In recent years, there has been a notable surge in discussions surrounding gender diversity in corporate leadership across various industries worldwide. As we talk more vigorously about equality and equity, it is imperative to reflect on the strides made in advancing women representation on corporate boards, particularly within India Inc., while also acknowledging the challenges that persist in achieving true parity.
According to a recent report by Deloitte Global Boardroom Program titled Women in the boardroom: A global perspective, there has been a gradual but significant increase in the number of leadership roles of women in boardrooms within India Inc. over the past five years. In 2023, women held approximately 18.3% of board seats, reflecting a positive upward trend from 13.8% in 2018 and 17.1% in 2021. While this progress is commendable, it falls short of the global average of 23.3%, indicating the need for accelerated efforts to bridge the gender gap in corporate boardrooms.
Despite the upward trajectory, achieving gender parity on boards remains a formidable challenge, particularly in light of the prevailing disparity between male and female representation. The report highlights the imperative for India Inc. to adopt a paradigm shift in its approach towards boardroom diversity. It emphasizes the importance of prioritizing capabilities over traditional roles and underscores the need for nurturing a robust pipeline of talented women leaders.
Revaluating a few things
One of the key barriers to gender diversity in corporate leadership is the prevailing preference among companies to recruit board members with CEO or CFO experience. This trend poses a significant challenge to pipeline development, hindering the progress towards achieving gender parity and thus more women in boardrooms. To address this, there is a pressing need for organizations to reevaluate their recruitment criteria and prioritize inclusivity and diversity in board appointments.
While the increase in the number of women in boardrooms is a positive development, it is essential to delve deeper into the quality of representation and the extent of women’s influence in corporate decision-making processes. The report introduces the concept of the “stretch factor,” a research tool that measures the average number of board seats held by an individual.
How has India fared?
In India, the stretch factor among women increased marginally to 1.32 in 2023, indicating a slight improvement in their representation. However, compared to men, whose stretch factor remained unchanged at 1.20, women continue to face challenges in accessing leadership positions and holding multiple board seats. This underscores the urgent need for concerted efforts to expand the pool of women leaders with diverse skill sets and experiences.
Despite the progress made in increasing women representation on corporate boards, there are persistent challenges that warrant attention. Notably, there has been a decline in the number of women chairing boards in India, with only 4.1% of women holding chair positions in 2023, down from 4.5% in 2018.
However, there has been a positive trend in the number of women assuming CEO roles, with 5.1% of CEOs being female in 2023, compared to 3.4% in 2018. These figures highlight the importance of nurturing women’s leadership talent and creating opportunities for them to ascend to top executive positions within organizations.
What is doing well?
In terms of sectoral trends, the report identifies the life sciences & healthcare sector as leading the way in gender diversity, with 21.3% of women serving on company boards. This is followed closely by the technology, media, and telecommunications sector, where women comprise 20.5% of board members.
Other sectors such as consumer business, manufacturing, and financial services have also witnessed an increase in women representation on boards, albeit at varying rates. These sectoral insights underscore the importance of sector-specific interventions to promote gender diversity and inclusivity in corporate leadership.
In conclusion, while there has been progress in increasing women’s representation on corporate boards within India Inc., there is still much work to be done to achieve true gender parity.
By challenging traditional norms, fostering inclusive cultures, and investing in the development of women leaders, organizations with the help of development organisations like ours, Smile Foundation, can create a more equitable and diverse corporate landscape that benefits businesses, employees, and society as a whole. Let us reaffirm our commitment to advancing gender equality and creating a future where women have an equal voice and opportunity in shaping the corporate world and beyond.
