Originally published on LinkedIn influencers on June 17th, 2016.
It’s been three years since I had the honour of being invited to join the LinkedIn publishing platform as an Influencer, and since then I have written nearly 80 articles on a wide range of topics, including finance, philanthropy, the film industry, and job advice. If you have been a loyal reader of mine, you know that I have written about all of these topics through the perspective of a gender lens, and more specifically shining a light on women. My purpose in life is to help our world become more gender balanced, and that work will continue until we achieve gender parity across all industries and issue areas. Ambitious, yes, but it is my passion in life and I truly love my work.
Another passion of mine is the financial services industry, and I love it when these two passions, finance and women, converge. Like many industries, women’s representation in the top levels of the world’s largest and leading financial firms leaves much to be desired, and in November of 2014, I used one of LinkedIn’s monthly topics to imagine where my life would have taken me had I not left Goldman Sachs in 2002. I let my imagination run wild, and envisioned a world where I helped to create the world’s leading financial services firm for women. I then laid out seven ways a firm could actually achieve this, and I detailed the many ways that this could become a reality as opposed to my rainbow coloured fantasy. To my surprise and delight, this article became my most read post, a position it still holds to this day by a wide margin, and I’d like to think that people working within the financial industry read my post and took its message to heart. But did it work?
Technically, no, because 18 months later, we seem no closer to having a great woman lead a global financial firm, achieving 30% female representation on corporate boards and 50% representation in senior positions, or increasing the amount of hedge fund assets under management by women to double digits at the very least. But a lot has changed in that time, namely the awareness of the issue and the growing number of tools designed specifically to address it. From the Bank of Montreal’s Women in Leadership Fund to Barclay’s Women in Leadership Index, financial firms appear to finally be taking to heart the mountain of research that proves that investing in gender equality is not just the morally right thing to do, but is in fact a good business decision for both the company and its customers.
One of the most recent of these tools to be unveiled is the new Bloomberg Financial Services Gender-Equality Index (BFGEI), which launched last month. The BFGEI operates as a measurement tool to determine how well companies treat their female employees, the policies in place to encourage a diverse set of people to succeed, and how well their products serve their female customers. This index encourages companies to be transparent with their data and workplace policies, and assigns a score based on their commitment to gender equality, with a 60 point score being the threshold to secure a positive rating on this issue. At the time of its May 3rd launch, 26 firms worldwide have achieved this rating, including JP Morgan Chase, Bank of America, BNP Paribas, Bank of Montreal, HSBC, and Credit Suisse, although it should be noted that participation in this index was voluntary, and therefore a firm’s exclusion on the list at this point should not be meant to imply they have not passed the rating. That said, if they choose not to be involved in this process, one has to wonder why?
In fact, given the fact that this index is at present a voluntary measure, its effectiveness in promoting change has been questioned, but not by me. All I see from this development is that companies are finally waking up to the idea that investors want more from their financial firms than simply profits. Impact investing, the practice of investing in a manner that promotes social good, is not just the investment fad of the week. It is a growing movement that will only grow bigger with each passing year. Investors are voting for social change with their investing dollars, and more and more they have the tools to make informed decisions about where to invest their money.
I have always advocated that our money, whether it is invested, donated, or used to buy a tank of gas; our money is one of the greatest untapped potential for enacting social change, but without the tools to know which companies are deserving of our dollars, it will remain just that. Untapped potential. But not anymore. The Buy Up Index helps shoppers reward companies that make gender equality a priority in their operations, and just this week research group Ledbetter launched a Gender Equality Index and interactive tool. With this tool you can see a company’s gender ratio on its board and leadership team. A winner is Kering Group (Gucci) with 64% women on its board and 36% on their leadership team. A loser? Coty, which has no women on its board or leadership teams. None. Additionally organizations such the Global Fund for Women and the Women’s Funding Network help donors direct their giving dollars to nonprofit organizations that directly advance women and girls. Now, tools such as the BFGEI are helping investors to do the same. With all of these amazing resources at our disposal, I’m confident that the only direction we’re heading is forward, with true gender equality not far ahead on the horizon.
Are there companies that you support because they are aligned with your values? TWEET to #shopyourvalues