Equbusiness book VERSION 28SEPT2023 - Flipbook - Page 33
5.3 SUMMARY AND CONCLUSION
According to the evidence from Spain, Turkey, Belgium, and Lithuania, the corporate board- and ownership
structure are the main internal corporate governance mechanisms on promoting board gender diversity.
In Spain and Turkey where family ownership is common , it is harder for women to get in the board when she is
not part of the family, or when the company is not a family corporation. Additionally, specifically for Turkey as a
high-power distance country, the perspective of main shareholders plays a significant role in determining gender
diversity issues. Thus, the board and the shareholders should work together to define clear statements,
disclosures, and policies of the board as internal quotas. These efforts could be supported by the formation of
diversity committees inside the board of directors, special departments/consultants for higher number and voice
of women on boards.
It is important to point out here that any training modules on gender diversity issues should include a specific
course for the main shareholders, explaining the benefits of gender diversity in terms of firm value. According to
the Turkish sample in particular, these trainings may increase the motivation of main shareholders on guiding
the company towards more diversity.
Personality traits, previous experience, and personal motivation to be on the board are other main reasons
someone becomes a board member. Therefore, the human resources management and the previously
mentioned departments-consultants may provide the policies and training regarding these issues. This issue is
also related to the percentage of women in the other hierarchical levels and in other departments of the
company. Therefore, transparency of disclosure may be another vital mechanism for gender diversity on board.
Detailed information and planning on the gender diversity of labor force and executives may help promote
gender diversity on corporate boards as well.
According to the evidence, stakeholder engagement and regulation are also decisive in fostering gender diversity
and women9s voice on corporate boards. The sample agrees that mandatory requirements and quotas from
external regulators are helpful on gender diversity issues, despite the contradictory views. However, it is too
early to observe any long term impact of these rather new mandatory quotas.
Since the stakeholder governance mechanisms are also influential, some techniques that would also be helpful
in raising the number of women and in raising their voice on European corporate boards, are: survey techniques,
regular meetings with stakeholder representatives on board structure, voting mechanisms, special events-annual
meetings on gender diversity issues.
