Tuesday, June 28, 2011

This Is Still A Men's World, Apparently (Part I)

I find it surprising that the liberal minded people of this country, who repeatedly denounces racial based affirmative policies of the Government, wasn't up in arms with the Prime Minister's announcement yesterday of a Cabinet approved target of 30% women representation in listed companies' decision making positions (i.e. board of directors).

The principles that form the foundation of calls for national laws and policies based on pure meritocracy doesn't seem to apply when it comes to the struggle for gender equality.

Where I draw similarities in both these imbalances in racial and gender share of the economic pie is given as follows:
  • Both groups are perceived to be at an unfair disadvantage, a result of the many years of discrimination and bias.
  • Intervention or affirmative actions by the Government is seen as necessary to correct the imbalances, such as setting quotas, awarding of contract or positions based on race/gender.
  • Lofty arbitrary targets are set which are difficult to achieve especially given the missteps in implementation of these policies, leading to indefinite extension of said targets and failed policies. For example, the 30% NEP target for bumiputera's corporate ownership has been used many times by politicians to push forward affirmative policies in the name of bumiputera's economic advancement and to safeguard their interest.
Opponents of the NEP and its affirmative policies have long cried foul over the culture of corruption and cronyism that is birthed by said policies. Governing along racial lines is not limited only to equity ownership of companies, it also includes award of Government tenders, sale of real property, distribution of scholarships for tertiary education, etc. Detractors insist that these policies cripple the advancement of the country while sidelining qualified non-bumiputera companies and businessmen.

I fail to reconcile how the above arguments against affirmative actions for bumiputeras cannot be used similarly in contesting the affirmative policies for women in boardrooms. The adoption of such policies means that if a man and a woman are both similarly qualified for a vacant position at a company's board, the decision will ultimately be based on their gender.

In some extreme cases, in order to meet the Government's 30% target, an under qualified female member of the board may be appointed just to make up the quota.

Conversely, a board composition that already has 30% women representation may choose to remain status-quo, and overlook suitable women candidates without any concern of being reprimanded by the Government.

I admit though, that there is a disconnect between the number of female undergraduates and the number of female employees in the workforce. Women have excelled in education and the number of women graduates have since a number of years back, surpassed their male counterparts. This hints strongly at a discriminatory environment in the offices of corporate Malaysia, and the existence of the proverbial "glass ceiling".

However, I don't think the government's approach towards attaining equality among gender is the correct one. According to reports, the first step to be taken is to implement these targets at Government Linked Companies ("GLC"), and other government controlled/regulated organisations such as banks, financial institutions and the civil service. They will then attempt to "persuade" the public listed companies and the remaining corporate industries to adopt these targets. No definition of "persuasion" is given.

Instead of mandating arbitrary targets and forcing them down the throats of companies, the Government should instead focus on a two pronged strategy.

One, channel additional funds to organisations which provides training to aspiring women leaders of the corporate world.

Two, legislate against companies that practices discriminatory policies against women employees. A recent class action lawsuit filed in the United States against Walmart by its female employees may still be in the midst of legal battle in the Supreme Courts, but it serves as an example for companies guilty of not ridding itself of gender biased cultures.

The Managing Editor of The Malaysian Insider, Joan Lau sums it up by writing "what women want is not mandated representation [but] we want equal opportunities”.

As can be observed from the implementation of affirmative economic policies, blind adherence to a subjective target and a misguided approach will lead to a disequilibrium wreck that is the condition of our country, where only the top few percentages are enriched while the income gap between the poor and the rich further widens. Similarly, questions should be asked if such policies to compel a target on women representation in companies is immediately worthy of applause and revere.

(Note: For the record, I believe that it is unnecessary for me to state that I am not a chauvinistic pig. You may form your own opinions of me. After all, I had the freedom to express mine.)

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