SEPTEMBER 2011 64879 ABOUT THE AUTHOR Employing Women: LARRY JIANG is a Senior Environmental A Boon for a Chemical Plant in India Specialist and has worked in IFC since 2004. Meghmani Organics Limited (MOL) is a chemical group located in the state of Gujarat in India. Its main products are specialty chemicals, including pigments, APPROVING MANAGERS Patricia Miller, Manager of IFC’s pesticides, and other intermediates. Prior to IFC’s investment, MOL had four Environmental, Social and manufacturing facilities in Gujarat, India, with about 2,000 employees. In Governance (CES) unit, and William Bulmer, Director of IFC’s 2008, IFC invested in MOL to build Meghmani FineChem Limited (MFL), a Environmental, Social and Governance (CES) unit greenfield chlor-alkali plant, in Dahej, a port city in Gujarat. This SmartLesson provides a snapshot of the changes that took place in MFL following IFC’s recommendation for the company to employ women. Background The city of Dahej is a barren coastal area, • Employing women reflects on where local living standards are significantly management thinking, demonstrating lower than other parts of Gujarat. that it is open to adopting modern Opportunities are limited, especially for methods of running a business. women, who have little chance for employment other than occasional odd jobs • Women perform as well as, if not better, at construction sites. than men in many industries. During the initial appraisal, IFC observed that • Some positions in the laboratory, MOL had no female employees at any of its warehouses or cafeteria, can be filled by four existing chemical plants. This is a common women and still adhere to the traditional scenario in India. Women are not hired in norms. chemical plants due to traditional culture and local legal restriction. People assume that • Extending economic benefits to women chemical plant jobs entail hard physical labor also benefits the community, which in and are dangerous, though modern chemical turn improves the local relationship with plants need little physical labor and are safer the company. compared with many other industries due to technology advances. In addition, local legislation forbids women to work after 7 PM. Making the Business Case for Hiring Women The IFC investment team proposed that MOL should start hiring female employees at the new MFL plant. The IFC team made the following arguments, emphasizing the business case for hiring women: • Hiring women greatly increases the talent pool among job applicants, leading to a stronger workforce. SMARTLESSONS — SEPTEMBER 2011 1 In addition, the principle of gender equality is a part of the Indian constitution: in other words hiring women supports national policy. Barriers The MOL management initially had its reservations regarding hiring women. They cited cultural and legal barriers as well as the fact that hiring women would require new facilities and policies. Based on previous IFC investments in other chemical plants in India, the investment team proposed the concept of developing a female-employee friendly chemical plant, and asked the MOL management to consider the concept while designing the plant and setting up operational procedures. The female-employee friendly chemical plant would During a supervisory visit in 2010, the IFC environmental/ include, but not be limited to: social specialist interviewed female employees and their managers to assess the results of the new policy. The results • The design and construction of female restrooms at were encouraging: each workplace • The female employees appreciated the female- • The design and construction of separate female locker employee friendly working environment at MFL that rooms and shower facilities allowed them to work. • The development of a company policy and procedure • With stable and higher incomes, they also felt safe and to encourage hiring of female employees respected at home and in their villages. • The establishment of a flexible work schedule for • Managers also expressed their support for MFL’s female employees to meet local legal requirements decision to hire female employees because the female employees work harder and follow the operational What happened? and safety rules better, which are critical for chemical plants. IFC made a $125 million investment in MFL. The MOL management accepted IFC’s recommendations regarding • Managers also agreed that female employees are as hiring women, and implemented all the suggestions during talented as male employees which contradicts the the plant’s design and construction, operational policy/ traditional concept that females are not qualified for procedure drafting, hiring and operations. By 2010, the heavy industries. MFL plant was in full production. According to the Human Resource (HR) manager, MFL had approximately 630 Management was significantly interested in increasing the employees and direct contractors by June 2011, out of roles and responsibilities of women at the plant, and in which 45 were female employees. They work in positions hiring more women in the future. They also proposed to that do not require night shift duty, including research and introduce more training programs for female employees to development, office management, technical and allow them to take on more challenging technical positions. operational service departments, and in the canteen. Based on the successful MFL plant experience, MOL is considering implementing similar female-employee friendly programs at other chemical manufacturing facilities within the group. Lessons Learned 1) Make the business case for hiring women. While IFC must adhere to the World Bank Group social policies, it is better to lay out the business case for hiring women. When we first suggested hiring women to MOL management, their initial reaction was negative. They said that women would not fit into their company or the industry. Furthermore, they said that women would not be interested in applying for positions because of cultural issues and the legislation which prohibits women from working 2 SMARTLESSONS — SEPTEMBER 2011 after 7:00 PM. In response, we pointed out that 4) Encourage women to apply for posi- women in India work very hard in other tions. industries, and that MOL had the potential to double its applicant pool and therefore get In a very traditional culture, the females may good value for money. We also identified not be brave enough to apply for jobs. The positions - in the laboratory, warehouse and the client can reach out to the communities canteen as well as janitorial positions - which through public consultations, at which they would be consistent with Indian culture and can encourage women to apply for jobs and would not require work after hours. We also explain that their facility is designed to pointed out that IFC had faced similar situations accommodate women. MOL took advantage in the mining sector in Peru where women had of this communications opportunity and turned out to be excellent employees. Finally, spread word through their community we emphasized that by being the first company officer. As a result, enough women applied to in the chemical industry which hired women, fill approximately 50 positions out of 630. the company would get a lot of attention and This represents a significant step for women be perceived as having very modern in the chemicals industry. management. MOL found the business case convincing and worked actively with IFC for the 5) Encourage clients to build strong promotion of female employment. relations with the community through hiring women. 2) Advise clients in designing women- friendly infrastructure. Reaching out to local communities and demonstrating that IFC and its clients Many clients complain that females do not like welcome women employees will help attract to apply for their position openings. However, a better workforce. In this case, we explained one reason is that some basic plant settings may that hiring women would improve MOL’s discourage female applicants. Some basic plant relationship with the community, which is design modification—such as female restrooms important for the firm’s long-term success. at each workplace and separate female locker Working at MOL’s facility greatly improved rooms and shower facilities— as well as the status and income of women employees, commuting options are factors that encourage generating good will towards the company. females to apply for the openings. Because this was a greenfield project, we were able to Conclusion convince management to include women’s facilities at the design phase. Not only did this Gender equality is a challenge in most parts of open the doors for women employees, but also the world, including many developed made it possible for women clients, suppliers, countries. In many places, including India, the female IFC staff, and other women visitors enjoy first step is to actually agree to hire women. their visit to the plant. This can be difficult if local traditions discourage companies from hiring women or women are 3) Assist clients in designing women- not encouraged to apply for positions. friendly policies. By sharing its knowledge and experience, IFC Clients unfamiliar with the needs of female can make this transition easier. It can provide employees may not have the knowledge illustrative examples to support the business necessary to design appropriate policies for case for hiring women, which could have an DISCLAIMER women, such as dealing with pregnant or economic benefit to the firm. This can help SmartLessons is an awards nursing employees. Occupational Health and reluctant firms take the step of hiring women program to share lessons learned Safety (OHS) issues are different for men and even before the idea of social responsibility in development-oriented advisory women employees. These are new challenges has been accepted. services and investment operations. The findings, for the MOL’s HR and Environmental, Health interpretations, and conclusions and Safety (EHS) Departments. IFC worked When one firm hires women, it sends a signal expressed in this paper are those together with MOL’s management team and that it is innovative. It also demonstrates that of the author(s) and do not HR department to identify policy relevant women add tremendous value and should be necessarily reflect the views of IFC issues on hiring women and advised HR and a part of the workforce. IFC continues to or its partner organizations, the Executive Directors of The World EHS departments to learn from other industries work with MOL to hire additional female Bank or the governments they (such as the IT sector). As a result, MOL was employees, especially as first and second-shift represent. IFC does not assume able to develop women-friendly policies that female operators, which are higher paid any responsibility for the made it possible for women to work at their positions than supporting departments. completeness or accuracy of the information contained in this facility. In the future, IFC’s Gender Unit can document. Please see the terms also provide useful support to clients in dealing and conditions at www.ifc.org/ with these issues. smartlessons or contact the program at smartlessons@ifc.org. SMARTLESSONS — SEPTEMBER 2011 3