[1]Deloitte Touche Tohmatsu Limited [1] (DTTL) has released the second edition of a report from the Deloitte Global Center for Corporate Governance, Women In The Boardroom: A Global Perspective [2], which examines the legislative efforts being pursued across 17 countries to encourage more women to serve on listed company boards.
The updated edition of the report comes after numerous governmental developments have evolved in several countries since the January 2011 publishing of the first edition. The new research highlights a variety of approaches to support diversity on boards, including requiring more disclosure, setting targets, and implementing quotas. According to the study, strong variations exist among countries regarding the most efficient way to achieve higher levels of diversity.
“The ongoing work of Deloitte member firms’ Centers of Corporate Governance around the world provides plenty of anecdotal evidence that more diverse boards are the more effective boards,” said Dan Konigsburg, Managing Director, Deloitte Global Center for Corporate Governance, DTTL.
The 17 countries profiled were: Australia, Canada, China, Hong Kong, India, Malaysia, New Zealand, Singapore, United States, Belgium, France, Germany, Italy, Netherlands, Norway, Spain, and United Kingdom.
“In the quest to make boards more diverse, a subject heavily discussed is whether to adopt quotas for women on listed company boards. This is a controversial and emotional issue that not everyone will agree on. Still, Deloitte Canada agrees with the goal of increasing the numbers of women leading and overseeing management at public companies. Deloitte’s goal is to keep the discussion on this very important topic alive through ongoing analysis of the state of women on boards,” said Jane Allen, Chief Diversity Officer at Deloitte Canada.
The Deloitte Global Center for Corporate Governance report has added a personal dimension to the research by incorporating the unique views of three prominent women directors from around the world. Each director shares her personal insights into increasing boardroom diversity and discusses the steps organizations are taking in this direction.
Highlights from their comments include:
- “Gender balance is likely to benefit the companies that do adopt it. It is increasingly being recognized as a badge of good governance and therefore desirable. Investors should demand it. If this progress continues and disclosure targets work, then there may be no need to impose quotas.”
Jane Diplock, Director, Singapore Exchange Limited and Australian Financial Services Group Pty Limited, International Advisory Committee of the Chinese Securities Regulator and the International Advisory Council of the Center for Financial Regulation; Ambassador for the International Integrated Reporting Committee
- “There is no hiding that men and women, even with similar educational backgrounds, often differ in their perspectives. The female perspective is neither necessarily better nor more insightful, but different. Ultimately, board diversity is about combining alternative and complementary views that in the end lead to better board decisions.”
Liselott Kilaas, Managing Director of Aleris AS in Norway and Denmark; Deputy Chairman of the board of Telenor ASA, and a member of the Norwegian Central Bank’s Executive Board
- “The need for critical mass in areas traditionally underrepresented – boardrooms, the C-Suite – even the Supreme Court of the United States – is critical if we expect to see systemic improvements…. We all know that we are well past the time where this should be an issue…. It boils down to respect, common sense, and good business.”
Maggie Wilderotter, Chairman and Chief Executive Officer of Frontier Communications Corporation; Director of Procter & Gamble and Xerox Corporation; Vice Chair, President’s National Security Telecommunications Advisory Committee