Board diversity and gender equality are among the important topics across the globe. According to Havard Business Review, gender quotes are among the important tools used by policymakers for promoting gender Equality. The 2003 Movement in Norway 40% Quotes for women on the country's corporate board. The European Commission in March 2020 targeted to reach a gender balance of 50% by 2024. California in 2018 became the first U.S. state to mandate gender quotas for publicly traded companies. According to the research, these policies increased diversity but couldn’t benefit the workplace. Firms to comply with the Gender Quotes started to appoint women outside the organization in a rush to fill the position leading to a focus more on quantity over quality women. Thus, it’s motivated to appoint well-qualified women for the productive upliftment of the company.
The public discourse on women's representation on boards has been pessimistic, with women holding only 19% of board positions in the US. However, some progressive companies are making efforts to increase female representation on their boards. The top 60 companies in the S&P 500 have shown an increase in female representation, with women occupying at least 33% of board seats among the top 50 companies. To improve gender diversity on boards, companies are looking for female board members in new places and bringing them on board in new ways, and they are establishing goals and motivations to underpin decision-making. Creating and cultivating an active pipeline of female candidates is crucial for successful board inclusion efforts, and companies are also making the case for gender diversity by emphasizing its benefits.
As per the EY Report, the participation of women has tripled in India in the last 10 years. EY in the report on ‘Diversity in the Boardroom: progress and the way forward’ highlighted the status of representation of Women in the workplace and emphasized the steps taken by the company to increase Gender Diversity. Between 2013- 2022 (6%-18%) India made rapid progress in Gender diversity. The EY report shows that almost 95% of NIFTY 500 companies have a woman on the board of directors, but less than 5% have female chairpersons. Research by the ILO suggests that doubling the percentage of women in the workforce could significantly boost India's GDP and growth rate by 2025. Aashish Kasad, the India Region Diversity & Inclusiveness Business Sponsor at EY India, emphasized the importance of women's participation in corporate boardrooms for achieving gender equality. He stated that increasing the representation of women on boards not only improves company performance but also promotes greater inclusion and diversity in the workforce. The report highlights the need for a joint effort from the government and corporate sector to increase the number of women on corporate boards in India to address the challenges related to gender parity. The Lifesciences sector has the highest percentage of women on boards at 24%, attributed to a sizable number of women promoters. Media and Entertainment also saw an increase from 14% to 23% in women's representation on boards, mainly due to a few organizations hiring more women directors. The Consumer Products and Retail sector registered an increase from 1.29 to 1.79 women on boards. The Technology industry has one of the highest female representations at 34%, with an increase from 1.19 to 1.75 women on boards. However, women's representation in the Energy and Utilities sector remains stagnant at 15%. Pankaj Dhandharia, Partner & Markets Leader, EY India, emphasized the impact of today's unstable business environment on boards, highlighting the importance of diverse boardrooms for decision-making, corporate governance, and long-term goals. While acknowledging progress towards gender parity in Indian boardrooms, he also stressed the need for further action.
In the pursuit of gender equality and increased board diversity, the landscape is evolving, propelled by progressive measures and transformative shifts in corporate mindsets. From the ambitious goals set by the European Commission to California's groundbreaking mandate, the push for equal representation is gaining momentum globally. The case of India, as highlighted by the EY report, demonstrates notable progress, albeit with challenges that demand collaborative efforts from the government and corporate sector. As we navigate this complex terrain, it is imperative to move beyond numerical quotas, emphasizing the recruitment of well-qualified women who contribute meaningfully to the corporate realm. Moreover, fostering a culture of inclusivity, implementing gender-sensitive policies, and learning from landmark legal cases are vital steps in ensuring lasting change. Through these multifaceted approaches, the corporate world can truly embody the principles of gender equality, unlocking the full potential of diverse perspectives for a more prosperous and equitable future.
