Women in Corporate Leadership Introduction 

• On March 8, 2025, the world will once again celebrate International Women’s Day, with companies highlighting their efforts toward inclusion and increasing women’s participation in the workforce. However, the reality for many women—both those in corporate roles and those trying to enter—remains far from ideal.
• A recent rollback of Diversity, Equity, and Inclusion (DEI) programs in the U.S. federal government, which also influences private sector hiring, underscores these challenges. With women making up 48% of corporate America’s workforce, this shift has created uncertainty, raising concerns about stalled progress and the risk of identity erasure.

 Current Status of Women in Corporate Leadership

• • Despite ongoing global efforts to promote gender inclusivity, women remain significantly underrepresented in corporate leadership. 
  • While initiatives focusing on diversity, equity, and inclusion (DEI) have made some progress, the gender gap in senior management and boardroom roles persists.

• Leadership Disparity:

• • • According to the World Economic Forum’s Global Gender Gap Report 2023, only 32% of leadership roles globally are held by women.
    • In India, women have been historically marginalised from the workforce and comprise about 35.9% of the worker population ratio while at the senior and middle management levels women account for only 12.7% leadership roles as of 2024.
    • In India, the Economic Survey 2022-23 revealed that women occupy less than 5% of CEO or MD positions in NIFTY 500 companies.
    • The McKinsey Women in the Workplace Report shows that for every 100 men promoted to managerial roles, only 87 women receive similar promotions.

• Board Representation:

• • • Women hold 17.1% of board positions in India, compared to a global average of 19.7% (Deloitte Women in the Boardroom Report 2023).
    • European nations have made more significant strides. For example, Portugal increased women’s representation on corporate boards from 5.9% in 2013 to over 35% by 2022, whereas India has reached only 18.23%.

• Industry Variations in India:

• • • Highest Representation: Education (30%) and Government Administration (29%).
    • Moderate Representation: Technology, Media, Information, and Financial Services (19%).
    • Lowest Representation: Construction, Oil, Gas, Mining, and Utilities (11%).

• India-Specific Growth Trends:

• • Women directors in NSE 500-listed companies have increased from 5% in 2011 to 18% in 2023.
  • Women-led startups have surged from 1,528 in 2017 to 17,001 in 2023.
  • Women-led enterprises now constitute 47.6% of all DPIIT-recognized startups.

Significance of Women’s Participation in Leadership 

• Inclusive Work Culture: Women leaders are known for empathy-driven management that fosters inclusive workplaces. Research shows that companies with more women in senior roles report higher employee engagement and retention rates. Arundhati Bhattacharya, as the first woman to lead the State Bank of India (SBI), implemented policies that supported working mothers and created leadership pathways for women in finance.
• Investor & Consumer Confidence: Companies with strong gender diversity often attract higher investor trust and consumer loyalty due to their commitment to ESG (Environmental, Social, and Governance) principles. A report by MSCI found that companies with at least three female board members had 10% higher returns on equity. Jane Fraser, the first female CEO of Citigroup, has focused on responsible banking practices, increasing investor confidence in the institution. 
• Risk Management: Women leaders often adopt a cautious and strategic approach to risk, enhancing financial stability. A Harvard Business Review study found that companies led by women were less likely to experience financial scandals or mismanagement issues. For example, New Zealand’s Prime Minister Jacinda Ardern was widely praised for her crisis management during the COVID-19 pandemic, implementing swift policies that minimized economic and social disruptions. Similarly, Susan Wojcicki’s tenure as CEO of YouTube saw the platform navigate content moderation and regulatory challenges with a balanced, long-term approach.
• Economic Growth Multiplier: A study by Boston Consulting Group (BCG) revealed that companies with higher gender diversity generate 19% more revenue through innovation. This is evident in firms like PepsiCo under Indra Nooyi, where strategic product diversification led to billions in additional revenue. Similarly, Sheryl Sandberg’s leadership at Meta (formerly Facebook) helped scale the company’s advertising business, significantly boosting profits. The International Labour Organization (ILO) also reports that businesses with diverse leadership are 20% more likely to be profitable than those lacking gender inclusivity.
• Increased Innovation: Gender-diverse leadership promotes higher levels of creativity and problem-solving. Research from the Kauffman Foundation found that women-led startups deliver more revenue per dollar invested compared to those led by men.  Ada Lovelace, considered the first computer programmer, set the foundation for modern computing, proving that women’s contributions to innovation have been long-standing. Also, women-led companies like Bumble have redefined success by prioritising user safety and empowerment over aggressive growth strategies.
• Stronger Stakeholder Relationships: Women in leadership prioritize relationship-building and long-term stakeholder engagement. Indra Nooyi at PepsiCo strengthened sustainability commitments while increasing shareholder value, demonstrating how women leaders excel in balancing business and ethical considerations. Similarly, Angela Merkel, Germany’s first female chancellor, maintained strong diplomatic ties globally, emphasizing long-term economic and political stability.
• Enhanced Decision-Making: Gender-diverse leadership teams improve corporate governance and enable more balanced risk assessments. According to McKinsey & Company, companies with diverse executive teams are 25% more likely to outperform their competitors in profitability. Christine Lagarde, as the first female President of the European Central Bank (ECB), played a crucial role in stabilizing the European economy during turbulent times. Another example is Mary Barra, CEO of General Motors, who steered the company through a major crisis by embracing electric vehicles and sustainable practices, ensuring long-term growth.

Challenges Hindering Women’s Leadership Representation

• Glass Cliff & Tokenism: Women are often appointed to leadership roles during crises, increasing the likelihood of failure—a phenomenon known as the glass cliff. In India, 50% of private companies and 30% of public companies have only one female board member, indicating token representation rather than meaningful inclusion. A striking example is Marissa Mayer’s tenure at Yahoo, where she was appointed CEO when the company was already in decline, shouldering the blame for pre-existing challenges.
• Old Boys’ Club Mentality: Powerful corporate networks often exclude women from informal decision-making circles, making it harder for them to rise through the ranks. According to the World Economic Forum’s 2023 Global Gender Gap Report, women still face barriers to networking opportunities, particularly in male-dominated industries like finance, energy, and technology. This lack of mentorship and sponsorship directly impacts career progression—only 3% of CEOs in India’s listed companies are women.
• Work-Life Balance & Double Burden Syndrome: Women continue to bear a disproportionate share of domestic responsibilities, leading to career stagnation or early exits. A LinkedIn Opportunity Index report found that 85% of Indian women believe they missed career opportunities due to family obligations. Globally, women spend 2.5 times more hours on unpaid household work compared to men, limiting their availability for leadership roles. New Zealand’s former Prime Minister Jacinda Ardern resigned in 2023, citing burnout, highlighting how even the most accomplished women struggle with work-life balance.
• Leadership Pipeline Leakage: The lack of women in middle and senior management positions weakens the talent pipeline for future leadership roles. A McKinsey study shows that while women represent 48% of entry-level employees, their numbers shrink to 21% at senior leadership levels. In India, only 11% of startups have female founders, further limiting entrepreneurial leadership. Without strong retention policies, women drop out mid-career, reducing the talent pool for top positions.
• Gender Pay Gap: Women in leadership positions earn 20-25% less than their male counterparts, according to the Global Gender Pay Report 2023. This disparity exists despite equal qualifications and responsibilities. In the tech industry, where innovation thrives, women executives still earn 17% less than men. Even in prestigious organizations like the UN and World Bank, reports highlight a persistent gender pay gap. The BBC’s 2017 gender pay scandal exposed how top female presenters earned significantly less than male counterparts despite similar experience and responsibilities.
• Policy Gaps & Inconsistent Implementation: While progressive laws like India’s Companies Act, 2013, and SEBI regulations mandate at least one female director in certain companies, their limited enforcement results in minimal progress. Studies indicate that despite these policies, only 17% of board positions in NIFTY 500 companies are occupied by women. Many companies comply in form but not in spirit, appointing women in non-executive roles with little decision-making power.
• Unconscious Bias & Stereotypes: Societal perceptions often label women as less assertive or incapable of handling high-risk roles, restricting their access to leadership positions. In India, women hold only 18% of board positions in the private sector and just 13% in public sector enterprises. The judiciary reflects similar disparities, with women making up only 14% of High Court judges and 9% of Supreme Court judges. This bias extends globally—fewer than 8% of Fortune 500 CEOs are women, reflecting deep-rooted systemic barriers.

Way Forward

• Equal Pay Legislation: Stronger wage transparency laws are essential to closing the gender pay gap. For instance, companies like Accenture have implemented initiatives aimed at promoting gender equality and inclusivity. 

• Leadership Development & Mentorship Programs: Targeted training and exclusive professional networks for women can help build future leaders. Organisations like Lean In and Women Who Code provide valuable resources for women seeking mentorship and support in their careers.

• Bias-Free Hiring Practices: Anonymous hiring can help eliminate unconscious bias during recruitment.

• Incentivizing Gender Diversity: Tax benefits or funding incentives for companies actively promoting gender diversity.

• Gender-Responsive Workplace Policies: Strengthen maternity benefits, paternity leave, and family support structures to help retain women in the workforce.

• Mandatory Boardroom Quotas: Countries like Norway have implemented 40% quotas for women on corporate boards. India could consider similar policies.

• Strengthened Indian Regulations: Companies Act, 2013 mandates at least one woman director in certain public companies. SEBI requires the top 1,000 listed companies to have at least one independent woman director.