Challenges Women Face in Corporate Leadership Roles

Source: The post Challenges Women Face in Corporate Leadership Roles has been created, based on the article “Women in corporate leadership, the lived reality” published in “The Hindu” on 7th March 2025

UPSC Syllabus Topic: GS Paper2- Governance-mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections. Challenges Women Face in Corporate Leadership Roles.

Context: The article discusses the challenges women face in the corporate workforce despite diversity efforts. It highlights legal mandates, benefits of women in leadership, and the need for real power, not tokenism, to ensure meaningful participation and gender parity.

For detailed information on Women Empowerment- Economic Political and Social read this article here

What are the challenges women face in the corporate workforce?

1. Rollback of DEI Programmes: In the U.S., rolling back Diversity, Equity, and Inclusion (DEI) programmes threatens women’s workforce participation.
2. Leadership Gap: In India, women form 35.9% of the workforce but hold only 12.7% of senior and middle management roles (2024).
3. Tokenism: DEI efforts often appear as token gestures, limiting real influence for women.
4. Unequal Pay: Pay parity with men is still a challenge for women leaders.

How have legal mandates impacted women’s representation in leadership roles in India?

1. Legal mandates in India have helped increase women’s representation in corporate leadership roles.
2. The Companies Act, 2013, mandates at least one woman director on the boards of certain public limited companies.
3. In 2015, SEBI required the top 1000 listed companies to appoint at least one independent woman director.
4. These mandates increased the presence of women directors on NSE 500 boards from 5% in 2011 to 18% in 2023.
5. Such regulations have encouraged companies to adopt better gender diversity practices.

Why is women’s leadership beneficial for companies?

1. Women leaders increase the talent pool and bring diverse perspectives from different educational and career backgrounds.
2. They enhance corporate governance, risk management, and stakeholder value, benefiting companies’ efficiency and reputation.
3. Companies with more women in leadership often appear on lists of most admired and ethical companies.
4. Women leaders focus on relationship-building and effective communication, reducing corporate risks.

What is needed for real change in women’s corporate leadership?

1. Tokenism is not enough; women need real power and responsibility.
2. More women in C-Suite positions, key managerial roles, and as independent directors and committee chairs are essential for meaningful leadership.
3. Equal pay for women compared to men is also a key indicator of genuine progress.

What further research is being done on women in corporate leadership?

1. Ongoing Study: Thought Arbitrage is conducting a 10-year study on women in corporate boards.
2. Scope: The study involves about 1,000 companies and uses both qualitative and quantitative methods.
3. Focus Areas: It examines patterns of women’s participation, their effectiveness, and barriers in leadership.

Question for practice:

Examine how legal mandates in India have impacted women’s representation in corporate leadership roles.