Developing countries need to pay particular attention to select labour-intensive and export oriented sectors where women often make a strong workforce, it said.
"Investment by multinationals has been instrumental in creating job opportunities for women, particularly in labour- intensive, largely export-orientated industries.
"But the report also identifies a number of risks, such as poor working conditions and limited access to training for women, especially when the jobs created are confined to low- paid activities or occur in the informal sector," it said.
"Governments need a specific strategy for women's empowerment that complements efforts to achieve economic and social development. Governments should also consider how foreign investment can support women's equality, not undermine it," it suggested.
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The report has also suggested a set of guidelines on gender equality that should be included in the business model of MNCs.
The suggestions include promoting women's empowerment, respecting equal rights and developing gender-sensitive divestment models.
There is also a need for targeted policies and corporate action to ensure that the activities of MNCs translate into real benefits for women in developing countries, it said.