Women on boards

Last year when the Securities and Exchange Board of India (SEBI) , according to the new Companies Act of 2013, asked listed companies to appoint at least one woman on their board of directors the deadline was October 1, 2014. Since India Inc failed to comply the deadline was extended to April 1, 2015. A penalty of Rs 50,000 has now been imposed on non-compliant companies. Affirmative action to appoint women directors in boardrooms is welcome but the rush to meet deadlines may result in tokenism. Research has backed the positives of getting women in leadership roles. Often companies do not bring in more women directors unless they are forced to.
India is the first developing country to take this step. France, Italy and Norway have made it compulsory for large firms to have women on boards. A study by US-based research organisation Catalyst, "Women take care, men take charge", showed how gender-based stereotypes can be thwarting. Unless organisations take steps to eradicate this bias, women leaders will forever be undermined, regardless of talent or aptitude. Sensitisation of the corporate sector will provide a conducive environment for women to be appointed as decision-makers. The need is to cast the net wider beyond family members. Mentoring programmes, flexi-hours, job sharing and work from home prevent mid-career attrition of women and contribute to the talent pool.
More than merely meeting the norm, corporates should be drivers of change and equal opportunities and shun ossified mindsets. Often women's leadership and management style is focused on consensus, participation and interaction. A Credit Suisse Research Institute study of 2,360 companies showed that firms with one or more women on their boards have delivered "higher returns on equity, lower gearing, better growth and higher price-to-book value multiples," thereby indicating a gender-diverse board's capacity for better risk management and value protection.  In the knowledge economy of the 21st century, gender diversity is not merely an option but a necessity.