Director General Arni Hole Ministry of Children, Equality and Social Inclusion

1. Director General Arni HoleMinistry of Children, Equality and Social Inclusion Diversitydeployed, the Norwegian Experiences

2. Why regulations ? • Time was more than ripe for change and innovation • Even conservative business circles and parties saw that the prevailing situation was contra-productive • Women were visible elsewhere as outstanding and competent; but not in the corporate sector • A figure of 7 % women on the boards of the 500 largest companies (2003), was an issue of political embarassment • What could work, when affirmative actions for recruiting to top management jobs is not an issue , and private ownership in business should not be interferred with more than necessary ?

3. Status of women in the economy in Norway (2009) • 80 % of women between 25 and 66 are working • 40 % work part-time (13 % men work part-time) • Norway has appr. 90 % coverage of early child care to a maximum pay • 40,2% women on boards of PLC’s • 17 % women on the boards of private companies • 62 % women in university education, though only 20 % female professors • 27 % female top managers in the State sector (ministries etc), 47 % middle managers • 20 % female top managers in private sector (all) • 36 % female middle m. in private sector (all) • 42% female top managers in Municipal sector (though only 18,4 % head of Municipal councils)

4. Statistics, continued • Parity in the Cabinet • 39.7 % women in Parliament • Appr. 40 % on an average in the elected Municipal Bodies (430 Municipalities) • Paid Parental leave: 56 weeks with 80 % refunding of your salary (either parent), or 46 weeks with 100 % refunding, up to a certain level. • 10 weeks mandatory for the fathers, appr. 90 % enjoy this non-transferable quota • 26,7 % of the fathers share more of the whole period with the mothers; which is a most wanted trend (2008) • Fertility rate (2009): 1,98

5. Sweden and Finland; some figures • Percentage women on boards in PLC’s in Sweden and Finland: 19,4 % (2009) and 14 % (2009).In Sweden:Rumors of growth (23 % in 2010),due to ”threat” of legislation • Some others: NL: 14 %, UK: 12 %,France:9 %.Spain: 8% Slovakia: 18 %,Hungary: 16 % • Sweden and Finland:Political traditions of non-intervention from legislation, political and idelogical beliefs, stronger traditions of gender-neutrality in the upper economic echelons than in Norway • Countries that have followed suit: Spain, France (prop.),NL, Belgium (prop.) • UK, France,Austria,Japan, Uganda take other/or additional mesures

6. Modern economy includes Gender Equality Policies , and it deals with both genders. • Talents are divided evenly among the genders; no nation nor private enterprise, can afford to loose out on talents • Culture and traditions that tend to reproduce inequality, prevail, even in modern economies. Stereotyping is widely known. • Sometimes there is a need for political innovation to re-set the behavior of business life as to recruit the best persons from either sex. Affirmative actions could be an answer • Building an image and reputation in the marketplace is of utmost importance for any business. The issue of having gender equity in boardrooms ,seems to be crucial to recruit and retain the best people • Beeing modern and displaying good corporate governance, stick to your products, goods and services. May give you a competitive edge

7. Stereotyping is done everywhere…. • Avoid the fallacy in believing that only men carry stereotypes, not women. • Many women still speak of “the husbands helping out in the house and with the children”. Again, exclusion of the men, or men as mere “assistants” in the house. As if the house work is not a shared responsibility, regardless of gender. Women must let go, too. • When our Parliament voted for gender balance quotas on boards of private companies in 2003, the elite men of the upper echelons of economic life in Norway exclaimed: Able women cannot be found, the women will not take on such responsibilities, our firm will be broke or have to flee Norway as to prosper etc etc. - None of this was of course true. It was stereotyping • Many men in decision making positions speak of “typical female workplaces or jobs”. There are no such things. There are only historical and social traditions that have made women and men choose different occupations and professions.

8. Norwegian basic values • GE is seen as an intrinsic part of labor policies and the social dialogue between the State /Cabinet and the partners in work life. • The tripartite cooperation between the State, Employers Federations and the Unions is conducted through the Main Agreement. GE and family issues has been lifted into this social dialogue since the 5o’ties • Our National Insurance Scheme, covering almost all welfare issues like minimum pensions for all, sick insurance, unemployment benefits, parental benefits, reproductive rights and gender issues is a result of the tripartite cooperation, and of course the legislation passed in Parliament. (The financing is also by the 3 partners, including also the self-employed) • Strong Gender Equality Law (cross-sector ; governing also private sector); includes legal duty to act on GE and report annually Continued %

9. Quotas - excamples • In 1981, a legal requirement was introduced in the Gender Equality Act to have 40 % of the under-represented gender on all public appointed committees, councils,working group or delegation (overseen by the Minstry of Children, Equality and Social Inclusion) • 1993: The Parental Leave Scheme (in the National Insurance Act) was enlarged to 42 weeks of which 4 weeks was mandatory leave for fathers, not transferable to the mother. Unless the fathers take his leave, the family will loose the refunding of his salary. Enlarged to 10 weeks in 2009. This is a typical quota (heavily debated in 1993 in business circles)

10. Quotas - excamples: • 1993: The Municipal Act, requiring that all committees appointed by the politically elected Council, shall have a 40 -60 % gender balance. Affirmative action by law. (Overseen by CountyGovernors). • 2003: 4 laws amended in Parliament: The Public Limited Company Act, the Act governing the wholly State Owned Companies , the Inter-municipal Company Act, and the Companies ruled by specific laws. A very strong affirmative action, the requirement of a 40% quotas of the underrepr. gender in the boardrooms. Smart economy and democratic/fair. (Overseen and with sanctions by the National Business Register)

11. Quotas….. • 2005: A new law governing cooperatives in agribusiness, forestry, consumers’ and housing coop’s. A requirement of 40 % women when the business has 1000 members or more.(the same sanctions as for the public ltd companies) • 2009: Quota introduced for small companies where municipalities hold 2/3 of the stocks, demanding 40 -60 % gender balance on the boards. (Several 1000 companies producing welfare and services to the public, and should mirror the population). Typical affirmative action. /the same sanctions as above mentioned)

12. Why PLC’s and others; why not the 150.000 private ltd companies: • The appr.500 PLC’s have a broad spread of shares and attract investments from the public. Such companies should mirror the society –at large • Such companies elect their boards in the annual General Assembly,after having set up a nomination committee to introduce candidates (not top management from in-house, but representatives from the employees) • A company needs to be registered as a PLC to be listed, but not all PLC’s need to be listed • Wholly State owned companies, inter-municipal companies and companies regulated by special law, shall have governance with broad representation mirroring the society – at large

13. Quotas work - and changes the mental images of what is a women/what is a man – forever… • From 2003 to 2009 we saw an increase from 7 % women to 40,2 % , on the boards of the Public Ltd.Companies (as mentioned above). On an average: 43 % women in all the 4 mentioned types of companies. The Coop’s are soon there (38 % in 2008). The women were not hard to find… • These quotas has changed the mental images of women’s abilities and possibilities forever • Research shows that diversity pays, at the bottom line of business. Strategic work in boardrooms needs to mirror the diversity outside; the complex markets and different demands. Half of the consumers are women, with their own purse • The male roles and models of masculinity changed forever after introducing the father’s quota in the Parental Leave Scheme. After 17 years in action we can tell by research, that this law also has changed the women’s and mothers roles and how they perceive the balance between work and family life.

14. New research shows diversity pays; 201 companies Morten Huse (Oslo Business School)/ Sabina Nielsen(Copenhagen Business School), 2010: The Contribution of Women on boards of Directors (to be published in Corporate Governance, An Int.Review): • High female participation gives more priority to strategic control/accountability • More emphasis on the self-development of the board as a team • Produces instructions for good governance • More systematic competence building • Less conflicts and more efficiency

15. Prerequisites for using affirmative actions: • Use of quotas for gender equity can only be valuable if women are visible, their competence ”seen” and valued. • A society planning for women to be visible, needs universal and paid parental leave systems, flexibility in work life for parents with small children, full coverage of kindergarten places to an affordable price, public care for the elderly, sector-crossing gender equality law, a strong working environment law, euqual pay for work of equal value and effective actions against family violence.

16. Campaigns and programs work … • The National Employers Federation set up (2004) Female Future. A program to recruit and train women to board-room work that has been very successful. (Won a European Price). • Similar programs are set up in the public sectors, in the financial sector (The programme ‘FUTURA’ since 2007) , with great success. • Several databases have been set up with women’s CV’s to pick from, when you look for able women to be nominated for election to your board or to invite to compete for top management positions. • Many different and also in-house mentor-adept programs have been set up the last 15 years, most of them very successful • Research and measurement is done to investigate the effects of diversity • The University Act requires all colleges and universities to have a Gender Equality Action plan

17. In any effort, program, action, measure or legal system, accountability rules: • Who is accountable and what are the sanctions when targets are not met ? • One will never change the world with merely hopes, good intentions. • Who /what could be positive models and set examples ? • The road from well-meant rhetoric and dinner speeches - to material results, is hard and demand devoted and systematic work. It takes time. • You need Cabinets, local Governments and boards with distinct political will. • You need able partners for change, like Employers Federations, Trade Unions, NGO´s and International cooperation.

18. Why no constitutional discussion ? • Norway does not have any Constitutional Court, as France, that can overrule Parliament • The political and legislative tradition in Norway has been to put regulations on private companies; all types: • Several requirement for how to set up a legal board, since 30 years back • Regulations on how the employees is to be represented on boards • Sanctions • A strong Working Environment Law (since 40 years back), governing the way to handle cooperation between the top management and employees, handling conflicts, securing non-discrimination etc

19. Continued… • The different Acts governing companies of all types, are compatible with : • the Main Agreement (the tripartite cooperation), the Gender Equality Law (since 1979), the Working Environment Law, the National Insurance Act –covering sick insurance , unemployment insurance, parental leave issues and so forth… • together with in-house and local tariff agreements and other local actions/programmes signed by the two parties • These constitute a web of predictable frameworks for the stability of work life and high productivity; GE is part of them all…..

20. Sanctions for not meeting the requirements in the company laws/accountability • Norway chose to continue the sanctions already built into the company laws since 30 years back, when introducing the gender balance requirement • If any company (all types), fail to meet several requirements for a legally operating board, the company can be dissolved by court after having been warned by the National Business Register with a time limit to put everything in order • Every year, the National Business Register send out such warning letters • Hardly any company has failed to put things in order; not one since the gender quota was enforced by Jan.1st 2006