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Why Asian women struggle to win CEO jobs
In Asia, one in three management roles is now held by a woman, in a sign that corporates in the region have stepped up efforts to retain and promote women to leadership roles, Asset Benchmark Research (ABR) has found.
Monica Uttam 21 Jul 2017

In Asia, one in three management roles is now held by a woman, in a sign that corporates in the region have stepped up efforts to retain and promote women to leadership roles, Asset Benchmark Research (ABR) has found.

While the regional average of 30% is a positive overall, the results remain uneven across Asia with certain markets seriously lagging behind.

Studies have proven that diversity at the top pays dividends. Companies with more women in leadership positions were found to outperform their rivals and post higher profits, says a study by Pittsburgh-based human resources consulting firm DDI and business research group The Conference Board. Moreover, a recent study by BI Norwegian Business School concluded that women are better suited to leadership than men.

Corporates in Asia are starting to get this, and it is a good thing. Data from the region’s listed companies that participated in a survey linked to The Asset Corporate Awards reveal that Southeast Asian corporates lead the charge on diversity ahead of those in more developed markets like Hong Kong.

The Asset Corporate Awards are Asia’s premier awards on ESG (environment, social, and governance) and the longest-running in Asia. They measure corporate sustainability efforts. The awards are now accepting submissions.

The data showed that the proportion of women in management is high in the Philippines, Thailand and Malaysia. Nearly 40% of management roles in the Philippines are held by women. Thailand and Malaysia are at 30%. Taiwan also keeps a solid record of women leaders at 40%. In contrast, China is slow in promoting women with just 17% in leadership roles and India at just over 4%.

The results were consistent with prior studies on women in the workplace. A 2011 McKinsey study found that Thailand and the Philippines are exceptional in the space. Women made up 38% of Thai board members and executive roles. In the Philippines the number was 47%.

Women on Boards, a 2014 study led by a network of professional women in India, Biz Divas, found that only 4% of Indian company directors are women. Although this is now slowly changing after the passage of landmark legislation that forces Indian companies to appoint more women in the boardroom.

In 2016, businesses held steady their belief in supporting women in leadership roles. A third of management roles are led by women. That was little changed from 2015, although certain markets including Malaysia and China have shown marginal declines in actual numbers last year.

What the recent ABR survey underlines is the reality that despite a growing consensus among business leaders on the issue, there remains a huge number of corporate executives and managers that choose to ignore it. As a result, a number of Asian corporates could be missing out on female talent.

Asia has a long way to go before seeing women empowered at the highest decision-making level. The region could be a good success story globally if more of its corporates could achieve an equal opportunity workforce that is proving critical to sustaining businesses and growth.

About the research
The research was conducted as part of The Asset Corporate Awards, the longest running ESG awards in Asia bestowed annually by leading research house, Asset Benchmark Research (ABR). The Platinum, Gold and Titanium awards offer a rigorous benchmarking service for the region's listed firms and enables them to join an exclusive circle of top corporates. Since 2001, our winners have found this opportunity to be most valuable in bolstering their credentials in the ESG space.

The assessment is based on the online questionnaire submission made by the company and the supplementary information they provide. Factors that are taken into consideration range from an evaluation of financial performance, management, corporate governance, social and environmental responsibility and investor relations.

To learn more about The Asset Corporate Awards 2017 and request a rulebook please click here.

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