Enhancing female representation in non-profit boardrooms

The fifth of the United Nations' Sustainable Development Goals is to achieve gender equality and empower all women and girls (SDGs). Assuring "women's full and effective involvement and equal chances for leadership at all levels of decision-making in political, economic, and public life" is one of the particular aims of this goal. The proportion of women in executive roles is one measure, among others, of progress toward this aim. Women hold only 28.2 percent of managerial roles despite making up 39 percent of the world's labor force in 2019. Much effort has to be done to enhance gender equality given that this is only a 3% gain from 2000. Given that the SDGs emphasize leadership, it makes sense to start by concentrating on boardrooms - as they are in the position to set the direction of organizations.

According to a Deloitte analysis from 2021, 17.1 percent of Indian boardrooms were occupied by women, which is about 3 percent less than the global average of 19.7 percent. The statistics are even more alarming when looking at how many boards are presided over by women worldwide, not just in India. The power that female board members potentially have as well as the example that is established by fostering diversity at the top of organizations make it evident that these inequities must be addressed. A special emphasis needs to be placed on boardrooms for nonprofit and non-governmental organizations because of their capacity to lead by example. These organizations are frequently seen as the forerunners of social change due to the societal impact they have. Therefore, enhancing gender equality in nonprofit boardrooms will contribute to setting a good example for the rest of society. Although there is a dearth of statistics on the level of gender equality in nonprofit boardrooms, data from the business sector and anecdotal evidence indicate that the levels are far from ideal. This shortcoming needs to be fixed right away because it will help focus reformative efforts. There is, however, ample research to support the advantages of gender diversity in boardrooms. According to studies, having more women on boards can, among other things, improve the quality of merger and acquisition choices and lessen the chance of too aggressive risk-taking. Although the benefits of having more women in boardrooms are generally known, the situation is a little more complicated. Although gender equality resulted in more effective board monitoring and strategy creation, there was no discernible association between market performance, according to a meta-analysis of 140 studies. This can be primarily ascribed to the fact that the processes, culture, and structure of boards guarantee that gender diversity is more than a showpiece initiative.

As a result, it's crucial to create clear guidelines and priorities for boardroom operations. A board's efficacy would be maximized and the groundwork for actual gender diversity would be laid forth in the board's goals and objectives. All organizational hierarchies can be aligned to reduce conflict and boost productivity with a clear sense of purpose. This is particularly true for boards of non-profit organizations, where the objectives for board members are significantly more complex than those of their corporate counterparts. Nonprofit boards have a range of goals instead of the relatively simple metric of generating earnings and dividends because these goals differ by industry, region, and by time.

The different ways nonprofit organizations can be established—as Section 8 Companies under the 2013 Companies Act, trusts, partnerships, or other legal structures—only add to the complexity of this. Each of them has its own rules and requirements for leadership. These are only a few of the factors that call for the definition of goals for non-profit boards to eliminate the uncertainty. It is simpler to gauge the effectiveness of boards and board members once the objectives are clearly defined. With the use of these precise measurements, non-profits can spot opportunities for improvement, such as the need to replace underperforming board members or add new board members with pertinent experience. Even though it would seem like a straightforward step to improve an organization's overall effectiveness, some NGOs are hesitant to take it. However, changing the corporate culture in boardrooms and organizations is the most crucial stage. To promote more effective leadership, efforts must go beyond the legal boards' compliance-focused initiatives. According to the evidence, to fully benefit from diversity, a more egalitarian culture that values collaboration, promotes divergent viewpoints, and welcomes open discussions about diversity is necessary.

The interaction between boards and senior management is crucial to this equation because it can undermine the effectiveness of boards if CEO expectations are not clear. When defining the purposes and objectives of boards, CEOs must be consulted, particularly when those CEOs are experienced professionals who were brought on board later for their leadership skills. Boards can function most effectively when they have independence, clarity, and a purpose. These actions help create the conditions for female board members to succeed. Of course, none of this will be simple. Many women will be forced to endure overt discrimination and less evident instances of bias, both of which are still worrisomely widespread in society at large and not just in workplaces. Given that women are typically expected to carry out the majority of household duties regardless of whether they are employed or not, they will also have to balance additional domestic responsibilities while doing this. Women spend twice as much time as males performing unpaid domestic and care labor on a typical day.

The prospect of a new future will be demonstrated by the development of a sizable cohort of highly successful and capable female board members. one where gender is not a hindrance to development and success and where variety and equality are the norms. They will earn their position at the table by being high-performing board members who add value, giving them the courage to speak up about the direction of the organization on matters like diversity and strategic growth. The number of women who can serve on non-profit boards must be increased. Legislative mandates, as used in nations like France, Norway, and Italy, could be one approach to do this. However, it is questionable if statutory laws help achieve diversity without less enforceable changes in organizational culture. It is crucial to understand that for boardroom diversity to truly shift, societal reforms will also need to occur. Nevertheless, change must begin somewhere, and there is enough data to imply that having female board members will show non-profits the advantages of diversity. not simply from the perspective of gender, but also in other contexts. This will eventually affect business boardrooms, which might be less open to radical change, and eventually have an impact on society as a whole.