A review into gender diversity on company boards in the uk, led by lord davies, has set a target of 25% female representation on ftse 100 company boards by 2015 according to eu figures only 137% of board members at leading european companies are women, up from 118% in 2010. The impact of gender quotas on businesses in europe many countries in europe have introduced gender quotas to encourage companies to increase diversity at the board level. Since 2011, quotas have applied to listed companies in belgium by law, executive boards of listed companies (depending on their size and other particularities) must consist of a minimum of a third and a maximum of two-thirds of members of one or other gender by 2017 or 2019. Only gender quotas will work in politics, ms banks told parliament politics shows quotas can work while julia banks highlighted the liberal party's lack of a quota, labor has one.
The european commission aims at redressing a severe gender imbalance as the report, published in march, showed that 137% of board members at europe's top firms are women, up from 118% in 2010. Short of quotas, keeping the issue alive in the media and on the minds of stakeholders is a good way to get corporate decision makers to think seriously about the gender issue a committed and organized effort is what's needed to effect change. Relation to gender balance quotas of companies owned or controlled by the state, but not for private companies source: ifo institute on the basis of european commission (2012) and oecd (2012) table 1.
Quotas help to change unconscious barriers and allow companies to learn diversity in a decade or two, when gender equality has been established, quotas could then be removed. Eu justice commissioner viviane reding said on tuesday (21 september) she will consider calling for quotas requiring businesses to hire more women after meeting with the chiefs of european companies next year her five-year gender equality strategy launched on tuesday shied away from the contentious. Following weeks of dispute, the european commission on wednesday proposed a gender quota for non-executive directors of companies that are listed on the stock markets in the 27 member states. Multinational companies are under increasing legal and social pressure to increase their representation of women in their work force these pressures come, most recently, from europe, which has passed a spate of laws requiring publicly traded companies to adopt quotas mandating a minimum percentage of women on their boards.
More than a decade ago, countries in europe began to take measures to increase the gender diversity of their corporate boards norway was the first to adopt a quota for female board members (40%. Another striking example is the proposal from the european commission and the european parliament to establish a 40% quota for each gender on boards of stock-listed companies. Gender quotas are a start, but smart companies will recognize that it will take a lot more – mentoring programs for women, stronger family support policies, and equal pay structures – to. The european commission is to push for a quota for women on company boards to address the slow progress to gender equality in the senior ranks of publicly listed businesses.
European commission actions to promote gender balance on the boards of listed companies in the european union women are outnumbered by men in leadership positions in the corporate sector in the eu. Quotas to redress gender-balance in companies are antithetical to the idea of women’s liberation, especially at a time when women are doing better than ever before in professional and public life. In business, gender quotas aren't the way to go this idea has been reinforced by a survey of 89 european companies with very high proportion of women in senior manager posts where results.
Looking at the above examples, the numbers clearly show that the majority of european countries managed to actually increase the number of women in leadership positions in politics and economics by introducing the law on gender equality including gender quotas. Gender quotas will not help europe's boardrooms, what they will do is ensure that women are appointed to boards who are currently not viewed as capable of running a company this can only be bad for private companies in the long run, if in fact they can any longer be called private if the eu is dictating who should run them. In 2010, the threat of gender board quotas started to become real, when a german corporate governance group recommended companies start hiring more woman to non-executive board positions. European companies can and should make every effort to increase their diverse employee populations but exporting quotas mandating minimum numbers or percentages of any minority members to the united states can create significant legal risks.
Initiatives for ending the eu gender gap in decision-making positions, such as politics and business equal economic independence targets for equality in labour market participation in the eu, childcare and tax incentives, and the european commission's roadmap for increased participation of women in the workforce. The european commission is considering imposing quotas across the eu malaysia has imposed a 30% quota for new appointments to boards, and brazil a 40% target, though only for state-controlled firms. Other members of the european economic area to narrow the gender gap in the eu member states that have enacted laws to introduce gender quotas on corporate management boards include: austria, belgium, denmark, finland, france, ireland, italy, spain and the netherlands (davies, 2011 ec debates on quotas as important for company.