When the issue of gender quotas arises there is generally an expected sense of shock and horror. The reaction is a shared feeling amongst both men and, to a certain extent, women. The fiercest of detractors cry foul and view gender quotas as mere tokenism. They are quick to point out that forcing political or business organisations to select a minimum number of females on boards, executives and such like as disrespectful towards the role, image and capabilities of women. The mantra of the anti-quotas remains the same: Empowerment not quotas!

So far it is evident that women still play a very small part in the decision-making process in business and politics. For all the lip service, female empowerment figures continue to show a dearth of women in leadership roles. Although the situation is slowly improving in some places, statistics reveal that, in others, women have little or no say at all at boardroom level. Across the developed world, business leaders (and very often political leaders too) are generally white Caucasian men singled out early on for the top jobs – commonly referred to as the fat cats of the boardroom! This is ironic, considering that females and non-whites make up 83 per cent of the world’s present graduates. With all our forward thinking, the stalemate persists. Can things ever change? Will quotas bring a sea change for women or will they uncover a bitter hostility in the boardroom?

EU Justice Commissioner Vivian Reding thinks not. A few months ago, a statement revealed the EU Commission’s intentions to present concrete proposals for a radical shake-up in the composition of the boardrooms of Europe’s most important and significant corporations. Spearing this reform is Ms Reding herself, and she will be launching an attempt to curb male domination of corporation boardrooms with a move that will require all publicly listed companies to have a minimum presence of at least 40 per cent women as board directors. Only a fortnight ago, a resolution to this effect sailed through the European parliament. Probably it is no longer time for words but concrete action.

Many targets have been set across Europe. Norway remains a front-runner on this issue, as it has already managed to achieve a 40 per cent female presence on boards. France, the Netherlands, Spain and Italy have already legislated in favour of quotas ranging from 30 to 40 per cent of female board composition over a relatively short period of between five and six years. Britain is also trying to do its best to increase female presence on corporate boards. Although it has been government policy for at least a decade, there are presently only around 13 per cent of female directors in FTSE 100 companies and a handful of women CEOs. Unlike their continental neighbours, the British are hoping that the numbers will be beefed up through consensus, and for the time being legislation has been avoided.

It will be interesting to see how things will pan out in Britain. As a voluntary exercise, it has so far suggested that a number of requirements be adhered to in the selection process in a bid to increase female presence. There are three main prerequisites. The first is that at least three of the possible candidates are female; the second is that the focus is on skills, rather than actual experience (since there are so few female directors, the requirement for experience would lead to an impasse) and the third is that the importance of diversity at the decision-making level is acknowledged. The objective is not merely gender based but an actual economic aim.

A recent study by an American business analysis organisation, Catalyst, has revealed that businesses with a significant proportion of women in managerial roles achieved higher returns (34 per cent) and hence were more profitable than ones dominated by men. It appears that, contrary to the traditional convention, diversity does not lead to a clash of personalities. Rather, it is viewed as being an essential ingredient for good governance and hence creating a wider perspective in achieving targets and business goals.

It is expected that positive gender discrimination will remain a thorny issue among its supporters and its equally adamant detractors. Most women will agree that quotas are not the perfect solution. The natural way would be for women to penetrate these exclusive enclaves by sheer bloody-mindedness and super effort. In an ideal world, I would tend to agree completely. On the other hand, quotas could be interpreted as a necessary evil that will hopefully go a long way towards women ultimately achieving their aspirations and deserved equality in the business world.

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