2014: A year of change for women in business?

December 31, 2013 On 10 December 2013, as the year was drawing to a close, something unprecedented happened at Henry Fords venerable eneral !otors " !#$ !ary %arra too& the wheel, as '(O, to become the most power)ul woman in the *+ car industry$ %arra is one o) a )ast growing cadre o) top )emale managers at !, a -uarter o) its )actory management are )emale$ .he cutting/edge technology electric vehicle program is driven by a woman$ %arra has been described as 0a coach, and thats the sort o) management style this company needs says David 'ole o) the 'entre )or 1utomotive 2esearch$ +he ta&es over )rom Dan 1&erson, a )ormer military man, who leaves on a high note$ His new 'hevrolet 3mpala has been cited as 0the best saloon ever tested by the maga4ine 'onsumer 2eports$ 5ill 2016 be di))erent7 Does this )oretell that 2016 will be di))erent in the long battle to get women into positions o) authority in top corporate entities7 1 recent survey )ound that the proportion o) women reaching top management in the 'ity o) 8ondon has doubled in 2012$ 129 o) all managing directors are now women$ .his is an increase )rom :9 a year ago$ 1lso 1;9 o) directors and vice presidents are )emale, up )rom 169 one year ago$ 5omen now account )or 209 o) all pro)essional level employees in the 8ondons %usiness District, &nown as the 0'ity$ 3n 2011 it was 129$ 5omen also represent :09 o) human resource pro)essional in the 'ity and 609 on internal auditors$ %ut there is a

dearth o) women in certain sectors < only 1;9 in corporate stoc& bro&ing, and 2=9 in private e-uity$ 5omen running F.+( 100 companies include !oya reene o) 2oyal !ail, 'arolyn !c'all o) easy>et, 1ngela 1hrendts o) %urberry, and 1lison 'ooper o) 3mperial .obacco$ 8iv ar)ield will ta&e over +evern .rent soon$ .he research company which conducted the survey stated that a higher proportion o) women were brea&ing through the so/called 0glass ceiling, up the corporate ladder$ .his showed that aggressive gender diversity programs are having an e))ect on womens progress to the upper echelons o) business$ 3) one considers the proportion o) women on 8ondon F.+( 100 boards, the latest data shows that women ma&e up 1;9 o) F.+( 100 directors$ 3n !ay 2013 it was 1?$69, three years ago it was only 12$=9$ 3ncreasing pressure on corporates .here has been increasing pressure on corporates to have more )emale representation on their boards$ .he (uropean *nion has proposed that a 609 -uota be imposed on )emale representation on boards o) large companies$ However some countries pre)er a voluntary target to be set, which the business community should set out to achieve on their own$ %ritain has set a voluntary -uota o) 2=9 to be achieved by 201=$ %ritain opposed the (uropean move )or -uotas$ %ritain claimed that at least 10 other (uropean nations supported them on this$ %ritains position is that when countries are ta&ing voluntary steps o) their own to improve womens representation on corporate boards, an imposition o) a -uota by (uropean authorities was unwarranted$ On the other hand, @orway, which has had a -uota re-uirement since 2002, today has more than 609 o) women on their corporate boards$ 3n +ri 8an&a analysts point out that o) 2= top corporate entities in the country which have a total o) 1;A directors, only 10 are women$ 3n the generality o) case, the )ew women who were on such boards are there due to being relatives o) the owner$ .he law does not re-uire gender representation on corporate boards$ 5omens activists say that a woman has to be twice as good as a man to achieve parity in the corporate world$ ermany is poised to )orce listed companies to )ill 309 o) non eBecutive board seats with )emale candidates )rom 201:$ 'ompanies will also be obliged )rom 201= to set and publish individual binding targets to increase )emale

representation in top management$ 2oyal !ails !oya reene has saidC D3) you want -uotas, 3 am open to leading that discussion$ .here is something about the *E < )or all its egalitarianism, women are not represented as they should be in society or companies$F 'urrently in ermany, women )ill Gust 1?$69 on corporate supervisory boards o) the top 1:0 listed companies and only :$19 o) the management board members are )emale$ >oe Eaeser, the 'hie) (Becutive o) +iemens, the electronic giant, has said that it was up to individual companies to promote diversity and Di) companies cannot achieve greater )emale representation, in the long term, then 3 could imagine the state stepping inF$ 3n the recent past, as part o) an agreement to )orm a coalition )ederal government in ermany, the two maGor parties agreed that by 201:, it would be re-uired that at least 309 o) non eBecutive board members o) companies should be women$ .he real dilemma 1nalysts point out that the real dilemma is how to promote women through the ran&s o) business, when the pressure o) balancing wor& schedules with )amily responsibilities are )actored in$ +tatistically women tend to drop out o) the corporate rat race a)ter seven to 12 years o) wor& at the eBecutive level$ .he reason is almost always the lac& o) a))ordable care or children andHor aged parents$ Iuotas and targets cannot address issues li&e these$ .here must be care homes )or elders or visits by caregivers to elders living at home, and crJches and child support centres to loo& a)ter preschool children while parents are at wor&$ 5hile companies can assist in some o) these matters, by providing in/house childcare and crJches, etc$, it is governments, both national, to create the policy )ramewor& and local, to provide the re-uisite services, that must be activated$ On the other hand, what corporates can do is to ta&e steps to ma&e the eBpectations o) both themselves and their )emale employees more realistic, given the environment$ %etter management training and more )leBibility about where, how and when, employees with children andHor ageing parents, both mothers and )athers, wor& would be a good place to start$ @orways generous parental leave provisions, )leBi hours and mandated crJches at wor& places are eBamples o) steps which have made some impact on women wor&ing in the corporate sector$ ender should not be the only target, achieving diversity on the board to re)lect the

diversity o) the community the corporate entity operates in will create a much better wor&ing environment )or all concerned$ 3denti)ying at an early stage o) the career those with potential to do well at the board level and providing )or a promotion scheme which will incentivise them continuing to wor&, even when )amily responsibilities intrude on wor&ing li)e, will help$ Helping them to cope with these issues through the provision o) services and )acilities will be a great advantage$ .he reason is not simple that boards with diversity or even more women directors guarantee better per)ormance < there is un)ortunately no hard evidence yet to prove this < but it is simply because any corporate entity that does not have human resource systems in place that gives it access to the whole 3:0 degree talent pool available in the mar&et, including male, )emale and di))erently/abled, etc$, will never be able to reach its )ull potential in competition with its peers$ .he lac& o) diversity on the board will always be a limiting )actor )or access to mar&ets, technology, design and all other aspects o) business$ 1 )eminised recovery 1 recent story in a newspaper that the economic recovery in the *nited +tates was )ast becoming a man/less recovery, in that the main victims o) the recession o) 200?/ 200A were men, the men were disproportionately represented in the types o) businesses which were hit hardest by the recession < such as )inancial services, manu)acturing and construction$ .he recovery, i) the halting pace at which the *+ economy is moving, can be truth)ully, called that at all, is disproportionately )avouring women, it is in )act a )eminised recovery$ 3n 1ugust 200;, male unemployment in the *+ stood at 119 while it was A$39 )or women$ 8arry +ummers, the economist who was Kresident o) Harvard *niversity and one/time Kresident Obamas top economic advisor, recently considered )or but not appointed as *+1s +ecretaryH.reasury, has gone on record saying, D5hen the economy recovers, )ive years )rom now, one in siB men who are 2= to =6 will not be wor&ing$F .his )eminisation o) the wor& )orce is one o) stunning proportions )or an industrialised nation$ +ri 8an&a 3n more traditional primary industry/oriented economies or trans)ormational ones, li&e +ri 8an&a, womens role in the economy has always been underestimated and underemphasised$ 3n traditional agriculture and )isheries, women play a critical role$ 3n rice and related crops, transplanting, harvesting and processing have always been traditionally womens roles, be)ore mechanisation$ 3n traditional )ishery, value addition, processing

and mar&eting were to a great eBtent, )emale responsibilities$ 5ith the dawn o) plantation agriculture, tea pluc&ing, rubber tapping and coconut processing were all eBclusively womens roles$ .oday, in +ri 8an&a, with labour shortages and optional employment opportunities, mechanisation is increasingly being resorted, with the )act that garment )actories, )oreign Gobs as housemaids, government service and the armed )orces are increasingly drawing the )emale wor& )orce$ 3n +ri 8an&a a high proportion o) the bottom o) the pyramid in government service, cler&s, primary and secondary teachers, etc$, are women$ Kolicyma&ers are increasingly becoming aware that the human resource policy )ramewor& essentially must provide )or the )ull participation o) the both the brains and the brawn o) the nations women i) economic development is to be achieved and economic rewards distributed in an e-uitable manner$ 3mportance o) women 1nother )actor which re)lects the importance o) women in the economy is a study done by the House o) 'ommons 8ibrary in %ritain )or the Fawcett +ociety, on the gender impact o) the deep cuts in eBpenditure and increases in taBation announced by the 'hancellor o) the (Bche-uer, in order to bring %ritains humongous budget de)icit under control, )ound that ?29 o) the re)orms will ta&e money away )rom women, while only 2A9 will do so )rom men$ Others argue that as in the *+, women in %ritain came through the recession better o)) than men, 2H3 o) those made unemployed by the crisis have been men$ 3n politics, women seem to be doing well in emerging economies$ O) the 3: lower houses o) parliament that women have reached the threshold level o) 309, which has shown to be the level at which women can in)luence policy ma&ing e))ectively, 11 are 1)rican$ 3n %ritain women ma&e up 239 o) the House o) 'ommons, while in the *+ they constitute 1A9 o) 'ongress$ 3n +outh 1)rica women hold 629 o) Karliamentary seats$ +ome o) countries have -uotas, in +outh 1)rica the 1@' has a voluntarily imposed -uota o) 309$ 3n 2wanda women hold a record o) :69 seats$ %ut in %otswana it is only A9 and @igeria ?9$ 3n 8atin 1merica %ra4il, 1rgentina and 'hile already have or will have in the near )uture )emale presidents$ .he eBplosion o) micro )inance as a development tool, and the ?09 gender bias it has shown, worldwide, including +outh 1sia, is a))ecting the -uality o) li)e indicators positively, as studies have conclusively shown that women reinvest ;09 o) their income into community and )amily, housing, childrens health, education and nutrition, compared to 609 by men, although alcohol and gambling have made some inroads into womens groups in some communities, it is not yet endemic$

.his is happening in developing and emerging economies, notwithstanding inade-uate support )or women in their essential role o) child bearing, childcare and nurture$ .here are hardly support systems, outside the immediate )amily circle, eBisting to assist a housemaid who has to leave her young growing up and vulnerable children and travel to 5est 1sia to earn money as a housemaid, or travel a hundred &ilometres to a garment )actory in another part o) the country$ (ven those women who wor& near their homes, day care )or children or elderly relatives is not available, outside the ubi-uitous, unregulated preschools which provide a dubious level o) service, in most cases$ .he below replacement level birth rate which has prevailed here )or over the last two or three decades is really hitting home$ 1cademic phenomenon *niversal access to education in +ri 8an&a has also made women academically on par i) not superior to men and in the wor& )orce, in o))ices and )actories, women have important )unctions and hold responsible posts$ .his is a worldwide phenomenon$ 3n %ra4il, the *nited 1rab (mirates and 2ussia, the vast maGority o) college graduates are )emale$ 1merican women are already the breadwinners or )inancially on par with their husbands in two/thirds o) all households$ 3n the (uropean community, women )illed two/thirds o) eight million new Gobs created since 2000$ 1merican women are the decision ma&ers in A39 o) all purchases by consumers, A;9 o) all ban& accounts in the *+ are held by women, =19 o) the personnel wealth is held by women and 1merican women control over *+L = trillion in consumer spending$ 3n >apan, the maGority o) currency traders are women$ .he number o) )emale managers in +ingapore has tripled$ One in )ive management Gobs in Hong Eong are held by women$ +outh Eorea, .aiwan and !alaysia have reached their economic prowess by legions o) their women wor&ing in repetitive, dead/end, poorly paid "by First 5orld standards# )actory Gobs in electronics, teBtiles and ma&ing toys$ .he same revolution is being repeated in %angladesh and 'hina$ .he in)ormation and communication technology revolution in %angalooru, Hyderabad and 'hennai is again driven by women computer programmers and call centre operators, to a large eBtent$ .his has been a revolution based on economic necessity, not a revolution brought about by con)rontation, marches and mani)estos$ @ow, only when the one child policy in 'hina hits home, through a shortage o) those o) wor&ing age, we )ind stri&es )or higher pay and per&s in Honda, .oyota and +amsung )actories o) multinational corporations$ Future belongs to women

+o, one thing is clear, the )uture is )eminised and it is already here, it is destined to belong to women$ 1cross the board, women have and are destined to play an e-ual i) not dominant role in society generally and in the economy speci)ically, in the )uture$ 2egarding the presence and e))ect o) women on corporate boards, a recent study by the 5ellesley 'entre )or 5omen )ound that three was the magic number when it came to impact o) women on corporate decision ma&ing, a)ter that tipping point is reached, the board as a whole begins to )unction di))erently$ .he policy )ramewor& to ma&e this happen painlessly, providing )or )acilitation o) a womens essential role o) nurturing the neBt generation, their right to employment and to bring a reality to chec& into mens responsibilities in this area, such as parenting leave in the +candinavian countries, etc$, has to be urgently provided$ 3n this area, the world, generally, and developing and emerging economies in particular, are sorely lac&ing$ .he man/less, )eminised economic recovery in the worlds largest economy may be a wa&eup call to the worlds policyma&ers$ Forward march 5ith populations ageing and the wor& )orce reducing in numbers it is essential that all available man and women power is utilised )or the )orward march o) a nation$ +ystems must be put in place so that gender is no longer a limitation )or participation actively in the wor& )orce$ Karticipation in the in)ormal wor& )orce, in which women in developing countries play a big role, must be )ormalised, recognised in the mainstream and regulated$ .he responsibilities o) women in child care and the care )or the elderly must be shared by the community$ 'rJche services should be provided$ Katernal leave should be legalised$ .he rigidity o) labour laws should be relaBed to allow women to Goin and, leave and reGoin the )ormal wor& )orce, when )amily re-uirements, demand that they spend time as home ma&ers$ .hese are things which are very di))icult to practically implement$ %ut when less and less people o) wor&ing age have to support an older and ageing population, these are imperative steps$ .he @ordic countries have viable models, which they have achieved at an economic cost$ %ut the direction in which worldwide population trends are moving show that they have ta&en, sensible and pioneering steps$.a&e the eBample o) +ri 8an&a$ 3n 2012 :?9 o) the population is at wor&ing age$ .hose o) a wor&ing age will remain larger than the population o) children and elderly dependent persons until around 2020, on present proGections$ .he percentage o) elderly people is eBpected to reach 1:$?9 in 2021$ %y 2061 one in every )our persons in +ri 8an&a will be an elderly person$

3n this conteBt, steps have to be ta&en )or the )ull participation o) people o) wor&ing age in the economy$ (ducation policy, labour policy, technology all must be aligned to achieve this goal$ 3t is simply not a))ordable to have large segments o) the population, when it is ageing rapidly, which can be productive, unable to contribute to the economy$ .he age o) retirement must be reconsidered$ 5ith li)e eBpectancy increasing, people must be legally permitted to wor& until they are older$ However, special provisions will have to be made to provide the space )or this$ 1s Helena !orrissey o) @ewton 3nvestment !anagement saysC D!en and women are di))erent < e-ually intelligent, but we behave di))erently motivated by di))erent things$F 1t the tail/end o) 2013, !ary %arra success)ully smashed through one glass ceiling at !, how many others will )ollow in 20167 ".he writer is a lawyer, who has over 30 years o) eBperience as a '(O in both +tate and private sectors$ He retired )rom the o))ice o) +ecretary, !inistry o) Finance and currently is the !anaging Director o) the +ri 8an&a %usiness Development 'entre$#