Equbusiness book VERSION 28SEPT2023 - Flipbook - Page 90
challenges. Ultimately, Corporate Governance is fundamentally oriented toward fostering transparency and
accountability within companies (Töre, 2022). To make significant strides in gender diversity on corporate boards,
Turkey may need to reconsider its approach.
While the existing regulatory provisions have contributed to awareness, they have not succeeded in significantly
improving gender diversity within Turkish corporate boards. Evidence suggests that addressing this matter
without the imposition of sanctions has resulted in slow and incremental progress within the Turkish context
(Ararat et. al 2010). Recommendations, especially within the intricate fabric of Turkish corporate structures, often
characterized by familial dominance, may necessitate recalibration (Ararat et. al 2010). A recalibrated, robustly
enforced comply-or-explain approach emerges as a plausible avenue to yield more efficacious outcomes in this
context (Töre, 2022). Furthermore, implementing a structured framework for the ongoing evaluation and
monitoring of corporate progress concerning gender diversity may emerge as an instrumental catalyst in
effectuating change. Absent these measures, a strict quota system might merely facilitate numerical compliance
for Turkish corporations, potentially sidestepping a holistic integration of gender diversity into their corporate
ethos.
7.4.1.8. EU
The European Union (EU) stands as a pivotal legislative authority capable of influencing member countries and
potentially extending its impact to other nations in the long term, even concerning gender diversity in corporate
boardrooms. The initial efforts to integrate women into decision-making processes by augmenting the proportion
of women on corporate boards within the European Commission commenced with the EC Strategy for Equality
Between Women and Men 2010-2015. During this period, women were underrepresented in the largest listed
companies, constituting only 10%. This disparity was recognized not only with equality but also as an economic
concern. According to the 2010 Strategy, there is a positive correlation between women in leadership positions
and corporate economic performance, albeit without providing detailed explanations (EU Strategy, 2010).
In 2020, the European Commission proposed a directive with the aim of fostering gender diversity on boards in
listed companies across the entire EU. However, the process of developing a directive accepted by all EU
members extended until 2022. Ultimately, the Directive on Improving the Gender Balance Among Directors of
Listed Companies and Related Measures was published on December 7, 2022, by the EU. Commonly referred to
as the "Women on Board Directive," it signifies a concerted effort by the EU to address gender imbalances in
corporate leadership through legislative measures.
The directive explicitly articulates its objective as achieving a balanced representation of men and women among
the directors of listed companies. Consequently, it can be asserted that the directive adopts a gender-neutral
approach, aiming for a balanced representation of men and women on corporate boards, rather than exclusively
empowering. All provisions within the directive are oriented towards accelerating the ongoing transformation in
gender balance within corporate boards. The directive perceives gender balance as an inevitable outcome but
endeavors to expedite progress and establish a defined timetable for listed companies (Women on Board
Directive Art. 1). Consequently, it is imperative to interpret all rules within the directive as mechanisms aimed at
fostering gender-diverse outcomes in corporate boardrooms, without exhibiting favoritism towards any specific
gender.
The Women on Board Directive establishes a delimited scope, specifically targeting listed companies, with no
applicability to micro, small, or medium-sized enterprises (SMEs). The directive delineates its definition of SMEs,
encompassing companies with less than 250 employees and an annual turnover below 50 million euros or an
annual balance sheet under 43 million euros. Additionally, large companies not listed on the regular market fall
outside the purview of this regulation (Directive Art. 2). A company is deemed 'listed' if it is listed on the
regulated market of any EU member state.
