In any progressive society, gender equality and women’s empowerment have long been seen as the most important cornerstones of success. The seventeen Sustainable Development Goals (SDGs), which are essential for a country’s inclusive and sustainable development, also include gender equality and women’s empowerment. The accomplishment of Goal Five, which deals with gender equality, is necessary to achieve all other SDGs. In the scenario mentioned earlier, it is imperative to address the underlying reasons for discrimination that continue to limit women’s rights for their development in both the public and private sectors to achieve gender equality by 2030.
To promote and protect the rights of women in terms of their workplace, the Constitution of India has acknowledged the right to equality of employment and promotions in dignified ways as fundamental freedoms. Furthermore, the Indian Constitution has empowered the State to enact laws and guarantee equality for women. The notion of “feminism” also affirms equality for women in many respects and seeks to provide equal access to economic, political, and social rights. Liberal feminists have argued that women have the same capacity for moral reasoning and choice as men for a long time, but patriarchy, especially the biased division of labour, has historically denied women the chance to articulate and practice this reasoning.
The concept of gender equality in the corporate world is based on the idea that men and women should be treated equally. This includes things like equal pay and other benefits for jobs, consideration of needs, equal opportunities for advancement as well as timely progression, and equal access to training facilities along with other career-building opportunities. Yet, in both developed and developing countries, male executives dominate in the corporate sector, making it difficult for women to seek jobs in senior management roles. According to a survey conducted by the seventh edition of Deloitte Global’s Women in the Boardroom report, which was published in 2022 Women held 17.1% of the board seats in India in 2021. Another report published by EY in the year 20222 entitled, “Diversity in the boardroom: Progress and the way forward” portrayed that women hold 18% of board seats in India in 2022, up from 13% in 2017 and 6% in 2013. The study also noted that nearly 95% of Nifty 500 companies now have at least one female board member, up from 69% in 2017, however, our country still lags well behind France, Sweden, the US, and the UK in this area.
Various regulations have been implemented in India to ensure that corporate boards are gender diverse. One such significant measure taken by the government is appointing at least one woman to the board of directors of certain classes of companies under the second proviso to Section 149(1) of the Companies Act of 2013. The purpose of the measure was to increase the representation of women on the boards of directors of Indian Companies. According to the Companies (Appointment and Qualifications of Directors) Rules, 2014, certain companies (such as listed companies and other public limited companies) having paid-up capital of one hundred crore rupees or a turnover of three hundred crore rupees are required to appoint at least one woman director to their board of directors up to March 31, 2015. By this, India has become one of the first developing countries to implement legislation requiring women to be represented on corporate boards of directors. In addition, in 2017, the Securities and Exchange Board of India (Listing Obligations and Disclosure Criteria) Regulations, 2015, which prescribe several disclosure requirements for various types of listed companies, underwent a significant reform intended to boost gender diversity on the board. By April 1, 2019, the top 500 listed companies’ boards of directors must now include at least one independent woman, according to the revised Regulation 17 (1) (a). Similarly, every one of the top 1000 publicly listed companies must have at least one independent woman director by April 1, 2020. The existing need for one women director quota is in place to ensure that the Indian corporate boardrooms have the necessary gender diversity. The recent mandate will allow women to participate more actively in senior management in Indian corporates. While some critics argue that gender reservations may compromise talent and merit, others contend that such quotas help eliminate the exclusion of qualified women and establish gender balance on corporate boards. Transforming cultural norms and legal frameworks to foster equality and equal opportunities for all is crucial for societal progress.
Recent developments, such as the appointment of a woman chairperson at the Securities Exchange Board of India (SEBI), Ms. Madhabi Puri Buch, to lead the Capital market watchdog and women holding key positions in prominent companies, such as Roshni Nadar (Chairperson of HCL); Priya Lakhani (CEO of Century Tech); Kiran Mazumdar Shaw (Chairperson and MD of Biocon) Vanitha Narayanan (MD of IBM India), and Neelam Dhawan (MD of HP India), signal progress toward achieving gender parity in the highest echelons of Indian corporations. These women leaders serve as role models, inspiring future generations of women to dream big and strive to achieve their goals.
Nonetheless, one common criticism against the implementation of gender reservations around the world is that when the need for women’s reservations is given appropriate weight, there is a risk of sacrificing talent and merit. However, it might be argued that the presence of women in key positions and India’s initiatives to increase gender diversity on corporate boards through laws are encouraging signs for the development of the country. To achieve true gender equality, it is essential to challenge existing cultural norms and legal structures, thereby paving the way for a more inclusive and prosperous society.