversity. A shift invalue structures and corporate culture will be necessary
to increase inclusion, where cost becomes one of the56

many factors in procurement decisions. SMEs, manyof which are diverse and women-owned and led, canbenefit from capacity-building and guidance, as well asother procurement policy amendments, such as reduced
payment cycles and simplified procurement bidding
processes.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSE

A number of companies interviewed emphasized that
GRP will be more successful and sustainable throughcollective action and recommended engaging externallywith experts and peers to share stories, including
challenges and successes as the last and sixth step. As
procurement and business needs continue to evolve,
the case for GRP will correspondingly adapt and be
rebuilt. Thus, it is important for companies to continue
to share success stories to debunk misconceptions andinspire others to take on GRP. To this end, UN Women
hosted a series of webinars, where procurement leaders
shared their GRP journeys, including their challenges andsuccesses, as part of UN Women’s community of practiceon GRP in 2021.

Similarly, companies can utilize networks, like WEConnect
International and the Women’s Empowerment Principles
community, to identify both potential suppliers and otherlike-minded companies to partner for change (see Box 6).
Through these measures, businesses can continue tobuild the business case and inspire others to take on
GRP, to work together and contribute to a better, moreequal, future.

KEYS TO SUCCESS

57

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ANNEX
Methodology
Interviews were semi-structured and an interview
protocol was used to guide data collection. Semistructured interviews facilitated the gathering of richand detailed responses in relation to the companies’
experiences with regard to GRP and allowed theresearchers to clarify responses during data collection.
Questions covered companies’ motivations for taking on
GRP, challenges encountered and any benefits derived.

This report documents the results of quantitativeand qualitative research collected in 2021 through 51
interviews 78 and an anonymous survey of 69 private
sector representatives. Those engaged represent a wide
range of stakeholders from the private and public sectors,
covering different geographical locations, sizes, industries
and stages of development (e.g. start-ups to national
companies to established multinationals) (see Figures
4 and 5). The research was supplemented by learnings
from a UN Women-led community of practice on GRP
and desk research of relevant studies and evidence.

FIGURE 4

UN Women interviewees and survey respondents by region
7

Asia Pacific
Europe & North America

4Latin America & Caribbean

2

North Africa & Western Asia

2

Oceania

1

11

5

Sub-Saharan Africa
Multinational/regional companies
05 Interviews

78.

42

19

8

9

10

10

15

20

25

30

35

40

45

 Surveys

Interviewees were notified that their responses to questions would remain anonymous unless explicitly agreed. As a result, where the report cites
survey respondents, they are not attributed to a specific company or organization. The majority of interviews were recorded to allow more precise
accounts of companies’ responses.

ANNEX

61

FIGURE 5

UN Women interviewees by category
Supplier diversity and GRP experts
Women-owned businesses
Private sector ESG professionals
Private sector procurement professionals*

8

2
0

5

29

12

10

15

20

25

30

*Of the 29 procurement professionals interviewed, 18 specialized in supplier diversity and/or GRP.

The survey was sent to the Women’s Empowerment
Principles and UN Global Compact’s Target Gender
Equality global listservs, which together have over
52,000 recipients worldwide, as well as UN Womenpartners in the private sector. The survey was open to
everyone working in a private sector company thatpurchases products and services and was available inthree languages: English, French and Spanish. The survey
asked for respondents’ familiarity and experience with
GRP, including why or why not companies decided totake on GRP and the positive and negative results.
Questions differed depending on whether companies
were practising GRP more or less comprehensively. The
survey is referred to in the text as the “UN Women survey
on GRP”.
Because of the survey’s audience, the survey sampled
represents a higher likelihood of built-in bias comparedto the general population. As such, there are some
limits to the generalizability of the findings as they may
overrepresent companies that are already committed
to gender equality, sustainability and human rights
principles, and the vast majority of companies, whichwere not surveyed, have yet to implement and discover
the benefits of GRP. Moreover, given the larger numberof survey respondents representing the Asia-Pacific62

region and interviewees representing multinational,
regional and European and North American companies,
the report draws to a greater extent from experiencesin those regions. Despite this, because of the limited
number of companies globally that have taken on GRP,
with many based in North America, where supplier
diversity is more common, it is important to learn fromall shared experiences, which are outlined throughout
the report.
The report lastly draws from a UN Women-led communityof practice on GRP, which engages over 250 stakeholders
from the private and public sectors as well as industry
groups and others working to promote women’s
entrepreneurship. The community of practice held threemeetings on the business case for GRP in 2021, covering
1) the current state of GRP in the private sector; 2) capacitybuilding for buyers and suppliers; and 3) the futureof GRP. The points shared during the discussions were
integrated into the analysis.
Following data collection, all responses were analysed forthemes and trends described by companies to provide
an answer to the question of what is the business casefor GRP.

PROCUREMENT’S STRATEGIC VALUE
WHY GENDER-RESPONSIVE PROCUREMENT MAKES BUSINESS SENSE

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