Women in Board Rooms

1. Women in Board Rooms Dr. S K Gupta M.Com, FCS, FCMA, Ph.D

2. The world is changing Board’s must change too…

3. Emerging challenges before the Boards in 21st century • Volatility • Uncertainty • Complexity • Ambiguity

4. Leveraging women participation in Board’s for enhancing Competitive advantage In an era when productivity puzzles persist and economies trade within globalised markets, facilitating women participation in Board rooms might just give them a competitive advantage

5. It’s a remarkable anomaly that with women representing 50% of most geographic population groups, they are under-represented in the boardrooms of their nations. According to a study by Deloitte global , Norway has the highest share of women board directors at 36.7%, followed by France at 29.9%, Sweden 24.4%, Italy 22.3% and Finland 22.1%. In China, women make up 8.5% of board directors. The study puts the share of Indian women board directors at 7.7%.

6. Board Diversity • One of the areas of focus in the development of corporate governance frameworks has been board diversity, so that boards create an appropriate dynamic to challenge groupthink with an eye towards enhancing shareholder value. • Women in Board Rooms will bring about the desired Board structures

7. Women on Boards and Corporate Performance The correlation between the presence of female board members and corporate performance demonstrates that having women on the board is no longer just the right thing to do based on gender equality arguments but also the smart thing to do. Research has shown that boards with high female representation experience a 53% higher return on equity, a 66% higher return on invested capital and a 42% higher return on sales.

8. Qualities that women bring to the Board • Women bring to the boardroom, a different set of perspectives, experiences, angles, and viewpoints than their male counterparts • Female directors are “more likely than their male counterparts to probe deeply into the issues at hand” by asking more questions, leading to more robust intra-board deliberations. • Female directors tended to have a different style of engagement, seeking the opinions of others and trying to ensure that everyone in the boardroom take part in the discussion. • Women make decisions taking the interests of multiple stakeholders into consideration so as to arrive at a fair and moral decision.

9. Women as compared to men are better at conveying their expectations and ideas • Positive changes to the boardroom environment and culture • More orderly and systematic board work • Positive changes in the behavior of men • Women have more emotional intelligence • Women think about the people behind the numbers • The board becomes more relaxed, making the atmosphere less aggressive. A more open culture allows all board members to give their opinions and benefit of their expertise

10. Research has found that women on boards are significantly better than men at making decisions because of their ‘Complex Moral Reasoning’ (CMR abilities) and their genetically driven, cognitive processes and thinking patterns So, John Grey was right !Men are from Mars but women are from Venus

11. Companies Act Provisions regarding Women Director • SEBI vide its circular dated 17th April, 2014 has made it mandatory for all the listed companies to appoint at least one Woman Director on their Board of Directors in alignment with the requirement of Section 149 of the Companies Act, 2013, A women director should be on the board of every listed company and also on every other public company having paid-up share capital of Rs 100 crore or more or turnover of Rs 300 crore or more

12. Position in India Sizeable number Indian corporate are yet to comply with the norms. Many of the companies that have complied with the guidelines have done so only in letter rather than in spirit. They have appointed women from their promoters' families, thus defeating the very purpose of the move

13. Position in India According to PRIME, the companies with the highest number of women directors are Apollo Hospitals Enterprise, Indraprastha Medical Corp, and Monte Carlo Fashions—each with four women directors.

14. The Unacceptable Rhetoric.. The "lack of talent" is the most widely used cliché to defend non compliance with norms. But It is clearly a case of mindset. There are enough women in the Indian corporate sector that can do that job

15. As increasing number of women are progressively moving into top leadership positions, the pool of eligible female candidates for board director spots is growing.

16. Board Experiences of Women Directors Though boards say they want diversity, what happens once women get on them? listed below are examples of the types of comments heard most • “I often feel that I’m not heard and that I need to put more effort into making sure that others hear and understand my point of view.” • “I have to yell for them to hear me.” • “It’s been a challenge earning respect and being treated as an equal member, particularly with older board members.”

17. “As a woman, you have a longer road to build credibility.” • “I have to establish my credentials over and over; it never stops.” • “I’m always seen as ‘the voice of women.’ • “I’m expected to hold the ethical compass for the board and lead on women’s initiatives.”

18. What women need to do to get into the Board Room • Try to learn, try to be open-minded, and try to work hard. it is very interesting to be a part of the company decision making . it is worth it.” • Develop influencing skills • Build your network • Find a good mentor • Need to build up your skills and knowledge • Women should believe in themselves and be confident that they can do it • Women should enhance their commitment, Courage and communication skills

19. Puzzled... It might be the presence of women that causes better performance. Or it might be that better performing companies can afford to take on more women in order to look good.. Either way.. It makes good business sense to have women on Boards

20. The way forward.. Mentorship is the key, but women themselves should get empowered to achieve top positions. The process will take some time, but it largely depends on individual motivation. When women are ready, “their performance will speak for them’’.

21. There is a large opportunity cost for companies associated with male-only executive boards. Those businesses stuck in the past are not fully unlocking their growth potential.

22. Message is loud and clear Women – are the emerging Board Catalyst

23. Thank you