Task 4-Report to the CEO (1)

TO:

CEO, TPG Australia

FROM:

HR Team

TOPIC:

THE IMPORTANCE OF GENDE EQUALITY

Table of Contents

Task 4: Report to the CEO

Introduction

Gender inequality is a very common phenomenon in many organizations in Australia today. In order to ensure that organizations create a balance between their male and female workers in their workforce, Chief Executive Officers have come together to form an association known as Male Champions of Change group (MCC). The main objective of Male Champions of Change group (MCC) is to drive away gender inequality among Australian organizations by ensuring that like men, women are promoted to leadership positions (Maguire, 2016). Organizations that fail to demonstrate commitment to gender equality are denied commercial relations, and they may also acquire a negative reputation in the market that may make them to lose customers. In order to avoid conflicts with Male Champions of Change group (MCC), Australian companies are compelled to take appropriate actions such as formulating anti-discrimination policies and supporting gender diversity as some of the strategies towards promoting gender equality. TPG Telecom Limited is among the Australian Companies that have a boardroom with poor female representation. The purpose of this report is to provide a comprehensive analysis of gender equality issues that are worth being implemented by organizations. It also provides recommendations on how organizations should integrate these issues into their workforce in order to avoid possible retaliation by the Male Champions of Change group (MCC). The three major issues related to gender equality that will be addressed in this report include gender diversity in the corporate boardroom, the role of men in promoting gender diversity, and how gender balance should be implemented in the workplace and the boardroom.

First issue: Gender diversity in the corporate boardroom

1.1 Clarification of the issue

One key issue raised by this news story is gender diversity in the corporate boardroom. According to Valsan (2015), underrepresentation of women in top management positions is still observed in many organizations despite the rising number of women who are joining the workforce today. The corporate boards of many organizations in several nations across the world are largely dominated by males with only a few of them having males in executive positions. In the year 2014, only 20 percent of 500 United States companies have women in their corporate boards (Valsan, 2015). This demonstrates that the problem of female underrepresentation on the corporate boards is still common in many organizations around the world. According to Irvine (2016), in Australia, the number of companies that are demonstrating commitment to gender equality is on the rise as evidenced by an increase in the number of women appointed to corporate boards from 5 percent in 2009 to 43 percent on 2016. As pointed out in the news story, some Australian companies such as Austal Limited, Northern Star Limited, and TPG Telecom Limited still operate without even a single female director in their corporate boards (Maguire, 2016).

1.2 Literature and theory

According to Hickman (2014), the main factor that drives companies to promote gender balance in their boardrooms is the need to enhance business performance. Gender diversity in the boardroom is associated with improved financial performance characterized by competitive advantage. The relationship between gender balance in the boardroom and business performance can be explained in terms of stakeholder theory and agency theory (Bjarnadottir, 2013). The Stakeholder Theory conceptualizes that companies are charged with the responsibility of addressing the interests of individuals, groups, or organizations that are affected by its activities. This theory has extensively been analysed based on the presence of women in the corporate boards. Effective representation of women in corporate boards is linked to effective stakeholder management which translates to improved organizational performance (Bjarnadottir, 2013).

Agency theory assumes that directors often act to the best interest of the organization’s shareholders (Bjarnadottir, 2013). They do so by sharing roles and ideas amongst themselves regardless of the variations in their work attitudes. According to Bjarnadottir (2013), women are more assertive than men on the manner in which they tackle several governance issues. For this reason, effective representation of women in corporate boards is a good way of strengthening governance in an organization.

Additionally, companies are motivated to promote gender balance in their boardrooms by the need to demonstrate commitment to social justice. These organizations believe that they will remain committed to ethics and social corporate responsibility if they make women part of the corporate board (Krawiec, Conley and Broome, 2014). In order to bring about significant change in a company, it is important to implement gender diversity in the corporate board with the aim of improving business performance and demonstrating commitment to social justice. This is because gender diversity in a company allows sharing of ideas from more innovative teams which enhances business performance. Furthermore, gender diversity promotes effectiveness in decision making which translates into positive financial performance (Bjarnadottir, 2013).

1.3 Recommendations

In order to avoid facing issues with Male Champions of Change group (MCC), TPG Australia should pay attention to the importance of effective women representation on corporate board as described by Hickman (2014), Bjarnadottir (2013), and Krawiec, Conley and Broome, (2014). First, TPG Australia should hire an expert in gender equality issues to conduct a comprehensive analysis on the company with the aim of identifying the existing imbalances. The company should use the results of this analysis to formulate policies that will guide the company towards maintaining inclusion of women on the corporate board, now and inn future. Second, the company should make gender diversity part of its agenda on the next board meeting as this will allow board members to discuss how the company can make gender diversity part of its hiring and recruiting process.

2. Second issue: The role of men in promoting gender diversity

2.1 Clarification of the issue

Another key issue raised by this news story is the role of men in promoting gender diversity. Men have been found to play a significant role in breaking gender imbalances in contemporary organizations at both local and international level (Metz, 2016). For quite a long time, the need for organizations to maximize gender equality has been largely driven by women because women happen to be the most affected group by the observed patterns of gender inequality in organizations. Unlike in the conventional times, men and boys are now concerned with promoting gender diversity in the workplace just like women (The European Commission, 2016). According to the Council of the European Union, in order to promote gender equality in contemporary organizations, there is great need to pay attention to how men and boys are involved in destroying the gender gap as well as to how men’s contribution to promoting gender equality promotes the well-being of the entire organization (The European Commission, 2016). As outlined in the news story, men who are open-mined and who are empowered in the corporate board are highly concerned about promoting gender diversity in their organizations (Maguire, 2016).

2.2 Literature and theory

According to Pieters (2012), men are still believed to occupy higher positions in power than women, and they should use this privilege to transform gender relations within their organizations. While some men support gender diversity, a large percentage of them do not. Some of those men who do not support gender diversity believe that supporting gender diversity would mean a gain for women and a loss for men. Companies should make such people to change their way of thinking about gender diversity by developing practices that will enable all male and female employees to put their individual differences aside. Men should be taught to change from non-supporters of gender diversity to people who effectively recognize that male and females alike greatly benefit from gender equality in an organization (Pieters, 2012).

Men should be held accountable for their actions and attitudes towards women (World Health Organization, 2016). Additionally, they should be viewed in terms of cultural norms and social norms as well as in light of practices and policies, all of which normally change to suit the situation at hand. Moreover, gender diversity in the company can best be promoted if men and women work together without placing blames on one another. According to Pieters (2012), some men have began to show interest in transforming the existing gender order into an environment where gender diversity is highly embraced. A common example of men’s involvement in the promotion of gender diversity is the Male Champions of Change program (Maguire, 2016). Promoting gender diversity is for the best interest of men as well as that of the community because their lives too will be transformed. Considering the high rank that men are assigned in the society, they have an ethical obligation to eliminate gender equality in their organizations by supporting promotion of women to managerial positions (Pieters, 2012)

2.3 Recommendations

Pieters (2012) emphasizes on the need to educate men to change their mentality about gender diversity to enable them take the initiative towards promotion of gender equality. Drawing from Pieters’ ideas, it is advisable that TPG Australia implements a gender education program that is aimed at educating men on the benefits of promoting gender diversity. Furthermore, the Chief Executive Officer of TPG Australia should join the Male Champions of Change program to improve his understanding of the role played by men in promoting gender diversity. By being part of the program, TPG’s CEO will be able to effectively address the problem of lack of women in its corporate board, income variations between male and female employees, and differences in gender career developments.

3. Third issue: How to implement gender balance in the workplace and the boardroom

3.1 Clarification of the issue

Another key issue raised by this news story is how to implement gender balance in the workplace and the boardroom. Although contemporary organizations have taken appropriate steps to balance the number of men and women in their workforce and boardrooms, some strategies have been shown to work while others have failed (CIPD, 2015). In some organizations, women have been made to occupy managerial positions just like men. Unfortunately, successful gender diversity cannot be achieved if these women are not effectively accommodated into the board team by their male counterparts. Majority or companies have however been successful in eliminating gender inequality in their workforce and boardroom (CIPD, 2015). According to Casey, Skibnes and Pringle (2011), although an organization may have faced criticisms for lack of gender diversity in its workforce and boardroom, it can still implement the right strategies to correct the gender imbalance. For instance, TPG Australia can still take appropriate steps to promote gender equality in its boardroom and workforce despite the fact that its corporate boardroom still remains overwhelmingly male (Maguire, 2016).

3.2 Literature and theory

CIPD (2015) outlines five different strategies that should be implemented to promote gender balance in the workplace and the boardroom. These strategies include; creation of a supportive culture that supports gender diversity, conducting unbiased recruitment and selection in order to attract a diverse pool of talents, formulation of policies that support women with caring responsibilities to balance between work and family life, setting clear career paths for both male and female employees and offering promotional opportunities for all to senior management positions, and the use of mandatory quotas for gender diversity. The Chartered Institute of Personnel and Development, CIPD, conducted a survey in order to evaluate the effectiveness of these strategies in promotion of gender balance in the workplace and the boardroom. From the survey, it was revealed that creation of a supportive culture that supports gender diversity is the most effective in promoting gender equality while the use of mandatory quotas for gender diversity is the least effective. Based on this data, organizations should create a supportive culture that supports gender diversity in order to promote gender balance in the workplace and the boardrooms (CIPD, 2015).

Although some researchers may argue that the use of gender quotas is less effective in promoting gender equality, others support implementation of this strategy based on evidence from organizations that have used it before. For instance, Norway successfully implemented gender quotas in order to promote gender equality in its private organizations. This strategy compelled all private companies to increase the percentage of women in their boards (Casey, Skibnes and Pringle, 2011). From 2005, all private companies in Norway were given three years to achieve 50 percent of male and female representation on their corporate boards, which they successfully attained (Sjafjell, 2015). Gender balance in the workplace and the boardroom can also be achieved through mentoring to allow men to see the need of integrating women’s leadership skills into the workplace and the boardroom (Senden, 2014).

3.3 Recommendations

From the results of the survey conducted by CIPD (2015) and from evidence observed from Norwegian private companies, TPG Australia should formulate and implement a less gender quota policy in order to increase representation of women in its corporate board. Moreover, the company should design a mentoring program based on the requirements specified by the Male Champions for Change group to empower male changes to act as advocates for change in their respective organizations. The mentoring program should allow men to promote gender diversity in the workplace and the corporate board within a period of one year. Furthermore, TPG Australia should strive to become a full member of the Male Champions for Change group within a period of two years for it to get an opportunity to learn how it can implement gender balance in the workplace and its corporate boardroom.

Summary and conclusion

Although the number of women joining the workforce is on the rise in today’s corporate world, very few organizations have taken appropriate measures to promote a balance in their workplace and the boardroom. For instance, TPG Australia have not been effectively addressed the problem of female underrepresentation in its boardroom. In order to comply with the requirements of the Male Champions for Change group, TPG Australia should strive to promote gender diversity in its corporate boardroom by as a way of improving business performance and as a demonstration of its commitment towards social corporate responsibility. Moreover, the company should train its male executives to understand the importance of promoting gender diversity in the company. Finally, TPG Australia should implement relevant strategies that will enable it to achieve a 50-50 representation of males and females in its corporate board.

References

Bjarnadottir, K. H. (2013). Gender diversity in boardrooms: Does it matter for firm’s financial performance? Evidence from Denmark and Norway. Aarhus University: Aarus School of Business.

Casey, C, Skibnes, R, & Pringle, J. K. (2011). Gender Equality and Corporate Governance: Policy Strategies in Norway and New Zealand. Gender, Work & Organization, 18 (6): 613-630. doi:10.1111/j.14680432.2010.00514.x.

CIPD. (2015). Gender diversity in the boardroom: Reach for the top. Survey Report. Retrieved, October 7, 2016, from https://www.cipd.co.uk/binaries/gender-diversity-boardroom_2015-reach-for-the-top.pdf

Hickman, E. (2014). Boardroom gender diversity: A behavioural economics analysis. Journal of Corporate Law Studies, 14 (2): 385-418. doi:10.5235/14735970.14.2.385.

Irvine, J. (2016). Meet corporate Australia’s 20 female free zones. The Sydney Morning Herald, Retrieved, October 7, 2016, from http://www.smh.com.au/business/meet-corporate-australias-20-female-free-zones-20160617-gplsct.html.

Krawiec, K. D., Conley, J. M. & Broome, L. L. (2014). A difficult conversation: corporate directors on race and gender. Pace International Law Review, 26 (1): 22.

Maguire, J. (2016). Senior males with daughters more active on gender equality, says report. Retrieved, October 7, 2016, from http://www.hcamag.com/hr-news/senior-males-with-daughters-more-active-on-gender-equality-says-report-218076.aspx

Metz, I. (2016). Male champions of gender equity change. Retrieved, October 7, 2016, from https://mbs.edu/getmedia/48007aa7-4bae-454d-91a9-e1fb4df7b8dc/Male Champions-of-Gender-Equity-Change-Report-double-page.pdf.

Pieters, K. (2012). More Efforts Needed to Improve Gender Equality in Corporate Governance in the EU. European Business Organization Law Review, 13 (3): 475-496. doi:10.1017/S1566752912000316.

Senden, L. (2014). The Multiplicity of Regulatory Responses to Remedy the Gender Imbalance on Company Boards. Utrecht Law Review, 10 (5): 51-66.

Sjafjell, B. (2015). Gender diversity in the boardroom and its impacts: Is the example of Norway a way forward?’ Deakin Law Review, 20 (1): 25-50.

The European Commission. (2016). The role of men in gender equality. Retrieved, October 7, 2016, from http://ec.europa.eu/justice/events/role-of-men/index_en.htm

Valsan, R. (2015). Gender diversity in the Board of Directors: A corporate governance perspective. Alberta: University of Alberta Press.

World Health Organization (2016). The role of men in promoting gender equality. Retrieved, October 7, 2016, from http://apps.who.int/gender/topics/role_of_men/en/index.html