A recent report has exposed the underrepresentation of female executives in the UK’s top 100 companies. Out of those companies, only nine have a female CEO, while only 17% of executives in the FTSE 100 are female.
Benefits of Female Executives in the Workplace
Despite ongoing efforts to improve gender diversity, businesses and banks remain male-dominated. However, evidence shows that female executives bring positive qualities to the workplace, such as creative thinking, democratic leadership styles, and greater sensitivity toward ethical and environmental issues.
Impact of Women on Corporate Responsibility and Risk Management
Companies with more women on their boards tend to score higher on social responsibility performance and corporate governance, and are less likely to engage in corporate fraud and tax avoidance. Women also make a significant difference when it comes to tackling climate change and environmental challenges. Furthermore, banks with more women executives are less likely to take excessive risks and commit misconduct and are more transparent in their financial reporting.
Gender Bias and Barriers to Female Leadership
Although there have been some improvements in gender diversity in leadership roles, particularly in some Asian countries, deeply entrenched and gender-biased belief systems still hinder the possibility of filling leadership and decision-making positions with women. This keeps women disadvantaged, especially in labor and capital markets.
Addressing Gender Inequality in the Workforce
To address this issue, business leaders must recognize the root causes of gender inequality and actively work towards building a gender-equal workforce. They must initiate change starting at the top by reinforcing a culture that is inclusive and forward-thinking, beyond high performance. Additionally, having more women in key decision and innovation positions delivers steadfast organizational transformation.
Adopting a “Gender-Intentional” Approach
To achieve gender equality, organizations need to adopt a “gender-intentional” approach. This involves setting targets and measures that focus on gender and breaking through cultural barriers and biases. One successful example is the Kashf Foundation, which introduced group lending to women and fostered gender accountability by setting efficiency targets for gender equality.
Examples of Women’s Leadership Driving Change and Innovation
The examples of Fiji Airways and the Kashf Foundation demonstrate how women’s leadership drives change and innovation in business. Fiji Airways was able to optimize its business processes and commission its first-ever woman pilot of a widebody aircraft, while the Kashf Foundation became financially sustainable and won the COVID-19 Action Award at the 2020 UN Women Asia Pacific’s Women’s Empowerment Principles Awards.
Investing in Women Leaders Benefits Economy and Society
Investing in women leaders is not only good for business but also good for the economy and society as a whole. Businesses and banks have a responsibility to support women in leadership and create innovative and inclusive business cultures that lead to economic growth and social responsibility.
