A growing number of studies shows that a
gender-diverse board can positively impact a company’s performance. OECD, MSCI,
and Catalyst reports have shown that companies with gender-diverse executive
committees outperformed those without women in senior-level positions,
achieving an average of 47 percent higher returns on equity (ROE) and 55
percent more significant gross income. Furthermore, diversity has enhanced
internal controls, vital organizational structures, and employee retention and
engagement levels.
اضافة اعلان
The boardroom is where strategic decisions are made,
governance is applied, and risks are controlled. Globally, there is progress in
increasing the percentage of women on boards, from 20.4 percent to 30 percent
and 50 percent in 2029 and 2045. Unfortunately, the rate of women on corporate
boards in Jordan remains one of the lowest in the world, which means that women
are not part of the decision-making process.
Excluding half of the population from economic and
social life can be very costly. It has been estimated that the MENA region
loses up to $575 billion in regional income due to the current levels of gender
representation. Women only generate 18 percent of GDP in the MENA region,
compared to a world average of 37 percent. Increasing women’s economic activity
to the levels of men could boost regional GDP by 47 percent.
Governments, multilateral institutions, and
private-sector organizations should think how private and public finance can
better incorporate gender concerns to ensure that those trillions of dollars
flow effectively and equitably. McKinsey predicts that reaching gender parity
by 2025 could increase GDP by $12 trillion globally and $0.6 trillion in the
MENA region alone.
Today, women account for about 70 percent of the
global consumer demand and control about $28 trillion in annual consumer
spending. For companies to thrive and grow, corporate boardrooms need to
reflect the diversity of their consumer base.
The Kingdom’s efforts to economically empower women
have made it reach one of the leading regional rankings on the gender gap index
(2022). However, Jordan ranks 122nd in global gender equality, with a 125th
ranking in women’s economic participation and opportunity, and 66th in education.
Increasing women’s economic activity to the levels of men could boost regional GDP by 47 percent.
UNICEF estimates that an increase in female
participation in the Jordanian labor force by 25 percent over the next seven
years would help Jordan’s GDP to grow by 5 percent annually.
Despite women accounting for 49.3 percent of the
total population, and women between the ages of 15 and 24 boasting a 99.11
percent literacy rate (UNESCO, 2019), women’s participation in the labor force
remains low at 14 percent to 15 percent, compared to 54 percent for men
(Department of Statistics). Furthermore, women hold just 3.5 percent of
corporate board seats in the country (IFC).
Women hold a wealth of talent and resources that
companies can tap. By accessing the underutilized talent pool of qualified,
competent, and motivated women, effective boards of directors could be created
that are crucial to an organization.
All on Board is
an ambitious Jordanian stepping-stone that provides a comprehensive database of
competent, qualified Jordanian women to help increase their presence in private
sector decision-making roles. Encouraging women to assume leadership positions
will catalyze and strengthen the economic base, create jobs, stimulate growth,
and stabilize markets.
Change is happening, and the global business case
for more women on boards and in leadership posts will require a significant
shift in corporate culture, attitudes, and behaviors.
Top leadership commitment is critical to creating a
sustainable and meaningful change toward increasing women’s board
participation. Companies must build a pipeline by attracting and promoting
qualified, talented women and developing a gender diversity strategy that fits
their and industry’s needs.
Hamzeh S. Al-Alayaniis a board member of a Jordanian public-sector government investments
management company and a regular regional energy and industrial commentator.
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