Gender diversity on South African boards, and on boards around the globe, is still lacking. Although, the positive progress that has been made over the years cannot be denied, there is still room for more growth and changes to be made.
In 2019, South Africa, according to the Global Gender Diversity report, presented by Board Ex, Quoted Companies Alliance and Sainty, Hird & Partners, was stated as having 27% female board representatives (FTSE/JSE TOP 40 Index). France, having the highest number in 2019, showed a result of 42.8% (CAC40 index) while Japan, having the lowest result, can only claim 8.8% (TOPIX Core 30 index).
“The increase in South African female board members has grown over the years from 18.8% in 2014 to 27% in 2019. However, this growth needs to be accelerated to find a more balanced ratio between men and women on the board,” says Mpho Nkeli, Director and Head: Board Practice at Search Partners International.
“There also needs to be more inclusion of females in executive board roles, where the decisions are made, as opposed to overseeing positions such as non-executive board members.”
A gender diverse board helps to create effective governance and ensures that all matters are reviewed thoroughly and from every angle. When filling a seat on the board there should not be a tick box approach to the placement of those who are gender or culturally diverse, but should look to include those who are diverse in the way that they approach challenges and solve them.
“If all board members simply agreed all the time, there would be no need for the board to exist. Leadership evolves through candid communication and listening and valuing what others have to say,” explains Mpho.
“It must also be noted that when creating a diverse board this does not only include genders, but race, skills, experience, age and geography as well.”
The world in which a company exists and grows, is diverse – clients, employees and stakeholders are not all the same. The board of a company should reflect this, and should a difficult issue need to be tackled, it can be done with a range of sources contributing to the resolving of the issue.
When a board is diverse it encourages communication and holistic thought driven processes. However, this expansion of diverse thinking and problem solving will only thrive if the atmosphere on the board encourages it and allows it to develop.
“Boards need to be open to various diverse thoughts and allow for all members to bring to the table their own opinions knowing that they will be heard with respect,” adds Mpho.
“It is through the culmination of experienced opinions and unique thoughts that an effective solution can be created.”
