Equbusiness book VERSION 28SEPT2023 - Flipbook - Page 24
The scope of the directive does not cover the entirety of the corporate landscape, thereby missing an opportunity
to influence a broader range of organizations and potentially catalyze a more comprehensive cultural shift
towards gender diversity in the corporate sector. Additionally, due to the directive's reluctance to mandate a
unified approach to penalties, the variability in sanction mechanisms across member states further dilutes its
potential impact.
In addition to quotas, various jurisdictions have implemented supplementary measures to promote gender
diversity on corporate boards. These measures encompass enhancements in the transparency of board selection
processes, establishing reporting requirements, and developing corporate governance codes that advocate for
voluntary adherence to diversity principles.
Consequently, despite the myriad regulations aimed at fostering gender diversity on corporate boards, achieving
this goal remains a complex challenge that necessitates a unified effort from policymakers, corporate leaders,
and stakeholders. Quota systems, while directly contributing to an increase in female representation, are but one
piece of the puzzle. The impact of enforceable sanctions and remedies on the success of regulatory frameworks
in promoting gender diversity on corporate boards cannot be overstated in quota systems. Without stringent
regulations and clear consequences for non-compliance, the aspiration for gender-diverse boards faces
significant hurdles. A holistic approach, encompassing enforceable sanctions, alternative regulatory strategies,
and a deep-seated cultural commitment to diversity, is paramount for effecting sustainable change.
Furthermore, this analysis advocates for an integrated strategy that marries mandatory quotas with other
innovative measures and organizational cultural transformations. It calls for expansive strategies that include
both listed and non-listed companies, urging a delicate balance between the objectives of gender equality and the
imperatives of corporate governance efficiency.
References
Kang, W., Ashton, J. K., Orujov, A., & Wang, Y. (2023). Realizing Gender Diversity on Corporate Boards.
International Journal of the Economics of Business, 30(1), 1-29.
Keay, A. (2014). Comply or Explain in Corporate Governance Codes: In Need of Greater Regulatory Oversight?
Legal Studies, 34(2), 279-304.
Klettner, A., Clarke, T., & Boersma, M. (2016). Strategic and Regulatory Approaches to Increasing Women in
Leadership: Multilevel Targets and Mandatory Quotas as Levers for Cultural Change. Journal of Business
Ethics, 133(3), 395-419.
