Just 8% of ASX200 companies embrace true diversity - Women on Boards

ONLY eight percent of ASX200 companies have 'truly embedded the principles of gender diversity within their organisations' according to Women on Boards. Those 16 companies were given a 'green light' in the Women on Boards Traffic Light Index launched in Sydney this week - but 31 companies shone 'red'.

 

Women on Boards chair and report author Ruth Medd said, "While ASX200 companies significantly improved their reporting on gender balance in 2013, better performance is still eluding many".

New to the Women on Boards green rating in 2013 are Aurizon, Caltex and Suncorp Metway joining the ASX, Commonwealth Bank, Commonwealth Property Office and CFS Retail Property Trust Group, MirvacGroup, NAB, Stockland, Telstra, Transurban Group, Westpac, Woolworths and Wotif.com as the companies leading gender diversity performance and reporting in Australia.

"Unfortunately 15.5 percent (31 companies) rated red meaning they show little or no compliance at all with basic gender diversity principles, while 29.5 percent (59) rated only slightly higher at 2.1, the bottom of the amber category," Ms Medd said.

"So there are 90 companies that could benefit from lifting their game around diversity initiatives.

"The remaining 110 companies - 16 green, 34 amber 2.3 and 60 amber 2.2 - have diversity policies and measurable targets, with the top of the list making real progress and having some very innovative and best practice programs."

It was clear from the research that companies with female directors had better gender balance practices throughout their organisations.

"Unsurprisingly there is a clear disparity in the gender balance practice in companies with female directors and those who have none," Ms Medd said. "Of the red rated companies, 77 percent have no female director while more than 80 percent of the green rated companies have at least two females on their boards."

And progress is slow, according to the Women on Boards research. Of the green rated companies making significant improvements, the number of females in their leadership ranks has increased by two percent from last year.

"We cannot keep ignoring the stark reality that in corporate Australia in 2013 women still receive lower pay, fewer board seats and fewer senior executive roles," Ms Medd said.

"Whether it stems from an unconscious bias, traditional work cultures or simple ignorance, companies cannot continue in this vein. This is why we 'encourage' the companies that are falling short in their gender diversity compliance and recognise those making real progress by publicly naming them alongside their ranking."

Some clear messages came out of the latest Women on Boards Traffic Light Index research.

"There are a number of key factors that need attention," said Claire Braund, Women on Boards executive director.

"Firstly companies need to understand where they are with effective and transparent gender data sets then set rigorous measurable objectives to improve and pay attention to deliverables like reducing the gender pay gap and appreciating flexible working."

Earlier this year, Women on Boards created the Guidelines for gender balance performance and reporting Australia, a practical and relevant framework to help organisations measure, report and improve performance in relation to gender balance.

Formed in 2001 and formally established as a company since 2006, Women on Boards has developed a network of 18,000 qualified and experienced women who aspire to board roles, linking them with current board vacancies and remaining connected with them throughout their career and director journey. Ms Medd said by opening up access to the pathways, the people and the positions, Women on Boards has assisted more than 1000 women to gain board positions, either as professional non-executive directors or by combining directorship with their career roles.

The full report from the Traffic Lights Index plus a best practices document is available for a fee from Women on Boards.

A full copy of the Guidelines and a comprehensive summary of the Traffic Light Index are available at http://www.womenonboards.org.au/

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