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GENDER AND POWER IN BUSINESS AND INDUSTRIES IN FINLAND

GENDER AND POWER IN BUSINESS AND INDUSTRIES IN FINLAND. Kön och makt i Norden final conference 19 th November 2009, Reykjavik. Linda Hart, Project Researcher, Kön och makt i Norden MA, E.MA, PhD Candidate, Department of Sociology University of Helsinki.

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GENDER AND POWER IN BUSINESS AND INDUSTRIES IN FINLAND

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  1. GENDER AND POWER IN BUSINESS AND INDUSTRIES IN FINLAND Kön och makt i Norden final conference 19th November 2009, Reykjavik Linda Hart, Project Researcher, Kön och makt i Norden MA, E.MA, PhD Candidate, Department of Sociology University of Helsinki

  2. Kön och makt i Norden: Gender and Power in Business and Industries in Finland • Object and purpose of study • Data and methods • Main findings • State-owned companies • Listed companies • Economic interest organisations • Looking ahead

  3. 1. Object and Purpose of Study • To gather existing and easily obtainable information on the division of visible positions of power between women and men in Finnish business and industries • Compared to politics and government, data not as readily available: lack of longitudinal comparable data, e.g. concerning board membership in listed companies • Media have produced various listings in business magazines from time to time • Shed light on existing data and to point out areas where obtaining data is difficult

  4. 2. Data and methods • Main sources: Statistics Finland (gender statistics publications) • Websites and annual reports of listed companies (as listed by OMX Helsinki in December 2008) • Websites and annual reports of state-owned companies (both state majority and associated) • Focus on December 2008 and January 2009 (study carried out between Nov 2008–Jan 2009) due to the lack of longitudinal data • Data gathered by compiling data retrospectively on each company/organisation according to availability of data (company websites)

  5. 3. a) State-Owned Companies • Quota amendment to the Act on Equality Between Women and Men in 1995: section 4 a, para 2 of the Act “If a body, agency or institution exercising public authority, or a company in which the Government or a municipality is the majority shareholder has an administrative board, board of directors or some other executive or administrative body consisting of elected representatives, this must comprise an equitable proportion of both women and men, unless there are special reasons to the contrary.”

  6. 3. a) State-Owned Companies (2) • The doctrine of equitable proportion translates to 40% of board members in state-majority companies being women • 20% of top management in these companies were women • In listed companies with state ownership (n = 10), 31% of board members were women • 12% of top management in listed companies with state ownership were women

  7. Source: State-owned company websites

  8. 3. b) Finnish listed companies (OMX Helsinki Dec 2008) • Dec 2008: 13% of members of Boards of Directors were women • Dec 2008: 17% of top management in these companies were women • Considerable differences between business sectors in board composition: two largest sectors below the 13% average • Information Technology 5 % • Industrials 10%.

  9. Source: Company websites

  10. Source: Company websites

  11. 3. c) Economic Interest Organisations • Very few women as board members of chairs of member organisations in employers’ organisations • In employees’ organisations the share of women is around 1/4 among board members and above 40% among members of councils • In employees’ organisations, women make up 53% of individual members • The higher one goes in the hierarchy, the less women there are as decision-makers

  12. 4. Looking ahead • New Corporate Governance Code introduced in Finland in 2008: both men and women should be represented in Boards of Directors • Enters into force in Annual General Meetings held after 1st January 2010 • Looking ahead: in 2009, share of women in as board members rose to 14 % - an upward trend in 2003-2009

  13. 2009 85,9 14,1 2008 88,2 11,8 2007 88,2 11,8 Men 2006 88,6 11,4 Women 2005 88,4 11,6 2004 91,9 8,1 2003 93,1 6,9 0 % 20 % 40 % 60 % 80 % 100 % Figure 6. Listed Companies: Women and Men as Members of Boards of Directors 2003-2009, %Source: Statistics Finland/Balance Consulting - OPTIO

  14. References • Hart, Linda, Holli, Anne and Kovalainen, Anne, ‘Gender and Power in Politics and Business in Finland’, in Niskanen Kirsti and Nyberg, Anita (eds.) Kön och makt i Norden, TemaNord, forthcoming online publication, 2009. • Statistics Finland http://www.stat.fi • Vallan tasa-arvoa: Sukupuolten tasa-arvo 2009 (Power and Equality: Gender Equality in 2009) Statistics Finland, published in August 2009.

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