No. CCXXI; August 25, 2014
I. EDITORIAL — QUOTAS ARE WORKING BUT CHANGE TAKES TIME
II. CHINA’S ALIBABA INC AND WOMEN AT THE TOP
III. BEING FEMALE AT THE BARGAINING TABLE
IV. WHY SO FEW WOMEN ENGINEERS?
V. WOMEN AND THE EBOLA CRISIS
I. EDITORIAL — QUOTAS ARE WORKING BUT CHANGE TAKES TIME
by Irene Natividad, President, Global Summit of Women and Chair, Corporate Women Directors International
Just the headline of the June 19th New York Times article on “Women on the Board: Quotas Have Limited Success” is discouraging enough for advocates of women in corporate leadership like me, let alone mislead those unfamiliar with this strategy.
For the record, quotas intended to accelerate women’s access to board seats are working in moving the needle dramatically in the appointments of women to this corporate inner sanctum. France is the best example, where 10 years ago, companies were stuck at 7% women’s board representation, and now a quota law moved that percentage to 30%. As in Norway, the supply of qualified women was found to be ample.
Beyond Norway, there are now 21 countries with quotas for women directors, whether for publicly-listed companies or those that are government-owned. The latest is India, where companies listed in the stock exchange are scrambling to meet an October deadline to place at least one woman on their boards to comply with a law requiring that they do so. The other is the United Arab Emirates, which passed a similar requirement for companies in which the government has a majority stake. No one would ever have thought of these economies to be in the forefront of change benefitting women, but there is a clear global momentum to use this strategy that began in Norway.
Whether these countries meet the targeted percentages of women directors or not, there will still emerge a far larger pool of experienced board directors who happen to be women. This limits many companies’ claim globally of wanting to appoint women to their boards, but they just can’t find them. Corporate Women Directors International, which I chair, has been conducting research on women directors globally for 17 years, and we have found quotas to be the most effective initiative. So, yes, women on boards leads to better corporate governance and better financial performance as many studies have shown. But women themselves benefit from having valuable board experience previously denied to so many.
To measure the impact of this initiative beyond the board room is simply too soon. Men have been in charge of companies globally for centuries, so the work culture is theirs. I often say that women are ‘immigrants’ to a workplace defined by men. It will indeed take more time for change to filter downward, but our own research shows that it will. CWDI did a study of 112 women CEOs in 39 countries in 2011, and regardless of country, the companies they led had almost double the number of women directors and women senior executives than in peer companies. Women will bring other women along, just give them time. (Click here to see the current listing of countries with quotas for women directors: http://www.globewomen.org/CWDI/Quota%20Chart%202013.pdf)
Women Board Directors and Executives in Companies with Women CEOs vs. All Companies, 2010
Source: CWDI 2011 Report on Women CEO’s: Opening Doors to Boards and C-Suites
II. CHINA’S ALIBABA INC AND WOMEN AT THE TOP
China may not have many women directors yet (only 10.9% in its largest companies according to a Univ. of California Davis study), but technology giant Alibaba Inc., which is readying itself for a much-anticipated IPO, can teach US and European tech companies with their predominantly male personnel that women don’t need to be excluded from this lucrative industry. Nine of the 27 partners which make decisions for the entire company are women. The Chief Financial Officer is a woman as well as the Chief People Officer.
Twitter and Facebook were shamed into placing women on their Boards when they were about to do an IPO and media pointed out the lack of women on their decision-making bodies. Given that the majority of Twitter and Facebook users are women, the absence was glaring. Alibaba, on the other hand, had women who were in the company from its inception and rose up the ranks as the company grew. The presence of women in charge encouraged female new hires to aspire to move up the ranks. Role models plus a transparent hiring process – open positions are emailed to all employees so shy women could apply easily – ensured a female pipeline. The company also encourages family-centric activities, which provided support for male and female workers in the company. While Alibaba may be an exception rather than the rule among Chinese companies, there’s a great deal to applaud in their gender diversity practices. (Source: Bloomberg, 8/20/14)
III. BEING FEMALE AT THE BARGAINING TABLE
One of the reasons often cited for women earning less than men is that they do not know how to negotiate. Recent studies, however, also indicate that stereotypes held at the other side of the bargaining table are also part of the problem. A study published by the Organizational Behavior and Human Decision Processes journal showed that women tend to be offered less in negotiations. Stereotypes that women are poor negotiators made study participants want to negotiate against them, while demanding more.
“We found people were systematically more aggressive to feminine-featured faces,” stated Eric Gladstone, Cornell University doctoral candidate who conducted the study with Prof. Kathleen O’Connor at the School of Management. This bias extended to men with feminine facial features. They, like the women, are more expected to be cooperative. So, what should women do? Know the lowered expactation and see it as an opportunity to capitalize on this bias by negotiating harder. Another suggestion: Consider doing phone negotiations, according to Gladstone and O’Commor (Source: Washington Post, 8/13/14)
IV. WHY SO FEW WOMEN ENGINEERS?
Because careers utilizing scientific, technology, engineering and math skills tend to be highly paid and are key to innovation, the U.S. invested in STEM programs ($3.4 billion since 2010) that target women and girls because their numbers are so low in those fields. Unfortunately, this training does not necessarily lead to more women entering or staying in jobs using these skills such as engineering, where women make up only 11%. The reason: a workplace culture uncivil to women.
A National Science Foundation report looked at over 5,000 women engineering graduates from top universities and found that 40 per cent either dropped out or never entered the field. While work/life challenges account for some of these decisions, the major reason had to do with the climate in the workplace. “We found that even women who are staying consider leaving because they don’t have supervisor support. They don’t have training and development opportunities. And their colleagues are uncivil to them, belittle them, talk behind their backs and undermine them,” states Prof. Nadya Fouad of the University of Wisconsin, who led the study.
These findings were echoed by research conducted by the American Association of University Women entitled “Why So Few?” which showed the role of stereotypes and unconscious bias in deterring women and girls from STEM fields. The study also cited the lack of role models, since only 12% of engineering professors are women. What happened to the women who left engineering? Two-thirds pursued better opportunities in other fields ending up as managers or executives. (Source: Washington Post, 8/10/14)
V. WOMEN AND THE EBOLA CRISIS
75% of those infected or dying from the Ebola virus are women because they are the primary caregivers to the sick whether at home or in hospitals. They are not only the nurses, but also the cleaners and the laundry workers, where there is a risk of exposure. Women also prepare the dead for burial, a West African custom not likely to change. “Women are on the front lines of this crisis,” stated the First Lady of Sierra Leone, Nyaina Koroma.
Because women make up the majority of cross-border traders who go Guinea and Sierra Leone for the weekly markets, they are also likely to transmit the virus because of their dual role as family caregivers to sick family-members. Border restrictions will have economic impact, since it will now be difficult for these women to provide for their families. In addition, food production could be affected in rural areas where women are also the majority of shareholder farmers.
Training women and educating them on how to prevent the spread of the virus is deemed key to halting the epidemic, according to the World Health Organization. “By reaching the women, they are reaching those who can best protect their families, and their own health,” according to WHO spokeswoman Marcia Seeger. (Source: The Independent, 8/24/14).
Don’t miss the 2015 Global Summit of Women in Sao Paulo Brazil!
France’s Minister for Women, Cities, Youth, and Sports Najat Vallaud-Belkacem hands over the Summit to Brazilian delegates at the Closing Ceremony of the 2014 Summit in Paris.
Subscribe by clicking here.
Global Summit of Women
1100 G St. NW, Ste. 700
Washington, DC 20005 USA
tel: 202-835-3713 / fax: 202-466-6195
email: summit@globewomen.com
