Equbusiness book VERSION 28SEPT2023 - Flipbook - Page 94
Lithuania. This approach lacks the transformative impact needed to instigate meaningful change within corporate
structures.
7.5. CONCLUSION
Upon examining both national and international approaches, it is evident that legislators predominantly rely on
quotas to address gender diversity in corporate boardrooms. The regulatory landscape reflects a trend towards
mandatory quotas for both genders. Although some rules exhibit a gender-neutral façade, a closer examination of
the societal context and gender distribution on boards unveils an implicit emphasis on supporting women in
leadership roles because of the social status of women and men.
Quotas, serving as the linchpin in the battle against gender discrimination on corporate boards, exhibit variability
in scope, quota percentages, and sanctions across different jurisdictions. Even within the European Union, the
Woman on Board Directive refrains from establishing a standardized framework for sanctions at the national
level, which leads to different sanctions inside the EU. It prevents all countries from taking a common approach
to creating diverse corporate boards. The unbalanced regulation made by national governments will prevent the
EU from creating a diverse corporate board. Nevertheless, even in that situation, we see that as we navigate the
intricacies of gender-inclusive regulations, it becomes apparent that quotas play a pivotal role, whether explicitly
or implicitly designed to uplift women. The ongoing evolution of these regulations, marked by varying scopes and
sanctions, reflects the dynamic nature of the discourse on gender diversity in corporate leadership.
Within the landscape of gender quota regulations, a pivotal predicament surfaces: the delicate equilibrium
between scope, quota parameters, and the corresponding imposition of sanctions. A recurring shortcoming
across various jurisdictions is the restricted scope inherent in these regulations. Predominantly tailored for listed
companies, these measures often fall short of engendering transformative effects at both the national and
European Union (EU) levels. Non-listed companies and small to medium-sized enterprises (SMEs) invariably find
themselves excluded from gender quotas, diminishing the overall impact. Even when regulations extend their
reach, they frequently feature constricted quotas. Germany, for instance, espouses the view that merely one
male and one female representative are sufficient for achieving gender balance.
The recent EU directive, however, marks a notable stride toward redressing this conundrum, leading to a
standard quota for men and women. It introduces standardized and equitable gender quotas for corporate
boards, mandating 33% and 40% percentages for distinct scenarios. Despite this commendable effort, the
directive's scope remains confined. Focused predominantly on listed companies, it neglects substantial facets of
the broader corporate culture inherent in a given country. In essence, both EU and national scopes emerge as
inadequate levers for ushering transformative changes in corporate culture within a nation or region.
The rationale behind this circumscribed approach becomes apparent upon closer scrutiny. It seems policymakers
are hesitant to effectuate radical changes or directly intervene in corporate boards, fearing unforeseen
repercussions. The objective, then, is not an immediate overhaul of corporate management but a gradual
metamorphosis facilitated by the enactment of exemplary practices. Legislators position quotas not as an
unequivocal panacea but as instruments that, through exemplary instances, seek to alter corporate culture and
reshape shareholders' perspectives. These regulations serve as prototypes, illustrating a potential paradigm shift
that influences corporate culture and fosters new narratives around gender diversity within boardrooms.
The persisting challenge within quota regulations extends to the domain of sanctions, echoing the uncertainties
surrounding scope and quota parameters. Curiously, lawmakers seem reticent to deploy punitive measures that
would overtly coerce corporate adherence to quotas. Instead, a recurrent motif emerges 4 legislators seek to
influence corporate culture and societal perspectives, steering clear of draconian legal mandates in the
boardroom. The Spanish example illustrates that the mere introduction of the term "quota" can catalyze
transformative change.
