Mentor’s Comment: UPSC mains have always focused on the continued challenges for Women in India against time and space (2019) and middle-class working women in India (2019).

Recently, the world celebrated International Women’s Day, with companies highlighting their efforts toward including more women in the workforce. However, the reality is different. The rollback of DEI programs in the U.S. threatens women’s participation in corporate America, where they make up 48% of the workforce, raising concerns about identity erasure.

Today’s editorial talks about issues faced by women. This content is useful for writing answers in GS Paper 1 and GS Paper 2 of the UPSC Mains exam.

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Let’s learn!

Why in the News?

International Women’s Day will be celebrated worldwide on March 8, 2025.

What challenges do women face in entering and advancing in the corporate workforce?

• Gender Bias and Stereotyping: Women often face assumptions that they are less competent or less committed due to gender-based stereotypes. Example: A 2023 McKinsey report found that women are 18% less likely to be promoted from entry-level to managerial roles compared to men, despite similar qualifications.
• Glass Ceiling Effect: Systemic barriers prevent women from advancing to senior leadership and executive positions. Example: As of 2023, only 8% of CEOs in Fortune 500 companies were women, reflecting limited upward mobility for women in corporate hierarchies.
• Work-Life Balance and Caregiving Responsibilities: Women are disproportionately responsible for family and household duties, making it harder to manage demanding corporate roles. Example: During the COVID-19 pandemic, 1 in 4 women considered downshifting or leaving their jobs due to increased caregiving burdens.
• Unequal Pay and Compensation Disparities: Women consistently earn less than their male counterparts for performing similar work. Example: In India, the gender pay gap remains around 19%, with women earning significantly less than men for equivalent roles (Monster Salary Index Report, 2022).
• Lack of Mentorship and Sponsorship: Women often lack access to influential mentors who can advocate for their promotion and career growth. Example: A Harvard Business Review study (2021) revealed that 64% of women reported not having a senior leader to sponsor their career advancement, limiting their growth opportunities.

Why are legal mandates like the Companies Act, 2013, and SEBI regulations crucial for increasing women’s representation in corporate leadership?

• Ensuring Minimum Representation: Legal mandates create a compulsory framework requiring companies to appoint women to leadership positions, ensuring basic gender diversity. Example: The Companies Act, 2013 mandates at least one woman director on the board of certain public companies, increasing female representation in leadership roles.
• Driving Structural Change: Regulations push companies to institutionalize policies that promote gender diversity, fostering long-term cultural and organizational transformation. Example: SEBI’s 2015 directive for India’s top 1,000 listed companies to have at least one independent woman director has led to a threefold increase in women’s participation on NSE 500 boards (from 5% in 2011 to 18% in 2023).
• Reducing Gender Bias: Legal mandates act as a corrective mechanism against gender-based discrimination by ensuring that women receive leadership opportunities based on merit. Example: Following SEBI’s mandate, companies actively seek to identify and groom qualified women for board positions, reducing biases in corporate hiring practices.
• Enhancing Corporate Governance: Women in leadership roles bring diverse perspectives that strengthen decision-making, risk management, and accountability. Example: Research by Credit Suisse (2021) found that companies with at least one woman board member show better financial performance and stronger governance frameworks.
• Setting Industry Benchmarks: Legal frameworks establish a baseline for gender inclusion, encouraging other companies and sectors to adopt similar diversity policies. Example: The Companies Act and SEBI regulations have inspired several Indian private firms to adopt voluntary policies promoting gender-balanced leadership, creating a ripple effect across industries.

How does the presence of women in leadership roles benefit corporate governance?

• Diverse Perspectives and Better Decision-Making: Women leaders bring varied experiences and viewpoints, leading to more comprehensive discussions and well-rounded decisions. Example: A Harvard Business Review (2021) study found that boards with at least 30% women make better strategic decisions and are more likely to consider stakeholder interests.
• Enhanced Risk Management: Women leaders tend to adopt a more cautious and analytical approach, improving risk assessment and mitigation strategies. Example: A 2019 MSCI report showed that companies with three or more women on their boards experienced lower risk of governance-related controversies and better compliance practices.
• Improved Corporate Transparency and Accountability: Women in leadership roles advocate for ethical practices, ensuring greater transparency and stronger corporate governance frameworks. Example: In Norway, where a 40% quota for women on corporate boards exists, studies have shown increased reporting standards and improved financial disclosures.
• Stronger Stakeholder Engagement: Women leaders prioritize relationship-building and stakeholder communication, fostering trust and long-term value creation. Example: Indian companies with women independent directors are more likely to engage with diverse stakeholders and prioritize corporate social responsibility (CSR) initiatives (SEBI Report, 2023).
• Higher Corporate Performance and Reputation: Companies with gender-diverse leadership are often recognized as more ethical, responsible, and attractive to investors. Example: A Credit Suisse (2021) analysis found that companies with at least one woman on their board had higher return on equity (ROE) and better market performance over a five-year period.

Way forward: 

• Strengthening Policy Implementation and Accountability: Ensure strict enforcement of existing legal mandates (e.g., Companies Act, 2013 and SEBI regulations) with regular audits and penalties for non-compliance. Example: Introduce progressive targets for gender diversity, such as mandating at least 30% women in leadership roles by a specified timeline.
• Promoting Inclusive Workplace Culture and Leadership Development: Implement gender-sensitive policies like flexible work arrangements, parental leave, and on-site childcare to support work-life balance. Example: Establish mentorship and sponsorship programs targeting women, ensuring equal access to leadership pipelines and executive training.

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