Tuesday, April 7, 2015

The Untapped Potential of Quotas

            At the beginning of March 2015, Germany passed a revolutionary law that is expected to have a huge difference in both the political and business world for Germans. Currently, women hold only 20 percent of the seats on corporate boards even though some of the largest multinational companies are based within the country. Some of these include Mercedes-Benz, Deutsche Bank, Bayer and Merck, BASF and many more. The new law will require German companies to give 30 percent of supervisory seats to women beginning next year. Germany is not the first country to implement a quota law like this, but rather are following suit from counties such as Norway. The overall goal of this legislation is to create a larger role for women on corporate and executive boards of company’s across the globe. Germany, as well as other European countries have seen this type of legislation make a splash in recent years and politicians expect to see more of this pressure continue and spread throughout the world in coming years. A major perpetuator of the bill in Germany was chancellor Angela Merkell who has been accredited for her overwhelming support toward gender issues within Germany and across Europe. This legislation has been known as, “the greatest contribution to gender equality since women got the vote in Germany in 1918.” Sheryl Sandberg, Facebook executive and author claims that advocates are focusing less on company quotas but instead, aiming to further promote women and adopt family-friendly policies companywide. Research supports that although legislative quotas have increased the motivation of businesses to aim for gender equality within the workplace, major gender issues regarding pay gap, family-friendly policies, and maternity leave have made little to no progress.


            Quotas have been used in attempts to create more equality for women and men in all areas of life, work and politics. An article by Krook and Othello looks specifically at gender quotas in political systems as an attempt to create more involvement and participation of women in the political system. Currently, women only make up 19% of parliamentarians in the more than 100 countries that have adopted quota regulations worldwide. In their research, they find that when gender quotas were implemented in various government systems, it did no necessary yield the effects they had hoped for. Additionally, there was cause for even more concern because overall, they found that there was an incentive for male candidates to run against a female candidate, especially when incumbency was at risk because the male candidate held an advantage. Essentially, female quotas, although good in principle, do not make as stark of a difference as they were hoping.

                            

            In an additional article, also written by Krook, she takes a specific look at gender and minority quotas and uses 4 specific case studies to illustrate her point. Different countries have implemented various types of quotas and based on the type of quota system, with varying amounts of improvement. It appears that party quotas and legislative quotas are the most effective and usually enacted by 25-30 percent of countries that implement quotas systems. The biggest issue with minority quotas, as compared to gender quotas, is that currently, there are various definitions that would fall under the term minority. The term minority can apply to a variety of different classifications and therefore reserving seats or creating a quota for minorities makes it a bit more difficult to control. Out of her 4 case studies, which include Belgium, India and Iraq, the most interesting example was that of Rwanda. Rwanda is known for having the most women in parliament compared to any other country in the world. Krook believes the reason for this is because of the increase in female participation, not only in politics, but also in everyday life, which was required during and after the horrific genocide in 1993. Although the genocide was horrible for the Rwandan people, this event created a springboard by which women were able to get more involved in business, family life and eventually politics. Krook believes that these events allowed for a greater support of the quota system and more support eventually lead to the increase in female participation.

                          

            You may be asking yourself, so how do corporate board quotas translate into politics? The New York Times article and the articles written by Krook have more similarities than you might think. Above is a visual depiction of what social scientists refer to as the pipeline. This is a step-by-step process that explains how an average citizen eventually becomes a political figure. Many social scientists believe that the majority of women are “lost” in this pipeline during the recruiting phase, which occurs when an eligible becomes an aspirant. Krook would argue that an attempt to minimize this loss of female candidates is solved by creating quotas within political systems because it encourages and even forces party leaders and politicians to recruit a certain number of female candidate. However, another argument could be made in favor of the effect of quotas on women in a business or corporate world and how this could affect women politically. Social scientists suggest that a main reason why women “miss out” on the recruiting process is because women typically do not interact in the same social circles that many male eligibles interact in. Therefore, because of the interaction of male eligibles with other powerful elites or even party leaders, the likelihood of them becoming aspirants and even candidates is much higher than women. Perhaps, if more women were given access to these elite, corporate jobs, they would also, by default, gain access to these social circles, eventually minimizing the amount of women who are lost through the recruiting process. Additionally, if women were coming from the same eligibles “pool” as men, then the results of Krook’s original article would no longer be valid. Krook found that men, even when running against women in a quota system, typically still won more often, however perhaps, if the mechanism by which these women were placed into these races were different and their qualifications were more similar to their male counter parts, this finding would no longer exist. The motive behind implementing quotas is always positive, however by redirecting the intention of the quotas, we could tap into endless possibilities for future female candidates.

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