According to a Deloitte report, women held 29% of board seats globally. Europe made significant strides in gender diversity on boards, with countries like Norway, Finland and Sweden implementing quotas or legislative measures to boost female representation. According to Catalyst, women hold 34.7% of board seats in the European Union.
In the Asia-Pacific region, women account for 16.8% of board seats. In India, women occupied 17.1% of board seats in Nifty-500 companies as of 2020, according to the Institutional Investor Advisory Services (IiAS).
Women’s representation on corporate boards in India tripled from 2013 to 18% in 2022, an EY report indicated. India introduced mandatory female directorship quotas in 2013, requiring certain classes of companies to have at least one woman on their boards.
This move was aimed at galvanizing and fast-tracking the presence of women in corporate leadership roles. While there has been progress in increasing female representation on boards, it has been relatively slow. Even now, around 300 of Nifty-500 companies have only one woman director.
All the talk about gender diversity, hyped by media, statements of corporate chieftains, and intent expressed by our leaders in the legislature are just good for the optics and are contrary to the ground situation faced by women. Conscious and unconscious bias galore.
Simply having women on boards is not enough; their presence must be made meaningful and impactful. Women board members can foster diverse perspectives, drive inclusive decision-making, and bring positive change within organizations.
Promoting inclusive governance practices is essential to ensure all voices are heard and valued in the boardroom. Women can advocate for policies and processes that drive inclusivity, such as ensuring diverse candidate slates for board positions, promoting open dialogue and respectful debate, and seeking input from all board members.
Women can create a more collaborative and effective decision-making environment by championing inclusive governance. Even if there’s only one woman in the boardroom, she can make a difference.
One of the most significant contributions women board members can make is bringing a different perspective to the table. Women approach problems and opportunities from diverse angles, drawing on their unique experiences, backgrounds, and insights. They can challenge conventional wisdom, stimulate innovative thinking, and uncover new solutions to complex issues.
Many women leaders bring a strong sense of social responsibility and sustainability to board discussions bringing in long-term sustainability and positive societal impact.
Women in board positions can serve as role models and mentors for the next generation of leaders. They can share their experiences, offer guidance, and provide support to aspiring professionals so that they can cultivate a diverse pipeline of talent within the enterprise.
They can use their influence to actively sponsor and advocate for the advancement of women into leadership positions. Leena Nair as Unilever’s chief human resources officer did precisely that and reportedly achieved gender parity at senior roles globally there. And look where it has taken her: she is now the CEO of Chanel.
The effectiveness of stakeholder engagement is critical for building trust, managing risk, and driving sustained value creation. Women board members can play a crucial role in ensuring that the interests of all stakeholders, including employees, customers, investors, and the community, are considered in board deliberations.
How women can own the boardroom:
Invest in ongoing learning and development opportunities to enhance skills, knowledge, and effectiveness in the boardroom. Participate in board governance programmes, seek mentorship from experienced directors, and stay informed about emerging trends and best practices in the industry.
Build strong relationships with fellow board members, executives, and stakeholders to maximize influence and drive positive change.
Voice opinions, ask questions, and challenge assumptions. Start leading by example and demonstrate the qualities of effective leadership.
As the corporate world evolves, women on boards are not just fulfilling a quota; they are key to fostering inclusivity, innovation, and ethical governance. Their voices must be heard to shape the future of corporate leadership.
(M. Muneer is a Fortune-500 advisor, startup investor and co-founder of the non-profit Medici Institute for Innovation. Chavi Hemanth is director of Asia Pacific Flight Training Academy. Views are personal.)
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