This article is part of the UPSC Daily Editorial Analysis, covering The Hindu editorial – " Women in Corporate Leadership, the Lived Reality," published on 7th March, by the best UPSC coaching in Kolkata.
Syllabus: GS Paper 1 (Society) – Issues related to women empowerment, gender equality and social reforms. GS Paper 2 (Governance & Polity) – Legal and policy frameworks for women’s representation in leadership (e.g., Companies Act, SEBI regulations). GS Paper 3 (Economy & Development) – Impact of gender diversity on corporate governance, economic growth and financial performance.
Women’s representation in corporate leadership in India is below 30%. Growth has stalled despite policies. Bias, work-life balance, safety and lack of mentorship are key barriers. Construction, oil and manufacturing have the lowest female leadership. Legal mandates like the Companies Act, 2013 helped, but enforcement is weak. The rollback of DEI programs threatens progress. Studies by McKinsey, Credit Suisse and Peterson Institute show that gender diversity boosts profits. Real change needs equal pay, hybrid work and leadership roles with real power.
International Women’s Day, celebrated annually on March 8, highlights the progress made toward gender inclusion in workplaces. However, the reality of women in corporate environments remains challenging. There are still barriers that limit their entry and growth in leadership roles.
The LinkedIn report on "Women in Leadership in Corporate India" highlights the persistent underrepresentation of women in leadership roles. Despite various policies and initiatives, the percentage remains below 30%. This stagnation indicates the need for structural and cultural reforms to promote gender diversity.
Findings of the Report on Corporate Leadership of Women in India:
The recent rollback of Diversity, Equity and Inclusion (DEI) programs in the United States is a major setback for workplace gender inclusion. This shift, discouraging DEI-preference hiring in both public and private sectors, threatens to reduce opportunities for women. Given that women make up 48% of the U.S. workforce, such policies could undermine decades of progress, with global ramifications.
The decline of DEI programs is not just a localized issue—it impacts the global workforce. As the corporate world becomes increasingly interconnected, women’s participation in leadership roles is a crucial global concern. Studies have consistently shown that fewer women in leadership weaken innovation, financial performance and corporate governance.
Critics argue that DEI efforts often result in tokenistic inclusion, where women are seen as obligatory hires rather than valued professionals. While DEI programs provide a gateway, sustained career growth depends on merit, opportunity and systemic changes.
Companies with higher female leadership tend to rank among the most admired, ethical and best workplaces. Research underscores that women leaders bring distinct advantages, including:
The McKinsey & Company Diversity Wins Report 2020 found that “companies whose boards are in the top quartile of gender diversity are 28 percent more likely than their peers to outperform financially”
Ten years of research by McKinsey and LeanIn.org offers key statistics demonstrating a clear correlation between organizational diversity and financial performance. For instance:
According to Credit Suisse's "Gender 3000" report from 2021, companies with at least one female board member demonstrated a higher return on equity (ROE) and better stock performance compared to those with entirely male boards; furthermore, companies with more than 20% female executives exhibited greater profitability and improved risk management.
According to Peterson Institute for International Economics between 1997 and 2017, firms with at least one female director or executive officer consistently reported larger profit margins.
Women in leadership roles significantly contribute to corporate governance, strategic decision-making, stakeholder value and environmental sustainability, strengthening the overall corporate structure.
In India, women account for 35.9% of the workforce, but their representation in leadership roles is only 12.7% (2024 data). Despite some progress, many still face barriers in climbing the corporate ladder.
Over the past decade, legal mandates have played a significant role in increasing women’s representation in Indian corporations:
Due to such interventions, the representation of women directors in NSE 500 companies rose from 5% (2011) to 18% (2023). These steps highlight the effectiveness of regulatory frameworks in promoting gender diversity.
True inclusivity means placing women in roles with actual authority and decision-making power rather than symbolic positions. Companies must ensure:
While Women’s Day serves as an annual reminder of gender inclusion efforts, companies must move beyond symbolic gestures. Real change requires a commitment to merit-based inclusion, fair compensation and leadership representation.
The underrepresentation of women in leadership positions, including in judiciary and corporate boards, necessitates continuous study. Organizations like Thought Arbitrage are conducting long-term research on gender representation trends, offering insights for more effective policies.
The stagnation in women's representation in corporate leadership is a pressing issue. Addressing this requires a multifaceted approach involving policy changes, corporate reforms and cultural shifts. By fostering gender diversity, Indian corporates can unlock the full potential of women, leading to inclusive and sustainable economic growth.
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PRACTICE QUESTION Q.Women’s representation in corporate leadership in India remains low. Identify key barriers and suggest measures to enhance gender diversity. (150 words) |
1. Why is women’s representation in corporate leadership in India low?
Despite policies, women’s representation remains below 30% due to bias, work-life balance challenges, safety concerns and lack of mentorship.
2. Which sectors have the lowest women’s leadership representation?
Construction, oil & gas and manufacturing have the lowest representation (11-12%), while education and government have the highest (29-30%).
3. Has the Companies Act, 2013 improved gender diversity?
It mandates at least one woman director, but enforcement is weak. Over 500 companies have been fined for non-compliance.
4. How does gender diversity impact corporate performance?
Studies by McKinsey, Credit Suisse and Peterson Institute show that companies with more women leaders outperform financially and have better governance.
5. Why are DEI rollbacks a concern?
Rolling back Diversity, Equity and Inclusion (DEI) programs reduces opportunities for women and threatens decades of progress.
6. What can companies do to improve women’s leadership in corporates?
Ensure equal pay, hybrid work, mentorship and real leadership roles instead of token representation.
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