Beyond diversity quotas
1 min read · March 10, 2023
New Power Labs
How do we move beyond representation to shift power at the board and leadership levels?
Increasing the number of women on boards does not necessarily result in inclusion or progress in gender equity, as evidenced by research published in Australia following a concerted campaign pushing for gender representation across corporate boards. Research into board membership data from the 200 largest Australian companies listed in the ASX200 index in 2015 and 2018 found increasing the number of women on board did not necessarily result in an increase in their ability to exert influence.
Three stark findings come through in this research:
Increasing the number of women on a board does not create gender equity.
Reducing the number of men in a network does not necessarily reduce the power of men in the network.
Increasing the number of women in a network does not necessarily reduce the power of men in the network.
While the increase of females directors coincided with a decrease in male directors over the course of the research analysis, overall the balance of power was concentrated in the lower range of influence, as captured by the Betweenness Centrality (BC) score. That is, although there was a net increase in representation of women across boards, the gendered distribution of power and the reality of network connectedness across the network did not shift.
To achieve inclusion and equity across capital systems, we need to move beyond diversity quotas to examine how relational power layers into the realities of decision-making authority and network connectedness. One way New Power Labs is tackling this directly is by mapping power and decision-making data to inform how we shift toward new power structures.
Further, we need to ensure underrepresented individuals aren’t bearing the brunt of this effort. As highlighted by the study’s authors, “the glaring limitation of [quotas] is that the onus for producing change is placed on the very people who are pointedly outside the system of decision-making and not in a position to intercede—women.”
As we move toward gender equity, our opportunity is to:
Focus on shifting power structures. Examine how relational power layers into the realities of decision-making authority and network connectedness.
Address the gendered distribution of power. In addition to increasing gender diversity on boards and leadership positions, focus on addressing the gendered distribution of power.
Ensure underrepresented individuals aren't bearing the brunt of this effort. The onus for producing change should not be placed solely on the very people who are pointedly outside decision-making systems. This means providing support and resources for underrepresented individuals and addressing the structural barriers that limit access to leadership positions.
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