A recent study revealed that only 1.6% of companies listed in the Fortune India 500 are headed by women, while only 5% of women-led companies were listed in the Fortune India Next 500. The study called Enhancing Women Leadership in India Inc., conducted by Fortune India and SP Jain Institute of Management and Research revealed a wide gap in opportunities available for women in leadership. The study is supported by the Ministry of Women and Child Development and the Bill and Melinda Gates Foundation, engaging 130 industry leaders, with a representation of 54 per cent female and 46 per cent male CEOs, in 16 roundtable discussions across Delhi-NCR, Mumbai, Kolkata, and Bengaluru.
Smriti Irani, India's Women and Child Development Minister unveiled the study's findings on March 4, highlighting the challenges that hinder women from honouring leadership roles. Posting to X (Twitter), the Union Minister highlighted the government's efforts in promoting women in the corporate world.
Why This Disparity?
The study by Fortune India, SP Jain Institute, and supported by the Indian government, revealed an urgent need to leverage more opportunities for women in leadership. While the Fortune India 500 listed less than 2% of women-led companies, the Fortune India Next 500, which encompasses the companies that follow the former list, also included a meagre number of women-led organisations.
The study identifies the root causes that lead to this disparity, one of which includes the 'leaky pipeline' phenomenon, where a substantial portion of women employees exit the workforce upon entering middle management due to familial or health responsibilities.
The study reads, "Over 30-40 per cent of women employees quit the workforce by the time they enter middle management. This is the time when they invariably get married or have a family. They take maternity leave and the return post childbirth gets challenging."
The striking portion of the study adds, "Organisations shy away from hiring a woman in mid-management roles as they know there could be a six-month 'maternity leave' in the offing. It is paid leave and most organisations don't want - smaller ones can't afford - to make that investment."
Another cause for the disparity is the corporate discrimination against women, including disparaging women's qualifications and the gender pay gap. The study also mentions the stereotypes or misconceptions against women's commitment or willingness to relocate hinder their advancement opportunities.
"The next round of losses occurs when women leaders have to take a break when their children write board exams. There is also a break in their career, typically in their late forties when they have the responsibility of taking care of parents or in-laws," the study said. The societal obligation of women to take on these responsibilities exacerbates the gap.
The survey posed the question of whether a quota system would be effective in bridging the gap, however, respondents opined that this would impact meritocracy. The recommendations suggested in the study include tax rebates, enhanced corporate disclosures on diversity, increasing women's representation on boards, fostering a culture of sponsorship, and introducing gender-specific hiring mandates.
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