Moneycontrol PRO
Upcoming Webinar:Prashant Shah explains ‘Irrelevance of Bull & Bear Markets for Success in Technical Analysis’. Register For Free!

Why Richard Branson feels there is a need for more women

Richard Branson expresses that including more women in the organization is good for the team and the business

December 27, 2012 / 04:31 PM IST

By Richard Branson

I recently watched 12 Angry Men, the classic 1957 film about a jury struggling to decide the fate of an 18-year-old man who has been charged with murder. The movie gives you a sense of how the legal system worked in the US back then, when juries were less diverse. By today’s standards, we would find it unsettling if a jury were comprised of 12 middle-aged white men. So, why have so many business leaders been slow to take notice when women are absent from the boards of their companies?

Writing on the wall?
In most developed nations, the percentage of women in the labor force has increased dramatically since the 1950s. When 12 Angry Men was produced, less than a third of American workers were female, whereas today, the US Department of Labor says that number stands at 47 percent. Despite this change, men are still much more likely than women to hold senior positions. In particular, the ratio of female board members has lagged, with less than 14 percent of these positions at the largest companies filled by women, according to the European Commission.

A long road ahead
A study the British government commissioned on this problem recommended that by 2015, 25 percent of board members at the largest British companies should be women. The Cranfield School of Management recently reported that 50 percent now have more than one woman on their boards, but British companies still have a long way to go. The situation requires more than just a recommendation.

Seventy percent of household purchasing decisions are made by women, according to the Boston Consulting Group. Those decisions are not just about grocery lists or kids’ clothes-women also choose big ticket items such as cars and vacations. So, if 50 percent of the staff at a company is female, and women drive 70 percent of the buying decisions for its products, what rationale can senior management have for leaving women out of corporate decision-making?

No room at the top
At Virgin, we have seen a number of women rise to senior positions over the years. At present, Virgin Money and Virgin Holidays are run by female CEOs and the person in the number two spot at Virgin Atlantic is a woman. There are many women in senior management at other Virgin companies, but we have much to do as an organization. If you are looking to increase the number of women in leadership positions at your company, you might start by considering what opportunities female employees have for career advancement, and what barriers they may be encountering. Ask women from every area of your company their experiences and advice.

Women often encounter gender-based stereotypes about who is qualified to do what kind of job, which can sometimes persist in subtle ways and must be challenged at every level. This may be addressed by offering female employees more flexible working conditions; in some cases, putting in place better policies for both maternity and paternity leaves may be a good start.

Fixing this injustice isn’t just good for your team: it’s good for business. Several studies have shown that gender equity in senior management level brings tangible benefits. So take a look at who’s sitting around your boardroom table. If you see 12 angry men, write a new script!

Related Posts

    Back to Basics: Finding the One
    Don’t tie ‘em down
    Winning Customers’ Trust
    Straight Bat: Ego and letting go
    Why Richard Branson likes a few good companies

first published: Dec 27, 2012 04:29 pm

stay updated

Get Daily News on your Browser
ISO 27001 - BSI Assurance Mark