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Quotas only way to 'shatter the glass ceiling' for women

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Published 24 September 2012, updated 26 September 2012

Boardroom quotas for women are the only option left to achieve gender balance, according to an equality campaign group. That view is not necessarily shared by lawmakers in the European Parliament, as the EU prepares to legislate on the matter.

The European Commission is preparing a new law to ensure women make up 40% of the boardroom in all EU countries by 2020.

The European Women’s Lobby backed the plans and said all EU member states should follow the example of the six European countries that have already adopted legislation.

“Repeated national, European and international commitments to equality between women and men, including in decision-making, have failed to produce results," a spokeswoman for the group said. "Appeals for self-regulation have failed to produce results. Women cannot be asked to accept this exclusion any longer."

But one academic has warned EU moves to bring in quotas for women in business may not work. University of Aberdeen professor of sociology Claire Wallace said quotas were not the best way to get more women into positions of power.

“Quotas do work and they’re one way of raising women’s representation and do tend to break the mould for future generations. But quotas tend to be unpopular and some people think ‘she’s only got there because she’s a woman’. There are much better ways - having targets rather than quotas is a much better method,” Wallace said.

Wallace added that voluntary targets needed to be monitored and young women should be nurtured early on with mentors.

A UK-led backlash against quotas has split Scottish MEPs, with three in favour and three against. North-east Scottish MEP Struan Stevenson said the EU should not interfere.

“I agree that there are too few women on company boards but compulsory quotas from Brussels will not help. It is up to individual member states to decide how to address this problem. The UK currently has a voluntary approach and it is working,” Stevenson said.

Women represented 13.7% of board positions in large listed companies, according to EU data from January.

Lacking improvement 'shameful'

Scottish MEP Alyn Smith also does not support an EU-wide quota, although he stressed his support for gender equality.

“I’m in favour of all measures to promote equality, of which gender balance is an important part. But I'm against quotas because I think they impose artificial restraints which do more harm than good. There is lots to be done, but I don't see that quotas are the answer.”

Neither does MEP Ian Hudghton.

“I am not a supporter of EU legislation. I think that the member states should decide on such matters, so that any actions which they consider appropriate would be tailored to the situation pertaining in each country,” Hudghton said.

Scottish MEPs George Lyon, David Martin and Catherine Stihler all said they supported the plans.

France, Italy and the Netherlands are among countries that have already adopted national quotas but the UK has not.

However, three Scotting MEPs would support laws being put in place, including George Lyon. “Softer measures are not working, it is time that we put in place plans that will make a real difference in having greater equality at the top levels of business,” he said.

MEPs David Martin and MEP Catherine Stihler also support the legislative plan.

Positions: 

MEP Silvana Koch-Mehrin from the Group of the Alliance of Liberals and Democrats for Europe said:

"I fully support Ms Reding's initiative to come up with the legislative proposal. Selfregulation proved to be neither sufficient nor effective to achieve gender balance. Europe needs more women in leadership and this is the only way to go forward."

Jennifer McKiernan, journalist at the Aberdeen Evening Express and a Robert Bosch Stiftung-EurActiv Journalism Fellow

COMMENTS

  • Excellent idea. I assume that the European Commission in all its glory will lead on the front on this one? Some questions for the Commission.
    Proportion of women as heads of unit?
    Ditto directors?
    Ditto Director Generals?
    Existence of plan to move from pathetically low levels now to 20%? in 5 years?

    Then of course there is the problem of men who do not like or cannot get on with women? (or to use the correct title of Larsson's first book "Men who hate women"). I have seen a number of instances of this - in the Commission and at senior levels I think the phrase is misogynistic. There are cases of women being "sidelined" because their faces did not fit (or perhaps they were not "biddable?)

    Senior (male) ranks in the Commission often regard the lower (female) ranks as a (sort of) pick n mix harem - something to lighten the day (& a change from the wife) - sort of thing. This is not speculation - I can quote endless instances (for those in DG Research in the 1990s the phrase RTL should bring a smile).

    I would add that the Commission-wallahs I know well (including some senior ones) ain't like that. But there are a (significant) number who are.

    So coming back to the original point: 40% women for all ranks in the EC? - oh look a squadron of pigs has just flown past the office window - I know they were pigs cause one of them did a barrel roll (show off).

    By :
    Mike Parr
    - Posted on :
    24/09/2012
  • Such quotas may work - or may not. The real points are :

    1.why should it be decided on an european scale? Is it compatible with the principle of subsidiarity - that is : will it work better than at national levels?

    2.does the Treaty give the EU a formal competence in this field - or will quotas be based on a tortuous interpretation of the Charter of fundamental rights?

    In these times of euroscepticism, the EU Institutions would be well advised to stick to essentials and fundamentals and not to engage into unchartered territories.

    By :
    Jean-Guy Giraud
    - Posted on :
    24/09/2012
  • If any organisation, whether in the private or public sector, is to achieve its maximum potential, all appointments and promotions to any position (at any level) must only be determined on merit - i.e. they must be the best person to do the job in question - regardles of the gender, race or economic background of the individual. In the case of the open borders policy of the EU, I guess their (EU) country of origin has to be added to this list.
    Any other policy is purely social engineering and will result in EU businesses falling further down the global ladder, and public sector quangos further failing to deliver a fully cost-effective, tax-payer funded service.

    By :
    Neville Craddock
    - Posted on :
    24/09/2012
  • Mr Craddock
    "the best person to do the job" depends on how you define "best". With respect to "purely social engineering" – as you know intelligence in any population follows a mean distribution curve. However, there is no correlation between this curve and that of wealth or income i.e. very intelligent people can also be very poor, quite stupid people can be quite rich (as shown by the ministers in the current UK government). Most Euro societies have a Dawinistic approach to these issues, thus we fail to deploy the human assets we have to best effect. “Social engineering” could change this situation – but would threaten those at the top.

    Extending your arguments to 50% of the population that is female, you would support the currently skewed bias in favour of men? Despite the fact that the distribution of men and women in terms of intelligence follows exactly a mean distribution curve (i.e. there are similar numbers of stupid, bright, intelligent and hyper intelligent men as there are women). Thus current policies in one way or another exclude females (on the basis of sex and perhaps due to built in biases in traing, education etc) from jobs that they may be more capable of filling than men?

    By :
    Mike Parr
    - Posted on :
    24/09/2012
  • Having seen both sides of the workplace it is evident to me that those at or near the top have higher levels of assertiveness and plain aggression, and that is why men are statistically favoured. Running a successful enterprise requires both qualities in this far from perfect world; dog eat dog springs to mind. Basically you have to decide which comes first - ethics or reality, or a balance of both, not such an easy decision when survival is at stake. In a perfect world we could perhaps afford a socially engineered 50/50 mix.

    By :
    Charles_M
    - Posted on :
    24/09/2012
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    THE SINGLE MOST IMPORTANT TASK to reach your goal of becoming a public company director is the creation of a focused plan. I wrote Becoming a Public Company Director to provide a clear, compact roadmap for board candidates.

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    Board Guru™ eBook Information: http://www.amazon.com/dp/B0081KAIFS

    By :
    Tracy Houstonh
    - Posted on :
    24/09/2012
  • From what I understand the language in the proposed legislation is not neutral in that it specifies women as the protected category. I may be wrong and if so, please correct me. If I'm not, is there a reason that this language isn't gender neutral?

    By :
    rok
    - Posted on :
    24/09/2012
  • In response to Charles' comment I can recommend the blog by a Dutch Anthropologist in the Guardian. It covers the UK financial sector and is a rather good argument in favour of 40% women as directors. The anthropologis interviews members of the UK's financial sector - it is somewhat frightening - clearly some of these people need treatment for some disturbing mental conditions - having more women in senior positions would bring more balance - who knows maybe fewer financial disasters - they certainly could not do worse than men.

    By :
    Mike Parr
    - Posted on :
    24/09/2012
  • Jean-Guy Giraud – You make excellent points.

    Neville Paddock - Excellent post, covers it all really.

    The EU is determined to have a one size fits all policy and unless the member states point out the pit falls we will end up with positive discrimination.

    It is difficult to post covering all possible Senior Jobs but providing the definition of the 'best' person for the job is consistent regardless of gender then we don't have to try and turn it into some huge intellectual challenge. Of course qualifications, intelligence, education and experience must be used to get the 'best' person for the job. In my experience a bit of psychometric testing is also useful before you even get to the serious job interviews.

    I have lost count of the number of people who have been interviewed who are very intelligent but without an ounce (gram) of common sense. To say nothing of the intelligent people who I have met who totally lack application and drive. Then there is the highly successful person whose 'legs' have gone and end up being 'a legend in their own lunchtime'. I have employed both men and women and each individual can have their own challenges. However, it will require a lot of good will on behalf of companies who are looking for Senior Management. Make no mistake though if the EU get their way then it could end up causing a lot of resentment.

    George Mc

    By :
    George Mc
    - Posted on :
    24/09/2012
  • George Mc - I'm sorry but you just don't get it:

    "Women 40% of the boardroom in all EU countries by 2020"

    so you have interviewed lots of people for boardroom positions? LOL - applied to rest of you misogynistic buggers who just do not get the point.

    By :
    Mike Parr
    - Posted on :
    24/09/2012
  • Mike Parr

    'stupid people can be quite rich (as shown by the ministers in the current UK government.'

    Really!?

    So what we need is clever and skint with no experience of anything? Then you will be king of the pile

    misogynistic? Oh dear, read my post. I have employed both men and women and mostly successfully but they all got the job because they were the best available.

    Cheers

    By :
    George Mc
    - Posted on :
    24/09/2012
  • Bad idea. The stocholders aretheonly ones wo should have asay in who is chosen to maage the business. If women qualify and are chosen, so be it. Otherwise women should not be forced on any business just because of a number!

    By :
    Julie Houle
    - Posted on :
    25/09/2012
  • George Mc - I never said that we needed "clever & skint with no experience" I did observe that our Dawinian society makes sure it does not use the human resources it has to best advantage (you're not one of the rich but stupid people are you George?).

    In response to Mrs Houle, where in the proposal does it suggest "forcing women"? I doubt there is a shortage of women capable of fullfilling the role of director in a company - the issue is one of opportunity - which the proposed legislation aims to address. With respect to shareholders, oh dear you do live in la la land - shareholders exercise almost no control over large companies - which is the target of the proposed legislation. I can recommende J K Galbraith and his "New Industrial Society" if you think shareholders do have control or witness recent events where shareholders tried to control executive pay

    By :
    Mike Parr
    - Posted on :
    25/09/2012
  • Mike Parr,

    'you're not one of the rich but stupid people are you George?'

    Depends on your definition of rich and stupid Mike. I would say to normal people - No, if only!

    On what your definition seems to be I'd say - confused and pass!

    Cheers
    George Mc

    By :
    George Mc
    - Posted on :
    27/09/2012
  • Selecting talented women for Non Executive Director positions is a phenomenal way to emphasise merit in the selection of Non Executive Directors.

    Even in countries like the US, or sectors as tech, which have considered “merit” as a driving compass in selecting people, the percentage of women on boards has barely moved past the 15% mark. Focusing on selecting more women can be purely revolutionary, as it will increase choices based on leadership competencies.

    Let me bring in the case of Italy. We have recently introduced a law, in essence requiring, since 12 August 2012, Italian listed or State-controlled companies to appoint a fifth (to become a third at the following mandate) of board members as part of the “under represented gender”. This law has been implemented earlier by a number of Italian corporates, during the Annual General Meeting season of 2012: exceptional women were selected. As shareholders were nudged by the law towards changing some board members, they realised they would be better off by selecting them on the basis of merit and competency;

    Another great result was that overall corporate governance improved. As this law mandates for shareholders to change a number of board members, Italian companies have rightly taken it as a great opportunity to make better use of their Boards. Hence, some leading Italian global companies, such as Fiat Chrysler for example, implemented a smaller board, with a view to fostering its effectiveness.
    ■As a final remark, let me repeat one of my mantras: exceptional female talent is ever more crucial, in one of those defining moments, as difficult as they are, where proper and effective use of talent and leadership can, and will make a difference for the better. Breaking the impasse is possible, if we try to tweak some consequences of two unconscious biases through a little nudge.
    More on this here: http://wp.me/p2mHJv-28

    By :
    Tommaso Arenare
    - Posted on :
    27/09/2012
  • Men get promoted because they're good at having beer with the bros. How is that merit? We need quotas because if the dudes in power believed in equality, it would exist by now.

    By :
    Jane
    - Posted on :
    30/09/2012
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    By :
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    - Posted on :
    13/11/2012
Background: 

In 2011, the EU commissioner for Justice and Fundamental Rights, Viviane Reding, launched a Women on the Board Pledge for Europe, calling on large companies to increase the women present at the board level to 30% by 2015 and to 40% by 2020.

While women are half of the overall population and 60% of university graduates, they represent on average only 14% of board members of publicly-listed companies.

The debate over economic governance has gained force with the crisis, while an increasingly large body of research has demonstrated how gender equality and diversity on boards of administration is a factor in efficiency.

In recent years, Norway, France, Belgium, the Netherlands, Italy and Spain have all adopted progressive legislation to improve the representation of women on boards of administration, with positive results. These successful examples should be a model for the European continent as a whole.

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