Experts in top team and board consulting, training and development
The News
Posted on 29th May 2012
International study rejects quotas on women in the boardroom

A new study conducted across three continents casts doubt over the value of quotas which positively discriminate to encourage women to join predominantly male-led company boards.

The study reviewed 50 leading companies across the UK, US, Ghana and Nigeria and found that, despite attempts to forcibly adjust the gender balance, having up to three women on a company board makes little or no difference to an organisation’s performance.

Business performance specialists Nada and Andrew Kakabadse examined company structures and achievements, while also taking into account the views of company leaders and senior women executives on quotas which call for more women in the boardroom.

Nada Kakabadse said: “Our research found that gender diversity on boards is an important goal for many businesses. They often believe it will improve performance, legitimacy and increase employee motivation and loyalty.

“However, our findings indicate that women were unlikely to challenge their male board colleagues for fear of being marginalised. We also discovered that the chair of a board plays a crucial role in addressing diversity in appointments.”

Andrew Kakabadse added: “The research also found that successful female directors perceive invisible power relationships, detect hidden meanings, understand the significance of boardroom etiquette, and are adept at building political coalitions.”

Participants in the study were overwhelmingly against mandatory quotas for including women on boards, with comments including:

  • “We need more women on boards, but not through quotas. Quotas undermine women who worked very hard to get where they are now (UK)
  • “The problem of female under-representation on the board cannot be solved by a quota system. We need systematic education from the bottom up” (Ghana)
  • “No, definitely no quotas! Quotas would undermine our achievements” (US)
  • “No, no quotas please! Quota systems will damage our credibility” (Nigeria)