Wednesday June 29, 2011

Getting to the boardroom

THE STAR SAYS

Women now hold 32.3% of decision-making positions in the civil service, surpassing the United Nations target of 30% set in 1995.

Having shown it can be done, Prime Minister Datuk Seri Najib Tun Razak encouraged by feisty Women, Family and Community Development Minister Datuk Seri Shahrizat Abdul Jalil then threw the challenge to the corporate sector: have women make up 30% of company directors in five years.

And Shahrizat proudly declared, for the first time in the history of the civil service, there are five women secretaries-general. They helm the Ministries of Natural Resources and Environment, International Trade and Industry, Science, Technology and Innovation, Plantation Industries and Commodities and, of course, Women, Family and Community Development.

Not only that, there is an unprecedented number of women directors-general who make up 17.2% of the total.

But beyond the bragging rights these numbers give us, why is it important for women to take up a significant slice of the power pie? The reasons are simple and profound: women make up half of the world's population, live longer than men and contribute hugely to the well-being of their families and communities.

Yet in many parts of the world, they have fewer rights, earn less, are vulnerable to many forms of discrimination and generally get a rotten deal because they are under-represented and have no say in how decisions affecting their lives are made.

This is something many Malaysian women, especially the younger ones, do not realise because right from the birth of this nation, their right to vote was guaranteed and the Govern-ment has consistently provided equal access to education, healthcare and job opportunities.

But as the World Economic Forum reported, a study in three widely differing countries Bolivia, Cameroon and Malaysia showed that “were women to have a greater say in spending priorities, they would be far more likely to spend on family and community resources for im-proving health, education, community infrastructure and the eradication of poverty, as opposed to the military, alcohol or gambling.” And to change spending and development priorities, there must be a critical mass of women as decision-makers.

In countries like Norway where the critical mass has been reached, the results are tangible in terms of business opportunities, education, politics and health for women, which ultimately benefit the community and economy.

So all in, the Malaysian Government has taken another step in the right direction.

However, as a country that has become somewhat jaded with government mandated quotas, forcing another one on companies may not get the required enthusiastic response, even though the Government is only planning to use “persuasion” to get the gender quota filled.

Already Federation of Public-Listed Companies Malaysia president Tan Sri Megat Najmuddin Khas says a compulsory quota is unnecessary.

He believes that with the ever increasing number of highly educated women, it is only a matter of time before more of them sit on the boards of companies.

Yes, it's true that already 46% of our workforce is female and by 2015, it will be 50%. Yet the number of top women appointments in 200 companies listed on Bursa Malaysia as of November last year is only 7.6%. According to Bank Negara, only 45 women, or 6%, are board members of financial institutions as of April this year.

So while Megat Najmuddin makes a strong case and many women would agree that they want to be judged on their abilities and not their gender, there are well-documented reasons why far too many talented women are unable to climb beyond a certain rung or fall off completely the corporate ladder.

Again we only need to look at Norway for some key lessons. This country is consistently in the top five nations with the narrowest gender gap, and that didn't happen by chance nor gentle persuasion.

To ensure women's participation in private sector decision-making, it passed a law in 2003 requiring at least 40% of boards of publicly traded companies to comprise women. They were given two years to comply or face dissolution.

Anne Kathrine Slungrd, head of Norway's Board of Elections, explained that legislation was required because while there were plenty of qualified women, getting companies to recruit them into leadership positions was a problem.

But a compulsory gender quota alone isn't enough. Norway's and other Nordic countries' success is also due to their focus on work/life equality.

According to the Gender Gap Report, thanks to shared child-care responsibility by both parents, mandatory generous paternal/maternal leave, tax incentives and other benefits, these economies have been able to boost the status and participation of women in politics and the workplace.

For now, the Government hopes its own example and persuasion will be enough. We will know how effective that is in three years when the Women's Ministry audits public-listed companies, GLCs and banks and financial institutions to see the results.

The ball is now in the court of Corporate Malaysia. To ensure that its future report card is excellent, the 30% target must become part of the corporate mission, and the search for the right women begins now.

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