{"id":448,"date":"2018-09-06T10:07:39","date_gmt":"2018-09-06T10:07:39","guid":{"rendered":"http:\/\/horizon.peachpuff-wolverine-566518.hostingersite.com\/?p=448"},"modified":"2018-09-06T10:07:39","modified_gmt":"2018-09-06T10:07:39","slug":"quotas-get-more-women-on-boards-and-stir-change-from-within","status":"publish","type":"post","link":"https:\/\/scienceblog.com\/horizon\/448\/quotas-get-more-women-on-boards-and-stir-change-from-within\/","title":{"rendered":"Quotas get more women on boards and stir change from within"},"content":{"rendered":"
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Mandated quotas are raising the number of women appointed to top company posts in Europe and sparking a cultural push for gender equality, but entrenched networks are getting in the way of achieving true boardroom diversity, according to researchers.<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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In recent years, a number of\u00a0European countries<\/a>\u00a0have tried to tackle the underrepresentation of women on boards by introducing gender quotas of between 30% and 40%, with differing reach and levels of enforcement.<\/p>\n

\u2018There are definitely more women on boards in countries that introduced legislation,\u2019 said\u00a0Dr Anja Kirsch, a professor at the School of Business and Economics at Freie Universit\u00e4t Berlin, Germany.<\/p>\n

Norway was the first\u00a0country to mandate a quota, passing a law 10 years ago, and firms risk dissolution if they don\u2019t comply with the 40% target. Belgium, Italy and France have legislative quotas with penalties, including fines.\u00a0Germany\u00a0introduced a 30% quota without sanctions in 2015, while in the Netherlands companies must \u2018comply or explain\u2019 if they don\u2019t hit the 30% target.<\/p>\n

The\u00a0European Commission\u00a0has even proposed\u00a0EU-wide legislation<\/a>\u00a0mandating that the\u00a0under-represented sex<\/a>\u00a0make up 40% of companies\u2019 non-executive directors (the\u00a0average is 26%<\/a>\u00a0in the EU), which won\u2019t pass unless Member States reach an agreement.<\/p>\n

Getting more women into the top business ranks has increasingly become a topical issue in public and academic debate, says Dr Kirsch. For the past five years, she has been looking in detail at women\u2019s access to boards in Germany, Europe\u2019s largest economy where about half the workforce is female, as part of a project called BoardEquality.<\/p>\n

480 women<\/strong><\/p>\n

Germany\u2019s requirement since 2016 of 30% female-held board seats applies only to the\u00a0supervisory board of publicly listed companies, the outside directors of the country\u2019s two-tier system who appoint top management board members. What this means is that the quota only affects a small number of companies, about 100, and some 480 women, says Dr Kirsch.<\/p>\n

Even so, it has increased the proportion of female supervisory members, Dr Kirsch points out. In 2015,\u00a0women accounted for 26% of supervisory board directors and in 2018, 33%<\/a>. The proportion of their male counterparts dropped from 73% to 69% in that period.<\/p>\n

She believes that Germany\u2019s quota should be expanded to include more types of companies, but is doubtful it could extend to management boards after the current law faced\u00a0decades of resistance from society<\/a>\u00a0and companies.<\/p>\n

\"The<\/p>\n

The share of women on corporate boards rose since the quotas were implemented in five European countries. Image credit – Horizon<\/p>\n<\/div>\n

German legislation requires that the supervisory boards set targets for female management board directors that are no lower than the status quo within the company. Given that so many management boards are all-male, Dr Kirsch says the target is often zero.<\/p>\n

However, she says that quotas establish responsibility and accountability within an organisation and, for her, the most striking outcome in Germany is that gender inequality within top management is now a live issue for the supervisory board members.<\/p>\n

\u2018The women directors are making it an issue. They\u2019re supporting other women,\u2019 she said. She has now started work on a new project looking at how male colleagues can also support change.<\/p>\n

For Dr Florence Villes\u00e8che, assistant professor at Copenhagen Business School in Denmark, quotas are not only working but, for now, they\u2019re also the only means of achieving diversity. \u2018In the sense that there are more women on boards – it\u2019s not just a promise, a target or an aspiration – it actually happens,\u2019 she said. \u2018Quotas are the only tools that work in terms of sheer numbers.\u2019<\/p>\n

But they are a blunt instrument, according to Dr Villes\u00e8che. \u2018Quotas are good, they\u2019re effective, but they\u2019re not enough \u2013 they are the tip of the iceberg, if you will. There is no automatic trickle-down effect. Policies and laws are, for now, mainly concentrated often on private firms.\u2019<\/p>\n

She says that there tends to be fearmongering that quotas promote women regardless of qualifications and that the discourse around merit \u2013 that people are hired to boards because they\u2019re deserving \u2013 conceals the \u2018invisible male quotas\u2019. Dr Villes\u00e8che argues that quotas challenge such biases.<\/p>\n

\u2018It is not an irrational thing to do, to implement quotas,\u2019 she said. \u2018It just forces firms to rethink their recruitment strategies, to question their bias, to reassess their own networks \u2013 so in which kind of circles do they scout candidates.\u2019<\/p>\n

Networks<\/strong><\/p>\n

Through a study called Womboardnet, which ended in 2017, Dr Villes\u00e8che examined the laws that get women into the boardroom but also the social phenomena \u2013 particularly networking \u2013 that hinders or enables qualified women to rise through the ranks. She analysed data to understand how board diversity has evolved in Switzerland and Denmark.<\/p>\n

Change is still coming much too slowly, but it\u2019s through such data that researchers can show firms there\u2019s work to do, she says.<\/p>\n

She found that accessing top levels is not just a question of gender but also the social connections forged through networking.<\/p>\n

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\u2018Quotas are the only tools that work in terms of sheer numbers.\u2019
\n– Dr Florence\u00a0Villes\u00e8che, Copenhagen Business School, Denmark<\/p>\n<\/blockquote>\n<\/div>\n

Dr Villes\u00e8che draws on the example of how when it comes to recruiting new board members from a few equally strong final candidates, unconscious biases come into play. These can include socially defined ideas about what someone can or can\u2019t do according to gender or demographics, or the homophily principle where we prefer people who are like us.<\/p>\n

According to Dr Villes\u00e8che, such preconceived ideas are linked to networking, which is crucial for visibility and advancing careers.<\/p>\n

Dr Villes\u00e8che found that in Switzerland – now edging closer towards a\u00a0quota law<\/a>\u00a0– where women are\u00a0poorly represented<\/a>\u00a0in top company roles, that nationality and career paths tended to be more influential than gender. She also analysed networks discovering them to be gendered and nationality-orientated despite the country\u2019s growing number of women and foreign directors. \u2018Which means there is a continuous reproduction of the centres of power,\u2019 she said.<\/p>\n

For her, these findings suggest that policies and laws promoting diversity, rather than just focusing on broad stroke categories like gender, should consider the nuanced intersections with other demographic categories, such as nationality, social class and race.<\/p>\n

The research in this article was funded by the EU.<\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n

Originally published at Horizon<\/a>.<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Mandated quotas are raising the number of women appointed to top company posts in Europe and sparking a cultural push for gender equality, but entrenched networks are getting in the way of achieving true boardroom diversity, according to researchers. In recent years, a number of\u00a0European countries\u00a0have tried to tackle the underrepresentation of women on boards … Read more<\/a><\/p>\n","protected":false},"author":298,"featured_media":449,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"generate_page_header":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[118],"tags":[195],"class_list":["post-448","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-sciences","tag-gender"],"yoast_head":"\nQuotas get more women on boards and stir change from within - Horizon Magazine Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceblog.com\/horizon\/448\/quotas-get-more-women-on-boards-and-stir-change-from-within\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Quotas get more women on boards and stir change from within\" \/>\n<meta property=\"og:description\" content=\"Mandated quotas are raising the number of women appointed to top company posts in Europe and sparking a cultural push for gender equality, but entrenched networks are getting in the way of achieving true boardroom diversity, according to researchers. 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