Women in Leadership and the Corporate Workforce
International Women's Day, celebrated on March 8, 2025, brings attention to the inclusion and increase of women in the workforce. Despite efforts, there are significant challenges and barriers to women's participation in corporate sectors globally.
Challenges in Diversity, Equity, and Inclusion (DEI)
- Recent actions in the United States to roll back DEI programs highlight challenges in increasing women's workforce participation.
- Women make up 48% of the corporate workforce in America but face threats of identity erasure due to such policy changes.
- Globally, the decrease in DEI hirings affects women's roles and representation in leadership.
Women's Participation in India
- Women account for only 35.9% of the worker population in India, with just 12.7% in senior and middle management roles as of 2024.
- Legal mandates like the Companies Act of 2013 and SEBI regulations have slightly increased women's representation in senior roles.
- The inclusion of women directors on the board of NSE 500 companies increased from 5% in 2011 to 18% in 2023.
Benefits of Women in Leadership
- Women enhance the talent pool with diverse educational and career paths.
- They promote participative leadership styles, encouraging robust discussions and adding value.
- Women leaders focus on relationship building, stakeholder commitment, and strategic oversight.
- Companies with women in senior roles are often listed among the most admired and ethical companies.
Effective Corporate Leadership
- True effectiveness is achieved when women have real power and responsibility, not just token roles.
- More women in C-Suite/KMP positions and as independent directors are needed for impactful leadership.
- Parity in remuneration with male counterparts signifies a robust presence of women in corporate roles.
Conclusion and Future Directions
While progress has been made, significant steps are still needed to ensure women's genuine participation in corporate leadership. Women's Day celebrations should serve as a reminder of the importance of promoting women's roles not just as a gesture, but for substantial contributions to corporate governance and the economy.
Thought Arbitrage is conducting a detailed study on women on corporate boards over a 10-year period to further explore these issues.