Case Studies
The Business Case for Gender: Serving Women's Needs as well as Company's Business InterestsThe Belmont family has been in the cosmetics business for many decades and generations, working mainly in distribution in Peru. While studying in the United States, the direct sales distribution model used by Avon caught the attention of Eduardo Belmont, Belcorp's President and CEO. After returning to Peru, he decided to implement it in his own country. The business thrived and Eduardo saw a real opportunity when he realized the impact it had on the lives of its beauty consultants. When Belcorp first started expanding its operations in the 1980s, women were mostly drawn to the business because of the nature of the industry. While interest from qualified men has increased today, the company has maintained women as its backbone and actively recruits female talent for its workforce. Women comprise 80% of Belcorp's workforce and 77% of its senior staff. Belcorp's business model has evolved amidst growing change in the social and economic fabric of Latin American countries. While women in the region have experienced numerous positive changes, they still carry large burdens, as reflected in the high incidence of domestic violence and relatively higher illiteracy and school drop-out rates among females in many countries. An estimated 17 percent of households in all of Latin America and the Caribbean are led by women, according to the United Nations Food and Agriculture Organization. In Peru and Colombia, the number of female headed households has risen to over 30% since 2005. Many women have entered the workforce by necessity to support their family's income, and women now make up 40% of the economically active population in urban areas in the region. Yet, despite their growing participation in the working arena, women continue to be the main caregivers. "In part, due to these simultaneous responsibilities, women in most Latin American countries work fewer hours per week than men. And they are more likely to have part-time jobs and trade income and work conditions for time flexibility," Claudia explains. This is why Belcorp's flexible work model has worked for so many. Through the company's policies, beauty consultants are also encouraged to save money and grow their business. All purchases and payments for product sales at Belcorp are managed through bank transactions. Bringing women into banking is a critical first step to giving them tools for saving, investing, and accessing credit. Belcorp translates Eduardo's long-standing involvement in education into supporting women within the corporation to pursue advanced degrees. Claudia highlights the importance of this support, noting that "when Belcorp started many years ago, very few women in Peru pursued a master's degree." Belcorp is determined to help change that. Currently, qualifications for corporate managers and directors include a master's degree. The company has sent some of its most promising women to pursue MBAs in the United States and supported many others in getting degrees from local universities. |
Belcorp realized early on that promoting the empowerment of women in Latin America was a sound business strategy. Virtually all of Belcorp's 650,000 beauty consultants are women, and the majority of them are from low income households. The company provides them with an income earning opportunity, and much more. To effect sustainable change, Belcorp has developed a three-pronged approach to empowering women in its sales force, offering them financial, social, and emotional support. As a direct sales company, it gives beauty consultants the chance to earn income with flexibility. To help women achieve independence and confidence and ensure that any change in their lives is sustainable, Belcorp also incorporates networking and personal development support into its core operations. By empowering women, Belcorp provides them with the necessary tools to improve their life conditions, and the self-confidence to trust in their ability to create a better future for their families and communities. The company is aware of research demonstrating that empowered women are more likely to have healthier and more educated children. And it has seen firsthand how an increase in women's household income can contribute to the economy and influence others to generate positive change in society. Claudia Belmont, President of the Belcorp Foundation and head of its Women's Economic Empowerment Initiative, explains the company's rationale, "When we help women, we change society at large since women often play a bigger role in raising children and a have broader participation in society." 
Many of Belcorp's beauty consultants are single mothers from low income households. Through campaigns, held every three weeks, they meet with their managers to discuss business and sales strategies, as well as topics in education and health. These are also opportunities for networking and creating social bonds between consultants, where the women can share experiences and learn from each other. Belcorp recently added a tier of leaders, who work closely with 30 beauty consultants at a time, to allow for more connectivity. Leaders are often selected from among beauty consultants, and the company believes that the personal mentorship that leaders provide to the consultants through frequent home visits and guidance is critical to empowering them and equipping them to make the most out of their earned incomes.
