The United Nations Sustainable Development Goal 5 (SDG 5) calls for achieving gender equality and empowering all women and girls by 2030. A critical part of this agenda is advancing equality in the workplace. Many companies have embraced the rhetoric of SDG 5, prominently featuring commitments to gender diversity and inclusion in their sustainability reports and communications.
However, a recent MBA thesis uncovers a concerning mismatch between this strong imagery and stated commitments versus actual performance on key gender equality metrics. The research, which analysed the integrated annual reports of 12 leading construction firms in the UK and EU, found that despite the impressive SDG 5 rhetoric, companies consistently underperform on measures like gender pay gaps and female representation in the workforce and leadership. This disconnect between corporate gender equality talk and walk is not unique to the construction sector.
A 2022 workplace report found that 67% of women have experienced gender-based inequality at work, despite widespread corporate commitments. The global gender pay gap remains stubbornly high at 20%, with women occupying only 27% of managerial positions despite comprising 39% of the workforce. So what explains this persistent gap between SDG 5 rhetoric and reality? The thesis findings suggest a few potential drivers:
– Ingrained biases in hiring and promotion that perpetuate the status quo despite diversity policies.
– Inadequate family-friendly policies and support for caregiving responsibilities that disproportionately impact women’s career progression.
– Lack of accountability for translating high-level commitments into concrete, measurable actions.
– Superficial adoption of SDG 5 language for branding and reporting purposes without genuine reform of business practices.
Closing the corporate gender gap demands moving beyond lofty language to systemic changes. This includes tying executive compensation to diversity targets, implementing transparent and objective promotion criteria, enhancing parental leave and childcare policies, and granular reporting on SDG 5 progress with external verification. Investors, regulators, and civil society also have a key role to play in holding companies accountable. Integrating gender metrics into ESG assessments, procurement criteria, and due diligence can provide powerful incentives.
Regulatory measures like gender pay gap reporting mandates have spurred action in some jurisdictions. The business case for genuine gender equality is clear. Extensive research links diversity to improved financial performance, innovation, and employee engagement. Conversely, perceived ‘gender-washing’ poses reputational and legal risks as stakeholder expectations rise. Authentically advancing SDG 5 is thus both an ethical and strategic imperative.
As the 2030 SDG deadline looms, the time for incremental change is past. The construction sector thesis offers a timely wake-up call for companies across industries to urgently bridge the say-do gap on gender equality. Turning rhetoric into results demands bold leadership, uncomfortable conversations, and a willingness to remake entrenched systems and norms. The alternative is not just stalled progress for women, but for the sustainable development agenda as a whole.
…Investors, regulators and civil society also have a key role to play
References:
- J.C. Wheeler, “What We Talk About When We Talk About SDGs” (MBA Thesis, 2023)
- World Economic Forum, Global Gender Gap Report 2022, https://www.weforum.org/reports/global-gender-gap-report-2022/
- UN Women, “Turning Promises into Action: Gender Equality in the 2030 Agenda for Sustainable Development”, 2018, https://www.unwomen.org/en/digital-library/publications/2018/2/gender-equality-in-the-2030-agenda-for-sustainable-development-2018
- McKinsey & Company, “Diversity Wins: How Inclusion Matters”, 2020, https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters