Mandatory board quota for women? CEOs' views mixed
Singapore
CHIEF executive officers in general support having gender diversity on corporate boards but when it comes to setting a mandatory quota, close to 30 per cent of those who responded to a poll by The Business Times are against the idea.
The poll was prompted by a recent call by the People's Action Party (PAP) Women's Wing and BoardAgender for companies to set mandatory targets for women representation on their boards and to explain specifically why if they do not meet the quota.
Current recommendations allow companies to set targets of their own choosing, but the two organisations advocate that companies should adopt a target of at least 20 per cent female board representation by 2020.
In BT's weekly Views from the Top, CEOs were asked if Singapore should have such a 20 per cent target, and why should or shouldn't gender diversity on corporate boards be mandated. Among 41 responses received, 27 per cent voted against mandatory targets while 24 per cent of CEOs agree that gender diversity on corporate boards in Singapore should be mandated. Of the latter, about 17 per cent said that Singapore should have a 20 per cent female board directors target. The other 49 per cent who in general also show support for gender diversity include 19.5 per cent who believe that the skills and capabilities of both men and women are important in deciding on the best directors on boards.
Victor Mills, CEO of Singapore International Chamber of Commerce, said that the organisation does not agree with mandated targets because of the risks of cynicism and tokenism but he added that the situation in Singapore is "unacceptable".
"If moral suasion does not produce the desired results then we have no choice but to mandate targets as leading women in government have suggested recently."
CEO of Singapore PineBridge Investments Ana Dhoraisingam commented that the 20 per cent target is too small and something closer to 30 or 40 per cent would be more ideal.
She said: "Moving towards a more inclusive society requires our government and corporate bodies to acknowledge not only gender diversity, but also diversity in all its other forms."
Robin C Lee, chief operating officer of Bok Seng Group, said: "Diversity should not be based just on being a man or woman. It is also about diversity in knowledge, background, training, expertise and experience."
On what attitudes society adopts that tend to pose barriers in the advancement of women, Alicia Yi, managing director, Board & CEO Services of Korn Ferry, said: "In Asia, there is a persisting patriarchal approach to business, which possesses a systemic and collective 'blindness' to the value of diversity. Without a fundamental change in attitude, the diversity agenda will continue to be hampered and discourage qualified women at the leadership and board level."
