Since its inception, Women Directors Malta (WDM) has consistently argued that women should have equal opportunity and equal access to board level vacancies – based on commercial needs, skills and ability, and not simply on gender.
In Malta, there is a need to focus on creating workplace cultures free from bias, with policies and processes in place that ensure women have an equal opportunity to progress to board positions, a level playing field. This is what WDM means by gender equality.
Research demonstrates that diverse teams sustain higher and more consistent performance over longer periods and organisations that aggressively promote women to executive positions, have one quarter to one third higher profits than their industry average. (Boards do better when women are aboard –The Sunday Times of Malta, September 2).
Other recent studies (Harvard Business Review, June 2011) report the so-called ‘C’ factor, showed how working groups with more women in them demonstrate higher collective intelligence – problem-solving capability – because women listen better and encourage more participation.
Governments and corporations have addressed gender representation on corporate boards through legislation, voluntary targets or quotas. Norway and the UK are often used as examples of what can be achieved (More Women in the Boardroom – The Sunday Times of Malta, September 2).
The law should not be expected to do everything. Quotas are not a panacea and embedding voluntary targets would be viewed as a quota. While there may be more gender equality, this does not necessarily lead to increased profitability. Boards must set and develop their own targets and strategies.
However, men need to participate in finding a solution if there is to be real change
WDM believes legislation to increase the number of women on boards in Malta is inappropriate: good quality male board members could be ousted to make way for poorer quality women candidates. Such action will also be resented by women themselves as appointments should be based on merit.
However, men need to participate in finding a solution if there is to be real change. The issue, therefore, is how to move towards a more equitable scenario with respect to women directors on boards, whose access is controlled by men. The most talented women won’t rise to the top unless they have real chances to lead and may go elsewhere
No single initiative will necessarily solve the imbalance but WDM will launch its Charter and Quality Mark on November 17 at the Casino Maltese, supported and sponsored by HSBC Malta Plc, who have invited key chairpersons and CEOs to champion gender diversity. This charter is based on a paper submitted for discussion (Gender Equality in the Boardroom –The Sunday Times of Malta, April 10).
The rationale is that to change a predominant culture, this can only be led and managed from the top; men need to champion this.
The idea of the Quality Mark – which can be featured on a company’s marketing material – is to demonstrate to all staff, agencies and aspiring women employees, sponsors and the public, that a company is offering equal opportunities and equal access to the boardroom for very capable women. That can give a competitive advantage.
Signing the WDM Quality mark means an organisation will meet or work towards commitments and detailed actions that form part of the charter.
Any organisation can apply for one of the three WDM Quality Mark levels, signifying the different levels of attainment and the different time spans required by an organisation. Each level, however, requires additional criteria to be met before an organisation can move to the next. The criteria are challenging, but attainable. Once awarded, companies are given a health check every two years to ensure the standards of provision are maintained or should they want to be considered for a more advanced level.
Although not exclusive, the key criteria relate to a boardroom diversity policy with clear objectives, processes and outputs published annually; open promotion of all board positions; a proportion of women on the board and in senior executive roles, and transparency.
Those agreeing to this charter will be given an appropriate level quality mark to distinguish themselves from other organisations that may not be ready or who do not wish to participate in this initiative.
Further information can be obtained on www.womendirectors.org.mt or an e-mail to: info@womendirectors.org.mt.