The debate about the advancement of women in the workplace, especially leadership positions, has been going on for many years. Yet, progress has been painfully slow.
A recent study, “Status of gender of JSE-listed boards”, shows that female representation on JSE-listed companies inched up 1% to 35% last year in 2022 compared with a year earlier. This is disappointing.
At the outset, we have to commend Business Engage, the Institute of Directors of SA and the 30% Club and Nedbank — which funded the annual study — for keeping this important topic alive.
The SA picture mirrors global trends. Still, this should not make it acceptable. Most of the reasons for slow progress are lame excuses for perpetrating this discriminatory practice. There is no excuse for overlooking women when appointing board members.
Research has proved that diverse companies tend to fare better than those that have poor diversity. Most companies, including JSE-listed ones, have diversity policies and targets to guide gender equality. This is over and above the Employment Equity Act, BEE Act and the constitution.
Understandably, it is therefore tempting for lobbyists of gender equality to call for legislation to drive female quotas. Women need all the support they can get to advance both in the workplace and board rooms. However, legislation, which would find ready support from the governing party, should be the last resort, not the first.
Already, the government wants workers to serve on company boards though they have a say in company operations on the shop floor. Also, the inclusion of trade unionists on state-owned company boards, first introduced by president Jacob Zuma, has shown no evidence that those companies were better led than the ones that did not have trade union directors.
Legislation would be demeaning to women just like race quotas.
There is nothing wrong with women. There is everything wrong with our society.
We need to use other levers to drive the gender parity agenda on boards. First, few SA companies have proper board recruitment processes. Most rely on informal networks to recruit board members. Unsurprisingly, men choose other men to replace themselves. Nominations and governance committees serve as mere rubber-stamps of decisions taken at golf courses by men.
Boards should have proper, transparent recruitment processes for non-executive directors.
Second, it is fallacious to think that if women joined the so-called boys’ clubs they would stand a better chance of being picked to serve on listed boards. Men will find other, subtler ways of overlooking female talent.
Third, we need to make sure that discriminatory practices in the workplace such as microaggression are stamped out.
Last, women, like other historically disadvantaged groups, will not on their own win their struggle for equal recognition for the same work. They need progressive partners in this struggle. Men need to lead the way in sponsoring women’s progress, especially on boards.
The JSE, the Institute of Directors of SA and business associations such as Business Leadership SA should set binding targets for women directors on boards of companies — listed and unlisted. This is a much more enlightened approach than legislated quotas.
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