Gender balanced boards to drive future growth

The SEBI regulation mandating at least one independent woman director in the top 1,000 listed companies by April 1, 2020, is a commendable step in the right direction. However, there is much more work required before we can truly tap into the value of diversity and bring about a deep-rooted and systemic change in boardroom dynamics. This means opening up boardrooms to new ideas, richer debates, and different perspectives. These important prerequisites deliver growth in a world where consumers, regulators, supply chains, stakeholders and their interactions are changing. How can companies even begin to grapple with this huge change when their boards are mired in the fixed ideas of yesterday that prevent them from listening to ideas just because they come from a woman? Although the letter of the law mandates at least one woman-director, companies need to embrace the spirit behind it and incorporate the unique strengths and perspectives of women. Interestingly, some of the bigger business houses and private companies that have adopted this in spirit have taken giant strides thereafter.

As the world grapples with the COVID-19 pandemic, women leaders stood out in their handling of the crisis. Harvard Business School historian Nancy Kohen, in her April 2020 article “Real Leaders are Forged in Crisis”, elucidates how women leaders of countries both big and small, have all swiftly and deftly tackled the COVID-19 issue, through a combination of inspired and transformational leadership in the time of crisis. They have led with calmness, clarity, decisiveness, proactiveness, and empathy. These remarkable women leaders continue to courageously navigate their countries through uncharted times, continuously adjusting, improvising and re-directing as new information emerges. Running an establishment, whether a country, a business, a household, requires both courage and leadership, and these leaders are a testament to the fact that women get the job done. Indian businesses need to recognise the strengths that women leaders bring to the table and leverage them to fully unlock their companies’ economic potential.

In India, many of the issues that women face have their roots in patriarchal oppression. These practices are evident throughout history – from the ancient practice of Sati to sex selective abortions. Presently, many women are shut out of family businesses. While some companies such as Apollo Hospitals Enterprise Ltd., Godrej Group, and Vinati Organics Ltd. have made significant strides towards gender parity on their boards, there are several others that have made little or no progress.