Expectations for improved boardroom diversity in Australia have been disappointed.
Women account for only 23 per cent of ASX200 board positions appointed since the beginning of this year. The percentage of women on ASX200 boards today is 29.5 per cent, down from 29.7 per cent at the end of last year, according to the Australian Institute of Company Directors .
Institute Managing Director and Chief Executive Officer, Angus Armor said the results are disappointing.
He said, “at the beginning of this year we expect to achieve our 30 per cent target, but unfortunately the overall percentage has dropped since the start of this year”.
If there is sufficient diversity of skills, experience and gender to effectively meet the demands of a challenging governance landscape. “
The latest statistics reveal that there are four companies with no women on their boards and 50 companies only have one female board member.
This is a silent cry from the goal, stated by the Victoria-based international organization Women on Boards:
40:40:20 – means 40 per cent female, 40 per cent male and 20 per cent of either and / or other gender. “
Say Women on Boards founders, Claire Braund and Ruth Medd: “Unness you have a reasonable percentage of women on boards, then the benefits that flow from gender diversity are simply not realizable by an organization.” These include diversity of perspective, experience It is, therefore, true that improving the percentage of women increases the likelihood that other diversities want – such as ethnicity and regionality. “
Melbourne-based global resources giant BHP’s board now is 50:50 (men: women). But there are many sectors in this country were much better.
Search improvement in Australia has been boosted by Australia’s $ 2 trillion superannuation sector. In 2015, the Australian Council of Superannuation Investors, an umbrella body representing the sector, began urging its members to put pressure on companies with no female directors.
The Australian Stock Exchange has therefore put pressure on its listed companies to institute a quantifiable diversity policy at all levels of their corporate organizations. ASX listed entities wants to be required to disclose their achievements against their own needs and their disabilities on the board, in senior management and employed throughout the whole organization organization. If companies have not complied with the CGPR they must state in their annual reports why not they have not complied.
Boardroom Diversity Leads to Improved Performance – Research shows
The ASX has conducted a study among its listed companies. The report shows that the clear benefit had been achieved by improving gender diversity. They have improved productivity, better employee retention, better outcomes, competitive advantage and enhanced reputation among these benefits.
It seems clear that, for Australia to have better performing boards, more women in the boardroom are needed.
Companies with more female executives in decision-making positions, according to a report from the Credit Suisse Research Institute.
As we re-run our dataset, we find those investors Focusing on those companies where they continue to work at a CAGR of 3.5 percent. “
This confirms the latest thought leadership on boardroom diversity. “Boards needing a lot of work to do their job workplace of the future. The challenges ahead are, ” writes the Australia-based Consultancy Ethical Boardroom in a note.
New Tools to Build New Connections
Business (and board recruitment) is relational. With reputations and shareholder value on the line, we are happy to turn to people and trust. Who may fall outside of their immediate network.
New tools like Diligent’s Director Network , a CGLytics -powered database now available in the Diligent Boards software, functions as a LinkedIn-type platform for discovering qualified candidates with varying degrees of connectedness. Boards can search the extensive CGLytics database for directors who meet their experiential and demographic criteria.
Corporate directors should think on a personal scale: What’s a small commitment? For more information visit www.diligent.com.
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