Gender Equality
Issue paper on gender inequality in the market sector
Where are firms now and where should they to go?
Teammembers:
Coach:
Course:
Assignment no.:
Date:
Herma Kwakkenbos, 294797
Jeremy Tse, 324243
Sanne Hoefnagels, 287483
Lucas Meijs
Global Business; Leadership
Assignment 9
September 25, 2008
Table of Contents
Table of Contents ...................................................................................................................2
Management Summary...........................................................................................................3
Introduction............................................................................................................................4
Chapter 1 – Characteristics of Gender Equality.......................................................................6
1.1 Definitions of gender equality .......................................................................................6
1.2 Dimensions...................................................................................................................7
1.3 Stakeholders .................................................................................................................9
1.4 Trends.........................................................................................................................10
1.5 Underlying causes of gender inequality.......................................................................12
1.6 Conclusion..................................................................................................................13
Chapter 2 – Consequences of gender (in)equality .................................................................14
2.1 Scenario’s (predictions and perceptions) .....................................................................14
2.2 Issue ownership ..........................................................................................................16
2.3 Expectational Gaps .....................................................................................................17
2.4 Regulation Possibilities – Are existing regulations sufficient?.....................................18
2.5 Outspoken Action Groups – NGOs or Government Organizations?.............................19
2.6 Men: Tacit or Tangent Stakeholders? ..........................................................................20
2.7 Gender equality linked to other issues .........................................................................21
2.8 Conclusion..................................................................................................................21
Chapter 3 – Are firms part of the problem?...........................................................................23
3.1 The current role of firms in gender equality ................................................................23
3.2 Examples; status quo in some firms ............................................................................26
3.3 Conclusion..................................................................................................................27
Chapter 4 – Are firms part of the solution? ...........................................................................28
4.1 Advantages of gender equality in firms .......................................................................28
4.2 Solutions, actions and measures: What firms can do....................................................29
4.3 Examples: What firms have done ................................................................................30
4.4 Conclusion..................................................................................................................31
Chapter 5 – The sustainable corporate story..........................................................................32
5.1 Credit Suisse First Boston...........................................................................................32
5.2 Empowering Change for Women – a Strategic Approach............................................32
5.3 Assigning responsibility and ownership ......................................................................33
5.4 Recognizing the needs of mothers...............................................................................33
5.5 Championing the issue, inside and out ........................................................................33
5.6 Women Leadership and PepsiCo.................................................................................34
5.7 Conclusion..................................................................................................................34
Appendix: Learning Contract and Evaluation .......................................................................36
Bibliography.........................................................................................................................40
Management Summary
This issue paper analyses the attitude of state, civil society and market regarding the issue of
gender equality. According to the World Health Organization (WHO, 2001,
http://www.who.int/reproductive-health/gender/glossary.html),
‘Gender equality means equal treatment of women and men in laws and policies, and equal
access to resources and services within families, communities and society at large.’
The scope of the problem of gender inequality differs between regions, cultures and
organizations. Furthermore, the concept and scope of gender inequality in developing
countries differs considerably from the scope of the issue in developed countries.
Consequently, the focus of this research is on the problem of gender inequality in developed
countries. This is specified further in Chapter 1 and 3.
The problem of gender inequality is evident in all three spheres of the societal triangle (Van
Tulder and Van der Zwart, 2006, p.8). According to Van Tulder and Van der Zwart, (2006, p.
173) the issue of gender equality is a civil society issue, which implies that individual citizens
have the primary responsibility with regards as how they deal with gender equality. However,
other important stakeholders who also have a role to play as well are firms, firm leaders,
employee- and employers-associations and government.
The approaches and attitudes of state and non-governmental organizations such as the Social
Watch (who are representatives of the civil society), have already been active towards the
problem of gender inequality. Many regulations and initiatives have been developed and are
aimed at enhancing gender equality in civil society and the market sector.
However, it is more important to analyze the position of firms regarding gender inequality in
the market sector. Although the primary responsibility concerning the issue lies at civil
society, companies have the resources and power to make a real contribution and make a
difference regarding the issue of gender inequality in firms. Consequently, the research
question of this issue paper is:
What are the attitudes and actions of firms in developed countries with regard to diminishing
gender inequality in the market sector?
Currently, firms do not have a very active approach towards enhancing gender equality; this
may be due to the active role of governments in attempting to eliminate the issue. As a result,
an attitude transformation needs to take place: from reactive to proactive. There are some best
practices, such as Credit Suisse, who have adopted an active/proactive approach towards
enhancing gender equality. Other companies have good ratings as well, though further
research is needed for distinguishing good CSR approaches from merely window dressing.
Introduction
Since the adoption of the 1948 Universal Declaration of Human Rights, (United Nations,
1958) gender equality has been a doctrine well recognized in international law. In addition, as
a principle, the equality between women and men has many supports all over the world
(Connel, 2005).
According to the watchdog Social Watch, ‘countries with higher income and less people
living in poverty often do better in gender equity, than developing countries, but there is no
nation in the world today in which women have the same opportunities as men, and while
progress has been made in recent years, women are still disadvantaged in economic and
political
life
around
the
world’.
(Social
Watch,
2005,
http://www.socialwatch.org/en/informeImpreso/pdfs/gei2005_eng.pdf)
Gender equality, more specifically the problem of gender inequality, is evident in the three
spheres of the societal triangle; the state, market and civil society. Gender inequality relates to
employment opportunities, career development and wages gaps between male and female, but
furthermore to sexual rights, girls’ education, women’s role in families and child care.
According to the World Health Organization, ‘gender-based differences are rooted in
discrimination, a key human rights violation.’ (WHO, http://www.who.int/reproductivehealth/gender/gender.html) Furthermore, gender inequality is rooted in social norms,
stereotypes, cultural values of families, organizations and nations.
Gender inequality in the market sector, in firms, consists of several related issues. According
to the International Labour Office (2007, p. 107), ‘despite entering the job market in record
numbers, women still face higher unemployment rates and lower wages’ (originally published
in 2004). Furthermore, the glass ceiling, ‘the invisible barriers to the top of the management
tree’ continues to be evident in organizations. (ILO, p. 109, originally published in 2004)
According to a 2008 report of Eurostat, ‘the representation of females in key positions of
power and influence is still far below that of men.’
Moreover, the wage gap continues to persist; the difference between hourly wage in 2005
between men and women across the EU is on average 15%, where females earn 15% less than
males do for the same job. (Eurostat, 2008)
Gender inequality in civil society has a different face; it also entails the preference of families
and communities for boys’ education, furthering underinvestment in girls in the community.
Furthermore, arranged marriages in certain countries and cultures, sexual harassment,
property rights, sexual rights, human rights for women are also part of gender equality.
‘Sexual violence can lead to unwanted pregnancies, unsafe abortions, HIV and emotional
trauma.’ (WHO, http://www.who.int/reproductive-health/gender/gender.html) In certain
countries, national laws even enhance gender inequality, for example the right to travel is in
certain Arabic countries only applicable to men. (Dollar and Gatti, 1999)
Although gender equality is a human right taken for granted in most developed countries,
gender inequality remains an important problem in today’s society. Consequentially, research
and more knowledge is needed in order to diminish gender inequality in this global world.
Chapter 1 elaborates on the most important characteristics of the concept gender equality.
Based on this analysis, Chapter 2 discusses the consequences of gender inequality, more
specifically regarding issue ownership, regulation and trends/scenarios. Consequentially,
4
Chapter 3, 4 and 5 take the company perspective and analyzes the different approaches of
firms, best practices and concludes with a corporate sustainable story.
5
Chapter 1 – Characteristics of Gender Equality
This chapter analyzes the basic concepts and characteristics of gender equality. Firstly, in
order to analyze and discuss the different dimensions of gender equality, the correct
definition(s) of the concept should be specified beforehand. Therefore, the different
definitions that exist in academic and non-academic literature and sources will be stated.
Consequentially, the several dimensions of gender equality, the evolution of the issue and its
place in the issue life cycle are discussed. Furthermore, the primary- and secondary
stakeholders are listed. This chapter concludes with the main underlying causes concerning
gender inequality.
1.1 Definitions of gender equality
There exist many definitions of the concept gender equality. However, most definitions share
common aspects. The most important definitions are provided below.
The United Nations Population Fund’s definition of gender equality is the following:
‘Gender equality implies a society in which women and men enjoy the same opportunities,
outcomes, rights and obligations in all spheres of life.’
The United Nations Population Fund is a development agency, which focuses on three main
interlinked areas; sustainability, reproductive health and gender equality. These three issues
come together in the Millennium Development Goals, which are supported by this agency of
the UN. Therefore, this definition should be read in this perspective, with focus on
development (UNFPA, http://www.unfpa.org/gender/empowerment.htm).
Furthermore, according to the World Health Organization,
‘Gender equality means equal treatment of women and men in laws and policies, and equal
access to resources and services within families, communities and society at large.’
The World Health Organization, an authority for health within the United Nations, relates
gender equality with reproductive health (WHO, 2001, http://www.who.int/reproductivehealth/gender/glossary.html).
Another important and elaborate definition is the one of the United Nation’s Office of the
Special Advisor on Gender Issues:
‘Gender equality refers to the equal rights, responsibilities, and opportunities of women and
men and girls and boys. Equality does not mean that women and men will become the same
but that women’s and men’s rights, responsibilities and opportunities will not depend on
whether they are born male or female. Gender equality implies that the interests, needs, and
priorities of both women and men are taken into consideration while recognizing the diversity
of different groups of women and men. Gender equality is not a women’s issue but should
concern and fully engage men as well as women. Equality between women and men is seen
both as a human rights issue and as a precondition for, and indicator of, sustainable peoplecentred development.
The Women Peacemakers Program’s mission is to ‘empower women peacemakers, and
encourage women and girls to become involved in peace building and civil society building,
are essential for development.’ Consequentially, this is a more feminist approach on gender
6
equality that focuses on economic development and peacemaking (Women Peacemakers
Program, http://www.ifor.org/WPP/definitions.htm).
Finally, another definition in the International Labour Office (ILO) Constitution (2007, p.1) is
one that is too important not to state here:
‘All human beings, irrespective of race, creed or sex, have the right to pursue both their
material well-being and their spiritual development in conditions of freedom and dignity, of
economic security and equal opportunities.’
The definition of the ILO is more aimed at the market sector, due to the mission and functions
of the ILO, and gender equality consequentially entails a focus on firms, employment issues
and working conditions of women.
Furthermore, an interesting and informative statement on this issue concerns the vision of the
European Commission’s regarding gender equality;
Gender equality is a fundamental right and a common value of the European Union. It is also
a necessary condition for achieving the EU'
s objectives of growth, employment and socialcohesion. Over the last few years, significant progress has been made in this field, as can be
seen from the increasing numbers of female university graduates, employees and political
decision-makers. However, many more challenges must yet be overcome if gender equality is
to be achieved. (Eurostat, 2008)
As can be seen from these several definitions, gender equality is a very broad, universal issue.
This issue needs further investigation in order to make clear what the issue exactly entails and
what the consequences of gender inequality are for civil society, state and market. In the next
section, the different dimensions of gender equality are discussed.
1.2 Dimensions
In order to be able to analyze the position of all relevant stakeholders on gender equality, it is
important to specify the different dimensions of the concept. In this section, the different
dimensions are discussed and elaborated upon. These dimensions will consequentially be used
in order to define the research boundary of this issue paper.
Gender equality is a very broad and global concept. As can be seen from the definition of the
World Health Organization, gender equality relates to equal treatment of male and female
concerning relations, laws and policies, women’s empowerment, but also equal access to
resources, such as health care, property and education. Consequentially, several dimensions of
the concept gender equality can be specified.
Cultural Dimension
First of all, a cultural dimension can be distinguished. More specifically, the cultural
dimension relates to the position of women as compared to men with respect to relationships
and relative position, for example in religious groups, state, families or different
organizations, evident by the degree of discrimination in different groups and organizations.
An example of the cultural aspect of gender equality is ‘the provision of unpaid care for
children and other dependent family members’ (Cornick, 1999). According to this author, ‘the
primary responsibility of dependent care work, in the industrialized countries, remains
delegated to women.’ Consequentially, ‘the sexual division of unpaid labour shapes gender7
linked patterns of labour market investments and attachments, and consequently claims on
welfare resources as well.’
The degree of gender equality differs across different groups, firms’ and family cultures.
However, this degree also differs across countries, nations and regions. According to Dollar
and Gatti (1999), ‘the relative status of women is poor in the developing world, compared to
developed countries.’ Therefore, there exist substantial differences in gender equality between
different cultures, developed and developing countries. For example, the importance of girls’
education differs across cultures and countries (Dollar and Gatti, 1999). Some evidence of
national laws illustrating gender inequality are the ‘right to manage property, right to incomeearning opportunities and the right to travel’ (Dollar and Gatti, 1999).
Economic Dimension
Secondly, another dimension of gender equality is the economic perspective, which is directly
related to the concept of employment and monetary issues. This dimension relates specifically
to differences in company policies and regulations concerning male and female, the
differences in wages, career development and job perspectives between men and women.
Furthermore, this dimension concerns the relative position of females versus males in the
market sector and in firms. For example, policies on parental leave can differ for men and
women, which can impede the inequality. According to Brighouse and Wright (2008), ‘certain
kinds of parental-leave policies can be seen as providing support to dual-earner families in
ways that actively contribute to sustaining inequalities in the gender division of labor within
the family.’
Furthermore, an important concept related to this economic dimension is the existence of the
glass ceiling. According to the ILO (2007, p. 68), ‘the glass ceiling has come to symbolize the
invisible barriers blocking women from rising to the top of the corporate heap. (…) Despite
decades of social development and advancements in gender equality, this artificial barrier
remains in effect.’ (originally published in 2001) Another important aspect of gender
inequality within the market sector concerns the ‘gender earnings gap’ (Gornick, 1999).
According to statistics of Eurostat (2008), ‘across the EU as a whole, average gross hourly
earnings of women (those between 16 and 64 years old and working 15 hours or more a week)
were, on average, 15 % below those of men in 2005.’ According to Gornick (1999), there are
many complex factor driving this gap, however one ‘primary factor underlying the persistent
earnings gap is the high level of occupational segregation specifically, women’s continued
over-representation in low-wage occupations.’ Moreover, according to the International
Labour Office (2007, p. 111), ‘despite entering the job market in record numbers, women still
face higher unemployment rates and lower wages (…)’ (originally published in 2004). There
are many more examples of the existence of gender inequality, which is based on
discrimination, within the market sector. These examples will be discussed further in other
sections of this paper.
Social Dimension
Furthermore, another dimension of gender equality is the social dimension/perspective. This
concerns the attitudes of the market, state and civil society towards the differences in social
norms, expectations, stereotypes and roles between men and women. The three different
dimensions are interrelated and this dimension complements the other two dimensions. This
dimension specifically concerns the role of females in society, family and their care giving
roles, the expectations that are being created in the media or within firms concerning women.
Furthermore, it is also related to the differences in employment opportunities of men and
women within firms. Another related issue is the (under)-representation of women in state and
government. For developing countries, this issue relates more specifically to the importance
8
of girls’ education or the role of girls in the household. According to Dollar and Gatti (1999),
this is a bad decision because ‘societies that under invest in women pay a price for it in terms
of slower growth and lower income.’
Research area
In order to delineate some boundaries to the research area, the main focus of this paper will be
on the existence of gender equality within the market sector in developed countries1. The
concept of gender equality differs considerably between developed and developing countries.
For example in developing countries, access to resources (part of the definition of gender
equality of the WHO) relates more specifically to access to health care, access or the ability of
females to receive credit and gain property rights. According to the United Nations Population
Fund, which focus is on international development, ‘discrimination against women and girls including gender-based violence, economic discrimination, reproductive health inequities, and
harmful traditional practices - remains the most pervasive and persistent form of inequality’
(UNFPA, 2006, http://www.unfpa.org/gender/index.htm).
However, from the academic literature, it can be concluded that gender equality in most
developed countries is more focused on the market sector or work-related issues, such as
employment, career development and job perspectives. Besides that, the regulation
concerning gender equality in the developed world more specifically concerns paternity leave,
wage differences and the minimization of discrimination in the workplace. This perspective is
also evident in the Eurostat Report of 2008: ‘Gender equality is a fundamental right and a
common value of the European Union. It is also a necessary condition for achieving the EU'
s
objectives of growth, employment and social-cohesion.’ Furthermore, according to Dollar and
Gatti (1999), ‘the econometric evidence suggests that societies have to pay a price for gender
inequality in terms of slower growth.’
In order to investigate the role of the market regarding gender equality and what attitude or
stance firms have and can adopt concerning the problem of gender inequality, it has been
decided that the focus of this issue paper will be on the existence and/or persistence of gender
inequality in the market sector in developed countries. This will be elaborated upon in
Chapter 3 and 4. After having identified the research boundaries of the issue, the various
stakeholder related to gender equality can be analyzed. Section 1.3 will provide a small
stakeholder analyses.
1.3 Stakeholders
This section specifies the various stakeholders related to gender equality in the market sector.
The relevant primary and secondary stakeholders concerning gender equality are listed and
shortly discussed.
According to Van Tulder and Van der Zwart (2006, p. 136), ‘primary stakeholders are those
persons (…) without whom the company cannot realize its objectives.’ The primary
stakeholders of the problem of gender inequality are mentioned below.
First and foremost, employees, both male and female, are a very important group of
stakeholders. According to Van Tulder and Van der Zwart (2006), gender equality is a civil
1
Acccording to the CIA, World Factbook, 2008, the 34 Developed Countries s are: Andorra,
Australia, Austria, Belgium, Bermuda, Canada, Denmark, Faroe Islands, Finland, France, Germany,
Greece, Holy See, Iceland, Ireland, Israel, Italy, Japan, Liechtenstein, Luxembourg, Malta, Monaco,
Netherlands, NZ, Norway, Portugal, San Marino, South Africa, Spain, Sweden, Switzerland, Turkey,
UK, US (https://www.cia.gov/library/publications/the-world-factbook/appendix/appendix-b.html)
9
society issue. According to the authors, this entails that individual citizens are primary
responsible for the way they deal with such a global issue (p.173-174). Therefore, individual
employees are primary responsible for the ownership of this issue. Consequentially,
employees are directly affected by changes in the degree of gender equality within firms and
have the knowledge about what can be improved concerning firms’ or government policies.
Secondly, firms in general and more specifically, directors and policymakers, are also primary
stakeholders of the issue on gender equality. Because the main focus of this paper is on
gender equality in the market sector, the persistence of gender inequality within firms is a
very important aspect. Consequentially, firms and firm leaders are also directly related to the
problem. Moreover, firm leaders and policy makers have the power to influence policy
decisions and company regulations regarding paternity leave and gender discrimination.
Other relevant stakeholders can be called secondary stakeholders (Van Tulder and Van der
Zwart, 2006, p. 137). The secondary stakeholders concerning gender equality comprises of
trade unions, employee and employers’ associations, non-governmental organizations that
strive for gender equality (civil society), suppliers and customers of companies. Furthermore
and more importantly, state and governmental organizations such as the United Nations, the
International Labour Office or the European Commission, are also stakeholders related to the
issue of gender equality. The government has an important role in regulating the market and
to develop legislation in order to tackle the problem of gender inequality in the market sector.
The next section analyzes the trends and changes in the history of gender equality and the
current situation of the issue on the Issue Life Cycle. This model distinguished between four
stages through which an issue can develop ‘towards regulation or settlement’ (Van Tulder and
Van der Zwart, 2006, p. 162).
1.4 Trends
In this section, the position of the issue of gender equality on the Issue Life Cycle is
discussed. By providing a short summary of the history and evolution of gender equality,
triggering events and the current situation, the life cycle of gender equality can be derived. In
order to narrow down this analysis, the focus is on developed countries.
In the history on gender issues and equality, several movements called waves, are evident. In
the academic literature, three waves are identified. First of all, ‘first-wave feminism arose in
the context of industrial society and liberal politics but is connected to both the liberal
women’s rights movement and early socialist feminism in the late 19th and early 20th century
in the United States and Europe. Concerned with access and equal opportunities for women,
the first wave continued to influence feminism in both Western and Eastern societies
throughout the 20th century.’ The second wave emerged in the 1960s to 1970s in ‘post-war
Western welfare societies’. Furthermore, ‘second-wave feminism is closely linked to the
radical voices of women’s empowerment and differential rights and, during the 1980s to
1990s, also to a crucial differentiation of second-wave feminism itself, initiated by women of
color and third-world women. The third feminist wave started in the mid 1990s onward, in the
‘emergence of a new postcolonial and postsocialist world order, in the context of information
society and neoliberal, global politics.’ (Krolokke and Sorenson, 2005, p.3-5)
It could be said that the Birth phase of the issue of gender equality coincides with the first
feminist wave. At this stage, it were the feminists and interest groups who, as a societal
grouping, have put the issue on the agenda, so to speak.
The growth phase is characterized by ‘intensification of public interest’. (Van Tulder and Van
10
der Zwart, 2006, p. 164) The second and third waves are evidently illustrative for the
intensification of public interest on the issue of gender equality. The second feminist wave
was more radical and is characterized by protests, such as females burning their bra.
(Krolokke and Sorenson, 2005, p.8) This wave can be seen as the so-called ‘triggering event’.
(Van Tulder, 2008, p. 3) This marks the transition from the first to the second phase, which is
called Growth.
Consequentially, throughout the years, public interest has risen towards the importance of
gender equality in civil society and markets. This increased public interest led to increased
governmental action, which consisted of setting up and improving equality regulation and
developing policies for companies and the market sector in order to diminish gender
inequality. Specific policies and regulations are discussed in Chapter 2 of this issue paper.
Moreover, NGOs and interest groups are cooperating with governments in order to ‘support
and develop alternatives’ (Van Tulder, 2008, p. 3). An example of this is the International
Labour Office, which structure includes ‘representatives of government, and of employers’
and workers’ organizations.’ (ILO, 2007). These changes and developments illustrate the
Development phase of the Issue Life Cycle.
Currently, the issue of gender equality is in the Maturity phase of the cycle. According to Van
Tulder and Van der Zwart (2008, p.165), in this phase the ‘issue has to be addressed and the
expectational gaps has to be bridged.’ In this phase, the position of NGOs is one of
partnering, which includes extensive cooperation with firms and governments. Furthermore,
governments have a pro-active stance towards the issue of gender equality, as do firms.
According to the ILO and as can be seen from for example, the European Commission’s
policy
regarding
gender
equality
(European
Commision,
http://ec.europa.eu/employment_social/gender_equality/index_en.html), it can be concluded
that ‘governments uses laws and treaties as a framework to trigger self- regulation (…).’ (Van
Tulder, 2008, p. 3).
The final phase of the Issue Life Cycle is called Post-maturity. In this phase, the issue can
reappear at a later stage, equilibrium can be reached or the issue can disappear completely.
(Van Tulder and Van der Zwart, 2006, p. 166). How the issue of gender equality will evolve
in the future remains to be seen. As the concept of issue fatigue can occur at any moment
during the issue life cycle, it can occur that the issue can lose its importance or relevance
((Van Tulder and Van der Zwart, 2006, p. 166). What can be said is that the public interest
concerning gender equality has been stable for quite some time. Chapter 2 will elaborate on
this. Whether this is issue fatigue or a different approach of the third feminist wave, is beyond
the scope of this paper.
It is important to note that this Issue Life Cycle analysis is valid for primarily developed
countries, such as European Countries and the United States. The Issue Life Cycle of gender
equality in developing countries will be very different. Due to the difference in economic
development, the degree and scope of gender equality is also completely different. According
to the ILO (2007, p. 41, originally published in 2000), gender equality in developing countries
relates more to property rights, equality of property ownership and control. Furthermore,
sexual rights are also clearly related. (ILO, 2007, p. 49, originally published in 2000)
To conclude, governments and civil society currently have a pro-active stance comprising of
partnering and cooperation with each other. However, the attitude of firms towards this issue
needs further investigation. It remains questionable whether firms have already adopted a pro-
11
active stance, and if so, this will certainly differ across sector, region and industry. This will
be the main focus of discussion in Chapters 3, 4 and 5.
1.5 Underlying causes of gender inequality
The problem of gender inequality in the market sector and the persistence of differences
between men and women within firms have several causes. The underlying causes of the issue
of gender inequality are discussed in this section.
First of all, according to Brighouse and Wright (2008), gender inequalities in labour markets
and employment opportunities have several causes. Some of the gender inequality ‘is
certainly due to direct discrimination—employers and managers treating women as a category
differently from men in ways that disadvantage women.’
However, there are more complex mechanisms underlying the issue, such as household
economic incentives. According to the authors, due to general gender inequality mentioned
above, ‘the overall economic standing of the family will generally be higher if men devote
more energy to work and career advancement than do their wives, and this both creates
pressures on wives to devote more energy to domestic responsibilities, including child care,
and reinforces the normative understanding of male careers as more important even in those
households where the careers of wives are economically more important than those of their
husbands.’ Besides that, there are the gender-regulating social norms. ‘Prevailing social
norms continue to differentiate appropriate “men’s work” from “women’s work”’. These
prevailing social norms create expectations about men and women which reinforces the
incentive for employees and employers to engage in gender discrimination (Brighouse and
Wright, 2008). Furthermore, ‘these expectations makes it more difficult for people to make
judgments based on purely individual characteristics’, which enhances the ability to base
judgments on gender.
According to Brighouse and Wright (2008), these mechanisms work as a reinforcing cycle:
‘discrimination reinforces behaviors that reinforce norms, norms reinforce preferences and
identities that reinforce behaviors and skills that reinforce norms, the obstacles in the form of
inadequate support increase the costs of individual defections from the cycle, and so on.’ In
this way, by viewing the underlying causes as a repetitive cycle, it is possible for gender
inequality to persist in certain strong firm-cultures, where this cycle is not easily broken.
Furthermore, according to Dollar and Gatti (1999), ‘gender inequality in education and health
can also be explained to a considerable extent by religious preference, regional factors, and
civil freedom’. This is related to the cultural and social dimension of the issue of gender
equality. Religious values can influence the perception of people who are related to this
religion and share these cultural values, concerning the relative roles of men and women.
More specifically, the effect of this differs per religion, ‘ affiliations to Muslim and Hindu
religions are consistently associated with high gender inequality, whereas the Protestant
religion and high civil liberties are associated with low inequality.’ (Dollar and Gatti, 1999)
Moreover, the study of Dollar and Gatti (1999) also relate income to the issue of gender
equality. According to the authors, several causes of gender inequality are low income, the
extent of civil liberties in society and which has been mentioned already, religious preference.
The authors state that ‘there is strong evidence that increases in per capita income leads to
improvements in different measures of gender equality.’ This does not necessarily mean that
low income leads automatically to higher gender inequality. However, the relationship entails
12
that a country with low income does not have the means to offer education for example, to
both boys and girls. Which is evidently leading to gender inequality in that country.
According to the authors however, ‘it is important to know that the country-wide policies that
support rapid growth are also indirectly contributing to gender equality.’
It is important that the underlying causes of the problem of gender inequality are publicly
known. In order to reduce gender inequality in the market sector, all relevant stakeholders
should be aware of the underlying causes. In this way, regulation and measures to enhance
gender equality can be effective.
1.6 Conclusion
It can be concluded that the issue of gender equality, which is a basic human right for every
citizen of this global world, is a very broad and complex concept with many dimensions.
Furthermore, the issue can be analyzed from different perspectives, namely from the civil
society viewpoint, or from the market or state perspective. The actual scope and content of
gender equality differs considerably across regions, cultures and nations. Consequentially, it
is needed to narrow down this topic in order to analyze the consequences of the problem of
gender inequality and the stance of relevant parties towards the issue. Therefore, this chapter
has provided some focus for further analysis of gender equality. The main focus of this
research paper is to investigate the problem of gender inequality, which is based on
discrimination of gender, in the market sector.
In Chapter 2, the consequences of gender inequality in civil society and more specifically, in
the
market
sector,
will
be
discussed.
13
Chapter 2 – Consequences of gender (in)equality
In this chapter, the consequences of the issue of gender inequality are discussed. This is done
by investigating several factors that will show the current status quo in different areas and
ways
to
improve
that
status
quo.
According
to
Unicef
(Unicef,
http://www.unicef.org/gender/index_bigpicture.html) gender describes the sociallyconstructed roles, responsibilities and rights that societies and communities consider
appropriate for women and men. Gender is a fluid concept because it is a social construction.
It changes over time, differs between cultures and among different groups within one culture.
That is why power imbalances, gender roles and inequities are determined by the systems and
cultures we live in, instead of it being a ‘natural’ result of biological differences. The way to
address and contribute to changing these roles is by challenging the status quo and seeking
social change. In this section can be read how this is done so far, what the outcomes of several
researches on the topic are and the opinions of several authors and institutions.
2.1 Scenario’s (predictions and perceptions)
Currently, there still exist major differences between countries and continents on how
companies deal with gender equality within their firms. In line with the number of people
doing research and making predictions and perceptions about this topic, there is almost an
equal amount of different opinions and findings. ‘The question of what constitutes gender
equality in the labour market remains surprisingly thorny’ (Gornick, 1999). Some findings of
Gornick (1999) include the facts that as of the early 1990s, throughout the industrialized
countries women are still less likely to be employed than men. Besides that, those women that
are employed receive lower hourly wages than men do, they are less likely to hold full-time
jobs than employed men and last but not least, with regard to household labour, women
contribute the majority. Besides that, women are also held primary responsible for raising the
children, meaning that a parallel can be drawn between the sexual divisions in paid work and
unpaid work (Gornick, 1999).
According to Gornick (1999), women’s labour force participation increased in every OECD
country between 1960 and 1990. Men’s labour force participation on the other hand, fell
steadily throughout the same period, though from much higher base levels. From this can be
concluded that the female share of the labour force increased sharply (1992, OECD, cited
Gornick 1999).
Another interesting finding of Gornick (1999) is the change in the percentage of women
employed part-time. This change showed more variation; between 1960 and 1990, there was a
dramatically increase in the percentage of employed women working part-time in two-thirds
of the OECD countries, and the percentage modestly decreased in one-third of the OECD
countries. During that period, there was also an increase in the percentage of employed men
working part-time, although from much lower base levels, in all industrialized countries.
Combining these two trends, the result is that female share in part-time work has remained
fairly stable, at a high level in most countries (1991, OECD, cited Gornick, 1999).
From different academic articles can be concluded that women are on the rise in the market
sector, but as also stated above, the total share of working women remains fairly stable,
meaning that the total gap between male workers and female workers is barely diminishing.
14
The perception of the so-called ‘glass ceiling’ is well known in all market sectors of
developed countries. According to the female wage indicator (Vrouwen loonwijzer, 2008
http://acc.wageindicator.org/vrouwenloonwijzer/main/Hetglazenplafond), the glass ceiling
refers to a difficultly to indicate barrier which makes it harder for women to push through to
top functions in companies. Chi and Li (2007) use the following definition:
´a glass ceiling refers to a greater earnings gap at the top end of the distribution, suggesting
that female workers in upper-income brackets have lower pay than their male counterparts´.
Different opinions exist on whether that glass ceiling truly exists. For example, Van Zanten, a
Dutch female author of a book on how women can reach the top in their careers, states that
most top women she has interviewed for her book share the opinion that the woman herself is
the biggest bottleneck (Hazebroek, 2005). To put it in other words, according to the
interviewed top women, the glass ceiling only exists for women who actually think that there
is a glass ceiling. Women that do want to reach the top will do so, receiving equal chances as
their male opponents do (Hazebroek, 2005).
On the other hand, there exists proof in the form of statistics that show the presence of a glass
ceiling. In a newspaper article of 2006 (Volkskrant, 2006, http://www.ornet.nl/tsor/home/id75735/glazen_plafond_vooral_bij_overheid.html) is stated that after research of that same
newspaper can be concluded that in the Netherlands, women have a smaller opportunity to
become a manager when they work for the government. One and a half times as much women
break through the glass ceiling in companies compared to the number of women breaking
through the glass ceiling while working at the Dutch government (Volkskrant, 2006).
From the literature review of Chi and Li (2007) becomes clear that much previous research
has found empirical evidence on the existence of the glass ceiling. Albrecht et al. (2003, cited
Chi and Li, 2007), conducted a research on the glass ceiling in Sweden, using data from 1998
and the outcome was evident for a glass ceiling in that country. Furthermore, findings of De la
Rica et al. (2006, cited Chi and Li, 2007) confirmed to the existence of a glass ceiling in
Spain, although both researchers had used different empirical methods. Kee (2006, cited Chi
and Li, 2007) found ‘that there was a strong glass ceiling in the Australian private sector but
not in the public sector’. Research done in Vietnam (Chi and Li, 2007) did not find much
evidence on the existence of a glass ceiling there. But in general can be concluded that most
research outcomes confirm the existence of a glass ceiling.
In the article of Neumayer and De Soysa (2007) can be read that feminists and women’s
interest groups have the concern that globalization increases the existing economic
disadvantage experienced by many women relative to men in most countries of the world
(Neumayer and De Soysa, 2007). The concern that globalization is detrimental for what are
called core or fundamental labour rights is supported by those feminists and women’s interest
groups, but there are also opponents of that concern. The opponents argue that the core or
fundamental labor rights improve with increasing globalization (Neumayer and De Soysa,
2007). Future will tell which group is right.
Several movements have been going on for decades already, which contribute to the issue of
gender equality. According to several statistics, women in the labour market are on the rise.
Due to the rise of female professionals, the fact that women are occupying higher functions
and positive discrimination of women, the role pattern is changing. From the mid twentieth
century on, a lot of progress has been accomplished with regard to women’s roles in the
market sector. Since this issue is in the maturity phase of its issue life cycle, there has been an
15
overflow of information and attention for this topic for years. This makes it more ordinary and
in the end less interesting for the public, because it becomes saturated on this particular topic.
It is expected that the chance exists that there will be an issue fatigue (Van Tulder and Van
der Zwart, 2006, p. 166) with regard to the issue of gender equality in market sectors. ‘Issue
fatigue occurs when there have been so many similar affairs that the relevance or urgency of
the issue is undermined’ (Van Tulder and Van der Zwart, 2006, p. 166). Besides that, the
possibility exists that in time men will turn this issue around, and ask for attention on their
unequal treatment in the market sector. Think for example of the advantages most pregnant
female employees and those who have just delivered a baby, have.
2.2 Issue ownership
Whose responsibility is it to make sure that measures are taken that will lead to gender
equality in the market sector? It would be easy to just point to one institution, but the fact is
that gender equality can be reached only through cooperation and interaction between state,
civil society and the market. This is discussed in this section, where the different
stakeholders’ positions are analyzed.
Gornick (1999) found out that ´much recent research supports the conclusion that public
policies (thus laid on by governments) shape labour market outcomes, especially women’s
employment patterns, which are known to be quite responsive to an array of institutional
factors´. She also came to the conclusion that ´public policies that support maternal
employment appear to play a role in increasing mother’s economic independence during their
children’s early years, relative to their counterparts in relatively like welfare states. This effect
spills over to the population as a whole´. From this can be concluded that successful
implementation of measures against gender inequality by governments can contribute to a
situation of gender equality.
In the article on the EU employment strategy (Rubery, 2002) is stated that the European
Union’s commitment to gender equality has risen in terms of visibility. Since the agreement at
the Luxembourg summit in 1997, the commitment includes strengthening equal opportunities
between women and men as one of the four pillars of the employment guidelines. Besides
that, the inclusion of a new guideline on gender mainstreaming in 1999 that requires member
states to consider the gender impact of all policies under each of the four pillars, provided a
further major impetus to the integration of equal opportunities issues into the employment
framework. This indicates that there is much awareness as well as action in the EU to make
rules and regulations in order to diminish gender inequality. The article by Rubery (2002) also
states that gender mainstreaming requires gender equality issues to be built into all policy
programmes and has the potential double benefit of ensuring that gender effects are taken into
account in the initial design and of providing a basis for new and transformatory approaches
to policy making (Rubery, 2002). This statement proves that the EU is relatively far in
implementing rules and measures to cope with the problem of gender equality.
The results of Gornick’s (1999) research show that a contribution of governments to reduce or
eliminate gender equality in the market sectors certainly helps. Although not too much
pressure should be put on the state, because in its essence, the issue of gender equality in the
market sector is a civil society issue; it is considered as a primary responsibility of individuals
to create awareness in order to change the status quo. When people in the market sector, men
as well as women, do not want change, they will not ask for it. Looking at all the movements
16
and actions, by mostly women, in the past decades, it can be stated that they want change;
they have a motive for their actions which can be summarized as gender equality.
Then there is also the market, or the companies, that can contribute towards realizing gender
equality. Research of Neumayer and De Soysa (2007) has proven that women’s economic
rights are better in more developed and democratic countries as well as in countries in which
the chief executive belongs to a left-wing party (pay attention to the correlation between state
and market), whereas rights are lower in countries with a higher share of Muslims.
According to a report of the EU about implementing gender equality in enterprises (Donlevi
and Silvera, 2007), ‘the private sector is a key vector for change in order to improve gender
equality in society’. The authors state that ‘actors from the private sector – company
executives and managers, human resources staff, trade unions, employers’ organisations – all
have a key role to play in this field’
Institutions that are also part of the market combined with civil society are the trade unions
and associations (for employees, employers and other stakeholders). When those institutions
stand up for the rights and interests of its members, they raise awareness of the issue they are
fighting for. This leads to the possibility of change.
Brighouse and Wright (2008) state that ‘the enduring gender inequalities constitute a
significant obstacle to achieving ‘strong gender egalitarianism’ – a structure of social
relations in which the division of labour around housework and care giving within the family
and occupational distributions within the public sphere are unaffected by gender’.
They describe three ways of publicly supported parental care giving leaves, which bear on the
potential for public policy to transform this private property of inequality. Those three ways
are; ‘equality-enabling policies (e.g. paid care giving leaves given to families), equalityimpeding policies (e.g. unpaid care giving leaves) and equality-promoting policies (e.g. paid
care giving leaves given to individuals rather than families)’. The authors themselves defend
the third means as necessary, but all above mentioned means to achieve strong gender
egalitarianism are forms of cooperation between the government, the company and the
employees. This once again indicates the necessity of cooperation between those three
institutions.
To summarize, it is civil society’s primary responsibility to create awareness to change the
status quo in the labour market and to adjust to new rules, regulations and measures taken.
However, the state and the market have the power and resources to regulate the issue and
implement measures, and in that way contribute to diminishing gender equality in the market
sector.
2.3 Expectational Gaps
‘Expectational gaps are created when stakeholders hold different views on what acceptable
corporate conduct is and/or should be with regard to societal issues’ (Van Tulder and Van der
Zwart, 2006, p. 158). Since gender equality in the market sector in the developed world is at
the maturity stage of the issue life cycle, several bridges have already been built and are in
use. Furthermore, regulation exists in order to overcome expectational gaps in the field of
gender equality (Eurostat, 2008). However, there are still many things that need to be better
regulated and obeyed. One of the currently most important expectational gaps in the market
sector of developed countries is related to the wage differences between men and women. In
17
2005, among all EU member states, average gross hourly earnings of women (aged between
16-64 years and working 15 hours or more a week) were, on average, 15% below those of
men. Women earn less than men in all member states of the EU. Besides that, in 2005, there
were only three countries where the income differences were smaller than 9%, but even more
striking, there were six countries in which the differences were 20% or more (Eurostat, 2008).
Next to the expectational gap on wage differences, there is also the expectational gap on the
above mentioned glass ceiling. A majority (of women) perceives that glass ceiling as an
important current barrier to make career and to get the possibility of gaining a top function.
The chance exists that in the future the glass ceiling in Europe will collapse, since women are
catching
up
with
men
with
regard
to
education
(ANP,
2006,
http://www.briskmagazine.nl/00/nieuws/15741/Vrouw_in_EU_verdient_15_procent_minder_
dan_man.html). A small minority of the current student population in Europe is female (ANP,
2006), which is an indicator of change.
Furthermore, there is also the current highly debated fatherhood leave, at least in the Dutch
politics, which forms another expectational gap with regard to the main issue of gender
equality. In 2007, a Dutch political party, ‘GroenLinks’, presented an initiative law which
gives young fathers the right to receive two weeks paid leaves directly after the birth of their
child. At this moment young fathers only have two days of paid leaves after their child has
been born. Compared to other EU member states, two days is very short and also contributing
to the Netherlands having Europe’s largest gap between hours worked by men and women
(Gillissen, 2007).
On the other hand, it is needed to have companies/employers that are cooperative in order to
make the above mentioned legislation possible. But the Dutch employers do not like the idea
of two weeks paternity leaves at all (NRC, 2008). Two employers associations (VNO-NCW
and MKB-Nederland) opposed to the proposed legislation. According to those associations
there are already enough paternity leaves possibilities available. They state the employers do
not want to become responsible for all the extra costs that such legislation brings along (NRC,
2008). From this can be concluded that some expectational gaps are difficult to overcome,
because of all the different interests of different stakeholders.
Moreover, there are also the issues of unequal chances in job promotion, different view by
males and females as well as by countries and several other stakeholders on the topics related
to gender inequality in the market sector. The three expectational gaps mentioned above are
highlighted examples, because it is impossible due to time constraints to treat all expectational
gaps that exist at this moment in the market sector of the developed world.
2.4 Regulation Possibilities – Are existing regulations sufficient?
This section explores the effectiveness of gender equality regulation and legislation put in
place by many European states. More recently, the legislations adopted a more sweeping
approach and makes way for recognizing other inequalities that are faced by both men and
women. An example of such legislation is the Gender Equity Duty in Scotland, which was
implemented in 2007. (BBC, 2007, http://news.bbc.co.uk/1/hi/business/6527275.stm) Since
the 1970s, many regulations have been implemented that target the issue of pay equity (Joshi
and Paci, 1998). Nevertheless, the issue of unequal pay for men and women executing the
same job continues to be a problem. In an article in the Industrial Law Journal, Fredman
18
(2008) states that the gender pay gap in the UK remains significantly high even after thirtythree years of equal pay legislation.
Recent statistics published in August 2008 by the European Foundation for the Improvement
of Living and Working Conditions demonstrate that the average gender pay gap across the 27
European Union member states was 15.9% in 2007 (Eurofound, 2007,
http://www.eurofound.europa.eu/eiro/studies/tn0804019s/tn0804019s.htm) The report shows
that the pay gap decreased slightly from 2006, but this is still a staggering statistic. The reality
is that gender pay equality has not been reached.
Referring back to Fredman (2008), there is still room for government to make radical changes
in order to reach pay equity. Fredman advocates for a Single Equality Bill that encompasses
the solution to the problem of unequal payment of males and females executing the same job,
along with many other forms of gender discrimination. Besides that, she goes on to condemn
that the current system is associated with wasteful costs. Fredman (2008) is one example of
many scholars who believe that the pay equity issue can be overcome by improved
regulations.
2.5 Outspoken Action Groups – NGOs or Government Organizations?
Feminist action groups are the key proponents for gender equality. Such groups have been in
existence for many years, and have been formed even before the compelling rise of feminism
in the 1970s. According to the Issues Life Cycle (van Tulder and Van der Zwart, 2006,
p.162), it could be stated that the issue of gender equality has reached maturity, since
government is active in the formation of legislation. In this instance, NGOs contribute less
momentum to the issue development, and government and state-associated organizations have
taken on a major role into regulation; the numerous forms of legislation mentioned previously
in this paper serves to illustrate this point.
Government institutions could play a role as outspoken action groups. In Europe, the
European Union plays a large role and aliases with many action groups to promote gender
equality. The European Foundation for Improvement of Living and Working Conditions,
International Labour Organization and the European Commission on Employment, Social
Affairs, & Equal Opportunities all strive to raise awareness for this issue. Many publications
are made available by such organizations. These widespread efforts by state-associated
organizations are indicators of the maturing status of gender equality based on the issues life
cycle. Although this issue is in the maturity phase, those organizations striving for gender
equality in the labor market have not reached their goals yet, from which can be concluded
that the issue continues to exist. Local special interest groups have formed in order to give
distinctions to companies who put in extraordinary efforts in bringing gender equality to the
workplace. These groups, including the International Alliance for Women (www.tiaw.org)
and the US-based National Association for Female Executives (www.nafe.com), all have
gender equality on its agenda and they rightfully encourage companies to be more diverse.
Contrastingly, in developing countries, gender equality continues to be an issue that has yet to
be championed by the government. In most developing countries there first needs to be done
something about gender equality in general and thereafter can be looked at gender equality at
work. The issue of gender equality is indeed a Millennium Development Goal, but the efforts
contributed by the governments of developing countries are rather limited (Millenium
Campaign, http://www.millenniumcampaign.org/site/pp.asp?c=grKVL2NLE&b=186382). In
19
the developing countries, the awareness for the issue is advocated by international
governmental and civilian organizations such as Unicef, United Nationals Population Fund
(UNPFA), and Oxfam. In this instance, non-governmental organizations continue to play a
major part in raising awareness for gender equality. In developing countries, NGOs have the
role of appealing to women to make them advocates of their own equality. Lam (2006)
illustrates the instability of the government in Bangladesh, citing its history of ‘constitutional
revisionism’. Besides that, she states that NGOs ‘play an indispensable role in partnering with
the international and aid community and participating in grass-roots legal reform’. This
indicates that NGOs in developing countries are outspoken action groups.
It can be seen that NGOs and governmental organizations both play a vital role in advocating
the issue of gender equality. NGOs in developing countries are still active and international
state-associated organizations such as Unicef are complementary to grass-root efforts. On the
other hand, in developed countries, where the issue is maturing, it is more evident that
government regulations have become a driving force to making developments on the issue;
special interest groups exist to advocate the issue in the part of the society where it seems
gender equality could be further advanced.
2.6 Men: Tacit or Tangent Stakeholders?
A general belief is that gender equality is an issue mainly for women. The truth of the matter
is that men must also play a role in finding a means to this problem. This extends to not only
developing countries, but also developed countries; in both instances, men are important
stakeholders in the fight for gender equality. This is discussed in the coming section.
In developing countries, men are expected to fulfill the stereotypes of having to be the
breadwinner and '
being tough'
. A publication of UNESCO suggests that these ideals pose
great danger to young men as they are subject to '
conditions of labour which are often harsh
and involves injury, violence (army and war) crime and imprisonment'(UNESCO, 2004). The
women on the other hand, are left with the responsibility of child-rearing and caring for the
elderly. The author of the article claims that both men and women will benefit from gender
equality on the societal level as well as on the individual level, in that men no longer have to
fulfill their stereotypes if they empower women.
The United Nations Population Fund also encourages the involvement of men in the
promotion of gender equality. The UNPFA argues that ‘men need to be involved if gender
equality is to be achieved and reproductive health programmes are to succeed’ (UNFPA,
2008, http://www.unfpa.org/gender/men.htm). It defines the crux of the problem as
developing society'
s condonation of sexual aggression and risk taking behaviour in young
men, and urges men from developing countries to become ‘responsible, caring and nonviolent partners’ (UNFPA, 2008, http://www.unfpa.org/gender/men.htm).
In developed countries, the role of men advocating for gender equality is among others based
on raising awareness for domestic violence against women. The White Ribbon Campaign (
The White Ribbon, 2008, http://www.whiteribbon.ca) was founded in 1991 in Canada, and
has a mandate of ending violence against women. UNESCO reports that incidents of domestic
violence cost Canada $1.6 billion annually (2004). It claims that even in developed countries,
the dominant position of males in the household leads to violence against women; their
figures imply that gender equality is key to becoming more economically efficient and
reducing necessary welfare and consequential payments. Since the early 1990s, other
20
advocates have called for the '
new fatherhood'and increased involvement of men in the
family; this new '
therapeutic movement'(Connell, 2005) creates new bridges and male
awareness in gender equality.
There is support to demonstrate that men need to take a hold of the issue of gender equality;
the achievement of gender equality will not only benefit women, but also men who are subject
to stereotypes and society as a whole. Both UNPFA (UNFPA, 2008,
http://www.unfpa.org/gender/men.htm) and UNESCO (UNESCO, 2004) put blame on the
crippling social norms that create stereotypes and power imbalance. Ultimately, men can
contribute to obliterate these ideals from society. However, their actions and reforms (albeit
slowly emerging), can only help the cause for gender equality and even certain aspects of
related human rights issues.
2.7 Gender equality linked to other issues
Gender Equality links to many other issues and this section will outline the various themes
connected to this issue.
Referring once again to the societal triangle (Van Tulder and Van der Zwart, 2006, p. 8), the
primary responsibility of championing gender equality falls on the civil society. However, one
can imagine that there are many other civil society topics that relate to gender (in)equality.
For instance, access to health care is an issue that the society is striving to improve; gender
inequality is very much a subset of this problem as women have less access to health care in
developing countries. Similarly, education, in particular for girls, has been a topic of concern.
According to recent Millennium Goal reports, girls'enrollment in primary school is close to
parity, if not at parity in almost all nations (UN, 2008), but one still ponders if the same could
be said for the measurement of high school enrollment.
In the developed countries, the issue of executive pay (furthering the discussion of the gender
pay gap) and marital status discrimination are examples of topics that relate to gender
equality.
2.8 Conclusion
This chapter has treated the consequences of gender inequality. Several predictions and
perceptions exist on the current status quo of the issue of gender equality in the market sector
of developed countries. Several sources prove that the group of working women in developed
countries keeps growing, but looking at the net increase, it is not that large as some statistics
do imply. An important perception in the field of gender equality in market sectors is the
existence of the so-called glass ceiling. In almost every research done on it, is proven that the
glass ceiling does exist, meaning that in general, for women in the market sector it is harder to
climb up the corporate ladder to the top functions. With regard to the maturity phase of the
issue of gender equality, the possibility exists that there will be an issue fatigue, although
many related issues and the main issue itself have not been totally solved yet.
Another question treated was who owns the issue ownership? Not one separate sphere of the
societal triangle (Van Tulder and Van der Zwart, 2006, p. 8) can be picked out as being the
issue owner. The fact is that gender equality in the market sector of developed countries can
only be reached through cooperation and interaction between state, civil society and the
market. Several expectational gaps arise from the main issue; the wage differences between
21
men and women performing the same task, the glass ceiling, fatherhood leave and also the
issues of unequal chances in job promotion, different view by males and females as well as by
countries and several other stakeholders on the topics related to gender inequality in the
market sector. Regulation is far developed and implemented in some regions (i.e. the EU) and
in some other regions/countries still much needs to be achieved with regard to legislation in
order to diminish gender inequality. There are several (international) action groups,
committees and organizations that stand up for the interests of their members and supporters,
also contributing to the existence and awareness of expectational gaps, and the fact that
something needs to be done about the issue.
More than one research support that men need to take a hold of the issue of gender equality,
because achievement of it will not only benefit women, but also men. Finally, it can be stated
that many issues are linked to the main issue of gender equality in market sectors in the
developed world. Most of those issues are interlinked and in some way or another all
connected to each other.
22
Chapter 3 – Are firms part of the problem?
In order to discuss a problem and whether or not firms are part of that problem or part of the
solution, there first needs to be a problem defined. The descriptive part of this paper officially
treats gender equality, but much academic literature is about gender inequality in the market
sector of developed countries. The problem defined with regard to the main issue is; the lack
of firm contribution towards diminishing gender inequality in the market sector and in
individual firms. This has led to the following research question:
What are the attitudes and actions of firms in developed countries with regard to diminishing
gender inequality in the market sector?
Firstly, the current role of firms in contributing to a decrease in gender inequality in the
market sector is described. A short analysis of the current legislation concerning gender
equality and the cooperation between the stakeholders of the societal triangle (Van Tulder and
Van Der Zwart, 2006, p. 8) will complete that part. Secondly, there will be looked at the
status quo in some example companies, especially at companies that do not have a (large)
statement or implementation program on how to deal with and enhance gender equality. This
chapter concludes with on the current status quo, as well as some indications towards
answering the research question.
3.1 The current role of firms in gender equality
This section elaborates on the current role and attitude of firms concerning the issue of gender
inequality in the market sector.
‘Jobs are segregated by sex.’ (England, 2005) According to England (2005) ‘Men
predominate in upper management, the most prestigious professions, blue-collar crafts, certain
kinds of manufacturing work, transportation, and constructions. Women numerically
dominate professions such as nursing, teaching, and librarianship. Non-professional but
white-collar occupations of clerical and (non-commission) retail sales work are largely done
by women, as are manufacturing jobs in nondurable goods industries (electronics, garments),
and domestic and child care work’. The author also states that in other nations sex segregation
characterizes jobs as well. Despite of some variation, England (2005) show that there is large
similarity across affluent nations with regard to the broad contours of job domination by men
and women. Besides that, in the article (England, 2005) it can be read that discussions about
the causes and perpetuates of segregation by sex most of the time discuss how much is
explained on the demand side of labor markets versus the supply side of labor markets. The
author’s view is that the explanation lies in both sides of the market.
Looking at the article from England (2005) and the explanation of the sex segregation of
work, it is concluded that only one sphere of the three (state, civil society and market) is held
responsible by her for that particular segregation. The segregation in the labor market based
on sex can be related to the main issue of gender equality in the market sector. The attitude of
both firm employers and employees in this case contribute to the preservation of women
performing particular jobs and men performing particular jobs, thus to the sex segregation of
work. Since from the ancient ages on, the men in general were the leaders, there the sex
segregation of work started. From there comes the (old fashioned) view that men are born
leaders, and that it is better to have a male leader than a female one, just because history tells
23
so. That pattern needs to be broken through, in order to reach the state of gender equality in
the market sector.
According to a report of the EU about implementing gender equality in enterprises (Donlevi
and Silvera, 2007), ‘the private sector is a key vector for change in order to improve gender
equality in society’. The authors state that ‘actors from the private sector – company
executives and managers, human resources staff, trade unions, employers’ organisations – all
have a key role to play in this field’. This statement shows that there has to be cooperation
between the three stakeholders of the societal triangle (Van Tulder and Van der Zwart, 2006,
p. 8); state, market and civil society, to come to change. The authors do recognize the
difficulty of implementation of gender equality rules, regulations and policies in the private
sector and private companies. Donlevi and Silvera (2007) state that ‘equality and nondiscrimination policies are rarely a priority for enterprises or their representatives. Even trade
unions tend to concentrate their activities on other issues such as wages and working
conditions, and do not always have the necessary expertise in the field of promoting gender
equality’.
Chapter 2 discussed that there are already some laws implemented in several European
countries, in order to diminish the gender inequality at the work floor. The fact remains that
not all laws are exactly obeyed and that monitoring does often not take place. According to
Donlevi and Silvera (2007) the gender pay gap is ‘one of the most entrenched forms of gender
inequality’. The pay inequalities are persistent in every country in Europe, despite legislation.
Therefore, an active policy on obeying laws and laying on monetary penalties when that does
not happen could be put in practice to make firms more aware of their role in the issue of
gender equality.
In 2001 in France, there came a law into existence which obliges companies to negotiate on
gender equality. Besides that, all the social partners had to sign a national multi-sector
agreement. One of the main priorities of that agreement is ‘to facilitate and increase the
recruitment of women’ (Donlevi and Silvera, 2007). Despite of this law, the years after
implementation the results in the field of reducing gender inequality remained poor.
Therefore, in 2006 reinforcement of the 2001 Law took place, obliging negotiation on the
gender wage gap. By not obeying to this law, firms risk great sanctions, thus since then,
mostly large enterprises have committed to reducing the wage gap (Donlevi and Silvera,
2007).
The EU report (Donlevi and Silvera, 2007) revealed some very interesting real-life measures
taken by EU member states to do something about gender inequality in the workplace. For
example in Sweden an ‘equal opportunities ombudsman’ was called into live. This institution
had as its main objective that ‘all organizations with more than ten employees are obliged to
draw up and implement an Action Plan on Gender Equality. This plan should include
proactive measures in favour of equality, a review of pay differences and a follow-up of the
results achieved’. Finland has set up a similar institution, called ‘Office of the Ombudsman
of Equality’ (Donlevi and Silvera, 2007). Furthermore, in Scotland the ‘Close the Gap’
EQUAL Development Partnership was founded in 2002. This partnership is led by the
Scottish Equal Opportunities Commission and it involves among others business
representatives, the Scottish Trade Union Congress and the Scottish Executive (government).
Its main objective is ‘to tackle the gender pay gap in Scotland by targeting those with the
power to change (government, enterprises, trade unions) and those affected by it
(employees)’ (Donlevi and Silvera, 2007). A final example of a good initiative to diminish the
24
gender inequality in the market sector is the international Gender and Technology EQUAL
Development Partnership of Finland, the UK and Germany. This partnership’s main objective
is ‘to provide a practice-orientated vademecum on how to set up mentoring programmes for
different female target groups’ (Donlevi and Silvera, 2007).
Much has been mentioned in this paper about rules and regulations restricted by government.
Nevertheless, the firms themselves can and have to contribute to creating gender equality as
well (some good examples from the EU report were stated above). That requires a proactive
attitude of the firm management; sticking to rules and regulations and exploring own
initiatives to empower women in their firm and to diminish the gender inequality. The
management is responsible of bringing over their attitude to the whole firm and all its
stakeholders, which makes implementation and execution of gender equality policies easy and
everyday business.
To refer once more to the societal triangle (Van Tulder and Van der Zwart, 2006, p. 8), the
cooperation and interaction between the three spheres of the triangle is a necessity to come to
successful behavior in firms on the implementation and execution of gender equality issues.
Governments have the power to implement legislation that promotes gender equality in firms
and the market sector. Then it is up to the companies to obey those laws, but even more
importantly to have an active or even proactive attitude towards overcoming the issue of
gender inequality, and to come up with own ‘gender equality embracing initiatives’. The last
stakeholder of the triangle, the civil society, in this case represented by individual employees,
also needs to contribute to make gender equality policies in the firm work. According to Van
Tulder and Van der Zwart, (2006, p. 174), ‘individuals’ primary responsibility pertains to the
way they deal with global issues that can be related back to themselves’.
Therefore, the employees have to adjust their attitude, get rid of the persistent social norms
and, and besides that, especially the male employees should be prepared to take into account
their often-privileged position at work. In order to achieve that, they should be willing to step
aside to make way for some females in the top as well.
According to research of Olgiati and Shapiro (2002), ‘it is clear from the case studies that
equality legislation is a key factor driving organisations to initiate equality action. It may also
exert an influence on its content and on the actors involved. (…) in some cases the legal
framework serves to motivate companies; in others, it obliges them’.
In all the cases where firms were motivated to undertaking action ‘voluntarily’, ‘equality
action resulted from an agreement between the social partners which is either encouraged or
required by the law’ (Olgiati and Shapiro, 2002). On the other hand, a legal framework that
obliges firms to undertake action to ensure equality in the workplace (which was the case for
the Finnish companies participating in this research) ‘establishes an obligation for all private
and public organisations with more than 30 employees to draw up an equality plan. Such
obligatory legal requirements may not always have the desired impact on equality, however’
(Olgiati and Shapiro, 2002).
To conclude, what is perceived as good (motivating firms to undertake action or oblige them
to do so) is debatable. But one thing that has become clear, is that one way or another, it does
move firms to reconsider their policies and pay attention to the issue of gender equality.
25
3.2 Examples; status quo in some firms
This section discusses some examples of firm and their current stance towards gender
equality.
Unilever
On the company website of this Dutch based multinational can be read, that Unilever
contributes to ‘Millennium Development Goal 3: Promote gender equality and empower
women’, in several ways. The multinational has several community programs and support
initiatives through which it helps the empowerment of women, mainly in developing
countries
(Unilever,
2008,
http://www.unilever.com/ourvalues/environmentsociety/indices/millennium-development-goal-3.asp). But with regard to their own employees
and gender equality in its own firm, Unilever does not reveal any information on its internet
site. Almost every aspect of the company can be read online (except for all the delicate
financial information), but after having thoroughly searched through the site, only the
following can be found on gender equality policies;
‘We embrace diversity across our business. Diversity at Unilever is about inclusion and
embracing differences. More than physical differences – such as race, gender and nationality
– it is about creating an atmosphere that inspires different individuals to contribute in their
different ways within a framework of shared values and goals’. (Unilever, 2008,
http://www.unilever.com/ourvalues/environment-society/indices/millennium-developmentgoal-3.asp).
There are no statistics on the gender equality in the firm and neither is there a gender equality
policy. A MNE such as Unilever with all of its power and influence should know better, and
should be an advocate for the issue of gender equality in the workplace.
TNT Group
Another MNE that does state statistics concerning gender issues, on its website is the TNT
group. The firms strives ‘to create equal opportunities for all our employees, without
discrimination on the grounds of sex, race religion, marital status or age’ (TNT, 2007,
http://group.tnt.com/annualreports/annualreport07/social_responsibility_report/chap-7.html).
The MNE also has a gender equality initiative; TNT Link, which is ‘an employee network
that supports the professional development of women at TNT through networking, learning
and mentoring. (…) The program helps Link members learn from senior managers while it
helps senior managers understand the particular challenges women face in their TNT careers.
TNT Link also organizes networking events and workshops that focus on business issues and
on female leadership’. Furthermore is stated that in 2007, TNT ‘focused on matching further
female high potentials with a mentor in the mentoring program and on embedding tailored HR
solutions
for
women’
(TNT,
2007,
http://group.tnt.com/annualreports/annualreport07/social_responsibility_report/chap-7.html).
Consequentially, the policy on gender equality is present and the firm adopted an active
attitude towards solving the issue. However, when having looked at the statistics, in 2007 at
the mail department, 41% of the employees were women and 59% men. At the express
department there is only a percentage of 32% female workers, and at the TNT department
37% of employees is female. Those statistics do not totally reflect upon the policy. When
looking at the management positions by gender, it is even more troublesome; in 2007, at all
departments only 26% of managers were women, a percentage that slowly grows with on
average
one
per
cent
per
year
(TNT,
2007,
http://group.tnt.com/annualreports/annualreport07/social_responsibility_report/chap-7.html).
26
From these statistics, it can be concluded that although a company has the right attitude and
policies, it clearly remains difficult to truly implement policies and comply to them.
3.3 Conclusion
This chapter started with the problem statement and posing of the following research
question; What are the attitudes and actions of firms in developed countries with regard to
diminishing gender inequality in the market sector?
A description of current legislation on the issue of gender (in)equality was discussed, with
several examples of laws in European countries. Although it remains debatable whether it is
useful to oblige firms by law to do something concerning gender equality, it is proven that
‘equality legislation is a key factor driving organisations to initiate equality action’ (Olgiati
and Shapiro, 2002).
It has become clear that the largest effort to reduce gender inequality in the market sector at
this moment comes from governments. Many researchers have conducted research instructed
by governments and organizations such as the EU, to find out what the status quo is, and what
still needs to happen. But to truly make progress and succeed in overcoming gender inequality
in the workplace in the developed countries, the other two stakeholders, market and civil
society, also need to contribute and cooperate.
The awareness of the issue has already gained much attention and is known among most firms
and its management. However, the transformation from an inactive/reactive attitude to an
active/proactive attitude needs to take place. Adjustment of attitude of both the market and the
civil society is a necessity to come to a state in which gender equality is perceived as nothing
more than normal.
A search for some example companies that have an inactive approach towards the issue of
gender equality was also part of this chapter. Firms that do not have progressive policies to
deal with the issue of gender equality, will not state it at their websites that way. Therefore, it
is hard to find firms that have an inactive attitude and honestly admit that. One debatable
MNE is Unilever, since it does not reveal any of its statistics of percentages women and men
among the employees, while it does support several ‘women empowering initiatives’ in the
developing world. From the example of the TNT Group, it becomes clear that having an
active attitude gender equality policies is not always reflected in the firm itself. It has to be
mentioned though, that the possibility of window dressing always exists, also in the case of
TNT. Thus, window dressing is a factor that always should be taken into account.
With regard to the research question, so far can be stated that companies in general only
contribute to diminishing gender inequality in the market sector by obeying to legislation.
Some progressive firms do explore own initiatives to promote gender equality, but most firms
have an inactive or reactive attitude at this moment. This will be elaborated upon in Chapter
4,
where
examples
of
best
practices
are
provided.
27
Chapter 4 – Are firms part of the solution?
The problem statement of this issue paper has been discussed in Chapter 3. That chapter
analyzed the problem of gender inequality and explained firms’ lacking attitude concerning
gender inequality in their corporate culture. This chapter discusses the different types of
solutions firms can implement, what actions can be taken and what actions, solutions and
attitudes have been adopted so far. The focus of this chapter is on the responsibility of firms
towards this problem of gender inequality. In the previous chapters, the roles of civil society
and government have been discussed. However, it is very important to analyze the attitude of
firms and the different initiatives that can be adopted, because this group is also an important
stakeholder regarding the issue.
First, the significance and importance of gender equality for firms and business is discussed.
In order for firms to adopt a pro-active or innovative approach towards gender inequality, it
must be interesting for them to avoid/minimize the consequences of gender inequality and see
the positive consequences of enhancing gender equality.
4.1 Advantages of gender equality in firms
First of all, among the benefits of adopting gender equality strategies are ‘reduced turnover
and absenteeism, attracting suitable candidates, but also creating positive publicity and
improving the public image of the firm.’ (Donlevy and Silvera, 2007)
Furthermore, according to an article published by Marquez, a four-year study from the
Catalyst, a New York based consultant, on Fortune 500 firms concluded that ‘ companies with
more women on their boards perform better than those with very few women.’ The study also
concluded that companies with more women on their boards appear to lead to ‘better
decision-making and more insights into the work- and marketplace’. (Workforce
Management, 2007, http://www.workforce.com/section/00/article/25/14/45.html) This finding
is also evident in the report of the European Project on Equal Pay, where a 19-year study
showed ‘a strong correlation between a strong record of promoting women into the executive
suite and high profitability.’ (Adler) These two findings clearly relate to the glass ceiling,
which, as has been mentioned before, resembles the invisible barriers that uphold women
from getting into top management positions.
More general positive effects of gender diversity and enhanced gender equality in firms can
also be identified. Besides the advantages that are mentioned by Sonlevy and Silvera, Singh
and Point (2006) argue that companies with a strategy of diversity management believe that
this ‘enhances their company competencies, cultural learning, talent management and better
recruitment, as well as increasing creativity. Furthermore, gender diversity can bring
competitive advantage through mirroring and understanding the customer base.’
Another interesting advantage of promoting gender diversity and equality is discussed in an
article published in the journal ‘Strategic Direction’. The article (2008), relates gender
diversity to leadership styles. According to the article, ‘a recent meta-analysis has
demonstrated that the most effective model of leadership is transformational.’ These types of
leaders are most effective due to their mentoring role and the encouragement of selfdevelopment. Moreover, women are more likely than men to adopt this transformational
leadership style. Consequentially, the article argues that ‘the world needs women leaders, now
more than ever.’ If this argument holds, firms could profit from enhancing gender equality in
firms and promote career development for their female workforce. As mentioned in Chapter 1
28
and 2, certain obstacles such as motherhood, taking care of children and social norms prevent
women from having the same career perspectives as men do. However, if these positive
advantages of gender equality and diversity are known and recognized by firms, they could
start taking action and change company policies and regulations in order to enhance gender
equality in their corporate cultures. The next section will discuss the actions that firms can
take to enhance gender equality and the different strategies that can be adopted.
4.2 Solutions, actions and measures: What firms can do
Since gender equality in the market sector is such a broad concept, there exist many different
solutions, actions and measures that firms can adopt in order to enhance gender equality in
their companies.
According to the European Foundation for the Improvement of Living and Working
Conditions, Shapiro and Olgiati, (2002), ‘equality actions should be undertaken in recruitment
and selection, professional development, work organization and equality environment.’ The
authors main line of reasoning is related to improving the relative status of women in firms,
which is related to so-called ‘positive discrimination’.
The report, based on case companies, continues by stating that for recruitment and selection,
specific job advertisements, widening the recruitment pools, adjust job requirements and
descriptions, have transparent selection procedures and reorganizing working conditions, are
all measures and initiatives that could be considered by companies in order to enhance gender
equality.
For professional development, changes in policies, procedures and practices, along with
‘introducing innovative ways of developing employees in line with a fair assessment of their
abilities’, appear to be very effective in removing gender inequality and the disadvantages
position of women. Furthermore, training can be designed specifically to tackle the issue of
gender inequality and be targeted specifically useful for women. Moreover, changes in
policies and procedures should focus on increased opportunities for women to change social
norms and the gender inequality.
Furthermore, concerning the organization of work, Shapiro and Olgiati (2002) state that firms
should address flexibility and the reconciliation of work and home life. Initiatives such as
flexible working hours, telework and day care services for employees’ children, can promote
gender diversity within a company.
Finally, ‘establishing an equality environment demands action aimed at changing the
organizational culture to overcome gender stereotypes, and ensuring that employees adopt
values, attitudes and behaviours that are consistent with equal opportunities.’ This involves
changing the cultural mindset in a company. Codes of conduct, gender audits or equality goals
can help by achieving this.
However, next to the numerous initiatives found by Shapiro and Olgiati (2002), there are
other actions firms can undertake. For example, according to the ILO (2004), gender-specific
actions to respond to protests of inequality can include ‘setting quotas for women’s
participation.’ Furthermore, the report of the ILO argues that strategic partnerships, with
governments, within industries, with governments and trade unions, are ‘successful
mechanisms for promoting gender equality.’
Finally, a more inactive approach for firms is to comply to certain standards and guidelines
developed by certain non-governmental organizations in order to gain favourable ranking on
for example, the Gender Equity Index developed by Social Watch, (Social Watch, 2008,
http://www.socialwatch.org/en/noticias/noticia_248.htm) or to earn a spot on the annual list of
29
Working
Mother
Magazine’s
top
http://www.msnbc.msn.com/id/14961192/)
100
firms.
(Associated
Press,
2006,
This section has specified the numerous actions firms can undertake towards the problem of
gender inequality. These measures are all aimed at minimizing the degree of gender inequality
in the market sector and within firms. The implementation of these numerous approaches
requires the involvement of many actors, management, employees, social partners, industry
leaders and even partnering with these actors (Shapiro and Olgiati, 2002). Furthermore,
according to the authors, a structured approach for the implementation of equality programs,
actions or projects may be appropriate in order to ensure the effectiveness of the actions.
In the next section, an example of a best practice is discussed and elaborated upon in order to
illustrate the attitude of some firms towards the issue.
4.3 Examples: What firms have done
Section 4.2 discussed the different actions and measures firms can adopt in order to diminish
gender inequality in their companies. This section looks more specific to an example of a firm
that have adopted a pro-active attitude on gender equality.
Credit Suisse, a global financial services company, has a very active strategy concerning
diversity. This strategy falls under the pillar ‘Corporate Citizenship’, according to the firm.
Credit Suisse:
‘Diversity is critical to our ability to serve the broadest spectrum of clients and effectively
meet
their
different
needs.’
(Suisse
Group,
2008,
http://www.creditsuisse.com/responsibility/en/people.html)
Furthermore, ‘Credit Suisse is committed to building an inclusive workplace by bringing
together individuals of different genders, races, ages, nationalities, religions, sexual
orientations and disabilities to create a world-class team of financial services professionals.’
By setting out a set of conduct guidelines for each region in which the firm is active, Credit
Suisse achieves this objective. Furthermore, the firm has set-up a ‘Global Diversity Advisory
Council, which provides strategic guidance and shares industry best practices.’ The strategy
of Credit Suisse has several dimensions: celebrating diversity, work/life interface, global
employee networks and external partnerships, employee development and recruitment. (Credit
Suisse, http://www.credit-suisse.com/responsibility/doc/diversity_americas_en.pdf) Every
dimension is responsible for enhancing diversity and gender equality in Credit Suisse
locations. For example, concerning the work/life interface, there are specific leave policies,
partner benefits, but also emergence back-up childcare and flexible work arrangements.
The question arises whether this act of Corporate Citizenship is a true form of CSR (which
can be one of four different approaches according to Van Tulder and Van der Zwart, 2006,
p.144) or that it is an act of window dressing. According to Van den Brule (2008), window
dressing ‘may be viewed as activities served to alter public perceptions by communicating
positive social responsible behavior while rejecting internalization of CSR policies.’ This is
difficult to judge, but from the global recognition and awards that Credit Suisse has received
for their corporate citizenship, one would be tempted to see the efforts as a true form of CSR.
Some of the awards received are; International Innovation in Diversity, 100 Best Companies
for Working Mothers - Credit Suisse has been recognized by Working Mother Magazine for
the fourth consecutive year -, Setting New Standards in Diversity. (Credit Suisse,
30
http://www.credit-suisse.com/responsibility/doc/diversity_americas_en.pdf) These awards are
a form of recognition from external stakeholders such as Working Mother Magazine and other
NGOs or interest groups. Consequentially, these awards can be seen as an objective form of
recognition/support for the firm’s CSR approach.
According to Van Tulder and Van der Zwart (2006, p. 144), there are four CSR approaches
firm can adopt. The two most active approaches are called ‘active and pro-active’. It can be
concluded from the above mentioned analysis and investigation of Credit Suisse’s guidelines
for gender equality, that the firm is in between these two approaches. The act of corporate
citizenship is illustrative for the active approach but certain aspects of Credit Suisse’s
approach point toward the more pro-active approach. The actions and approach of Credit
Suisse will more specifically be discussed in Chapter 5.
Other firms are also working on the issue of gender equality in the market sector. Many firms
have been ranked according to a set of guidelines and rules on improving gender equality in
their workplace. For example, the Working Mother Magazine publishes each year a top 100
places to work with respect to mother-friendly benefits. ‘The magazine uses five main criteria
as the basis for its judgments: flexibility, leave time for new parents, child care, elder care and
the number of women occupying top jobs.’ (2008, http://www.msnbc.msn.com/id/14961192/)
Two specific firms, IBM and Johnson&Johnson are the only two companies that have been on
the list ever since the initiative started, which is 21 years ago. It would be very interesting to
investigate the correctness of this judgement and the specific actions and policies of both
firms regarding gender equality. However, due to time constraints and the scope of this paper,
this analysis is not performed here. There exist more ranking lists of firms concerning gender
equality. For example, The Guardian published a list of firms in March 2008, which are very
active towards improving inequality in the workplace.
This section has shortly illustrated the approach of the global company Credit Suisse, which
has an active CSR approach towards the issue of gender inequality in the marketplace.
Furthermore, other firms are also tackling this issue and this can be recognized by NGOs who
act as a watchdog for the compliance of firms. When firms do comply, develop initiatives or
create a good workplace with respect to gender equality, this could result in a place in a
certain ranking list.
4.4 Conclusion
This chapter has described the perspective that firms could be part of the solution concerning
the problem of gender inequality in the market sector. Gender equality in firms offers many
positive things, such as increased learning, creativity, reducing turnover and enhancing the
firm’s ability to understand its customer base. Consequentially, firms that recognize the
importance of gender equality in their company, have several strategies and existing measures
available to them. One example of a company that has adopted an active approach towards
gender equality, which aims at creating a good workplace for its employees, is Credit Suisse.
In Chapter 5, the strategy of Credit Suisse is discussed further.
31
Chapter 5 – The sustainable corporate story
The earlier sections of the paper explored the deficiencies of society in addressing the issue of
gender inequality at the workplace. This section will focus on exemplary efforts by some
firms to promote gender equality and create a functional, and more important sustainable
workplace.
Many action groups, including state-associated organisations, women'
s business groups and
human rights advocates recognize and grant distinction of corporate bodies who take initiative
to ensure gender equality at the workplace. It is understandable that each firm is affected by
its own political, social and cultural climate and the best practices of one firm may not
neccessarily apply to the next. Nevertheless, the cases examined in this section of the paper
provides a hopeful indication that firms can indeed leverage their resource and human capital
to put an end to gender inequality in the corporate environment.
5.1 Credit Suisse First Boston
In the ILO publication Gender Equality and Decent Work: Good Practices at the Workplace
(ILO 2004), proactive initiatives by '
best practice'employers are highlighted. One of the
companies featured in this publication is Credit Suisse First Boston (ILO 2004, p. 105). The
CSFB is an investment bank and serves institutional, governmental and corporate clients. As a
subsidiary of the Credit Suisse Group, the CSFB operates in 34 countries worldwide (Suisse
Group, http://www.credit-suisse.com/ib/en/index.html).
CSFB has won many awards in relations to its contributions to creating a sustainable
environment for diverse working women. Some of its awards include '
100 Best Companies
for Working Mothers'and '
Best Companies for Multi-cultural Women'
, both recognized by
Working Mother Magazine, and a top ten position on the '
Stonewall Workplace Equality
Index'
. (Credit Suisse, http://www.credit-suisse.com/responsibility/en/diversity.html) The
organisation has also been lauded as one of the champions for gender equality by outspoken
action groups such as Opportunity Now. In the following few sections, the programs and
strategies that distinguish CSFB as a leader in gender equality will be examined.
5.2 Empowering Change for Women – a Strategic Approach
The ILO claims that the key to Credit Suisse'
s success in gender equality is their commitment
to empowering women through a diversity strategy; this is in fact a best practice that the ILO
is now encouraging other firms to follow suit. (ILO 2004, p. 105). CSFB'
s approach of
promoting gender diversity and equality through business planning and recruitment is true
testiments that gender equality can be reached systematically.
In October 2001, the UK offices of the CSFB launched the Empowering Change for Women
Initiative. This business-led program has become an integral part of CSFB'
s corporate strategy
in bringing gender equality. (ILO 2004, p. 105). This program entrenches diversity and gender
equality into the corporate environment. The emphasis that CSFB puts on diversity and
gender equality can be seen in their performance appraisal process, which includes a 360degrees
diversity
feedback.
(Northern
Leadership
Academy,
http://www.northernleadershipacademy.co.uk/portal/nlacommunity/communities/info_&_med
ia/case_studies/credit_suisse)
32
The program is extended to every stretch of the organisation, as every company is mandated
to develop its own strategy and aims on diversity. With the value of diversity incorporated in
its business activities, CSFB aims to '
enhance the career development, retention, advancement
and success of female workforces and at the same time to make a strong business case for
diversity.'(ILO 2004, p.105)
5.3 Assigning responsibility and ownership
The burgeoning structure for the governance of diversity is an important aspect of CSFB'
s
strategy; this will be discussed in the following paragraphs. The task of overseeing issues such
as gender equality and workplace diversity is assigned to the '
European Diversity Steering
Committee'
, a cross-divisional senior strategy team. The implementation of diversity
strategies are responsibilities of the director and managers of diversity. (ILO 2004, p.106)
Evidently, CSFB has established ownership for sustaining gender equality.
The involvement of Senior Management is especially important, and CSFB has taken many
measures to ensure that top level leaders are setting the agenda. Working with the director in
diversity, senior management participate in Diversity advisory committees in order to be
given the opportunity to become advocates for certain diversity campaigns within the
organisation, including gender-diverse campus recruiting, women-specific events at university
and Diversity Speaker-Series. (ILO 2004, p. 106) The CEO also issues regular
communications to staff and CSFB has established a diversity intranet site. In addition, there
is mandatory gender and diversity training for all management. These initiatives demonstrate
the CSFB is acting for gender equality from the top down.
5.4 Recognizing the needs of mothers
The efforts that CSFB make to bring gender equality at the tangible and practical level are
discussed in this section. In recognizing the needs of pregnant female employees, the CSFB
moved to become accredited by Tommy'
s, an international organisation to serve the needs to
expectant parents. The accreditation recognises CSFB'
s efforts to '
ensure all pregnant
employees stay healthy.'(Tommy’s http://www.tommys.org/Page.aspx?pid=437)
In addition to accreditations initiated by corporate leaders, the spirit of diversity can also be
witnessed through the grass roots initiatives by CSFB employees. The Securities Industry
Association lauds the relevance of the CSFB'
s '
Parents' Network' (SIA, 2005,
http://www.sifma.org/services/hr/spotlight/pdf/CSFB2006.pdf). This group creates an arena
for employees, especially mothers, to share and collaborate resources in terms of managing
their children and career simultaneously. In effect, the CSFB has successfully created an arena
for supporting mothers at the workplace.
5.5 Championing the issue, inside and out
CSFB truly is a champion for the issue of gender equality, both at their workplace and also in
society as a whole. The programs and campaigns illustrated above show that CSFB is indeed
an organisation that values gender equality at the workplace. Their advocacy for diversity and
inclusion does not end here. Since 2001, Credit Suisse has been involved in '
supporting the
capital
market
activities
of
microfinance
organisations'
.
(Credit
Suisse,
http://emagazine.creditsuisse.com/app/article/index.cfm?fuseaction=OpenArticle&aoid=240590&lang=EN)
Their
33
role in these microcredit organisations have helped empower women by providing them with
access to loans and credit. Furthermore, in 2003, CSFB launched the responsAbility Global
Microfinance fund, taking on an even larger stake in progressing the microcredit cause.
5.6 Women Leadership and PepsiCo
The following section discusses the eminence of PepsiCo as a key player in the drive for
gender equality. Having women in top leadership will help bring increased firm value. A
recent Journal of Business Ethics article present the findings that '
firms operating in complex
environments do generate positive and significant abnormal returns when they have a high
proportion of women officers” (Francoeur et al, 2007) Furthermore, having women in top
management position could only be a positive thing, especially for young aspiring women
who are looking for positive career role models. In the United States, one firm in particular is
building a reputation for developing women in top career positions. In a recent article,
PepsiCo was lauded since three of its female executive alums have been tapped by other
major food companies in the United States for the top position of CEO. (Dairy Foods, 2006)
The article claims that it is no coincidence that women from PepsiCo are “rocketing up the
corporate ladder” (Dairy Foods, 2006). PepsiCo was distinguished by the Women'
s
Foodservice Foundation for a “demonstrated success in providing opportunities for the
advancement of women leaders”. Indeed, PepsiCo has a diversity corporate strategy,
including
a
“Human
Rights
Workplace
Policy”
(PepsiCo,
http://www.pepsico.com/PEP_Investors/CorporateGovernance/Policies/HumanRightsPolicy/i
ndex.cfm ) to ensure that women would have the same opportunities as men to succeed in
their careers. Further, like the Credit Suisse, PepsiCo issues regular companywide
communication surrounding diversity and gender issues, with a great emphasis on gender
diversity and equality. (Chef2Chef,http://chef2chef.net/news/foodservice/Press_ReleasesAssociations/Womans_Foodservice_Forum_Honors_Pepsico.htm)
5.7 Conclusion
The above two organizations are celebrated for their commitment to gender equality in the
corporate environment. More importantly, these corporations embrace the spirit of diversity
not only within their corporate strategy, but also outwardly display it in their public conduct
and communications; much information regarding their corporate diversity strategies are
made available on the internet. Although another Journal of Business Ethic article warn that
such communications are “increasingly used as window-dressing to highlight the employer'
s
good corporate social citizenship” (Singh, 2006), CSFB and PepsiCo are truly taking actions
to bring gender equality to the workplace. In Van Tulder and Van der Zwart'
s International
Business-Society Management, the idea of corporate societal responsibility is discussed (2006,
p. 169). Upon examining the best practices of PepsiCo and CSFB, it is quite evident that
corporate society responsibility could actually be achieved. The key to building sustainability
in corporate gender equality is embracing and entrenching diversity in the business strategy;
this is precisely the reason why CSFB and PepsiCo are great examples of sustainable
corporate success stories.
34
Conclusion
After having deeply probed into the issue of gender equality for more than one week, the
preliminary finding is that a lot of knowledge on the issue has been made available and that
the society’s awareness of the issue existence has indeed increased.
Much research has been conducted on the topic of gender (in)equality in the work sphere,
often instructed by the EU, and many institutions and individuals have an opinion about the
issue. The aim was to create an overview of publications on this issue in the given time
period. Furthermore, some scenarios of real-life companies were described, as well as
suggestions for what firms can do.
However, there are some constraints to this research; first of all the time constraint. To make a
complete overview of all the materials and researches published on the issue of gender
equality was simply not possible due to time constraints. Secondly, a constraint is the
perspective of the issue worked on in this paper. The decision to focus on the market sector in
developed countries, and to look at the issue of gender inequality of the female perspective
limits the use to only several research sources. Finally, the limited experience of the
researchers was a constraint as well. Since it is not common to do research everyday, some
parts of the process took more time than necessary. Furthermore, searching for useful sources
in several databases also took quite some time.
Some final remarks need to be made with regards to research implications. Further research
has to be conducted for the purpose of discovering more firm policies with regard to gender
equality. There are differing levels of legislation and application of gender equality policies
among various countries. A good summary of the countries who advocate gender equality
should be composed; this will include the country’s laws, local firms’ implementation
methods and initiatives. With such an overview, a framework can be constructed on best
practices for all three spheres of the societal triangle (Van Tulder and Van der Zwart, 2006, p.
8). It is also necessary to conduct research in the field of gender equality from different
perspectives. When research has been conducted on the issue from all stakeholder’s
perspective, sounder conclusions can be drawn and justified action plans can be developed.
Even in the developed world, much progress needs to be made in order to achieve gender
equality in the market sector. More so, a transformation that needs to take place in developing
countries where freedoms and human rights have yet to be championed. One thing is certain –
the journey to achieving gender equality has only begun.
35
Appendix: Learning Contract and Evaluation
This group contract specifies the rules and agreements that have been set up by the three
group members for the writing of a research paper on gender equality. This group contract has
been developed according to the five phases of the reflective cycle.
Reflective Moment
1. Problem Definition
2. Diagnosis
3. Output/Design
4. Implementation
Leading
Question
Actions
Learning Report
Where are we See the strengths and weaknesses analysis below.
now?
What is our The group deficiencies that we want to improve
problem?
are as follows:
• Carrying out solid and scientific research.
• Presentation skills.
• Planning and time management in a short
time notice; which will be a challenge.
Since this is a small group, our skills could easily
complement each other. Although we each have
some shortcomings, we are certain that we could
all play equal roles and mentor each other.
Furthermore, we all have strengths in group and
team management. As a result, we will be able to
effectively work with each other and cooperate;
we will make mutual decisions, and will come to
consensus.
Learning Contract
Where do we We have specified that we want to have a good
want to go?
grade; 8 or higher. Furthermore, the first draft of
the paper is to be completed by Thursday
morning so it can be made available for peer
review.
We will achieve this if we adhere to these rules:
• No postponement of duties
• Be critical when researching and reading.
• Good cooperation and enjoy the time working
together.
• Respect for each other.
• Help each other when problems emerge.
How can we get With the following actions, we will add value to
there?
this group assignment:
• Define the scope of the paper before starting
to work on it.
• Specify each individual’s expectations in
advance.
36
•
•
•
•
Have group meetings on a regular basis.
Make a distinction between important and less
important things to discuss during the
meetings.
Maximize productivity by leveraging on
each other'
s skills
Help improve each other’s weaknesses by
peer review.
The attitude required to achieve the above
mentioned is an open, helpful, active and devoted
attitude.
We have also discussed how to anticipate on
possible problems that could appear in further
stages of the project. When a problem emerges,
there will be an immediate group meeting in
which the problem has to be solved. If we
maintain our desired attitude and consistently
apply our approach to achieve added value for the
group, we foresee no serious unsolvable
problems.
To overcome our weaknesses, we will take the
following actions:
Researching
• Conduct research in pairs so that topics will
be thoroughly covered.
• Leverage the research skills of Sanne and use
databases available through EUR and also
through Jeremy'
s home university (this will
allow us to get a North American
perspective).
Presentation
• Practice as a team and to give pointers to
each other.
• Present to a few classmates to '
simulate'
the actual presentation.
• Practising at home in front of a mirror.
5. Evaluation
How can we Daily touch-base meetings – we will have quick
test
our conversations to track our progress and evaluate
progress?
performance. In this short period of time, there
will be no tolerance for free-riders. If a member is
not performing up to standards, we will discuss
immediately with the individual so as to mitigate
the risk of losing more time.
See below for detailed evaluation of our
performance after this project.
37
Strength
Sanne
Jeremy, Herma
Jeremy
Herma
Herma
Jeremy, Herma, Sanne
Neutral
Research
Herma
Writing
Sanne
Presenting
Sanne
Reading
Jeremy, Sanne
Listening
Jeremy
Time Management
Jeremy, Sanne
Group Management
Weakness
Jeremy
Herma
Herma, Sanne
This group contract will act as a guideline for the three group members during this week of
researching and writing. Each member has agreed on the rules that have been set up and can
consequentially use the contract to solve possible problems concerning cooperation and group
management. It is expected that as long as the above mentioned guidelines will be taken into
consideration, this week will be successful and the results will satisfy each group member.
Furthermore, it is also expected that the group members will try to help each other so that
individual weaknesses can become collective strengths.
38
Evaluation
The challenges of this group paper is the tight submission deadline. We endeavoured to have
the first draft prepared by Thursday morning and we did indeed achieve that goal.
Evaluating our Rules and Methods;
Rule
Evaluation
No postponement of We have established a regimented timeline for this project – research
duties
completed by Sunday, part I of the paper fully completed by Tuesday, and final
completion of the paper by Thursday. We definitely did not postpone any of
our deadlines and each person worked hard to reach our goals.
Be critical
researching
reading.
when At first, we struggled with finding relevant research articles and often found
and publications that provided broad overviews. Eventually, with the help of Lucas
Meijs, we were able to narrow the scope of our research and included the
limitations and biases of the sources that we cited in the paper.
Good
cooperation Group cooperation was key to the completion of our paper. We were able to
and enjoy the time maintain constant contact and kept each updated of progress. As well, since we
working together.
were all responsible for research for all sections of the paper, we were able to
collaborate and share resources.
Respect
other.
for
each We showed respect for each other by always being punctual and completing
tasks before our mutually established deadlines. When giving feedback on each
other'
s work, we were constructive and pointed out our opinions along with a
suggestion.
Help each other when No major problems emerged in the process of writing this paper. We did find
problems emerge.
that group support is especially helpful for researching, since we were able to
help each other find sources when encountering difficulties.
Evaluating our Skills;
Skill
Evaluation
Researching
Through writing this paper, we all improved significantly in our research skills.
In particular, we excelled at finding multiple sources to support our argument.
In addition to journals, we found books and other literature and used official
publications from governing bodies. This helped us provide perspectives from
all three spheres of the societal triangle. The use of our research question also
helped us define our scope of the paper.
Presenting
At the time of preparing this evaluation, we have not yet completed our
presentation. However, with this project, we developed presentation skills from
familiarizing with the usage of visual/audio clips and leveraging the presence
of our fellow group members. Using visual support will help us deliver a more
compelling introduction to our presentation. We will also use each other as
resource in helping us improve our speech and confidence.
39
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