Women in Corporates Roles in India | 04 Jun 2024

Source: TH

Why in News?

A recent report titled “Women in Leadership in Corporate India” by a networking platform called LinkedIn has shown a persistent underrepresentation of women in leadership positions across Indian corporates.

• The percentage has remained stagnant below 30% for a considerable period.

What are the Findings of the Report?

• Stagnation of Women Representation in Corporates:
  • Women representation across the workforce and in senior leadership positions is below 30% all the time, and is on a declining trend post-pandemic.
  • This can be attributed to the slowdown in fresh hires of women for leadership roles.

• Women in Leadership Lowest, Moderate and Highest in Sectors:.
  • Lowest Representation: Construction, Oil, Gas, and Mining, and Utilities (11%), Wholesale and Manufacturing(12%), and Accommodation and Food Services (15%).
  • Slightly Better (12%): Wholesale, Manufacturing
  • Moderate Representation: Technology, Information & Media, Financial Services (19%)
  • Highest Representation: Education (30%) and Government Administration (29%)
• Breaking the Law:
  • Reports show that laws such as the Companies Act, 2013, which mandates women directors on company boards, are not being followed strictly.
  • Between April 2018 and December 2023, 507 companies were fined for flouting this norm. Of them, 90% were listed companies.

What are the Factors Contributing to Lower Representation of Women in Corporates?

• Unconscious Bias: Deeply ingrained societal biases and stereotypes about women's abilities, leadership styles, and career ambitions can lead to unfair assessments and limited opportunities for advancement.
• Reduction in Work-from-home Options: The reduction in the availability of hybrid or work-from-home roles may have contributed to the stagnation, as these arrangements often facilitate the participation of women in the corporate workforce.
• Work-Life Balance Challenges: The disproportionate burden of domestic and caregiving responsibilities that often falls on women can make it difficult to demonstrate the same level of commitment and availability as their male counterparts.
• Safety Concerns: Migration and safety concerns further limit women's access to employment. Inadequate urban infrastructure, along with safety issues in public spaces, can discourage women from seeking and retaining jobs, particularly in urban areas.
• Lack of Mentorship and Sponsorship: Women often have less access to influential mentors and sponsors who can advocate for their career progression and help them navigate the corporate landscape.
• Limited Representation in Leadership: The scarcity of women in senior leadership positions creates a lack of visible role models and makes it harder for women to envision themselves in these positions.

What Measures can be Adopted to Enhance Gender Diversity in Corporate Leadership?

• Flexible or hybrid work policies:
  • This is important for retaining women, especially at the junior and middle management levels, as this is when they often have to balance career aspirations and family commitments.
• 'Skills-First' Approach to Hiring:
  • Adopting a 'skills-first' approach to hiring, rather than making gendered assumptions about a prospective employee's capabilities, can help reduce biases and promote meritocracy.
  • This involves focusing on the candidate's relevant skills, qualifications, and experience, rather than relying on gender-based stereotypes.
• Promoting Diversity in Senior Leadership:
  • The government can promote diversity in senior leadership through initiatives to raise awareness of board diversity in listed companies.
    • As an example, the Japanese Ministry of Economy collaborated with the Tokyo Stock Exchange to introduce the "Nadeshiko Brands" program.
    • This highlights companies that encourage women's empowerment and leadership as attractive investment opportunities.
• Establish Networking and Support Groups for Women:
  • Creating a Strong Network: These groups for women professionals can foster connections and collaboration, empowering women to navigate the path to leadership.
  • Peer Learning and Support: Through these, women can share experiences, learn from each other's successes and challenges, and build a strong support system.
• Mentorship and Networking Opportunities:
  • Providing mentorship and networking opportunities for women can help them navigate the corporate ladder more effectively.
  • Experienced female leaders can guide and support aspiring women, sharing insights and strategies for career advancement.
• Shared Parental Leave Policies:
  • These can promote a more equitable distribution of caregiving responsibilities between men and women.
  • Paid paternity leave policy, especially in the private sector, can help promote a more equitable distribution of caregiving responsibilities between men and women.

Conclusion

The stagnation in the representation of women in corporate leadership roles in India is a concerning trend that requires concerted efforts to address. Implementing a multifaceted approach, including policy changes, organisational reforms, and cultural shifts, is essential to enhance gender diversity and unlock the full potential of women in the corporate sector.