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Standard Chartered

Global Strategies for Women’s Leadership & Economic Empowerment

Company Profile Standard Chartered operates over 1,700 branches and outlets in more than 71 markets across the globe.1 It employs over 87,000 people, of whom 45 percent are women. With an employee pool representing 132 nationalities and speaking more than 170 languages, Standard Chartered is one of the world’s most internationally diverse banks. Additionally, only 6 percent of its employees are from Europe, North America, Australia, or New Zealand. Headquartered in London, Standard Chartered has a strong focus on emerging markets that dates back over 150 years. Today, more than 90 percent of its income and profits are drawn from its activities in Asia, Africa, and the Middle East.2 Standard Chartered is among the FTSE-100’s top 20 companies by market capitalization.3 Background Research across many sectors has revealed that investing in women may be the most effective means of achieving “smart economics;” poverty reduction, sustainable development, and economic growth.4 While the concept of gender equality and women’s empowerment as efficient means for reducing poverty and achieving sustainable development is not new, 2010 research from the World Bank and others has taken this idea a step further with evidence of “the multiplier effect.” This effect shows that the benefits of investing in women and girls extend beyond the women and girls themselves, to their families and communities. The multiplier effect is particularly impactful for poor women, where the gaps are widest, i.e., those at the bottom of the pyramid earning less than $8 per day. Women comprise roughly one-half of the four billion people globally who fall in this category, many of them in emerging markets regions.5 These women, if treated as value-conscious consumers, are poised to be a driving force of global economic growth. They represent a new market, ripe with opportunity and uniquely positioned to guide smart organizations in the private sector. Standard Chartered is one such organization.

1 Global Private Sector Leaders Forum, Promoting Women’s Economic Empowerment: The Learning Journey of Standard Chartered (September 2009). The World Bank Group. http://pslforum.worldbankgroup.org/casestudies/standardchartered/casestudy_standardchartered.pdf 2 Standard Chartered, “About Us: Who We Are” http://www.standardchartered.com/en/about-us/who-we-are/index.html 3 Standard Chartered, “About Us: Our Business” http://www.standardchartered.com/en/about-us/who-we-are/our-business.html 4World Bank. Gender Equality as Smart Economics: Bank Group Gender Action Plan (Fiscal Years 2007-2010). (2006) http://siteresources.worldbank.org/INTGENDER/Resources/GAPNov2.pdf 5McKinsey & Company, The Business of Empowering Women. (2010). http://www.mckinseyonsociety.com/downloads/reports/Economic- Development/EmpWomen_USA4_Letter.pdf; World Bank.

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History and Launch of Program/Activities Long dedicated to women and diversity across the globe, and conscious of the growing global awareness of the multiplier effect, Standard Chartered’s leadership embraced the mission of gender equality as a lever for strengthening communities and increasing economic and business development. It is also dedicated to taking this message one step further by focusing not only on women outside the Bank walls, but also its own women employees. In 2005, the Bank began to construct a company-wide coordinated approach to its gender-related work,6 initiating more deliberate and structured efforts toward establishing itself as a leader in gender diversity. Company executives identified three pillars that they deemed essential to achieving that goal: women in the workplace, women as customers, and women within the community.7 Today its efforts fall under these three areas of focus, which are linked by a strong business case that recognizes that women are powerful, yet often overlooked, consumers, and excellent, yet often untapped, sources of talent. The Bank’s aim to become a leader in gender diversity feeds into its larger diversity agenda, which includes efforts aimed at employee engagement and productivity, women’s representation, and work-life balance. Program Approach 1. Women in the Workplace: Internal Strategies at Standard Chartered Although banking is a traditionally male-dominated industry, Standard Chartered realized the importance of gender diversity. It developed several initiatives for women employees to realize this mission. In order to address the strategic pillar of “women in the workplace,” three critical efforts were prioritized: Inclusion Efforts Targeted at Women. The Bank has facilitated the

development of formal employee networks for women. Networks can be particularly effective by providing employees with a source of social support, contacts, information, and guidance. Women’s networks are active in more than 15 markets globally and facilitate leadership development programs, external and internal speakers, and opportunities for women at the Bank to meet and learn from each other. In addition, integrated flexible working arrangements are now available in many markets and on-site child care centers have been set up in key offices in Sri Lanka and India. In 2010, the Bank also launched the Parenting Resource Centre, an online resource targeted at women going on maternity leave, their managers, and fathers and partners.

Leadership Development Programs. In 2008, Standard Chartered piloted a specialized development program for women employees at the middle management level. The Women in Leadership program was developed to provide women employees with further career support through knowledge and skills-based training. After experiencing great success with the pilot, the initiative was brought in-house and expanded into many markets including Europe, the Middle East, Africa, the Americas, and Asia. The two-day programs are supported by the Group D&I Council and the country chief executives; they offer the opportunity to meet senior leaders

6 Global Private Sector Leaders Forum. 7 BITC Diversity, “Standard Chartered: Joanna Fielding” http://www.bitcdiversity.org.uk/awards/awards_2009/2009_case_studies/ champion_awards/joanna_fielding.html

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at the Bank. Following feedback from some markets, a shorter version of the program was also developed for junior managers. Topics covered include specific insights and advice into career management for the women through encouraging improved self-awareness and setting professional goals.8

Mentoring. Many of the women who participate in the Women in Leadership program who show senior management potential choose to participate in a mentoring program. Focused specifically on diversity, this unique program targets high-potential women, helping them to prepare for career advancement across the company’s many global locations.9

2. Women as Customers: Innovative Services for Women Around the Globe Standard Chartered values its women customers and understands the potential that women have to benefit their communities, both through the development of their own businesses, no matter how small, and through skilled management of their personal finances and savings. The Bank also recognizes that women in certain regions of the globe have unique needs and constraints that it must address in order to best serve them. In light of these factors, Standard Chartered has implemented several programs for the benefit of its women customers, including: Microfinance. In 2006, Standard Chartered committed to providing USD

$500 million in loans to microfinance institutions (MFIs) by 2011 through the Clinton Global Initiative. Today, it supports 47 MFIs with a portfolio of USD $220 million with the majority of the Bank’s microfinance portfolio in Africa and Asia, reflecting the high demand in those regions; 80 percent of the ultimate recipients of the microfinance loans are women.10

Women-only banks. Women in certain regions of the globe are historically underserved by banks and other financial institutions. Looking to break into those markets, and recognizing the unique needs of its women customers, Standard Chartered developed a number of tailored services and products designed around regional needs. In areas of the Middle East and Asia, for example, women may not feel comfortable interacting with tellers who are men. To increase their comfort levels and business with the Bank, Standard Chartered established private banking centers for women in South Korea, and all-women branches in India and Sri Lanka, where all employees are only women.11

Diva and Beyond. Standard Chartered’s Consumer Banking division offers special “lifestyle benefits” to women in many countries in Africa and South Asia through a Diva accounts and the Diva Club, established in 2006. For example, in Kenya, women customers can participate in a “Diva Chamma Account,” which serves as an investment group through which women can pool funds to open accounts. This form of savings club had been occurring informally among women in many countries across the region. Standard Chartered responded to that demand by providing a formal, secure, channel to coordinate such efforts. The Diva Club also facilitates

8 Standard Chartered (2009); Standard Chartered, Sustainability Review 2009: Women in Leadership programme http://www.standardchartered.com/sustainability-review-09/en/leading_way_in_communities/our_stories/women_leadership_programme.html 9 Standard Chartered (2009); BITC Diversity. 10 Global Private Sector Leaders Forum. 11 Global Private Sector Leaders Forum.

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networking among women clients.12 The Bank also offers business installment loans specifically designed for women in Bangladesh, India, and Malaysia. The product in India features special pricing and requires no guarantee from a spouse or parent and no collateral, which were found to be the biggest barriers to finance.

3. Women in the Community Recognizing the multiplier effect and the broad benefits of advancing women’s interests in the communities that it serves, Standard Chartered has established a number of programs for women globally that encourage them to realize their potential as active contributors to the global economy. Programs include: Financial training. Tailored trainings for women in financial literacy have

become an increasingly high priority in Standard Chartered’s gender equity work. In 2008, the Bank committed to the Clinton Global Initiative in Asia to mobilize its resources to increase women’s knowledge of basic financial information, including financial planning, investing, and capacity-building for small and medium enterprises. These efforts benefit local women and Standard Chartered by building the financial acumen of women while creating new business potential.13 By the end of 2011 the Bank had reached and exceeded its target with programs in 11 markets across Asia. The Women in Business Resource Centre, an online resource targeted to women entrepreneurs, has had visitors from more than 80 countries.

Girls’ education and empowerment. Standard Chartered established Goal, a program to help increase girls’ knowledge and self-confidence in India, in 2006. Goal now works with underprivileged 14-19-year-old girls in China, India, Jordan, Nigeria, and Zambia. Through a combination approach of life-skills education and sports activities, the program seeks to empower young women. Goal’s curriculum touches a wide range of practical topics, including communication skills, health and hygiene, and financial literacy. The latter is provided in accordance with the Bank’s belief that greater financial literacy among girls today will lead to positive and far-reaching outcomes for economic development in the future. 14

Success Factors & Lessons Learned Talent Management: Initially, Standard Chartered’s focus on attracting the best talent and building an employee base that reflects the communities it serves drove the Bank’s gender diversity strategy, leading to roughly equal representation of women and men employed at the Bank. Moving its efforts forward with a more focused set of initiatives for women, the company has set out to increase the percentage of women in senior management. Its leadership development programs, mentoring opportunities, and emphasis on scaling up flexible work arrangements, including part-time, flex-time, and work-from-home opportunities across many geographies, from the United States and United Kingdom to Ghana and Singapore, all contribute to accomplishing this goal, and have achieved significant results.15

12 Global Private Sector Leaders Forum. 13 Global Private Sector Leaders Forum. 14 Global Private Sector Leaders Forum. 15 Global Private Sector Leaders Forum; Standard Chartered. Sustainability Review 2007: Developing Our Talent. http://www.standardchartered.com/sustainability-review-07/

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Another key to Standard Chartered’s success can be attributed to its willingness to rethink its previous talent management strategies. At the onset of the Bank’s new initiatives for advancing women, management realized that in order to be identified as “high potential,” geographic mobility was expected. Recognizing that many women, as well as men, cannot or do not want to be placed internationally, Standard Chartered removed this requirement. Subsequently, many more women have been recognized as high potential, and now have access to increased development opportunities and targeted career workshops.16 Business Case and Employee Engagement: Standard Chartered has designed its community engagement activities as an integral part of the company’s values and work. Senior leadership commitment to women’s empowerment is a key part of this process. For example, the Group Diversity and Inclusion Council is led by Jaspal Bindra, Group Executive Director and CEO Asia and the Group CEO is highly committed to women’s empowerment and works to ensure that diversity and inclusion are an integral part of the company at all levels; aligning program goals with overall business goals and core employee skills is one way to ensure this objective can be achieved. Standard Chartered conducted a formal review of its community programs to ensure they were sustainable and, ultimately, made a positive economic contribution to communities where the Bank operated. The review showed that the Bank could have a stronger impact by more transparently aligning community efforts with key business. For example, by empowering women today through financial literacy training, Standard Chartered believes it is enabling long-term development that will help its communities, its employees, and its business. To keep staff engaged, it also provides an annual volunteer leave entitlement in which employees are encouraged to volunteer with a “diversity lens” with Goal or other local community initiatives that are committed to diversity and inclusion. This encourages staff buy-in by engaging them directly in the projects.17 Impact In its seven years of focused efforts for women around the globe, Standard Chartered has seen great successes both in the communities it serves and within its own walls. These achievements, both measurable and anecdotal, are a testament to the organization’s commitment to this work, and will also shape the company’s next steps. Currently, 22 percent of senior managers and one-third of people managers are women. Additionally, several of Standard Chartered’s market country offices, including Thailand, Brunei, Lebanon, Nigeria, Zambia, and Peru are headed by women CEOs.

en/sustainability/great_place.html 16 Global Private Sector Leaders Forum. 17 Global Private Sector Leaders Forum.

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Having women role models at all levels has helped the Bank recruit new talent. A campaign in India focused on recruiting and advancing diverse top talent led to a job applicant pool that was 70 percent women. The development opportunities offered to high-potential employees also contribute to higher engagement and retention.18 Standard Chartered’s external programs have also demonstrated a number of measurable impacts. Since 2005, Standard Chartered’s microfinance program has provided USD $850 million in microfinance loans as of 2011, benefiting 5.6 million people, many of whom are women. Aiming to close the knowledge gap among its women customers and responding to the success of the program’s launch—notably due to the freedom and flexibility it provides to women entrepreneurs in the region—Diva Club has expanded into other locations, and now includes operations in Botswana, Ghana, Tanzania, Uganda, and Zambia, in addition to the pilot location of Kenya. Beyond Africa, the Diva Account has also launched in markets in the Middle East and South Asia. Goal has helped increase the self-confidence and education of the young women involved by reaching 430 girls directly, as well as 21,500 family and community members, through the program’s outreach component. In addition, 18,865 girls have been engaged through the Goal programme and 250 girls have been trained as Goal champions, and will use their newly acquired skills and knowledge to train others.19 Standard Chartered’s collective gender equity efforts have earned it a leading position in the Banking Alliance for Women, a consortium of 29 financial institutions from across the globe with leading initiatives that focus on wealth creation for women and leverage women as a market for profit as well as social good. Membership in this community is a testament to its success in improving business through helping women. Standard Chartered hosted the Alliance’s annual summit in Singapore in October 2009.20 Conclusion Through its three-pronged approach targeting women as customers, women in the community, and women as employees, Standard Chartered has dedicated itself to becoming a leader in gender diversity and women’s empowerment. Leveraging a mix of programs aimed internally at identifying and advancing its top women talent and those aimed externally at empowering women and expanding their business capabilities, the Bank has achieved great success in its pursuit of that goal, and has reached thousands of women clients, community members, and staff across the globe.

18 Global Private Sector Leaders Forum; Standard Chartered (2007). 19 Global Private Sector Leaders Forum. 20 Global Private Sector Leaders Forum.