This Wednesday, March 8th, International Women's Day is celebrated. More than just distributing flowers and letting the day pass unscathed, it is urgent to focus on the gender-focused diversity component, as it is a cornerstone of the concept - particularly when Portugal is preparing to implement a demanding female quota system.
But what is diversity? The concept aims at several characteristics such as gender, age, the proportion of nationals and non-nationals - of high importance in global companies -, diverse academic and professional experience, and size of the boards of directors. But why is this concept so much on the agenda?
The growing importance of diversity - namely gender - on the boards of directors is a criterion for measuring performance and reputation, as well as the impact on perception in public spheres, representing an expression of competence with which they sustainably conduct their activities. Governance models - the framework within which an organization's activities are conducted and controlled - and the preparation of non-executive and executive directors are also ways of controlling the origins of crises, reputational risk and protecting stakeholders, as well as providing boards of directors. effective, efficient, transparent and ethical in the sustainability of the economy and employment. In a society that is also naturally diverse, companies must mirror their target audience!
However, it is surprising that high-potential candidates for boards of directors do not prepare to qualify as fit-and-proper, with technical and integrity skills, for leadership roles - executive and non-executive - in companies or NGOs.
Several countries, not just Portugal, opted for the introduction of the quota system, in line with apparently 'shocking' principles, which have existed for decades with high impact, namely in the United States. However, companies and NGOs are faced with insufficient fit-and-proper women to achieve the goal. Portugal introduced demanding quotas for female members in each governing body (20% and 33% in 2018 and 2020, respectively). This opportunity for career development, and contribution to the performance of companies and NGOs must be considered by women - but above all prepared. For the most attentive, the first step is to qualify within the fit-and-proper criteria.
Ladies get ready! ‘Diversity’ at the top of the agenda of good governance criteria!
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Duarte Pitta Ferraz, Scientific Coordinator of the Corporate Governance: Board Leadership Program.
Find out more about the program HERE»