Harassment-fix it by putting women in leadership positions

Harassment-one way to fix it: Put women in leadership positions

Several months ago, I had written about harassment in the workplace. Subsequently, our US cousins/brothers/sisters have been challenged by accusations of  appalling sexual harassment and, at times assault, in the workplace. Similarly, these accusations have been made in Congress. 

Sadly, the US experience is not unique...as far as I can tell. 

A solution used in other jurisdictions has been to aggressively promote gender equity throughout society. More recently, in Canada, the Senate has promoted a broader discussion of gender equity on corporate boards. 

Why care?

Well, companies with more women on boards perform better than those publicly traded companies which do not have women on boards.
Certainly, in Canada, there is a certain bias against recruiting women to boards. However, newer government regulations, regulator expectations (like the TSX) and finally, shareholder advocacy are reversing this stupid bias, thereby enhancing corporate value
Curiously, and as an aside, governments do not appear to be meeting the same standards for appointments to their own agencies, boards and commissions as are businesses-or at least publicly traded businesses. One would think that for all their bluster, all levels of government in Canada would be as aggressive in fostering gender equity. 

What context?

Indeed.

Effective Dec. 31/14 securities regulators in all (Canadian) provinces and territories (except Alberta and BC) adopted a comply or explain strategy with amendments to existing corporate governance disclosures per NI 58-101. 

In April 2015, the Federal Government announced that it would propose amendments to the CBCA. These amendments would require companies incorporated under the CBCA to describe their policies regarding gender diversity on the board of directors. 

In September 2015, securities regulators on 7 provinces and 3 territories published the results of an audit of compliance through Multilateral Staff Notice 58-307. 

Will this change anything?

It should but.....

Bias against female staff still exists despite these regulations and the business case to recruit women to corporate boards. What are these biases?

• recruiters and Nominating Committees believe that women do not have enough relevant experience;
• Boards often believe that family responsibilities would hinder women in the fulfillment of their governance responsibilities;
• social systems within which men and women interact are (still) gendered;
• there persists within society sex role stereotyping;
• it is thought that women have interrupted career paths caused by marriage, pregnancy or because women will limit their career options to support their husbands;
• it is thought that women are reluctant to network and self promote.

Neither regulators, politicians nor intelligent business leaders believe any of this. As a consequence , there is now a national goal for public traded corporations to have boards which are 30% gender balanced.
But this is widely regarded as tepid and a watered down response to Senator Herieux-Payette Bill 207. This Bill was designed to modernize the Board composition of certain corporations, financial institutions and parent Crown Corporations. Her goal was to have 50% female representation on Boards. Subsequently, Bill S-217 was introduced recommending a 40% quota on certain boards etc. Bill C-473 was introduced to balance gender proportionality on state corporations. 
Enter the great Canadian fix.
Don't mandate the private sector.
Introduce comply or explain (without consequences...rely on moral suasion, instead)

Through the comply or explain mandate issued by regulators, there is an expectation that there is a greater participation of women in the governance recruitment process. Further, publicly traded companies are being expected to demonstrate through statements of policy, the practice of HR departments and the practices of the nominating committees that they are aggressively supporting the recruitment of women on to boards.