The Professional Women Roundtable (PWR), a female leadership development, career planning and gender diversity consultancy operating across Africa, recently convened a webinar titled, “Women on Boards: The Business Case” to help companies listed on the Nigerian Stock Exchange achieve more gender-balanced boards as a pathway to increasing profits.
The well attended virtual conference, which was moderated by Ivana Osagie, founder of PWR, was held to mark the launch of the PWR NSE Top 20 Gender Diversity Scorecard Edition 1.0.
PWR is a pioneer that helps Nigerian organisations develop programs that maximise the benefits of gender diversity for increased business performance and profitability. It has a strong track record of helping women across different sectors and stages of their careers develop their leadership capacity, raise their talent visibility and increase their representation in the marketplace. Over the years, PWR has established a reputation for providing insightful data and custom research to investors and other institutions focused on gender diversity.
Speakers at the webinar were Muhammadu Sanusi II, the 14th Emir of Kano, Oyinkan Adewale, a respected independent non-executive director whose board career spans more than two decades, Oscar N. Onyema, CEO, the Nigerian Stock Exchange and Avivah Wittenberg-Cox, CEO, 20-First, a UK-based gender diversity consulting firm.
The webinar outlined the business case for increasing the participation of women in leadership and on corporate boards. Furthermore, it proposed workable strategies for achieving this as an avenue for companies to tap the above benefits.
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According to the speakers, some of the benefits of gender diversity on corporate boards include more effective risk management, improved investment efficiency, fewer financial reporting mistakes, reduction in fraud and curtailment of earnings manipulation.
Citing research produced by Credit Suisse, a global investment bank, companies with higher female representation in top management and board-level positions have higher returns on equity, higher valuations and also higher payout ratios.
Four strategies for increasing the representation of women on boards were put forward during the webinar.
First, regulation would be needed to drive gender diversity at the top. For instance, the NSE could propose guidelines for companies looking to list on the exchange to ensure their boards meet prescribed gender balance targets. Where they do not, companies should provide reasons for the deviance and details of plans to correct the variance. This is similar to the CBN’s 30 percent female board representation regulation prescribed for commercial banks.
Second, gender diversity targets should be integrated as an explicit board selection criterion. Additionally, companies sourcing board candidates should apply the same selection criteria to men and women as opposed to specifying narrower criteria when selecting female candidates as is the common practice. In broadening their selection funnel, boards must take into cognisance the fact that the responsibilities of directors include corporate governance, strategic and fiduciary oversight.
Third, gender diversity sensibilities need to be internalised in company policy across board. Changes in company policy and practices are required to ensure performance is judged based on outputs and results and not on the number of hours employees spend in the office.
This will reduce the pressure to put in long hours and work late which puts women at a disadvantage. Companies should also build in the flexibility to allow women and men work from home when they need to.
Finally, women-to-women mentoring will make the difference. Senior women should be intentional about supporting women lower down the ladder and helping them rise to senior positions too. Women who are already on boards should cultivate relationships with those aspiring to achieve the same in order to guide them and should also recommend them when openings occur.
In conclusion, it is in the interest of any company looking to maximise financial returns and meet global standards, to make achieving a gender balanced board a business imperative. There are more than enough competent women available to enable this become a reality. Ultimately, it will be a win-win for all.
Ivana Osagie
