Integration women entrepreneurs in global supply chains: Creating shared value

Table of contents

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Why this publication deserves your attention

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Developments that shape the future of women in the supply chain

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Women as catalyst for economic growth

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Women included in international guidelines and codes of conduct

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Role for governments in improving opportunities for women 11

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A business case for women’s inclusion

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Perspectives and experiences

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Knowledge and awareness about gender and women empowerment

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Motivations for including women entrepreneurs in the supply chain

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Current initiatives 17 Benefits

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Challenges 23

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Conclusions 25

Colophon Authors: Reintje van Haeringen, CARE & Dianne Potters, 21Sustainable Survey: Dianne Potters, 21Sustainable; Wies Schellart, Accenture Development Partnerships; Reintje van Haeringen, CARE Editor: Barbara Kolff van Oosterwijk, MINTR Design: Engine Branding & Identity Photographs on front and back cover, as well as on pages 5, 6, 10, 14, 17, 22, 24 and 28 represent women participating in the Women Empowerment & Enterprise Development Programme, implemented by CARE in partnership with H&M Conscious Foundation For references, use the following citation: CARE & SMO (2016). Integrating women entrepreneurs in global supply chains – Creating shared value.

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Photography: Front cover: Chris de Bode/CARE P3: Sharni Jayawardena P5: Opmeer Reports/CARE P6: Sharni Jayawardena P10: Sharni Jayawardena P14: Chris de Bode/CARE P17: Narmatha Thevarajah P18: Sukha P19: Yumeko P20: Accenture P21: John Estay/CARE P22: Chris de Bode/CARE P24: Chris de Bode/CARE P28: Opmeer Reports/CARE Back cover: Chris de Bode/CARE

Foreword

Our society is increasingly facing the effects of large groups of migrants fleeing their home countries to escape conflict, violence and poverty. Media confront us daily with this reality, presenting us with further evidence of the importance of creating prosperous and peaceful societies with sustainable livelihoods, allowing people to stay in their homeland.

CARE believes that development can only be sustainable if it is inclusive of all groups in society.

CARE aims to contribute to this development, among others through the economic empowerment of women. Women in many countries continue to be excluded from economic opportunities and often have limited access to formal education. It is important that we create conditions and perspectives for them to have a better future. We believe enterprise development is one way to achieve this.

CARE works with women in Africa, the Middle East, Asia and Latin America, strengthening their organisations and providing them with access to skills training and seed capital, to allow them to develop their enterprise. At the same time we

enhance processes of social and cultural change, necessary for women to thrive. A key part of this work is made possible by CARE’s partnership with the H&M Conscious Foundation, which allows us to make investments in enterprise development with women in 12 countries. Most of the photographs in this publication represent the women that we work with in this partnership.

Together we can make this happen.

Our research and experience show that for women’s enterprises to be successful, access to markets through new market linkages is crucial.

We firmly believe that sustainable development can only take place if stakeholders join forces.

The challenges are enormous, but so are the opportunities. That is why we welcome you, as company or organisation, to join CARE in strengthening women’s enterprises, and including women in global supply chains. Together we can make this happen.

Perry Heijne

CEO CARE Nederland

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Why this publication deserves your attention

When women earn an income, it not only increases their economic independence but it can also enhance their position and role in society. Furthermore, economically empowered women tend to share and reinvest their resources into their family and community. Boosting entrepreneurship among women through the creation of opportunities to sell their products and services to companies is one way to support their economic empowerment, and the development of entire communities. At the same time, this can create benefits for the companies involved.

There is an opportunity to involve more women entrepreneurs in supply chains – securing stable and quality supplies while investing in sustainable community development.

With this publication, CARE Nederland aims to inspire and encourage companies with overseas operations as well as stakeholders in the Netherlands, to learn more about the benefits of involving women entrepreneurs in the supply chain. Sustainable procurement can create enormous impact; on average, a business spends 70 per cent of total revenue on purchasing goods and services. There is an opportunity to involve more women entrepreneurs in supply chains – securing stable and quality supplies while investing in sustainable community development.

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This publication maps the benefits for companies with overseas operations of including more women entrepreneurs throughout the supply chain. Several companies based in the Netherlands were interviewed for this publication.

They differ in size and sector, and include food and beverage, energy, lifestyle, finance, consulting, textiles, building and construction and agribusiness. Additionally, other stakeholders contributed with their insights. Among them are organisations with a facilitating role for companies in the Netherlands, as well as branch organisations engaged in making value chains more inclusive and sustainable. The study displays insights in companies’ current policies and actions, as well as possible future plans to involve women entrepreneurs in developing countries in the international procurement side of the supply chain.

Our aim with this publication is to fuel the debate and increase awareness around the role business can play in generating access to new markets for women entrepreneurs, and on the collaboration with NGOs and governments to make this happen in a way that supports women’s empowerment.

The publication gives insight in the benefits and opportunities, as well as the challenges, for companies to include women entrepreneurs in the supply chain. The document is based on input gathered through interviews and underpinned by analysis based on desk research.

CARE Nederland, member of the CARE International confederation, is a leading humanitarian and development organisation committed to fighting global poverty. Investing in women’s economic empowerment is a key theme for CARE. CARE Nederland implements its Women Economic Empowerment strategy by working with women entrepreneurs on skills development, securing access to finance, enhancing control over time and resources, overcoming social and cultural barriers and stimulating favourable policy conditions.

CARE incorporates women entrepreneurs in sustainable business models to bring results to a larger scale. Equal opportunities for women to grow their businesses in a sustainable manner can be achieved by companies placing explicit effort and focus on enabling them to be part of the value chain.

Other CARE approaches to economic empowerment of women include: developing women’s Saving and Loans Associations and linking them to the formal banking system to increase access to and control over capital1; dignified employment for women; and supporting women’s role within global value chains to generate increased value2.

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Within Reach: How banks in emerging economies can grow profitably by being more inclusive, CARE/Accenture, London, 2015.

Adding Value to Value Chains: How to unlock the poverty-fighting potential of value chains, CARE, London, 2015

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Developments that shape the future of women in the supply chain

Sustainability policies are being integrated into the competitive strategy of companies to an increasing extent. Sustainability is recognised as a source of innovation and growth, as investors, shareholders, consumers, and the general public expect companies to be managed in a socially and environmentally responsible way. Companies increasingly embrace opportunities derived from social and environmental development, and manage the risks related to it. Sustainability and strategy are being tied together for a company’s long-term survival. Within this logic, a diversity policy for suppliers - instead of looking for the ‘cheapest deal’ - is a trend in procurement strategies. This in turn, is slowly raising awareness about the benefits of including women entrepreneurs in the supply chain. In some cases it is seen as an isolated topic, but more often it is integrated into broader sustainability approaches such as inclusion and sustainable procurement.

This growing awareness is driven by several trends and developments, which will be examined below.

Women as catalyst for economic growth

Companies that source or sell products or services in the Global South often work with local labour, buy from local suppliers or distribute products and services in emerging markets. A growing number of companies recognises that to be successful in these markets in the long run, they need to combine their economic interests with sustainable growth and development in society.

Or, in the words of Björn Stigson, former president of the World Business Council for Sustainable Development: business cannot succeed in societies that fail.

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Enterprise development, especially the investment in women-owned businesses, is increasingly seen as an engine for job growth and development.

To achieve inclusive economic growth worldwide, it is key to make markets work for the low-income segment of society. Following this logic, particular emphasis needs to be placed on the role of women, as different publications suggest that women typically invest a higher proportion of their earnings in their families and communities than men. This links women’s economic empowerment directly to community development.

At the 2013 World Economic Forum, the positive correlation between gender equality and a country’s level of competitiveness, GDP per capita, and human development was confirmed: ‘While correlation does not prove causality, it is consistent with the theory and mounting evidence that empowering women means a more efficient use of a nation’s human capital endowment and that reducing gender inequality enhances productivity and economic growth’.3 Enterprise development, especially the investment in women-owned businesses, is increasingly seen as an engine for job growth and development4.

Increasing their competitiveness increases their likelihood of success, and market linkages that allow for inclusion of women entrepreneurs in companies’ value chains are seen to be able to generate value for both parties.

The Global Gender Gap Report, World Economic Forum, Geneva 2013, (p. 31) Empowering women through public procurement, International Trade Centre, Geneva, 2014.

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Some facts about women and work Women employment rates are heavily affected by economic, social and cultural issues, and particularly by care-work distribution. Worldwide, over 40% of all work carried out is unpaid. This includes care work in the home and in the community, and voluntary work. Women perform three quarters of this unpaid work. Unpaid work is indispensable to the functioning of society, but when it primarily falls to women it limits their choices and opportunities for other activities.5 Women’s participation in the labour market has increased over the past decades, but still lags behind the participation of men. Women get to do a third of all paid work worldwide. In 2015, 47% of women carried out paid work, compared to 72% of men. Women’s earnings fall short of men’s by 22.9 per cent in the formal sector6; in the informal sector, the earning gap is even larger.

Source: adaptation from Human Development Report 2015: Work for Human Development, UNDP, New York, 2015.

The integration of developing countries in global value chains has increased opportunities for paid work, and prompted a shift in labour force participation for women. But this integration does not say much about the quality of the work. Particularly in developing countries, working women have always been over-represented in ‘vulnerable employment’: either working for themselves or for others in informal contexts where earnings are fragile, and protection or social security are minimal. Vulnerable employment accounts for 80% of work in developing countries. Almost half of employed women worldwide are in vulnerable employment.

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Human Development Report 2015: Work for Human Development, UNDP, New York, 2015.

A new era of social justice. International Labor Conference, 100th session, ILO, Report of the director general, Geneva, 2011.

Women included in international business guidelines and codes of conduct

Women empowerment and gender policies are increasingly important topics in the most widely used sustainability guidelines, principles, and codes of conduct. These include the Sustainable Development Goals (SDGs), the UN Global Compact Principles, and the Organisation for Economic Co-operation and Development (OECD) Guidelines. Many companies are committed to these standards and are challenged to include women empowerment in their business and sustainability agenda; within their own organisation as well as with their suppliers. The standards do not necessarily explicitly refer to gender policies, but when examining labour rights, governance and health and safety issues, they pay specific attention to women.

The Sustainable Development Goals are a new universal set of goals, targets and indicators to improve living conditions and opportunities for all individuals by 2030. The SDGs follow and expand on the Millennium Development Goals that expired in 2015. They outline a more profound and explicit role and responsibility for companies to contribute towards the achievement of these goals. Three of the 17 goals address equality and inclusion, creating opportunities for companies to include women empowerment on the business agenda. Rather than addressing gender equality as a separate policy or approach, companies can focus on melding diversity & inclusion with core business.

Source: United Nations Development Programme, 2015

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UN Global Compact plays an important role in activating companies globally to advance the SDGs through their operations, innovations and partnerships. The UN Global Compact Principles encourage companies to take the lead in turning the SDGs into drivers for more responsible and sustainable business. UN Global Compact is the world’s largest corporate sustainability network with almost 8,500 companies from all regions of the world, as well as nongovernmental organisations (NGOs) and civil society organisations (CSOs). All members are engaged in the Global Compact framework of ten universal principles in four different categories human rights, labour standards, the environment, and anti-corruption. The principles tackling human rights and labour standards cover topics such as the elimination of all forms of forced and compulsory labour and the elimination of discrimination in employment and occupation, which indirectly support female empowerment.

The Confederation of Netherlands Industry and Employers (VNO-NCW), the largest employers' organisation in the Netherlands, strongly supports the SDGs. VNO-NCW has strong ties with UN Global Compact, and provides the secretariat for its Netherlands Network.

The OECD Guidelines form another example of guidelines where gender equality and women empowerment are addressed. They provide non-binding principles and standards for responsible business conduct in a global context, consistent with applicable laws and internationally

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recognised standards. The updated guidelines were adopted by the 44 adhering governments in 2011 and cover a human rights chapter including women’s rights. The guidelines state that private companies should respect human rights and elaborate further on the rights of women. Moreover, companies are expected to promote equal opportunities for women and men

The guidelines state that private companies should respect human rights and elaborate further on the rights of women.

and prevent discrimination or dismissals on the grounds of marriage, pregnancy or parenthood, and ensure equal opportunities to training for women. In the Netherlands, VNO-NCW and MVO Nederland (an independent expertise and network organisation on Corporate Social Responsibility for Dutch companies) both recommend their members to follow the OECD guidelines. Also the VBDO (Dutch Association of Investors for Sustainable Development) strongly focuses on these guidelines.

Role for governments in improving opportunities for women

Over the past years, many countries have adopted regulations or passed some form of legislation to promote diversity and gender equality in the workplace. The United States has been a frontrunner with legislation that aims to increase equality in the workplace, because of a highly diverse population and a history of ethnic, racial and gender inequality. In the United Kingdom, companies are legally required to implement positive action in their recruitment processes under the Equality Act of 2010. The European Union also has regulations that allow its Member States to take positive action to promote equality in the workplace. These legislations bring the topic of diversity higher on the business agenda.

However, there is absence of mandatory legislation, requiring companies in the EU to have a progressive diversity & inclusion policy, which results in limited initiatives in EU based companies.

Governments can use public procurement to advance the potential of women entrepreneurs for their economies, because of the size of the public procurement markets. Public procurement is estimated to comprise as much as 10–15% of the gross domestic product (GDP) in developed countries and 30–40% in developing countries7.

However, until now, few governments have made a rigorous effort to use public procurement to release the enormous economic potential of women entrepreneurs. Women have mainly been kept out of this large market because of limited access to information on bids, misunderstanding of procedures and inability to meet requirements.

Since governments are both market regulators and participants, they are in the exclusive position to change this situation and use government procurement as a tool to empower women, fight poverty and encourage inclusive economic growth8.

In addition to empowering women through public procurement, governments can pay attention to the necessary conditions for inclusion of women in labour opportunities in general, and in enterprise development in particular. Steps are needed to reduce and share the load of unpaid care work and expand women’s opportunities in paid work, for example through improved basic services, targeted policies, and changes in social norms to reflect the equal potential of women and men. In terms of policy interventions to enhance enterprise development, governments can pay specific attention to women entrepreneurs and their needs through the upgrading of entrepreneurs’ skills, extending banking services to disadvantaged and marginalised groups of women, and creating conditions for lower interest rates, credit guarantees and subsidised credit to small women-owned enterprises.9 The Netherlands Ministry of Foreign Affairs plays an active role in promoting gender issues on the agenda of Dutch companies and NGO’s that operate in the Global South. Any organisation supported in any way by the ministry has to comply with gender-related criteria. Support can take place through partnerships focusing on poverty reduction and sustainable development in general, as well as through projects specifically focused on gender equality and women’s rights.

The ministry acknowledges and supports the role of companies in sustainable development in general and in gender issues in particular. At the same time the ministry promotes collaboration between companies, NGO’s and women’s organisations, to ensure that interventions are context specific and women’s rights and needs are taken into account. Initiatives and organisations the ministry works in partnership with include IDH and Fair Wear Foundation.

Kirton, R.M. Gender, Trade and Public Procurement Policy, Commonwealth Secretariat, 2013 in: Empowering women through public procurement, International Trade Centre, Geneva, 2014.

8 Empowering women through public procurement, International Trade Centre, Geneva, 2014.

9 Human Development Report 2015: Work for Human Development, UNDP, New York, 2015.

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A business case for women’s inclusion

Companies can create strategic advantage by addressing diversity and gender equality in the boardroom and among employees. Companies can attract and retain the best employees, increase productivity, reduce absenteeism, increase return on investment in employee training and career development, strengthen innovation, and enhance their reputation and corporate image.10 Strategic advantage and legal developments stimulate companies to focus on promoting diversity and gender equality in the workplace. The implementation of strong diversity management programmes is a first step towards increased awareness of gender equality and diversity. Diversity policies within the company can help launch this topic into the supply chain.

Including women entrepreneurs throughout the supply chain can result in business and societal benefits. Several global studies show that women in general work harder and produce higher yields than men. A study commissioned by the Bill & Melinda Gates Foundation11 reported that by increasing women’s participation in smallholder sourcing and support programmes, many international food companies can improve the crop yields and quality, grow the smallholder supply base, and improve access to highvalue markets. The study shows that female smallholders often pay greater attention than men to crop quality, and that productivity tends to increase as a result of increasing their access to technical training. The Food and Agriculture Organisation (FAO) of the United Nations

Agreed frameworks supported by governments and international organizations

Companies Women entrepreneurs Women entrepreneurs Women entrepreneurs

Increasing attention for conditions for women’s economic empowerment from governments, NGO’s, branch organizations, knowledge institutes, women’s organizations 12

estimates that women could enlarge agricultural production by 20 to 30 per cent if they have the same access as men to resources such as land, financing, training and technology.12 Furthermore, sustainable procurement is high on the global business and sustainability agenda, and is increasingly seen as a means to contribute to the development of local communities while guaranteeing stable supplies for companies. The procurement function can serve as one of the key domains for social impact by companies, due to the large amount of spending involved. On average, 70 per cent of a company’s revenues are used to buy goods or services from suppliers.13 But too often, women are still left out of such opportunities for economic growth, due to challenges related to lack of access to finance, services and information, as well as limited time resources because women often combine paid work with household responsibilities.

Integrated approaches have been developed over the past years that allow for combining business benefits with community impact, such as Inclusive Business14 and Shared Value Creation.15 In 2014, a specific approach was proposed to make a ‘Business case for Women Economic Empowerment’16. This approach not only focuses on companies’ financial returns of working with women, but also highlights an opportunity for companies to demonstrate leadership in women empowerment and contribute to larger efforts for the improvement of women’s status globally.

The approach addresses the underlying structural barriers to women’s economic empowerment and proposes to utilise all of a company’s potential levers to create impact: people, investments, brand, customers, purchasing power and partnerships.

Increasing awareness, knowledge, willingness to invest

Why Diversity Matters, Catalyst Information Center, July 2013 11 Improving opportunities for women in smallholder-based supply chains: Research done on behalf of Bill & Melinda Gates Foundation by Man-Kwun Chan, 2010.

12 2010-11 edition of The State of Food and Agriculture, FAO, 2011.

13 'Corporate Virtualization, A global study of cost externalization and its implications on profitability, Jason Busch and Peter Smith, Proxima, 2013.

14 Transforming business relationships: Inclusive business in Latin America, SNV-Ford Foundation-FOMIN, 2015 15 The big idea: Creating Shared Value, Michael E. Porter and Mark R. Kramer, Harvard Business Review, 2011 16 The Business Case for Women’s Economic Empowerment: an integrated approach, Oak Foundation-Dalberg-ICRWWitter Ventures, 2014 10

Towards a more level playing field

Overcoming cultural, social and economic barriers 13

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Perspectives and experiences

The study To gain a better understanding of why and how companies engage – or might engage – women entrepreneurs in the supply chain, representatives of 11 internationally operating companies were interviewed. These companies are based in the Netherlands and are active in various sectors, including food and beverage, energy, lifestyle, finance, consulting, textiles, building & construction and agribusiness. The sample included SME social enterprises, family businesses and multinational corporations. Their selection was based on the fact that they explicitly include women in their supply chain, or have a perceived potential to do so. The interviews were held with representatives who are closely involved in procurement or sustainability, including procurement directors, supply chain managers, sustainability managers, CSR managers, and managing directors.

Eight additional stakeholders shared their views and insights. These stakeholders include organisations that represent or facilitate Dutch companies, as well as government and nongovernment organisations engaged in sustainability and inclusiveness of global value chains.

An overview of the participating organisations can be found below and on page 29.

The interviews provided insight into the challenges companies face in their supply chains, and views on the (potential) role of women entrepreneurs. They also contributed to a better understanding of existing motivations, experiences and results of including women entrepreneurs in supply chains.

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Knowledge and awareness about gender and women empowerment

All interviewees are aware of the importance of gender and women empowerment as a topic of interest for business, mostly as part of a broader diversity or sustainability agenda. For the larger companies, gender is often included in their company diversity policy. Some companies are active in traditionally male-dominated industries, and attracting female employees is in itself still a challenge. With the principal focus on generating social benefits through their business, the social enterprises in this study show a greater awareness of the benefits of integrating women in their own organisation, in their supply chain, and in other aspects of their business.

Most companies in this study have a diversity and inclusion policy, focused on employees and management. To better reflect reality in society, some companies have measurable targets, for example gender quotas for corporate management. A few smaller companies do not have an explicit diversity policy, but have integrated diversity into their business as a matter of principle. VNO-NCW states that diversity and inclusion is high on their priority list, and that they actively stimulate this topic among their members.

In some large companies in traditionally maledominated industries, such as Royal BAM and HEINEKEN, gender diversity is an important and challenging issue for their own workforce.

Attracting and retaining more female employees is considered important and beneficial for a better mix of capabilities and a better reflection of modern-day society.

According to most of the interviewees, increased diversity and gender equality within their own organisation contributes to an awareness and willingness to extend gender policy towards the supply chain. From there on, specific attention to women entrepreneurs in the supply chain can be considered – by applying specific gender diversity criteria for suppliers and seeking to create additional value. Most of the companies were interested in this topic, and more than half the respondents indicated a willingness to further engage and exchange ideas.

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‘A 100% slave-free chocolate industry – that’s our vision and the reason Tony’s Chocolonely was created. We feel responsible for improving the supply chain and are committed to a business model where no child-labour or slavery is used and cocoa farmers earn a fair wage.

To achieve this, together with partner organisations you need to create several conditions, which include gender equality and the inclusion of female entrepreneurs.

We are taking plenty of action in this field, including attention for gender in trainings and preferred collaboration with womenled cooperatives. But we have not yet documented this or shared it with the outside world. It is our intention to do so in the near future.’ Arjen Boekhold, Chain Director at Tony’s Chocolonely

Motivations for including women entrepreneurs in the supply chain

Sustainability is a key topic for all companies involved in this study, and transparency throughout the supply chain as part of their sustainability policy is becoming increasingly important. Transparency is not limited to direct suppliers, but applies all the way back to the origin of products, commodities or services.

This focus on the supply chain is stimulated by a trend in developed countries, where critical and demanding consumers and other stakeholders want to know more about the origin of products.

The interviewees mention diverse issues and challenges regarding their supply chains. These issues relate to quality, price, volume, and social or environmental impact. Many topics compete for attention in sustainable supply chain management. Price was long considered the main factor; now there is a new focus on creating value and integrating sustainability topics. The reality is that the myriad of sustainability-related topics sometimes diverts attention away from gender issues. However, organisations with a supporting role, such as the Netherlands Ministry of Foreign Affairs, signal that gender and women empowerment are an integral part of sustainable development and should therefore not be treated as a separate issue, let alone omitted.

The purchasing function of companies is currently transforming and professionalising from pricedriven procurement focusing on the cheapest deal, to best-value procurement or strategic sourcing. Organisations are now working together more closely with their suppliers, and are initiating dialogue in order to create transparency and to learn from each other. Purchasing departments increasingly work with other business departments in multifunctional teams, since sustainable procurement needs broader support in the organisation as it is no longer just about the lowest price. These developments require purchasing officers with new and different skills, driving the need for more diversity in vision and capabilities among procurement staff. This leads to an increase of female purchasing officers, since women – according to some of the interviewees – have a more integrated and holistic view of the supply chain, with a greater sense of responsibility for the partners involved.

Some companies in this study state that within their particular industry, they do not see the relevance or added value of procuring specifically from women entrepreneurs. Others indicate that within their industry, social sustainability priorities have become increasingly important and include fair working conditions and equal pay.

This is often related to women empowerment and women entrepreneurs. There are also companies that have built their entire business around the creation of social impact, some with a particular focus on women. These ‘social enterprises’ are cause-driven and committed to addressing social problems. They are non-loss, non-dividend companies and all profits are reinvested back into the business and social benefits.

Current initiatives

Different models or ways of working with women entrepreneurs can be observed among the companies in this study: 1.

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Social impact for women is the main driver for the business (example: Sukha) Social impact is the main driver for the business, with special attention being paid to the position of women (example: Yumeko) Social impact forms an integral part of the sustainable business strategy, and within that women can benefit (example: Accenture) Social impact is achieved by making investments outside the core business (example: Rabobank through Rabobank Foundation)

Arie van den Berg, Managing Director at Van den Berg Roses, a large-scale international rose grower with nurseries in Kenya employing 1300 people: ‘We aim to create social impact and have made the choice to manage the entire value chain, from plant to customer to ensure transparency. We have clear gender targets and 50 per cent of the employees are women. Female employees work very hard and are reliable. Women make up 40 per cent of our supervisors, which is an efficient way to tackle sexual harassment, a common problem in our sector.‘

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Lifestyle store Sukha in Amsterdam is part of a company that imports handcrafted articles from women entrepreneurs in India and Nepal. Sukha is an example of a social enterprise where impact on women entrepreneurs is the main business driver.

Sukha Amsterdam: working with women entrepreneurs is part of our DNA

Sukha is a lifestyle store situated in the centre of Amsterdam and sells handcrafted products, unique items and labels. Their own Atelier Sukha label produces some items, which are currently available in nine countries. There is a clear sense of sukha or ‘joy of life’ in Sanskrit (the language of the Buddhist monks in India and Nepal), in all Atelier Sukha’s products.

The company’s social mission is to create employment opportunities, rather than focus on high profit margins. Yet Atelier Suhka is also a successful business that reinvests profits into the company. The product lines carried in the store are jointly developed with small handicraft companies in local communities in India and Nepal. All products, currently around 50 items and the number continues to grow, are produced in a socially responsible manner, by small businesses that are affiliated with the World Fair Trade Organisation or local NGOs that support social responsible products.

Founder and Owner, Irene Mertens: ‘Working with women entrepreneurs and workers is in our DNA. We deliberately work with women, because they are most vulnerable and in need. Work gives them confidence. Women are serious, more engaged, more committed, and take responsibility for their families and communities.’ She adds: ‘Women sometimes lack the skills and knowledge of how to be an entrepreneur or don’t have the time due to their responsibilities at home. In these cases it is also a good solution to employ them in a socially responsible business.’

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By staying loyal to suppliers and committing to place orders on a regular basis for a fair price, Atelier Sukha invests in local communities.

Nepalese women make knitted products for Atelier Sukha; women in India make linen cushions and embroidered plaids, all handmade with an abundance of care and attention. Today, approximately 100 women work for Sukha, about 80 in Nepal and 20 in India. Some of these women are entrepreneurs; other women are in employment. In 5 years from now, Sukha’s ambition is to work with 500 women. Sukha has chosen to not explicitly communicate that they primarily work with women entrepreneurs and employees, but to focus their marketing communication on the stylish and high-quality end products.

Social enterprise Yumeko incorporates Fair Trade and organic principles in its business model, and furthermore exclusively works with organically produced and certified cotton. Within this model, Yumeko creates jobs for women and empowers them as entrepreneurs.

Yumeko: Fair Trade for women

Yumeko is a social enterprise. The founders aim to change the ‘bedding industry’: to reduce the amounts of chemicals used and produced, to promote organic agriculture and to increase the level of welfare for all involved. The company has created a fair-chain process, using only 100% organic cotton and employing hundreds of farmers and workers, mainly in India.

Yumeko buys it organic and Fair Trade cotton from Chetna, an agricultural cooperative in India. This cooperative was co-founded by NGO Solidaridad and has 15,000 farm family co-owners. Yumeko buys the cotton under Fair Trade conditions, so the cotton farmers receive a fair price for their product. Yumeko pays Chetna 30 to 40 per cent more for the cotton than the price on the world market. Women at Chetna carry out half of all jobs at all levels. With the empowerment of women as a key objective for Chetna, all women get additional opportunities to improve their position.

The raw cotton is cleaned ecologically, spun, woven and dyed by producer Rajlakshmi in

Kolkata. Yumeko selected this producer for their quality and long experience in the processing and production of products that are both organic and fair trade. The two companies enjoy a longstanding cooperative relationship.

Yumeko publishes an annual impact report for transparency purposes for customers and stakeholders. In 2014, Yumeko created jobs for 120 farmers and their families, and for 400 factory workers. Stephan Zeijlemaker, Co-Founder & Managing Director: ‘We want to achieve financial targets and create social impact with our sustainable and fair-trade bed and bath products.

We deliberately opt for Fair Trade, and one of our reasons is that gender equality and women's empowerment are Fair Trade principles. Fair Trade principles include paying women the same salary as their male counterparts, making it more appealing for women to work.’

Fair Trade principles include paying women the same salary as their male counterparts, making it more appealing for women to work.

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Accenture and WEConnect empower women in India

SEWA (Self-Employed Women’s Association) Gitanjali, a cooperative of women stationery producers who formerly were waste-pickers, provides products such as printed note pads and spring files made from recycled paper to Accenture and other corporations. Through Accenture’s ‘Skills to Succeed’ initiative, the cooperative partners and other industry supply chain professionals impart crucial production and business skills to SEWA members, including support to open up market linkages. In 2014, the SEWA Gitanjali Cooperative increased its productivity, earnings prospects and product range.

The cooperative employs a steadily rising number of women who now have prospects to substantially increase their incomes. Giftlinks is a WEConnectcertified, women-owned business and a longstanding merchandise supplier to Accenture in India. Its service offerings include distribution of certain SEWA products.

Peter Zerp, Supplier Diversity & Inclusion at Accenture: ‘We operate programmes for leveling the procurement field and integrating more women-owned enterprises into our supply chain in 12 countries across all continents in close collaboration with WEConnect International. We co-founded this corporate-led NGO, which empowers women to succeed in global markets.’

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Several large companies, including HEMA and Accenture, have invested in partnerships with NGOs that focus on women’s economic empowerment, as a specific component within the company’s broader supply chain. Although these initiatives do not cover the entire supply chain, they illustrate the opportunities of working with women entrepreneurs in creating value for both the company and the entrepreneurs. HEMA has a partnership with the Return to Sender Foundation, which believes that fair trade is the driving force behind sustainable economic development. HEMA and Return to Sender jointly develop a collection of products, involving designers from HEMA. The products are manufactured in local communities and inspired by local culture, colours, materials and techniques, and are sold in the HEMA stores and on-line. The foundation’s profits flow back to educational projects that stimulate both the entrepreneurship and independence of producers.

Accenture has a supplier diversity & inclusion programme in 16 countries with the objective to provide small and diverse businesses with

The cooperative employs a steadily rising number of women who now have prospects to substantially increase their incomes.

The Rabobank Foundation & Women on Wings: 1,000,000 jobs for women in India

equal opportunities to win a contract. It is mainly focused on women and forms part of the company’s procurement policy. The programme started in the United States, encouraged by national legislation, and has been taken up for roll out to other geographies, working with local procurement teams of Accenture. Accenture collaborates with WEConnect International, a corporate-led NGO that works as a business platform and connects corporations and women entrepreneurs. It aims to help women entrepreneurs succeed in global value chains.

To that end it identifies, educates, registers and certifies women’s enterprises and then connects them with corporate buyers.

Some companies, such as the Rabobank, create social impact beyond their core business through a corporate foundation. In partnership with the NGO ‘Women on Wings’, Rabobank Foundation creates opportunities for women entrepreneurs to gain experience and exposure, with the aim of connecting them to markets and to encourage women’s economic activities.

The Rabobank Foundation plays an important role in the cooperative and sustainable policy of the Rabobank Group and supports roughly 200 programmes in 25 countries each year.

Their international focus is on cooperative micro financing organisations and farm producer organisations in rural areas.

With donations from 130 local Rabobank branches, the Rabobank Foundation offers underprivileged and disadvantaged individuals the opportunity to lead an independent life. The Rabobank Foundation is one of the funding partners of the NGO Women on Wings, whose mission is to create 1,000,000 suitable jobs for women in rural India. In December 2015, 196,000 jobs had already been created for Indian women in rural areas.

For example, NAMPCO, a cooperative from Nagapattinam in the southern province of Tamil Nadu, currently collects 1,000 liters of milk from 750 female farmers every day.

Their goal is to quadruple the number of female farmers over the next three years.

NAMPCO processes the milk and sells the dairy products on the local market.

NAMPCO strives to increase revenues and link even more female famers with the cooperative in the years to come.

Source: www.womenonwings.com

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Benefits

Companies with experience in including women entrepreneurs from the Global South in their supply chain, mentioned a variety of benefits derived from doing so.

Branding and reputation It creates positive brand value and enhances reputation. Consumers continue to make more conscious choices about what they buy and where they buy their products and services. Also, by playing a positive role in society, companies can attract and retain motivated employees. It instils a sense of company pride and purpose. Working with women entrepreneurs, and investing in their empowerment while doing so, helps generate social impact that has a positive effect on a company’s brand and reputation.

Added value from women’s skills and characteristics Women entrepreneurs have particular skills and characteristics that are perceived to add value. For example, women are good at certain traditional crafts, such as knitting and weaving. Moreover, women workers and entrepreneurs are seen as more reliable, more efficient, more careful, less corrupt and more transparent. Typically female characteristics, such as being more social and sensitive to other people’s position, and the ability to consider topics and challenges from different perspectives, are all recognised as bringing a much-desired diversity in skills, capabilities and vision to teams. In the floriculture sector, particular skills of women were mentioned and appreciated, because their skills helped improve the company results in terms of productivity and stable supply.

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Women create positive impact on communities Women entrepreneurs reinvest profits into their families and community, leading to better education of children and their increased access to future employment. Women promote local economies and raise living standards.

Growing markets As women prosper and reinvest earnings in their families and their communities, companies have the opportunity to grow their markets and business. This applies to retailers in food and fast moving consumer goods, but also to financial services for the underbanked (people or businesses that have poor access to mainstream financial services normally offered by retail banks).

Improved supplier base A supplier diversity & inclusion programme offers opportunities to all types of suppliers, which provides a company with access to more innovative suppliers. This allows the company to attract new, better or innovative quality products and services.

Women workers and entrepreneurs are seen as more reliable, more efficient, more careful, less corrupt and more transparent.

Challenges

Despite the recognised value and an understanding of the potential of including women entrepreneurs in the supply chain in the Global South, companies in this study also mentioned some challenges.

Difficult to measure results Companies that decide to invest in women entrepreneurs are driven by a clear sense of returns, both financial and social, as well as benefits for branding and/or transparency.

But actual impact on the targeted women entrepreneurs and their communities is difficult to claim. The impact of including women entrepreneurs in the supply chain is hard to measure, due to a lack of standardised metrics and measurement methods. It is important for companies to quantify the social and business impact in order to convince decision takers to make investments.

Perceived weaknesses of women-led enterprises Women-led enterprises, particularly in certain sectors in developing countries, are often perceived as ‘weak’ due to their small size. Limited access to credit, less ability to work away from home, or limited availability of time can explain their small business growth. Furthermore, women entrepreneurs may lack access to information about opportunities with companies, or they may need to make (large) investments they cannot afford to meet requirements. As a result in women-led enterprises may not be selected for opportunities, or companies that source locally may not even notice them.

Capacity gap Adequate investment is needed in training, capacity building and skills development in order to become a successful entrepreneur, and to be able to comply with company standards.

This is why companies recognise the need for specific programmes (implemented with NGOs or women organisations) to strengthen women entrepreneurs. Companies may invest in this if the projected benefit is substantial enough, but some companies indicate the need for collaboration in partnerships (with NGOs, government or multilateral and international organisations).

Capital investment The majority of companies that have already initiated activities that include women entrepreneurs in supply chains, have funded these themselves. However, some companies that are considering initiatives in this field, indicate they would prefer co-funding with an NGO or with the government. In this way, they can share the financial risk of a long-term investment, as working with small entrepreneurs may imply a longer lead-time and less flexibility than working with larger enterprises and factories.

Interventions focused on women entrepreneurs’ reality Most women entrepreneurs carry out household and community tasks alongside running a business. Their engagement with companies, and the subsequent time investment required, will only be successful if attention is paid to adequate working conditions. These conditions include access to services, capital investment and overcoming social or cultural barriers. Companies and supporting organisations (e.g. partner NGOs) need to be clear about the interventions required for women entrepreneurs to be able to meet company requirements. In this way, sustainable supplies and women’s empowerment can be guaranteed, while simultaneously achieving social impact.

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Conclusions

There is added value in working with women entrepreneurs

While the findings from the interviews show that a business case can be made for companies to explicitly include women entrepreneurs in their supply chain, it is certainly not mainstream practice, and for many companies not (yet) the most obvious course of action. These companies may lose out on opportunities, as frontrunners indicate that by working with women entrepreneurs, they generate added value in terms of positive branding effects, a high quality of supply, increased social impact and enhanced consumer markets.

Besides initiatives that include women entrepreneurs in a company’s core business, several large companies have invested in partnerships with NGOs or have established corporate foundations that focus on women’s economic empowerment programmes. Although these initiatives often focus on engagement of women entrepreneurs beyond the company’s own value chain, they demonstrate the opportunities of working with women entrepreneurs and the creation of added value. As such, these programmes may be first steps in the integration of women entrepreneurs in the business or sustainability strategy.

Women entrepreneurs: important part of an integrated sustainability approach

In general, companies choose an integrated sustainability approach. With this approach, these companies focus on the impact they can make throughout the supply chain, and on the overall impact they can have on their customers and other stakeholders. Depending on business targets and the sector in which the company operates, engaging women entrepreneurs generates additional value and contributes to sustainability. In spite of that, it is not a priority for all companies involved in this study.

Pieter Völker, Director Buying - Sourcing at HEMA: ‘At HEMA we focus on the total sustainability impact of the supply chain, including transparency and social impact.

Our customers expect this from HEMA. From a brand perspective, we create maximum impact with this approach.’

Other companies and stakeholders stressed that as a topic of social sustainability, women entrepreneurship should be integrated in a broader gender policy, including issues such as good working conditions, liveable and fair wages, and non-discrimination. These principles contribute to women empowerment in general, and may help women workers launch their careers into management positions, or help launch an entrepreneurial career. The empowerment of women should be part of an integrated approach to social sustainability, focusing not only on the women, but also on their families and community.

Alba León, Communications Officer at Fair Wear Foundation, an independent, non-profit organisation that works with its member companies and factories to improve labour conditions for garment workers: ‘For some women starting their own business is not possible. They can also become empowered by gaining access to the labour market as employees, and then grow into a management function or more senior role within the factory'.

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Changes in the business ‘ecosystem’: collaboration with partners is the key to success

Capacity gaps, investment needs, and difficulties in demonstrating bottom-line impact may keep companies and women entrepreneurs from making successful and sustainable connections.

To create connections that generate value in the supply chain for both parties, companies and women entrepreneurs need to make changes.

This may include increasing knowledge and capabilities, as well as securing investments from other stakeholders. These changes will influence the business ‘ecosystem’ in which the women entrepreneurs and companies operate, and make the engagement of women entrepreneurs beneficial for all involved.

The companies in this study that have experience with engaging women entrepreneurs in their supply chain, claim that cooperation with partners is the key to success,. Relevant partners include local communities and companies, local, national

Regulation Policy makers

Facilitation NGO’s, service providers, women’s organisations

Depending on the local context, stakeholders fulfil different roles within this business ‘ecosystem’.

A thorough understanding of the workings of the system within which companies and women entrepreneurs connect to each other is required.

On basis of this understanding, appropriate interventions can be designed, and decisions can be made about which stakeholders to involve. In this way, conditions can be generated to guarantee sustainable value creation for both women entrepreneurs and companies.

On the basis of successful business cases, mechanisms for scaling up the engagement of women entrepreneurs in the supply chain can be identified and introduced in the system.

Procurement of goods/services Companies

Production of goods/services Women entrepreneurs Enabling environment

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or international NGOs, financial institutions and government organisations. For each specific context, partners are selected for their ability to contribute to the success of the company and the women entrepreneurs, as well as for the development of favourable conditions for funding, policy regulations and social norms.

Market environment

Funding Investment funds, banks, microfinance institutes

Impact assessments and business case examples are needed, with compelling arguments and data that demonstrate both the business value and the social impact. This will encourage more companies and stakeholders to invest in women’s empowerment and to include women entrepreneurs in the supply chain. It will contribute to regarding women as economic agents rather than beneficiaries of social projects.

The challenge of including a growing number of women entrepreneurs in sustainable supply chains is too urgent and too immense, to leave to individual development organisations, local NGOs, governments or companies. To make the necessary changes in the system, the involvement of companies is essential; they allow for the necessary link between women entrepreneurs and markets. Companies are therefore crucial in bringing initiatives with women entrepreneurs to scale. Partnerships with governments and NGO’s can help ensure that both parties benefit and in guaranteeing the sustainability of the results.

By explicitly focusing on women in their own procurement policies, governments can lead by example.

A different rationale of purchasing is needed

Engaging women entrepreneurs as a diversification strategy is basically at odds with demand consolidation and buying power, a traditional principle of procurement. The traditional approach to drive purchasing power in order to get the best price is not supportive of diversification and does not recognise new values of professional procurement. Purchasing departments that aim to include women entrepreneurs, should consider awarding contracts to those suppliers whose offers represent the best overall value, rather than the lowest price.

Governments, both in the Netherlands and in developing countries, have significant purchasing power. By explicitly focusing on women in their own procurement policies, governments can lead by example. By enabling inclusion, or specifically contracting smaller suppliers and women entrepreneurs, the government can open up its procurement. Moreover, governments could focus on criteria for best value procurement or sustainable procurement when selecting suppliers for large-scale public contracts. In turn, this will encourage companies that are awarded the tender to operate in an inclusive way with their suppliers and partners. In this way, they can set an example for other companies to follow.

‘The message is simple. Women who are safe, healthy, educated, and fully empowered to realise their potential transform their families, their communities, their economies and their societies. We must create the conditions so they can do so’.

High-Level Panel of Eminent Persons on the Post-2015 Development Agenda

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Acknowledgements & List of abbreviations

Acknowledgements

CARE would like to thank all those professionals who kindly gave their time to support this research and to contribute to this survey. Their openness and willing attitude provided useful information for this publication.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

ABN AMRO Bank - Masja Overing, Head of Category Procurement non-IT O.a.

HR, training, marketing (including sports sponsoring), facilities, buildings Accenture - Peter Zerp, Global Supplier Inclusion & Diversity CBI (Centre for the Promotion of Imports from developing countries) - Eva Smulders, CSR Manager Eneco - Silvan de Boer, Senior Sustainability Officer and Gerben Meijer, Sustainability Manager Fair Wear Foundation - Alba León, Communications Officer HEINEKEN - Jan-Willem Vosmeer, Corporate Social Responsibility Manager, Global Corporate Relations HEMA - Pieter Völker, Director Buying Sourcing IDH (Initiatief Duurzame Handel, the Sustainable Trade Initiative) - Dave Boselie, Senior Manager Learning & Innovation Ministerie van Buitenlandse Zaken (Dutch Ministry of Foreign Affairs) - Louise Anten, Task Force Gender Equality & Women’s Rights MVO Nederland (CSR Netherlands) - Frans Tilstra, Communications and Research manager NEVI (Dutch Association for Purchasing & Supply Management) - Karin van IJsselmuide, Knowledge Manager and Trainer Rabobank - Ruud Olthoff – CPO/Senior Vice President Rabobank Group Purchasing Royal BAM Group - Rutger Burger, Director Procurement

14. Sukha Amsterdam - Irene Mertens, Founder and Owner 15. Tamara Schoon - International Communications & Partnerships Professional 16. Tony’s Chocolonely - Arjen Boekhold, Chain Director 17. Van den Berg Roses - Arie van den Berg, Managing Director 18. VBDO (Vereniging van Beleggers voor Duurzame Ontwikkeling, Dutch Association of Investors for Sustainable Development) - Annemieke Reijngoud, Project Manager Sustainability 19. VNO-NCW (Confederation of Netherlands Industry and Employers) - Sigrid Verweij, Director Communications and Sustainability 20. Yumeko - Stephan Zeijlemaker, Founder & director

List of abbreviations

CBI = Centre for the Promotion of Imports from developing countries CSO = civil society organization EU = European Union ITC = International Trade Centre (joint agency of the World Trade Organization and the United Nations) NEVI = Netherlands Organisation for Procurement & Supply NGO = Non Governmental Organization OECD = Organization for Economic Co-operation and Development SDGs = Sustainable Development Goals SME = Small and medium-sized enterprise VBDO = Dutch Association of Investors for Sustainable Development

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Closing remarks

The pathways are many, but one thing seems clear: collaboration between women entrepreneurs and companies flourishes particularly where governments and NGO’s – local or international – also play their parts.

Companies with overseas operations may differ in terms of industry, size and objectives, but they all have one thing in common: they can boost the development of women entrepreneurs and women-led enterprises. There is opportunity for integration of women in the supply chain, and experience in this field is increasing. It is now down to conviction and willingness, to invest in the benefits that this will generate for all parties.

Economically independent women occupy a more prominent position within their communities.

Furthermore, they invest their income not only in their own well-being, but they also contribute to the development of their families and communities. Companies that consciously invest in women entrepreneurs do not only show their engagement and commitment; they also add value to their business and enhance the market.

Yet, not every company sees a clear role for itself in engaging with women entrepreneurs. This publication feeds the debate and offers inspiration for different ways of doing so. The pathways are

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many, but one thing seems clear: collaboration between women entrepreneurs and companies flourishes particularly where governments and NGO’s – local or international – also play their parts. This can be achieved through dedicated partnerships, either within the broader domain of sustainable business or around a specific genderfocused intervention.

Companies, governments and NGO’s have a shared responsibility towards the integration of women entrepreneurs in supply chains. Therefore, they also share the responsibility to overcome current barriers, such as the ones related to capital and capacity. More evidence might still be required to further substantiate the business case in both financial and social terms, but the arguments to take action now are plentiful.

Hendrik Halbe Director SMO

About CARE & SMO

CARE

CARE Nederland is a member of CARE International. CARE International is a global confederation of 14 member organisations working together to end poverty. In 2015, CARE worked in 95 countries around the world, supporting 890 poverty-fighting development and humanitarian aid projects, to reach more than 65 million people.

CARE Nederland has been member of CARE International since 2001. The mission of CARE Nederland is to increase the resilience of communities made vulnerable by natural disasters and violent conflicts. We ensure basic needs are met with sustainable solutions. The key focus themes of CARE Nederland are women empowerment through enterprise development, gender in emergencies, integrated risk management and inclusive governance in fragile states .

SMO

SMO (Stichting Maatschappij en Onderneming) is a foundation (since 1968) that accelerates the realization of societal ambitions by signaling and identifying issues which require a great deal of adaptability and an integral approach. As a trusted third party SMO connects corporations, the public sector, science and the new generation, to together come up and implement solutions for societal challenges.

Since 1992 SMO stimulates the debate about the role of female entrepreneurship. More recent in 2015, SMO together with CARE published ‘’De Economische Kracht van de Ondernemende Vrouw’’ (The Economic Power of the Entrepreneurial Woman) in which several authors shared their expertise on different dimensions of women entrepreneurship.

CARE Nederland aims for strategic partnerships which enable us to achieve greater impact for the beneficiaries, work more efficiently and strengthen influence on all relevant levels.

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This is a publication of: CARE Nederland

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