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All India PT Mock Test 2025 (OMR Based)
7th March 2025 (11 Topics)

Women in corporate leadership, the lived reality

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Context

In the context of the upcoming International Women’s Day (March 8, 2025), companies will highlight their efforts toward gender inclusion. However, despite legal mandates and corporate diversity initiatives, women's representation in senior leadership remains disproportionately low. The rollback of Diversity, Equity, and Inclusion (DEI) policies in the U.S. has intensified concerns about global gender disparity in corporate leadership.

Current Status of Women in the Workforce

  • Workforce Participation Gap – Women form 48 percent of the corporate workforce in the U.S. but remain underrepresented in leadership, with only 12.7 percent of senior management roles in India as of 2024.
  • DEI Challenges – DEI policies, despite being an entry-level tool, have not significantly increased women's representation in leadership. The decline in DEI initiatives may reduce access to corporate opportunities for women worldwide.
  • Legal Interventions in India – The Companies Act (2013) and SEBI mandate (2015) have increased women's presence on boards from 5 percent in 2011 to 18 percent in 2023 in NSE 500 companies, but leadership roles remain scarce.

Women’s Impact on Corporate Leadership

  • Enhanced Corporate Performance – Research confirms that companies with higher female leadership excel in governance, strategic oversight, and stakeholder management.
  • Diversity in Decision-Making – Women bring informational diversity, broader professional networks, and participative leadership, leading to stronger risk management and corporate accountability.
  • Reputational and Economic Gains – Companies with more women in leadership are frequently recognized as ethical, well-governed, and top-performing organizations, boosting their market reputation.

The Need for Structural Change

  • Beyond Tokenism – True gender diversity requires actual power and responsibility for women leaders, not just appointments for compliance.
  • Key Leadership Positions – Increasing women in C-Suite roles, board committees, and chairperson positions is crucial for genuine representation.
  • Pay Parity as a Benchmark – Equal remuneration with male counterparts is the strongest indicator of real gender inclusion in corporate leadership.
Practice Question

Q. "Despite legal mandates and corporate initiatives, women's representation in senior leadership roles remains low." Critically analyze the factors contributing to this gap and suggest policy measures to ensure substantive gender inclusion in corporate governance. (250 words)

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