Advancing Gender Diversity through Effective Anti-Harassment Mechanisms CASE STUDY HBL Banking and Financial Services, Pakistan ABOUT IFC advice or services to, or otherwise have a financial interest in, certain of the companies and parties (including named herein). IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development All other queries on rights and licenses, including subsidiary institution focused on the private sector in emerging markets. rights, should be addressed to IFC Communications, 2121 We work with more than 2,000 businesses worldwide, using Pennsylvania Avenue, N.W., Washington, D.C. 20433. our capital, expertise, and influence to create markets and International Finance Corporation is an international opportunities in the toughest areas of the world. 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ACKNOWLEDGMENTS Washington, D.C. 20433 These five case studies were produced by the International Internet: www.ifc.org Finance Corporation’s (IFC) Gender Secretariat in partnership The material in this work is copyrighted. Copying and/or with The Pakistan Business Council (PBC). They were developed transmitting portions or all of this work without permission under the overall guidance of Henriette Kolb, Global Manager, may be a violation of applicable law. IFC encourages IFC Gender Secretariat, and Fuad Hashimi, Executive Director, dissemination of its work and will normally grant permission PBC’s Centre of Excellence in Responsible Business (CERB). to reproduce portions of the work promptly, and when the The core working group of this initiative comprised Rudaba reproduction is for educational and non-commercial purposes, Zehra Nasir, Sammar Essmat, and Yasmin Galal from IFC and without a fee, subject to such attributions and notices as we Nazish Shekha and Sara Laiq from CERB. Moreover, the case may reasonably require. studies are part of IFC's MAS Women's Employment Program and would not have been possible without the guidance and IFC does not guarantee the accuracy, reliability, or support of many IFC colleagues, including Zunee Muhtashim, completeness of the content included in this work, or for the Farzin Mirmotahari, and Sanola Daley. conclusions or judgments described herein, and accepts no responsibility or liability for any omissions or errors (including, The data collection for these case studies was completed in without limitation, typographical errors and technical errors) in collaboration with an external consultant team led by Farhad the content whatsoever or for reliance thereon. The boundaries, Karamally with Naureen Ansari, Waqas Hussain, and Yumna colors, denominations, and other information shown on any Usmani at Funverks. map in this work do not imply any judgment on the part of the The case studies were completed with the active collaboration World Bank Group concerning the legal status of any territory of 5 PBC member companies and our principal counterparts or the endorsement or acceptance of such boundaries. The there: Artistic Milliners Limited (Murtaza Ahmed and Faiza findings, interpretations, and conclusions expressed in this Jamil), HBL (Jamal Nasir, Katherina Zubin Irani, Saira Halai volume do not necessarily reflect the views of the Executive Chundrigar, and Sanam Hasnani), Interloop Limited (Faryal Directors of the World Bank Group or the governments they Sadiq and Aqeel Ahmad), Packages Limited (Jawad Gilani, Zoya represent. Zaidi, and Fatima Qadir), and National Foods Limited (Abrar The contents of this work are intended for general Hasan, Saira A. Khan, and Sana Abbas). informational purposes only and are not intended to constitute Appreciations are also extended to the design and printing team legal, securities, or investment advice, an opinion regarding the at Groff Creative, including Jay and Lauren Groff, who, along appropriateness of any investment, or a solicitation of any type. with Fatima Fasih from PBC and Bhattiprolu B. Murti from IFC, IFC or its affiliates may have an investment in, provide other were critical in producing this report. IN COLLABORATION WITH 2 FOREWORD BY IFC Pakistan’s economy is presently growing at just under 6 percent annually. The country’s GDP could grow by 30 percent if women and men participated equally in the workforce. Women’s education levels in Pakistan have increased over time. Yet, only a quarter of women are working compared to over 80 percent of men. The gap is staggering and closing it represents a huge economic opportunity for Pakistan. In addition to Pakistan’s economy, closing gender gaps is also good for Pakistan’s businesses. The competitiveness and growth of Pakistan’s firms could be significantly enhanced if firms could bring into their company diverse skills and talents, which are urgently needed to be more productive and innovative. Despite competition over attracting and retaining skilled employees, few companies have widened their search for talent and skills by tapping into Pakistan’s vastly underutilized female talent pool. A 2017 study by The Pakistan Business Council’s (PBC) Centre of Excellence in Responsible Business (CERB) found that women represent less than 20 percent of the workforce of 90 percent of the surveyed PBC member firms. Although this is higher than the national average of less than 10 percent women in the formal, private sector workforce, in most cases, women continue to be underrepresented in formal employment and earn less than men for equivalent work. Pakistan’s private sector has a critical role to play in ensuring that women have access to more and better jobs. A growing number of forward-looking Pakistani companies are now starting to see the business case for gender diversity, even in sectors considered non-traditional for women. To expand this awareness and turn it into action, IFC partnered with PBC to bring to Pakistan IFC‘s global research and advisory expertise on the business case and good practices for advancing women’s employment. These case studies are part of a series of initiatives that IFC and PBC have jointly led over the past year to mobilize more companies in Pakistan to increase gender diversity in their workforce. The aim of the case studies is to provide guidance to Pakistani firms on successful approaches for recruiting, retaining, and promoting more women and achieving better business outcomes. The case studies feature five PBC member companies that are promoting greater inclusion of women in their workforce in five thematic areas: Artistic Milliners Limited for the Women in Business Leadership theme, HBL for the Anti-Sexual Harassment theme, Interloop Limited for the Women in Non-Traditional Roles theme, National Foods Limited for the Family-Friendly Policies theme, and Packages Limited for the Equal Opportunity Recruitment Practices theme. HBL and Packages are IFC investment clients and Artistic Milliners and Interloop are IFC advisory clients. Our aim is that these case studies will reach many businesses in Pakistan and help them better understand the business case for women’s employment, get insights into the approaches that work, and learn from each other’s experiences while replicating solutions. On behalf of IFC, I would like to thank the companies that participated in this project and generously shared their data and good practices, and PBC for their commitment to this important agenda. IFC is committed to working with the private sector in Pakistan to create equal employment opportunities, decent working conditions, and lucrative career paths for women, and we will continue to do more. Nadeem A. Siddiqui Senior Country Manager for Pakistan International Finance Corporation, World Bank Group 3 FOREWORD BY THE PAKISTAN BUSINESS COUNCIL The Pakistan Business Council (PBC) is a business advocacy forum composed of the largest businesses including multinationals that have significant investment in and a long-term commitment to Pakistan. Members’ turnover represents 11% of Pakistan’s GDP and they contribute 25% of the taxes and exports. Our key advocacy thrust is on easing barriers for Pakistani businesses in the wake of progressive regional and global free trade, as well as improving national investment flows to match target GDP growth rates. PBC works closely with the relevant government departments, ministries, regulators and institutions, as well as other stakeholders including professional bodies, to develop consensus on major issues which impact the conduct of business in and from Pakistan. It has submitted key position papers and recommendations to the government on legislation and other government policies affecting businesses. PBC also serves on various taskforces and committees of the Government of Pakistan as well as those of the State Bank of Pakistan, the Securities & Exchange Commission of Pakistan, and other regulators with the objective to provide policy assistance on new initiatives and reforms. The Centre of Excellence in Responsible Business (CERB) is the first of PBC’s outreach initiatives to build capacity and capability of businesses in Pakistan. CERB’s vision is to assist Pakistani businesses to pursue long term sustainability and value creation, and its mission is to contribute towards inclusive social development. As part of its strategic objectives, CERB engages with businesses and industry leaders to provide a clear direction towards conducting responsible business in Pakistan. It leverages private sector growth as a means for development and poverty reduction taking guidance from the United Nations Sustainable Development Goals framework. CERB’s aim is to identify and impart good practices from within the PBC member companies and work towards changing the mind-set of the many businesses that are not members of PBC but contribute equally to Pakistan’s economy. In the context of gender equality, PBC is privileged to have partnered with the International Finance Corporation over the past year and, as part of our collaborative efforts to enhance women’s employment in Pakistan, we have together worked on five case studies where opportunities among domestically-owned companies to do so have been highlighted. On behalf of PBC, I would like to thank our member companies for allowing our respective teams to carry out in-depth analyses of their good practices in this area and sharing with us their data that may be published. Ehsan Malik CEO The Pakistan Business Council 4 HBL Banking and Financial Services, Pakistan Case Study: Advancing Gender Diversity through Effective Anti-Harassment Mechanisms1 HBL’s Employee Profile (2018): WOMEN, WORK, AND SAFETY IN PAKISTAN • Total number of employees: 17,083 • Percentage of women in total work- In Pakistan, although women’s education levels have increased considerably force: 16% over time, only a quarter of women are working, compared to around 82 • Ratio of women to men on board: 1:7 percent of men.2 A significant barrier to female labor force participation is Percentage of women in the lack of safety, particularly women’s and their families’ perceptions about managerial positions: workplace safety.3 Unsafe workplaces, and related negative perceptions of • All managers: 11% safety, can be the result of disrespectful behavior, bullying, and harassment, • Senior managers: 9% • Middle managers: 10% including sexual harassment, which can make the workplace unpleasant, • Junior managers: 18% humiliating, intimidating, and inconducive to collaboration. This can have a negative impact on staff morale and it may contribute to low staff productivity Share of women by functions: and high employee turnover, ultimately hampering a company’s organizational • Global Operations: 65% • Support Functions: 18% and business performance. It can also affect a company’s broader reputation • Branch Banking: 17% as an employer. Negative perceptions of workplace safety can deter women from applying to or staying employed in a company if there is a high risk of HBL’s Gender Diversity Target by 2020: being exposed to harassment. • 20% Pakistan’s Legal Precedent HBL’s efforts to create a safe workplace Anti-sexual harassment has been addressed by Pakistan’s Protection against • Strongly worded policy statement Harassment of Women in the Workplace Act 2010.4 The Act requires all • Well-established complaints proce- organizations, public and private, to adopt an internal code of conduct aimed at dure establishing a safe working environment, free of abuse for all working women. • Clearly defined consequences and remediation The code defines sexual harassment and identifies how individuals are supposed • Training and awareness raising 1 Methodology: Information presented in this case study is based on HR data gathered Main business impact of a safe and analyzed between October to November 2018 with HBL’s HR team as well as a workplace focus group discussion with 5 employees and 3 one-on-one interviews with various female and male employees. This research was conducted by IFC Gender Secretariat in • Steady increase in the share of wom- collaboration with PBC. en from 12.6% in 2015 to 15% in 2017. 2 World Bank Group. 2018. Data Bank. Available at https://data.worldbank.org/indicator/ In 2004, at the time of privatization, SL.TLF.CACT.FE.ZS. HBL’s female population was 3% 3 World Bank Group. 2018. Pakistan Jobs Diagnostic. 4 Government of Pakistan. 2010. Protection against Harassment of Women in the Workplace Act, 2010. Available at http://www.na.gov.pk/uploads/ documents/1399368475_218.pdf. 5 to behave in an organization. In addition, all organizations are developed countries depends on getting and keeping more required to set up a three-member inquiry committee to deal women in the workforce.6 with cases of harassment within a 30-day timeframe. One A growing number of companies in the banking and financial committee member has to be a female employee. There is also sector around the world now realize that there is a compelling a legal requirement that the code of conduct and the names business case for a gender-inclusive workforce. These of committee members must be displayed in a prominent companies are increasingly prioritizing diversity and inclusion place and in a language which all employees can understand. in their recruitment and retention strategies to meet skill While the law is very comprehensive and presents a robust shortages at all levels of the organization, from entry-level to methodology of how to report and handle workplace sexual the board. harassment, effective implementation requires mechanisms to propel the policy into action. One way in which banks and financial institutions are advancing gender diversity is by making workplaces, Why is the Banking and Finance Sector including branches and interactions with customers, safe for Focusing on Women? women. In this sector, operations are organized at several Globally, research shows that a steadily increasing shortage levels from centralized head offices to bank branches over of talent and skills has become an important discussion point a large geographical spread. Successful banks and financial in the banking and finance sector. The 2018 CEO Survey by institutions ensure that their anti-harassment policies and PwC finds that 70 percent of CEOs in financial services around supporting mechanism are tailored to their context and even the world identify the limited availability of skills as a threat address harassment which might be faced by and from clients to growth.5 A study by Mercer suggests that the shortfall can and third-party contractors. Innovative solutions consider only be met by tapping into the pool of female talent and that outreach to a geographically and sometimes culturally diverse the continued growth of firms in both the developing and workforce and ensure that the complaints procedure is accessible and accountable at all levels of the organization and in all settings.7 HBL: COMPANY OVERVIEW HBL was established in 1941 and moved its operations to Pakistan in 1947, becoming the first commercial bank in the country. Over the years, HBL has grown and maintained its position as the largest private sector bank in Pakistan, employing 17,083 employees throughout its network, with a global presence in 16 countries and more than USD 18 billion in deposits. HBL recognizes that to maintain its position as a market leader, it will need to continue prioritizing gender diversity and nurturing 5 PwC. 2018. CEO Survey. Available at https://www.pwc.com/gx/en/ceo-agenda/ceosurvey/2018/gx.html. 6 Mercer. 2014. When Women Thrive, Businesses Thrive. Available at https://www.mercer.com/content/dam/mmc-web/Files/Gender-Diversity-When-women-thrive-businesses-thrive-Mercer.pdf. 7 Catalyst. 2018. Sexual Harassment. Available at https://www.catalyst.org/knowledge/sexual-harassment-workplace-report. 6 perceptions of safety across its over 1,750 branches, even in the country’s remotest areas. HBL’S BUSINESS CONTEXT FOR CREATING SAFE WORKPLACES In Pakistan, only 3 percent of women have a bank account. This is an untapped market opportunity and large customer base for the banking sector.8 To reach this underserved female customer segment, HBL has developed HBL Nisa, a banking product which specifically targets women. When • Reducing gender bias through dedicated training HBL set out to promote HBL Nisa to female customers, it and awareness raising. HBL also realized that it faced a major challenge. HBL’s female staff were in a better needed to sensitize employees and help them address position to engage with and understand the needs of female potential conscious or unconscious gender biases that customers yet there were far less female staff than there were they may hold so that they can better connect with male staff at HBL. female customers as well as existing and incoming female employees. HBL realized that reaching under-banked female customers was a compelling business opportunity. But doing so required • Introducing the Women@HBL platform for HBL to set goals and increase workforce gender diversity.9 women to interact cross-functionally and with Pillars of HBL’s gender diversity strategy include: their HR Relationship Managers. It also highlights inspiring women at HBL and provides them a platform • Increasing the share of women in HBL’s to make their stories heard. workforce. HBL set a goal to increase the share of women in the workforce from 15 percent in 2017 to 20 • Creating the Diversity Council with a dedicated percent by 2020. focus on HBL’s gender diversity strategy. The council has representation from top management • Introducing company polices that reduce who aim to integrate gender diversity into the entry barriers for women and create a safe and business strategy and goals and communicate those respectful work environment. Amongst several throughout the bank. HR policies that were introduced, an anti-harassment policy was identified by the bank as a priority. 8 IFC. 2017. Gender Intelligence for Banks— Moving the Needle on Gender Equality. Available at https://www.ifc.org/wps/wcm/connect/31b2d0e6-5908-4449-b2d6-9dcd66416bba/HBL+Gender+Intelligence+Report_final.pdf?MOD=AJPERES. 9 Ibid. 7 HBL’S EFFORTS TO CREATE A SAFE WORKPLACE “You want a safe and secure place In Pakistan, the Protection Against Harassment of Women where you are respected and your in the Workplace Act 2010 provides companies with strong guidance on the basic requirements of an anti-harassment focus is on doing the best work company policy. International good practices, as outlined in you can do, you are able to do, and IFC’s 2016 SheWorks report, point to effective mechanisms not on trying to protect yourself. that need to be put in place by companies to operationalize The Anti-Harassment Policy gives the policy. HBL’s Anti-Harassment Policy covers staff at all levels of the organization, including in bank branches as well you that peace of mind.” as individual and external service providers affiliated with the Female Manager, HBL bank. The key elements of HBL’s policy and implementation mechanisms are aligned with international good practice. 1. Strongly worded policy statement: HBL’s Anti- Harassment Policy, which was introduced in 2010, 2. Well-established complaints procedure: Employees covers and defines both harassment and sexual have various avenues of reporting harassment, both harassment. It also provides the parameters which as victims or witnesses. ‘Speak Up’ is an email address need to be considered for triggering disciplinary action. managed by the bank’s Human Resource Department. The policy has been integrated with the Employee Any complaints received are passed on for further Code of Ethics and Business Conduct and the staff action to the Disciplinary Action department or the rules. To ensure transparency and easy access, the Anti Harassment Inquiry Committee depending on policy is available on the company’s intranet for all the type of complaint. The Inquiry Committee and the internal stakeholders. An abridged version of the team involved in handling harassment cases have been policy is available on the bank’s website for external trained in relevant procedures. stakeholders. In addition, the bank’s HR helpline, which is generally used to report on day to day HR issues, can be used for receiving guidance on addressing harassment-related issues or to submit complaints. Another channel is the HR Relationship Manager, with whom staff can discuss an incident or complaint. Finally, as per the bank’s Whistle Blowing Policy, employees have the option to report incidents anonymously to the bank’s Compliance Department, which are then routed to HR. 3. Clearly defined consequences and remediation: HBL has a zero-tolerance policy in relation to harassment and have identified avenues of strict disciplinary action in line with the HBL Staff Rules. Such disciplinary action comprises a broad range of options, including termination of the harasser. 8 Employees who witness harassment are encouraged of women in the workplace and as customers, to to report the incident or case and are rewarded if the communicate HBL women’s market value proposition, case is proven. and to encourage front-line staff to cater to the women’s segment. Since January 2016, more than 4. Training and awareness raising: Employees receive 5,000 employees have been trained. information about HBL’s Anti-Harassment Policy at their orientation at HBL. They are also required to complete the bank’s mandatory e-learning module on BUSINESS IMPACTS OF CREATING anti-harassment. The bank’s anti-harassment training A SAFE WORKPLACE is developed by HBL’s Learning and Development Recruitment and Retention team. So far, over 13,000 employees have completed the e-learning. Through discussions with staff, HBL has learned that its Anti- Harassment Policy contributes to its overall gender diversity In addition to introducing and strengthening its Anti- goal and targets by enhancing perceptions of safety and Harassment Policy, HBL also introduced a Gender security. It gives female (and male) employees the peace of Intelligence Training Program, for all employees. mind that they need to be productive and present at work. Developed jointly by HBL and IFC, the mandatory HBL Gender Intelligence Training Program was launched as As a result of this and a range of other efforts, HBL has been a tool to eliminate gender imbalances by promoting successfully recruiting more women into new roles within the gender awareness and encouraging behavioral bank. This has led to a steady increase in the share of women change. Training sought to help employees understand from 12.6 percent in 2015 to 15 percent in 2017. the business case for increasing the percentage 9 Reputation HBL collaborated with the NGOs AASHA and Mehergarh for “Not only is HBL committed to the implementation of and compliance with the country’s women as clients, but also to Protection Against Harassment of Women at Workplace women as employees. In recent Act 2010. HBL is also registered on AASHA’s website as an years, HBL has increased the organization that is committed to improving the working environment. HBL has also been marked as a “Gender Friendly share of women employees in Organization” on the Sexual Harassment Watch forum.11 the organization and is stepping up efforts to address gender WHAT’S NEXT FOR HBL? biases influencing behavior in the HBL recognizes that ensuring the effectiveness of its Anti- workplace.” Harassment Policy requires continuous and sustained effort as well as ongoing training, awareness-raising, monitoring, and Source: IFC. 2017. Gender Intelligence for Banks — evaluation to make the policy better. Moving forward, HBL has Moving the Needle on Gender Equality. prioritized the following actions to further improve its anti- harassment mechanisms. 1. Train all branch managers and staff across over 1,750 branches on anti-harassment. HBL has set several Increase in Female Customer Base targets for diversity and inclusion. In accordance with A review of HBL’s Gender Intelligence Training Program its targets, HBL has an active management strategy conducted jointly by IFC and HBL revealed that the training focused on training and awareness of the mechanisms has led to a measurable increase in awareness of gender diversity amongst trained staff. This has translated into improved perception of equal workplace performance capacity between women and men and enhanced women’s confidence to apply for the next grade position. Moreover, as a result of the gender ‘intelligence’ of trained branch managers and employees, the number of women-owned deposit accounts increased by 6.7 percent, while the volume of deposits from women-owned accounts increased by 10 percent.10 10 IFC. 2017. Gender Intelligence for Banks— Moving the Needle on Gender Equality. Available at https://www.ifc.org/wps/wcm/connect/31b2d0e6-5908-4449-b2d6-9dcd66416bba/HBL+Gender+Intelligence+Report_final.pdf?MOD=AJPERES. 11 Sexual Harassment Watch. 2018. Available at http://www.sexualharassmentwatch.org. 10 in place to discourage harassment. While ensuring a bank-wide safe and secure environment will continue to be challenging due to its diverse locations, HBL has “It effects your efficiency; if that a strategy in place to ensure the same culture exists kind of a situation happens in your across all its offices and branches. department then it becomes very 2. Shorten HBL’s e-learning module on anti-harassment difficult to focus on your work to allow staff to complete this training in a fast-paced and be productive. Managers work environment. have an important role to play 3. Enable and support more employees to report in recognizing, preventing, and harassment and other issues using technology (emails, intranet, and other options), especially employees who addressing harassment of all are not comfortable with technology. HBL aims to kinds.” continue expanding its outreach through training and Male Manager, HBL awareness. 4. Develop a Gender Diversity Policy that supports and enhances HBL’s Anti-Harassment Policy and allows the bank to sharpen its focus on increasing the share of women in the bank’s workforce. 11 Contact Information IFC 2121 Pennsylvania Avenue, NW Washington, DC 20433 USA +1 (202) 458-2262 BMurti@ifc.org www.IFC.org/gender @WBG_Gender ifc.org December 2018