Global Executive Gender Inequality

DRU 503

Experiential Learning Exercise #2
Cast Study

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Deliverables:

1. The Glass Ceiling V.S. Labyrinth of Leadership.

• Glass ceiling

The definition of a glass ceiling is referring to an intangible barrier to advancement in a profession. For many years, women and non-Caucasian have been suffering some unfair treatments due to the glass ceiling.

1. Corporate culture
2. People themselves

• Labyrinth of leadership

Nevertheless, these days, the public has been using a new term- labyrinth, which means a series of complexities, detours, dead ends and unusual paths. The real problems are how women see this world and how the world sees in them.

1. Physical problems
2. Psychological problems

Simply saying, the two terms: glass ceiling and labyrinth are all referring to the barriers that women face in professional industries. However, labyrinth has got the idea more comprehensive and well covered both the natural biological difference and some psychological differences

1. Costs and benefits of mandated gender diversity quotas in corporate boards.

In much of western Europe, such efforts follow a decade-long push by governments. In December of 2005, when 15% of the directors of Norwegian-domiciled public limited companies (”ASA firms”) were female, the Norwegian government mandated gender-balanced boards—or face forced liquidation. ASA firms were given two years to recompose their boards so that 40% of the directors were from each gender.

• In 2008 Norway obliged listed companies to reserve at least 40% of their director seats for women on pain of dissolution.
• In Belgium, France and Italy, too, firms that fail to comply can be fined, dissolved or banned from paying existing directors.
• Germany, Spain and the Netherlands prefer soft-law quotas, with no sanctions.
• Britain opted for guidelines

1. Benefit. The Commission claimed that mandatory quotas will be most effective in increasing gender diversity in corporate boardrooms within a relatively short period. The increased gender diversity, in turn, will contribute to better corporate governance.
2. Cost. Recent research in economics and psychology shows that mandatory quota rules bring some negative side effects to board and company performance. Furthermore, the research suggests that the burdens imposed by the mandatory quotas on affected companies should be evaluated more carefully, taking into account the potential negative consequences.

• The number of directorships held by female directors decreased in both absolute numbers as well as in averages and dispersion.
• Remuneration for female directors increased. However, it diverged with male directors.
• The average board size did not remain significantly constant over time.

1. Nepotism V.S. The beginnings of real social change in the country’s executive suites.

In the article, there are two female CEOs from Thailand, Yingluck and Tarisa.

• Yingluck might cause people to believe that her success might come from her brother’s and families’ support.
• Tarisa, however, proved that female can have same impact on the business and economy as male.

Moreover, according to the report released by IBR, Thailand has the highest percentage of female CEOs at 30%. We believe this indicates the real social change in the country’s executive suites.

1. Companies should address gender diversity issues at all ranks V.S. Diversity will be more easily accomplished by starting first at executive levels and then being spread downward.

We think that it would be easier to start first at executive levels and then being spread downward.

1. Female executives can work as morals and inspire other females to work harder and get what they deserve.
2. Female leaders can drive to address diversity issues by making policies and hiring more females in different positions.
3. Female leaders can help reform company culture and company values to address diversity issues.

1. New assignments for EE3 for team members

1. Why the inequality?

By using the terms The Glass Ceiling V.S. Labyrinth of Leadership to think about

• Gender Roles
• Gender Bias

1. Promoting Gender Equality

By using the examples of Norway and Thailand (or other examples if needed) to think about how to promote gender equality