For Rights and Returns - How empowering women transforms markets

By Manisha Majumdar and Marcel Vernooij

Celebrating International Women's Day month, the clear message is that investing in women's rights, rooted in the UN Guiding Principles on Business and Human Rights (UNGPs), is not merely a human rights issue but a powerful engine for better business returns and a more sustainable global economy, making the integration of gender equality into corporate practices essential for responsible business and achieving the Sustainable Development Goals (SDGs).

The bottom line: Women’s rights mean better business

The data speaks for itself: gender-inclusive companies are more resilient and profitable. Diverse leadership boosts performance by 25%, and closing gender gaps could add trillions to the global economy. Across Sub-Saharan Africa, women constitute a significant portion of the agricultural labor force, contributing up to 70% of food production in some regions (FAO). However, similar to global trends, these women smallholder farmers often experience lower productivity and income compared to their male counterparts due to limited access to land ownership, credit, inputs, training, and markets (World Bank). In India, agriculture employs about 80% of rural women (NITI Aayog, 2022), and across developing countries, women contribute 60-80% to food production (FAO). Despite this significant contribution, women smallholder farmers face more challenges and lower returns compared to men. This isn't due to a lack of skill, but rather unequal access to crucial resources such as land, credit, technology, financial services, education, and markets.

For instance, in East Africa, studies have shown that closing the gender gap in agricultural productivity could increase yields by as much as 20% (UN Women). This underscores the critical need for corporates and businesses to actively address the systemic inequalities faced by women smallholder farmers in Africa, ensuring they have equitable access to resources and opportunities, which in turn will drive greater agricultural output and contribute to more resilient and sustainable supply chains. The FAO estimates that if women farmers had the same access to resources as men, yields on their farms could increase by 20-30%. This highlights the urgent need for corporates and businesses to address the limited access and lower returns faced by women farmers, recognizing their pivotal role in agriculture and the potential for significant gains in productivity and sustainability through gender-inclusive practices.

As Phuti Mahanyele-Dabengwa, CEO of Naspers South Africa, states, “Investing in women is not just a social good; it's an economic imperative." Similarly, Roshni Nadar Malhotra, Chairperson of HCL Tech, emphasizes that "Gender diversity is not just about ticking boxes; it's about unlocking the full potential of our workforce. Companies that prioritize gender equality are not only more ethical but also more innovative and competitive." This sentiment is echoed by Unilever, who believe that "gender equality is not only a social imperative but also a key driver of business growth,” and by a joint statement reflecting the shared values of the Mastercard Foundation and the World Bank who point out that "Investing in women's economic empowerment is one of the most effective ways to drive inclusive growth and reduce poverty."

Turning commitment into concrete change for women farmers and workers

IDH is driving real, on-the-ground transformation across Asia, Africa, and Latin America. Through our initiatives, businesses and markets are witnessing firsthand how empowering women, especially smallholder farmers, strengthens value chains, enhances productivity, and fuels long-term success . From boosting coffee productivity in Colombia by providing targeted support to women farmers, to enhancing food security in Africa  (Grains for Growth) by ensuring women are at the decision-making table, our partners are demonstrating the powerful and undeniable link between gender equality and positive business outcomes. Through impactful initiatives like Accelerating Business to Empower Rural women in Agriculture (ABERA) businesses are supported with the practical tools and frameworks they need to adopt truly gender-responsive policies. This leads to more innovative and sustainable operations that not only benefit the bottom line but also create real, lasting improvements in the lives of women in agricultural communities

Furthermore, IDH's core commitment to Better Income, Better Jobs, and a Better Environment enables businesses and markets to build more resilient and inclusive value chains. By addressing the disproportionate impact of climate change and economic instability on women in agriculture and informal labor, our partners can drive sustainable growth, enhance workforce stability, and unlock new market opportunities through gender-equitable business practices. By actively advocating for living wages and living income, we're ensuring that women, particularly women smallholder farmers, are central to a just and equitable transition towards a more sustainable future for all. The success of the Women’s Safety Accelerator Fund ( WSAF) in the tea sector and Life and Building Safety (LABS)  in the apparel sector provides a powerful example of creating safer and more equitable workplaces for women. By tackling workplace harassment and gender-based violence, WSAF has delivered clear business benefits – reduced worker attrition, increased productivity, and a stronger company reputation. Clearly, transforming supply implies prioritizing the fundamental rights and economic security of all women workers, with a strong and unwavering focus on empowering women in agricultural sectors.

Our Ambition: A world where gender equity drives sustainable markets

Global regulations are increasingly holding businesses accountable and recognizing that prioritizing human rights, with gender equity as a non-negotiable element, is essential for long-term competitive advantage. IDH is actively collaborating with businesses, funders, and policymakers to accelerate the widespread adoption of gender-responsive due diligence as the new normal in sustainable sourcing, particularly within the vital agricultural value chains. Building on our established leadership through impactful engagement in the UN Business and Human Rights (BHR) Forum and by leveraging our convening power at critical global platforms like COP, WEF, and Living Income/Wage initiatives, IDH is committed to building an even more impactful agenda. By sharing compelling success stories like WSAF and forging strategic partnerships, we are actively influencing policy and driving the deep and meaningful integration of human rights and gender equity into sustainable sourcing models, directly creating tangible and lasting benefits for women in agricultural communities around the world.

Our commitment to scaling impact:

• Expand: We will expand our business partnerships to embed gender-responsive due diligence across a diverse range of industries, with a primary and unwavering focus on agriculture and the empowerment of women smallholder farmers.
• Deepen: We will intensify our policy influence to champion the rights of women within key global forums and regulatory discussions, ensuring their voices are heard and their needs are addressed.
• Leverage: We will strategically leverage evolving regulatory shifts, such as the CSDDD and EUDR, to drive the creation of truly equitable and sustainable supply chains that empower women at all levels.
• Accelerate: We will accelerate corporate contributions towards achieving the SDGs by ensuring a strong and meaningful alignment between women’s rights, broader human rights principles, and responsible business models, with a particular emphasis on creating transformative change within agricultural sectors.

A call to action for International Women's Day Month

This International Women's Day month, let's move beyond rhetoric and take concrete action. Businesses must recognize that investing in women's rights, especially for women smallholder farmers, is not just a social responsibility but a smart business strategy. By embedding women’s rights as human rights into corporate frameworks, we can drive meaningful change, build inclusive economies, and create a sustainable future for all.