Why should companies report on gender-specific data?

Gender diversity related disclosures are particularly important for a country like Pakistan, which has one of the lowest ranks of female labor force participation both in South Asia as well as globally. The reasons for low rates of female labor force participation include lack of safe transport, societal norms, and safety concerns. Studies have shown that Pakistan can increase its gross domestic product (GDP) by up to 30% by ensuring that women have an equal opportunity in economic participation. This figure shows us the business case for gender diversity and inclusion of women in the workforce. In the recent years, due to the increased focus on Diversity, Equity, and Inclusion (DEI), gender diversity has become a pivotal area for many companies. Working towards developing a gender-equal workplace has become more critical for companies today, as it positively impacts business outcomes and their reputation.

In addition to the business case for gender diversity in the workplace, there is a strong business case for social disclosure and transparency in the workplace. While public disclosure in Pakistan is not mandated by law, regular social disclosure through annual reports or social media can fill information gaps for customers, investors, and employees. This can have a positive effect on a company’s revenues as consumers now prefer to buy from socially responsible companies. Similarly, employees and investors prefer to work and invest in socially responsible companies. The Gender Diversity and Disclosure Awards, held by the Pakistan Business Council (PBC) and the International Financial Corporation (IFC) focus on disclosure practices based on themes related to gender in the workplace. The Awards signal the commitment of the private sector towards gender diversity and set standards for excellence within Pakistan’s business community.

Winners awarded the title of Employer of Choice become success stories and provide a roadmap for other companies to benchmark and learn from. These Awards also serve as an excellent tool for recruitment and retention, they show prospective and current employees that the company values diversity and is committed to creating an inclusive workplace. While the Awards serve as a great source of recognition for participating companies, it is also important to acknowledge that progress on gender diversity cannot happen without transparency. Disclosing gender-segregated data on gender representation, board composition, pay equity, wage gaps, workplace flexibility, and promotion and recruitment rates, allows companies to demonstrate their commitment to transparency and accountability. Moreover, disclosing gender-segregated information acts as a catalyst for other companies to do the same.

Disclosing gender-segregated data helps companies identify gaps, address disparities, and track progress over time. It also helps in creating solutions particularly tailored to support women in the workplace. Due to the limited gender-segregated data in Pakistan, there is a huge gap in evidence-based policies that are gender-focused both in the public and private sectors. As companies focus on sharing gender-segregated data it becomes easier to address areas where interventions are required. The data helps paint a complete picture of the issues that women may face in the workplace, making it an essential tool for bringing about meaningful change for gender diversity in the workplace.