BETTER BALANCE FOR BETTER BUSINESS
Bríd Horan, co-chair of Better Balance for Better Business, explains the rationale behind this Government initiative and the progress so far
Views from leading figures Bríd Horan and Carol Andrews
Ireland is lagging far behind other EU countries in the participation of women on corporate boards. According to the European Institute for Gender Equality (EIGE), at the start of 2018, female members made up only 18.1% of the boards of Irish registered ISEQ 20 companies. This compares to an average of 26.2% for similar companies across the EU28 and 28.9% in the UK.
This low representation of women is also seen at executive level and represents a vast pool of untapped potential and under-utilisation of talent. It is also a missed opportunity to improve performance and governance.
Recognising the strategic benefits of reflecting diverse skills, experiences and viewpoints in decision-making structures and concerned about the slow rate of progress, the Government established the Better Balance for Better Business Review Group last July. Its aim is to examine the gender mix on the boards and senior management of companies in Ireland and the issues influencing this.
This business-led group has been asked to make recommendations with a view to accelerating the achievement of gender balance in business leadership. While the Government has not ruled out more prescriptive measures, it believes a business- led approach offers particular advantages. A similar initiative in the UK initially led by Lord Mervyn Davies has seen substantive advances over recent years.
PROGRESS AND PLANS
Our review group has already met with a broader Advisory Group representing major business organisations and diverse businesses and we have developed our programme of activities for the coming years.
These will focus on three sectors – companies listed on the Irish Stock Exchange (Euronext), leading private companies and multinational companies. We will gather data in these areas as well as considering the barriers to progress, both real and perceived. Under our terms of reference, we are tasked with setting progressive targets to 2023 for the achievement of improved gender balance on boards and senior management.
Over the coming months, we will be engaging with key decision-makers in these areas as we develop our recommendations. Our first report will be issued in early 2019 and we will report annually thereafter, monitoring progress and developments.
Our aim is to both challenge and support Irish business in achieving real and sustainable change so that Ireland can reap the benefits of better gender balance in business performance and long-term benefits for corporate decision-making.
It’s important to acknowledge the groups that have been working on this issue for years, including the National Women’s Council, the Board Diversity Initiative, and of course the 30% Club. Better Balance for Better Business will work with those who share our ambition and we’re confident that they and others will continue their work to drive and support change.
While there’s an increasing recognition that gender balance is good for business, as well as for women, and while there are more women in certain key positions and on some boards, overall progress has been too slow and limited to too few companies. That needs to change – this initiative underpinned by Government support aims to drive broader, deeper and more rapid change.
Bríd Horan is an independent non-executive director of FBD Holdings plc and the former deputy chief executive of the ESB.