WOMEN IN CORPORATE LEADERSHIP, THE LIVED REALITY

International Women's Day sparks global debate on corporate gender equality. Despite women comprising 48% of the US workforce and 35.9% in India, they hold only 28.2% of management roles. Significant challenges include promotion gaps, bias, and motherhood penalties. Mandates boost board representation, while robust mentorship and inclusive policies drive progress.

Last Updated on 10th March, 2025
3 minutes, 50 seconds

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Context:

International Women's Day on March 8, 2025, serves as a catalyst for discussions about gender equality in the corporate world.

News in Detail

Women constitute around 48% of the workforce in corporate USA, yet they remain underrepresented in leadership positions.

In India, women make up about 35.9% of the workforce, with only 12.7% holding senior and middle management roles as of 2024.

Globally, women just hold 28.2% of management positions.

Challenges to Women's Advancement

The "Broken Rung" Phenomenon: Women struggle to secure their first promotion to managerial positions, creating a leadership pipeline issue that limits their advancement to executive roles.

Glass Ceiling Effect: Invisible but real barriers prevent women from advancing beyond certain levels in organizations, despite initial entry-level opportunities.

Unconscious Bias and Stereotypes: Women face biases that question their capabilities and leadership potential. They often encounter a double bind where assertive behavior is perceived negatively while collaborative approaches may be seen as lacking authority.

Limited Access to Networks and Mentorship: Women frequently lack access to influential professional networks, mentorship, and sponsorship opportunities that are crucial for career advancement.

Motherhood Penalty: Working mothers face discrimination in hiring, promotions, and pay, compounded by inadequate workplace support such as childcare and flexible work arrangements.

Mandates Promoting Women in Leadership

●  India's Companies Act, 2013 mandates at least one woman director on the boards of certain public limited companies.

●  The SEBI mandate requires at least one independent woman director on the boards of India's top 1000 listed companies.

●  These legal requirements have led to significant increases in women's board representation, with women directors on NSE 500 listed companies increasing from 5% in 2011 to 18% in 2023.

Benefits of Women in Leadership Roles

Women bring diverse educational backgrounds, career experiences, and professional networks that expand organizational perspectives.

Women employ participative leadership approaches that foster robust discussion, better decision-making, and greater value creation

Women contribute to stronger risk management, better monitoring, and increased corporate accountability.

Women tend to focus on relationship building, promoting greater stakeholder commitment and developing strategies that address stakeholder concerns.

Companies with more women in senior roles are more likely to be recognized as ethical, admired, and employee-friendly, this creates a cycle of benefits.

Way Forward

Achieving genuine gender equality in corporate leadership requires:

  • Concrete steps to address unconscious bias in hiring and promotion.
  • Robust mentorship and sponsorship programs for women.
  • Family-friendly workplace policies to address the motherhood penalty.
  • Cultural shifts that value collaborative leadership styles.
  • Continued commitment to DEI initiatives despite political challenges.
  • Recognition of the business case for gender diversity.

Must Read Articles:

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Source:

THE HINDU

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