Accounting Equation

Indian Companies Still Have A Way To Go When It Comes To Portraying Gender In Board Rooms

All around the world, women face many hurdles, including little-to-no representation in decision making positions. Even when they were part of the conversation, the gender biases impacted how their views and contributions were considered. In India, there is a growing change in perspective to include women across all industries, in particular Indian companies.

Positive impact of businesswomen in corporate boardrooms

There’s no doubt that more women are ascending the corporate ladder. In 2017, for the first time, more women held board seats than men in the S&P 500 index – although there is still a long way to go. According to Catalyst, just 26% of all directors on Fortune 500 boards are women. Many businesses would do well to consider the positive impact that female executives have on business performance.

The McKinsey Quarterly report “The Power of Female Directors” found that companies with female directors perform better overall, across industries and geographies. For example, they have higher returns on equity and lower risk scores. In addition, they have a better gender balance in their executive teams, which leads to better decision making and fosters innovation. And finally, they operate with a higher moral authority because their employees see them as role models.

Indian companies could benefit hugely from tapping into this positive impact by appointing more women to their boards and offering mentorship programs for young female entrepreneurs. With a diverse range of experiences at their disposal, female directors can offer unique perspectives and insights that will be beneficial for the company. Furthermore, promoting gender diversity in the workplace encourages equal opportunity and

Women’s achievements being imitated by men

When Satyajit Guha started his career as a lawyer in the early 1990s, it was difficult to find female lawyers in India. Today, the situation has improved substantially and there are now plenty of female lawyers practicing law in India. The women’s achievement is now being imitated by men. This was especially evident when Mr. Guha presided over a legal workshop on women and entrepreneurship organised jointly by Nalco and the Indian Merchants Chamber (IMC) last year. When he addressed the participants, he said that while women had made great achievements in various walks of life, they were not yet represented equally at the top levels in business.

Men still dominate certain boards

Indian companies still have a way to go when it comes to portraying gender in board rooms, according to a report. The study found that women occupy just 17% of seats on the boards of India’s leading firms, although they hold half of the country’s workforce.

The lack of diversity at senior levels is hampering the country’s economic growth and could hinder the country’s goal to become a global player, the report said. “There is no room for complacency. While there has been progress over the years, much more needs to be done if India is going to meet its ambitious target of becoming a $10 trillion economy by 2024,” said Radhikauri Sundararaman, an economist at Hindustan Unilever Ltd. (HUL) and one of the report’s authors. “This includes looking beyond macroeconomic indicators like GDP growth rates to understand how businesses are performing and what areas need attention.”

A lack of female representation on corporate boards can impede decision-making and hamper innovation, the report said. Women bring different experiences and perspectives that can help companies better understand customer needs and develop new products, it added. “Many Despite these disparities, there are several ways Indian companies can improve their gender representation on corporate boards. In India, for example, women make up 51 percent of the workforce, and they hold nearly half of all managerial positions. Thus, Indian companies are well positioned to identify and appoint more female board members. Moreover, Indian businesses should encourage and empower women employees to participate in the decision-making process by creating platforms that allow them to share their ideas and experiences.

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