IMF boss: it should be politically incorrect for firms not to have senior women

The head of the International Monetary Fund has said it should be “politically incorrect” for companies not to have a woman in a senior position.

Christine Lagarde said even companies with “no moral compass” should recognise they can boost their profits through promoting women to senior and boardroom positions.

“We need to make it politically incorrect not to have women on boards, not to have women CEOs, not to have women in the boardroom,” she said.

In a speech in London, Lagarde said tackling gender inequality would boost economic growth in developing nations, as she urged businesses worldwide to appoint more women to senior posts.

Lagarde said increasing the proportion of women in prominent business and finance industry jobs could raise economic dynamism and shift firms into thinking about the long-term future of the planet.

Warning that greater effort was required to meet the sustainable development goals (SDGs) set by the United Nations, which includes ending all forms of gender discrimination, Lagarde used a speech in London to say: “By bringing more women into the fold, the economy can benefit from their talents, skills, unique perspectives and ideas. This diversity should boost productivity and lead to higher wages for all.”

In a stark example of the challenge to meet the SDG on gender equality, set by the UN in 2015 to achieve by the end of the next decade, Lagarde said about 90% of countries around the world had some legal restriction on women’s economic activity.

“The sad reality is that girls and women all over the world continue to face the daily indignities of discrimination, harassment, and too often violence as well,” she said.

Lowering gender gaps in health and education, supporting financial inclusion, investing in infrastructure and ensuring better access to clean water and sanitation for women would, however, help create a “virtuous cycle” for the world economy. “Invest in the SDGs and boost women’s empowerment, which in turn lays the groundwork for broader SDG success,” she said.

Outlining the importance for developing nations, she said reducing gender inequality by 10 percentage points in sub-Saharan African countries could boost growth by two percentage points over five years.

Alongside eradicating gender discrimination against women and girls everywhere, the goals for global development set by the UN include reducing the proportion of people living in poverty by at least half, improving access to education, tackling climate change and ending world hunger by 2030.