Director General Arni Hole
Ministry of Children, Equality and Social Inclusion
Diversity deployed, the Norwegian Experiences
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 ?
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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)
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Statistics, continued
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•
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
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 nonintervention 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
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Modern economy includes Gender Equality
Policies , and it deals with both genders.
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•
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
Stereotyping is done everywhere….
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•
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.
Norwegian basic values
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•
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 %
Quotas - excamples
• In 1981, a legal requirement was introduced in the
Gender Equality Act to have 40 % of the underrepresented 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)
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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 County Governors).
• 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)
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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)
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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
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Quotas work - and changes the mental
images of what is a women/what is a
man – forever…
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•
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.
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
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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, sectorcrossing gender equality law, a strong working
environment law, euqual pay for work of equal
value and effective actions against family violence.
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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
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In any effort, program, action, measure
or legal system, accountability rules:
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•
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.
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
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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…..
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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
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