Women in leadership

The 2010 Gender Equality Blueprint identified women in leadership as one of five key priority areas in achieving gender equality.

Sex Discrimination Commissioner, Elizabeth Broderick, has been actively promoting the importance of women’s representation in decision-making roles in the community, government and business sectors.

The Australian context

First and foremost, in virtually all sectors of the paid workforce, women are underrepresented in leadership positions.

Sector Snapshot

Public sector – In 2010, women comprised 57.8% of Commonwealth Public Service employees and 33.2% of members of Australian Government Boards.^[1]

Federal Parliament – In 2011, women make up 24.7% of elected positions in the House of Representatives and 35.5% of the Senate.^[2]

Academia – Women account for over half of all lecturing staff in Australia, and make up 39% of senior lecturing staff and 24.5% of staff above senior lecturer.^[3]

Law – 65% of law graduates are female.^[4] In the Federal Court of Australia, women make up only 16% of the bench.^[5]

Sports – One in four National Sport Organisations have no women directors.^[6]

The statistics in corporate Australia are even more concerning. The EOWA 2010 Australian Census of Women in Leadership shows that only 8.4% of Board Directorships are held by women. Further, 54% of ASX200 companies had no women Board Directors in 2010 – a number which has steadily increased from 49.7% since 2004.^[7]

Alarmingly, the number of women board directors has increased only 0.2% since 2002.

The Equal Opportunity for Women in the Workplace Agency (EOWA) has been collecting workplace leadership data since 2002. Through their work, it becomes evident that there has been minimal improvement in gender disparity in ASX companies.

The international context

The international context of women in leadership is another compelling reason for reform in Australia. Currently, when compared with New Zealand, the US, Canada and South Africa, Australia has the lowest percentage of women on boards. When compared with the UK, US, Canada and South Africa Australia the lowest percentage of Executive Key Management Staff Personnel.^[8] This lag behind comparable nations is concerning.

Internationally, there have been significant developments in the area of women on boards, with promising reforms being implemented to strengthen the representation of women at decision making levels. In countries such as Norway and Spain governments have introduced mandatory quotas that require a specific percentage of women to sit on boards and in other leadership roles. Other European countries such as France are also considering implementing a mandatory quota system.

How we shape up next to our neighbours

Overall, Australia is ranked fourth in the Asia-Pacific Region, behind New Zealand, the Philippines and Sri Lanka.

New Zealand, a country often seen as very similar to Australia, sits significantly higher in the rankings, placing 5^th overall.

Australia substantially lags behind the top 3 Asia-Pacific countries in the area of political empowerment. Australia ranks 39^th overall in this area, compared to Sri Lanka (6^th), New Zealand (8^th) and the Philippines (17^th).

The Global Gender Gap Index shows Australi a dropped eight rankings in the Global Gender Gap Index rankings between 2006 and 2010, from 15^th to 23^rd. This indicates that improvements in the gender gap in Australia are not progressing at the same rate as other nations.

Australia has a slow rate of progress, despite being ranked equal first in 2010 for educational attainment. This indicates that there are significant deficits in other examined areas.^[9] Areas that negatively affected Australia’s ranking include women in ministerial positions, where Australia ranked 40^th, and wage equality for similar work, where Australia ranked 59^th.

Why is women in leadership a priority?

Gender disparity in Australian workplaces, such as the disparity between men and women in leadership roles, perpetuates existing stereotypes about the role of women, both at work and in wider society, and exacerbates gender pay inequity. Further, research has shown that having significant numbers of women in leadership positions encourages and sustains other women. This means that unless systemic change in gender diversity in leadership is achieved, there is limited chance of the disparity improving on its own.

In addition to the evident need for substantive gender equality, there are a number of advantages in promoting women in leadership:

Women are in fact more likely than their male counterparts to have relevant post-graduate qualifications. This is despite their tendency to undervalue their own skills and to be less forthcoming in pursuing leadership positions.^[10]
Economically, it is a worthwhile investment. According to Goldman Sachs, narrowing the gap between male and female employment rates would have huge implications for the global economy – in Australia it would boost our GDP by 11%.^[11]
Further, the current gender bias means that women are employed in roles where their productivity is not maximised. If the gender productivity gap was minimised, for example, by increasing the number of women in leadership positions, the level of economic activity in Australia could be boosted by 20%.^[12]
Economic incentives such as these would have flow-on effects for wider society as well. It would assist in addressing the problem of pension sustainability, thereby reducing the dependency ratio, lifting household savings rates and increasing tax received by the government.^[13]

What are Commissioner Broderick’s aims for women in leadership?

Commissioner Broderick aims to address both gender inequality in the work force and the underrepresentation of women in leadership roles, particularly in Australian business. Two outcomes will be achieved through the promotion of women in leadership. These are a significant growth in the number of women in senior leadership roles in Australian workplaces and the implementation of systems within workplaces to sustain durable gender equality outcomes.

In the 2010 Gender Equality Blueprint, Commissioner Broderick put forward recommendations on how these outcomes could be achieved.

Recommendation 7

To strengthen the representation of women at decision-making levels:

a minimum target of 40% representation of each gender on all Australian Government Boards within three years should be set, publicly announced and progress should be reported annually
a minimum gender equality target in the Senior Executive Service in the Australian Public Service should be set, publicly announced and progress should be reported annually
all publicly listed companies providing goods or services to the Australian Government should be certified by the Equal Opportunity in the Workplace Agency
a target of 40% representation of each gender on all publically listed Boards in Australia, to be achieved over five years should be promoted. If progress is not made, the Australian Government should consider legislating to require publicly listed companies and other large employers to achieve a mandatory gender diversity quota of a minimum of 40% of both genders within a specified timeframe, failing which penalties will be imposed.

Recommendation 8

To lift the profile and voices of women who are making a genuine difference in their communities:

women’s organisations and representatives should be specifically and adequately supported to participate fully in local, national, regional and international policy and decision-making processes
meaningful and ongoing consultation with grassroots communities, women’s organisations and women’s alliances should be undertaken in the development of government policy
Australian delegations to regional or international intergovernmental bodies should reflect the diversity of women in Australia.

Throughout 2010, and continuing into 2011, Commissioner Broderick has been involved in a number of strategies designed to make these recommendations a reality.

How has Commissioner Broderick been working towards reform?

Women on Boards

ASX reform

Commissioner Broderick has been working closely with the ASX Corporate Governance Council towards her recommendation of 40% representation of each gender on the boards of publicly listed companies in Australia. Significantly, as of 1 January 2011, the ASX Corporate Governance Council has implemented a diversity policy that requires all publically listed companies in Australia to set gender diversity targets. These companies will be required to report on their targets and provide explanations if they are not in place.

Anticipation of ASX reforms resulted in a 600% increase in female board appointments in the corporate sector.

Despite the ASX policy only formally coming into effect in January 2011, anticipation of the reforms had a positive impact on women in ASX leadership in 2010. By the end of 2010, women comprised 27% of all new board appointments, compared with 5% in 2009 – a 600% increase.^[14] This took the number of female appointments to 58 in 2010, eclipsing the 10 female appointments in 2009.^[15] This is a very promising start.

To assist companies in implementing the ASX Corporate Governance Council diversity recommendations, the Australian Council of Human Rights Agencies (ACHRA) has issued a guide on complying with anti-discrimination legislation for federal, state and territory jurisdictions. This can guide listed entities on how they can structure their diversity measures to comply with these laws. The guide can be accessed at

Public sector reform

In late 2010, the Gillard federal government announced that a target of 40% women, 40% men and 20% unallocated will apply to government boards.^[16] Although this is not a target for individual boards, as it applies to the total number of board members across all government boards, it is a significant step. South Australian and Australian Capital Territory governments have also put similar targets in place.^[17]

Male Champions of Change

In April 2010, Commissioner Broderick was instrumental in bringing together some of Australia’s most influential and diverse male CEOs and Chairpersons to form the Male Champions of Change group. The group aims to use their individual and collective influence and commitment to ensure the issue of women’s representation in leadership is elevated on the national business agenda. The group will also provide support and advice to Commissioner Broderick on this issue. The creation of Male Champions of Change shows an important recognition of the significant role that CEOs and Chairpersons have in achieving more gender balanced leadership in Australia.

The members of Male Champions of Change include:

Glen Boreham, Non-Executive Director
Gordon Cairns, Non-Executive Director;
Stephen Fitzgerald, CEO, Goldman Sachs Australia Pty Ltd;
Alan Joyce, CEO, Qantas;
Michael Luscombe, CEO, Woolworths Ltd;
Grant O’Brien, incoming CEO, Woolworths Ltd;
Kevin McCann, Chair & Non-Executive Director;
Ralph Norris, CEO Commonwealth Bank;
David Peever, Managing Director, Rio Tinto Australia;
Stephen Roberts, Chief Country Officer, Citi Australia;
Stephen Sedgwick, Australian Public Service Commissioner;
Mike Smith, CEO, ANZ
Andrew Stevens, Managing Director, IBM Australia and New Zealand;
Giam Swiegers, CEO, Deloitte Touche Tohmatsu, Australia;
David Thodey, CEO, Telstra Ltd

Media release: Male leaders build momentum for women in business - published on 18 April 2010

Male Champions of Change Research Report and Launch 2011

Women of Influence

In November 2008, with assistance from the Department of Families, Housing, Community Services and Indigenous Affairs, Commissioner Broderick facilitated the first Women of Influence Workshop in conjunction with Kerrie Tim of FaHCSIA. The workshop was attended by five Indigenous women leaders and eight non Indigenous women leaders. There was a particular focus on relationship-building and networking, as well as on creating a dialogue around race relations and reconciliation between the participants. Many of the participants noted that relationship-building and sharing were crucial in creating unique networks and establishing ties with other female leaders. These connections were intended to bring about increased leadership and other projects.^[18]

Recent speeches and media releases

Delivering Diversity
Elizabeth Broderick, Sex Discrimination Commissioner and Commissioner responsible for Age Discrimination, Women in Banking and Finance, 22 November 2010

Getting women off the bench: A gender equality blueprint for 2010
Elizabeth Broderick, Sex Discrimination Commissioner and Commissioner responsible for Age Discrimination,
National Press Club, Canberra, Wednesday 23 June 2010

What Does a World of Gender Equality Look Like?
Elizabeth Broderick, Sex Discrimination Commissioner and Commissioner responsible for Age Discrimination, Insights - A fresh look at Girl's Education conference, Melbourne, 17 June 2010

Is there merit in quotas? The Australian context
Elizabeth Broderick, Sex Discrimination Commissioner and Commissioner responsible for Age Discrimination, Sydney, 2 September 2009.

Unchanged census results point to the need for continued radical change (6 October 2010)

Gender Equality Blueprint 2010 is the way forward (23 June 2010)