Gender-based violence (GBV) has become a defining corporate risk, demanding strategic financial leadership. CFOs are now central to reframing GBV as a material risk, a governance priority and a fiduciary obligation. Their role extends far beyond compliance, shaping how organisations quantify, manage and mitigate both the human and economic costs of GBV, writes Dumisani Dlamini, CFO at the Soul City Institute for Social Justice.
From a CFO’s perspective, GBV is a material, non-financial risk with direct implications for a company’s financial performance and long-term sustainability. It is not a peripheral HR concern. It affects operational stability, brand reputation, compliance exposure and workforce capability.
As an operational risk, GBV contributes to disruptions, absenteeism and diminished productivity. Reputationally, unresolved GBV issues can lead to public backlash, damaged brand equity and consumer loss. Legally, companies face lawsuits, fines and compliance failures. The human capital impact is equally severe, influencing morale, attrition and talent pipeline strength.
Placing GBV prevention and response within the ESG framework is fundamental. It sits squarely under the “social” pillar and requires explicit oversight from the board. Robust governance demands that GBV risk is planned for, funded, monitored and reported at the highest levels.
The CFO also carries a fiduciary responsibility to shield the organisation from material risks. Ignoring GBV threatens workforce stability, supply chain continuity and the organisation’s social licence to operate. This places GBV firmly within the CFO’s mandate.
Elevating the conversation
Boards often underestimate the financial and reputational magnitude of GBV, viewing it abstractly or relegating it to HR. CFOs must elevate this conversation by grounding it in measurable business risk.
One approach is quantifying the economic cost of GBV. Presenting data on absenteeism, turnover, healthcare claims and lost productivity converts the issue into clear financial exposure. Benchmarking reputational risks through case studies of industry peers who faced crises due to harassment or toxic culture can further contextualise potential market value erosion.
Integrating GBV into the enterprise risk management (ERM) register ensures structured oversight. Once embedded, it becomes a regular agenda item within the board risk committee, aligned with key financial and operational risks.
CFOs should also highlight how proactive GBV management improves a company’s ESG ratings – a growing factor for institutional investors evaluating long-term sustainability.
The CFO’s role must shift from compliance custodian to strategic value architect. Traditional approaches focus on minimal compliance with labour laws. The modern CFO treats GBV prevention programmes, such as training, support services and policy enhancements, as strategic investments with long-term returns.
Financial insights give CFOs leverage to influence policy design and ensure that survivor-centric support systems are properly funded. This includes mental health resources, paid leave, enhanced security and clear reporting mechanisms.
CFOs also play a role in enforcing accountability. Embedding GBV-related culture and safety metrics into executive compensation frameworks ties leadership incentives to creating safer, more inclusive work environments.
The hidden economic costs of GBV
GBV-related costs are often dispersed across departments and therefore go unnoticed. CFOs are uniquely positioned to consolidate this data and present the true financial exposure.
- Productivity loss: Presenteeism, where employees are physically present but struggling emotionally, reduces output quality. Absenteeism brings direct costs such as sick leave, temporary hires and overtime payments.
- Talent and turnover: Replacing an employee who leaves due to GBV-related stress or unsafe culture carries significant costs, from recruitment to onboarding to productivity loss during ramp-up.
- Healthcare and insurance: GBV frequently drives higher claims for mental health treatment, stress-related illnesses and greater use of employee assistance programmes.
- Legal and compliance costs: Investigations, legal defence, settlements and non-compliance penalties can accumulate rapidly.
- Security: Some cases require physical protection, digital safeguards, or process modifications to ensure employee safety.
- Reputational loss: Negative sentiment can cause lost contracts and declining consumer trust. In publicly traded companies, scandals can directly affect share price and market value.
By quantifying these categories, CFOs can demonstrate that proactive GBV management is not a cost centre, but a form of risk mitigation that protects revenue, productivity and enterprise stability.
Embedding GBV into enterprise risk management
GBV must be monitored with the same discipline applied to financial, cybersecurity, or operational risks. This begins with categorising GBV risks within the ERM framework, such as workplace harassment, domestic violence spillover, and harmful labour practices within the supply chain.
CFOs can introduce key risk indicators (KRIs) that provide measurable oversight. Examples include the percentage of employees completing mandatory GBV training, response times for GBV-related complaints and utilisation rates of trauma-related EAP services. These indicators provide the board and executive committee with tangible metrics that reflect cultural health and early warning signs of risk escalation.
