Corporate governance principles and gender equality across Europe and Asia:

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Corporate governance principles and gender equality across Europe and Asia:

Convergence and Diffusion

4th European Conference on

Politics and Gender (ECPG)

11-13 June 2015, Uppsala,

Sweden

Annick Masselot, University of Canterbury, New Zealand

Akshaya Kamalnath, Deakins University, Australia

Aim: To critically engage with the concepts of gender balanced representation on corporate boards; gender equality and quotas.

Compare and contrast the application of such concepts within the EU legal framework and

Asian countries, particularly Malaysia and

India.

This provides an opportunity to contribute to the theory of diffusion and legal transplant.

Also, to consider and contrast the concept gender equality across Europe and Asia.

Under-representation of women in positions of power is a world-wide phenomenon.

The Financial crisis precipitated the debate about the under-representation of women in corporate boards.

Scholars in the area draw a linkage between gender quotas in politics and in corporate boards.

Political quotas are understood today as substantive equality measures.

Business case arguments

Equity based arguments

Democratic legitimacy based arguments

Normative transplants and/or diffusion of laws?

Norway ⇨ Europe ⇨ EU ⇨ Asia

Norway – Public Limited Companies Act (2003 amendment): 40% of each gender.

Europe - Austria, Belgium, Denmark, Finland,

France, Iceland, Ireland, Israel, Italy, Norway, Spain,

Switzerland, Germany and the Netherlands.

EU proposed directive (2012) – transparent recruitment procedures – goal of 40% women NEDs.

Listed companies – training and mentoring

Norwegian model resulted in positive outcomes.

EU –financial crisis and gender equality efforts[economic problem, social dimension].

Malaysia (2011/12) and India (2013/14) – low representation of women. (7.8%, 4.7%).

Malaysian Code of Corporate Governance –

Companies listed on Bursa Malaysia steps to ensure women candidates sought, disclosure of gender diversity policies and targets and measures to meet them.

Comply or explain.

Focus on both gender equality and business case.

Training programs and databases.

India – Companies Act 2013 – monetary penalty -

€ 600- 6000.

Appointment of one woman director by Oct,

2014. (Listing agreement).

No guidelines. Worry about appointment of female family members.

‘To encourage women’s participation in decision making at every level.’ Business case emphasised by media reports.

Training programs only as private initiatives.

Diffusion of what developed as an EU concept into Asia. Market facilitation to an extent.

Diffusion of EU values?

EU: Corporate gender quotas as part of the larger gender equality project.

Issues of maternity and child care relevant in preventing the leaking pipeline to decisionmaking positions.

Asian cultures – child care and elder care.

Transition in emerging economies – more women entering work force – women on boards would facilitate this.

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