In the next ten years companies that do not have forty
percent of the supervisory board members as females could face stiff penalties
in Europe. Forty percent is being talked about with this proposal but in the
end it could be set anywhere from twenty to sixty percent. Viviane Reding, European Union justice
commissioner, has created a proposal that would require state owned companies
to have forty percent of supervisory boards to be women. This proposal sets a deadline of 2018
that these companies need to be in compliance by, while public companies would
have a deadline of 2020 to achieve the same percentages. Even though these companies would have
this requirement placed on them, the companies will still have the ability to
select highly qualified individuals to fill the positions. Financial penalties,
exclusion from bids on public contracts, restricting access to national and
European subsidies and requirements to cancel appointments of women or men when
a board is to heavily leaning towards one gender are options that nations authorities
can choose to use to enforce this legislation. The finally proposal will
hopefully be made public by the middle of October according to a European Union
official. When it is made public
the legislation will still need to be approved by the European Union and
European Parliament. According to
Ms. Reding self-regulation within the boardrooms of Europe has failed and she
is giving them a final opportunity.
The idea and concept of a glass ceiling that women face in
the workplace has been around for many decades. The glass ceiling is a social
idea that women have been facing all around the world, not just in the United
States. This inequality in the
work place that women can only move up so high within a company is a social
problem on the global scale. With globalization, companies need to understand
different cultures as well as different business environments. Having
alternative and sometimes complimentary views will help to lead to better
decisions made by the board. According to a 2009 research study by
GovernanceMetrics International shows that countries around the world have
between one and 20 percent women sitting as board members. Some professions are male dominated and
could have a hard time of filling these quotas that this proposal suggests and
the same could be said about female dominated professions. Increasing the
number of women as board members could also create problems when companies deal
with certain cultures. This proposed quota could be beneficial to women’s rights
in the workforce but could also create new obstacles for them to face.
Additional sources
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CCcQFjAB&url=http%3A%2F%2Fwww.gmiratings.com%2F%28bnnl3555sqbsvh551v2jfs55%29%2Fhp%2FWomen_on_Boards_-_A_Statistical_Review_from_GMI_-_3_2_09.pdf&ei=byhJUNCXBYW68ATYzIDADQ&usg=AFQjCNHcd-0VFAgiJhyROqws5uVgbK4PcA&sig2=FcY7ic0utmWinie4QGNUqA
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