A heat rash under stiff white collars

Corporate and management positions are subject to hot discussions across the European Union, including Malta. Should the EU adopt positive measures to ensure that there is a balanced gender representation at corporate board level?

The storm was stirred by the Commissioner for Justice, Fundamental Rights and Citizenship Vivian Reding, a former journalist who hails from the small state of Luxembourg. At a political level, the proposal caused an uproar within political groups and also exposed divides among women; some are giving their full support whereas others are resisting it.

Dr Reding made an initial drive last year when she first attempted to force corporate boards to include a minimum of 40% female non-executive directors. This did not merely trigger a heat rush under the stiff white collars of corporate men. She also found firm opposition among her own colleagues affiliated with the group of the European People's Party, which includes the British Conservatives. The incumbent British Minister for Equality Maria Miller went as far as stating that these measures will "patronise women" and undermine business. While the British orchestrated opposition, German Christian Democratic Chancellor Angela Merkel, who is deemed to be the most powerful woman in the world, vetoed it.

Gender is embedded in culture and so many advocate a change in 'public mentality' namely through education reforms and through gender-conscious media representations. Such a change may be driven from below by people who acknowledge that women may have attained higher educational credentials but they are still not politically empowered and they tend to lag behind in terms of economic attainment. Reding wants to shake the tree; she wants to push the EU 28 states to drive change from the top.

Is this necessary? Can't we wait and take our time until women slowly step up the career ladder without government having to resort to radical measures? Can't we remain patient until family-friendly measures open more opportunities for determined and ambitious women to move up on their own steam? In my view playing the waiting game will not work. It is a fact that women's achievement in education has not really boosted their presence among Malta's political and economic decision-making elite.

But let us for a moment forget Malta, that lazily basks at the bottom of all gender-statistics in the whole of Europe. Instead, let us focus on Sweden, the country with the highest female participation rate in European politics (45%) and in the labour market (56%). The Swedish case immediately reveals that waiting will not take us anywhere. While Swedish women have equal representation in Parliament and half the Ministers are female, the corporate world is totally male dominated: There are 0% Board Chairs; 3.8% CEOs and 25% board members. By European standard Sweden in one of the most advanced countries.

So pressure on the corporate world is necessary. We must not underestimate the growing power of global corporate business that often also impinges on political and social life. Neo-liberal politics opened the way to massive deregulation and the private sector often runs the show. Since the mission of business is to maximize profits, the men running the economic powerhouses will never relinquish power and the privileges that come with it. For obvious reasons they consider Reding's proposal as a blatant intrusion and claim that it weakens shareholder sovereignty.

In their efforts to boost profits, I am not at all surprised that most corporate players are opposing Reding with full force. But when did the business sector ever support social measures like pensionable age, minimum wage and maternity leave? In my view, the call for a leisurely evolution that would see women rise along the career ladder is an escapist illusion. Ten years ago European companies where already encouraged to voluntarily increase females on their board. Yet, in many countries there was a very feeble response. Indeed Malta hardly registered any progress at all.

The 'glass ceiling' refers to the invisible and impenetrable barriers which women face at the top level. This may partly be attributed to the fact that non-executive board appointees are informally picked from the personal contacts and social circles of the male business elite. It is an open secret that choices are made on the basis of old boy networks and within informal groups that convene in terrains that exclude women. The impression that decisions are taken on the golf course is not a myth nor are rumours about exclusive clubs. We even read stories off top brass international businessmen entertaining their peers in gentlemen's clubs.

Positive action is needed to redress the imbalance. Some underscore an imagined fear that such measures will lead to the appointment of incompetent women or that women will be labelled as undeserving 'tokens' or as 'golden skirts'.  At the top levels, eligible women know that they need to perform and work harder irrespective of their credentials, since they will always expected to prove their worth.

The percentage of female representation is important. Some scholars claim that the 30% mark is crucial. When women attain one-third representation, it is then deemed to be easier for other women to move up the ladder of organisations, both in the private and public sectors.  The presence of more women opens opportunities for mentoring and there will be more role models. At this point the notions of 'sticky feet' and the 'glass ceiling' will start to crack. Some countries have already taken this path. Italy legislated in favour of a 30% "pink quota" in 2011 and in just two years the number of women on board doubled.

Reding's proposal will affect the biggest corporations listed on the stock exchange and it does not include SMEs that employ less than 250 people.

It will affect some 5,000 companies that are publicly listed, which constitute a mere 1% of all companies in the whole of the EU. It will only affect about 10 companies in Malta, most of which are banks.

Now don't tell me that within the local banking sector there aren't enough women with adequate experience and educational preparation to fill these top jobs! Bank of Valletta is one clear example, where even the government is an influential player. Presently all the 19 listed companies are chaired by men; three women sit among 97 men on the various boards. This is unacceptable and shameful.

In November 2012, a faltering Nationalist government had drawn harsh criticism from Maltese women's organisations when it opposed Reding's original proposal. During the long electoral campaign that led to the 2013 election, Labour leader Joseph Muscat, repeatedly promised he would lead a 'feminist' government. Now that he is at the helm we hope Malta will change its position in EU fora. It is rather encouraging that even the PN opposition has declared a change of heart. Could it be that our political class may support the proposal by consensus even though polls suggest that there is little popular support for such measures?

Surveys have shown that the general public wants to 'retain' systems of meritocracy and the majority opposes pink quotas. So let us briefly touch the notion of this so called 'meritocracy'. We all know that much lip-service is paid to this most noble ambition, whereas good fate is promptly tested by the choices made in the case of public appointments on the various boards and quangos. On top of debates that revolve around partisan politics, I strongly believe there is also a gendered dimension to this highly elusive concept.

During one consecutive administration after another we keep asking "where are the women?" We observe men in a race to clinch star positions whereas the women who may influence substantive policy can be counted on the fingers of one hand. We also need to assess how women compare with men in terms of remuneration, or is their effort deemed to be an extension of their traditional role as unpaid housewives or underpaid servants on behalf of the state?

It is up to politicians to legislate and it is up to government to lead by example. It is also up to civil society and human rights organisations to raise awareness and to build pressure. The media are important players as they are key agenda setters and the way they frame the issue may influence public opinion.

While we should all scrutinize politicians we must also remember to keep an eye on economic players. It is clear that unless we challenge the status quo, women will continue running on the spot in our lifetime and beyond. Something's got to give.