Equbusiness book VERSION 28SEPT2023 - Flipbook - Page 49
EXTERNAL FACTORS
8 REGULATING GENDER DIVERSITY ON CORPORATE BOARDS
This chapter rigorously investigates the legal frameworks and regulatory tactics deployed across various
jurisdictions to enhance gender diversity on corporate boards. Despite the increasing participation of women in
the workforce, this shift has not proportionally translated into higher representation within corporate
management echelons. Presently, women remain markedly underrepresented in boardrooms, where male
predominance remains the norm. Nonetheless, there has been a notable legislative momentum in recent years,
especially within the European Union and its member states, where laws, regulatory measures, and quota
systems have been instituted to address and rectify gender imbalances on corporate boards, signalling a proactive
stance towards fostering gender equity in corporate leadership.
Despite the shifts in workplace dynamics, the persistent issue of gender diversity in corporate boardrooms
remained largely unaddressed by regulatory bodies until the early 2000s. Norway's pioneering legislation,
followed by France, Spain, the European Union, and other nations, marked a significant turn towards advocating
for gender balance through mandatory quota laws for boardroom composition.
Considering this historical background, this chapter begins with identifying two primary regulatory strategies for
fostering boardroom diversity. The predominant and seemingly most efficacious approach is the adoption of soft
law regulations, specifically quotas for female representation or, more inclusively, for both genders (Seierstad et
al., 2017; Mensi-Klarbach & Seierstad, 2020; Kang et al., 2023). The alternative strategy encompasses less
explicit regulations that guide without imposing mandatory quotas or sanctions for non-compliance, thereby
relying on the voluntary commitment of corporations to promote gender diversity. This dichotomy highlights the
contrasting methodologies adopted by jurisdictions in addressing the gender disparity within corporate
governance structures (Keay, 2014; Klettneret al., 2016; Mensi-Klarbach & Seierstad, 2020).
However, merely identifying the approaches in regulatory efforts for gender diversity in corporate boards does
not suffice for a nuanced understanding. The ensuing analysis within this chapter delves into the intricate
regulatory landscapes of Norway, France, Spain, Germany, Belgium, Lithuania, The Netherlands, Türkiye, and
the European Union, with a particular focus on EU Directive 2022/2381. The comprehensive examination of the
legal frameworks across the mentioned countries illuminates the central role of quotas in mitigating gender
disparities on corporate boards. It uncovers a broad spectrum of regulatory approaches concerning the scope of
quotas, percentage requirements, and enforcement mechanisms, illustrating the variability across jurisdictions.
European Union Directive's efforts to harmonize these disparate approaches and support the gender corporate
board room diversity through the enactment of Directive 2022/2381 are insufficient. Limitations hamper the
effectiveness of the directive in both its scope and the enforcement of sanctions.
