Why Some Countries Are Implementing Gender Quotas For Boards
Globally speaking, men hold more board of trustee seats than women. This is sometimes seen as a cause for concern since there are many benefits to having a more diverse board of trustees. To solve these problems, gender quotas have sometimes been created and have been met with mixed reactions.
Reasons For A Lack Of Diversity
One common argument for the reason for the lack of gender diversity in the workforce is the idea that there are not enough qualified female applicants, which is the reason most often cited by such boards. However, the Women Corporate Directors Foundation (WCD) found that a common reason for the lack of gender diversity in the workplace is the fact that the networking world through which these board members are staffed is male-dominated and may turn off female talent.
The Benefits Of Gender Diversity
A board of trustees--like the college of dupage board of trustees--is a place where many conversations take place. If a board of trustees is not diverse, it will not have the many perspectives that are necessary to come up a novel array of ideas. This can make your board less effective when solving problems. Different points of view allow for a cross-pollination of ideas. There is less groupthink and fewer unspoken assumptions. Diversity on the board is especially useful with regard to risk management.
The benefits of having a more diverse board are realized through the profits that the company experiences. There is a noticeable return on investment. For this reason, investors may choose to require that the companies that they invest in have a minimum number of women on every board in order to make their investments more profitable.
How Quota Systems Are Implemented
In order to increase gender diversity, some countries have implemented gender quotas. For example, some countries require that there be at least one woman on each board. There are also countries that require that a certain percentage of a board consist of women. There are some countries, however, where the public is strongly opposed to gender quotas and they have not been put in place as a result. Some believe that gender quotas are demeaning because they suggest to female board members that they are only on the board in order to meet a quota. It may not be required for some boards to meet a certain quota, but they may choose to impose a quota on themselves to reap the benefits of a diverse board.