Gender balance on company boards: more women, more profits

Women in decision making positions, flexible work arrangements, the way company boards operate, the gender pay gap, and the need to tackle myths about men and women and stop stereotyping were a few of the subjects that featured in a public dialogue entitled 'Women on Boards. Yes, but how?' held at Europe House in Valletta this morning.

The European Parliament is currently discussing a Commission proposal aimed at improving gender balance on the boards of publicly listed companies.

With a ratio of one woman in every 20 top management positions in Malta, the subject of gender balance is particularly relevant. All too often the debate on gender balance is limited to quotas. The public dialogue was intended to serve as a means of examining the challenges and possible solutions beyond the issue of quotas.

Labour MEP Marlene Mizzi (S&D), who participated in one of the two panel debates during the event, said that because she highly believes in women's capabilities, she tends to shy away from artificial impositions. "I'm in favour of part of the proposed directive regarding gender balance on company boards, but explained that she has not decided how she will vote, because the European Parliament has not yet been presented with the final report on the matter."

Madi Sharma, an entrepreneur who has written many opinions for the European Economic and Social Committee on issues surrounding women, gave the keynote speech at the event, saying that the issue of gender balance on company boards was not a question of gender, quotas or tokenism, but about the economic, social and political benefits.

She quoted statistics by Credit Suisse and KPMG which show that a higher participation of women in business leads to higher profits, more investment in human resources and a more long-term strategy. "All the data pleads for the inclusion of women in top management, simply because it in in the best interest of business.

"It is about having complete transparency in the head-hunting process of non-executive directors; it is about choosing the most competent person for the job, be it a woman or a man. And which company would not want to go for the most competent person?"

National Council of Women president Mary Gaerty mentioned family friendly measures. "We always seem to imply that these are intended for women only. What is really needed is a culture change."

She referred to fairy tales in which girls are portrayed as helpless and in need of a knight in shining armour to save them. "Instead, our young girls need to believe in their strength and their capabilities, just like Princess Merida in the animated film Brave."

Mariella Scicluna, from the Malta Business Bureau (MBB), quoted a Eurobarometer study which revealed that 31% of respondents in Malta replied "don't know" when asked what they believed was the best way to achieve a more balanced representation of men and women on company boards.

Scicluna explained that flexible work arrangements are excellent means by which employees are given the opportunity to combine their professional and personal lives. "They also create enhanced gender equality at the place of work. In the EU, this proactive vision is seen to promote and encourage people to re-enter and remain into the labour force.

"This eventually results in an increase in production levels, birth rates and provides a stable financial security to families. The low birthrate can be bridged by encouraging more people to enter the labour market, particularly females, who are more inclined and socially induced to take up family responsibilities - the major reason which has led to the infamous gender gap between men and women."

Several participants, including candidates for the May 2014 European elections Jonathan Shaw and Helga Ellul, took the floor in an exchange of views with panellists, discussing a number of elements, ranging from women's education, to the critical role of social networking when it comes to advancement to top positions.

The European Parliament is expected to vote on the proposal on 22 October.