HONG KONG, March 12, 2013 /PRNewswire/ -- According to the latest research launched by Community Business, the overall number of women holding directorship roles at Hong Kong's 50 leading companies, as included in the Hang Seng Index (HSI), has increased by just three in the last 12 months and just 9.4% of all board directorships are held by women.
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Community Business, a leading non-profit focusing on corporate responsibility and a thought leader on diversity and inclusion in Asia, today released an update to its industry-leading study, the Standard Chartered Bank Women on Boards: Hang Seng Index 2013 report. This is the third study of its kind with previous reports, also sponsored by Standard Chartered, published in September 2009 and March 2012.
"With a growing focus on sound corporate governance and board effectiveness, increasing diversity on boards is critical. Gender diversity is just one aspect, and tracking the representation of women provides a tangible measure by which companies can assess the composition of their boards to ensure they are including a diversity of perspectives" said Fern Ngai, CEO of Community Business. "The poor results of our latest study show that more needs to be done in Hong Kong. If we assume that the total number of directors remains the same at 649, at the current rate of just four additional female directorships each year, it will take approximately 49 years to secure 30% representation of women on boards and 81 years to reach parity."
Key Findings
The 2013 study reveals that out of a total of 649 directorships on the HSI, only 61 directorships are held by women. This represents just 9.4% and with an overall increase of just four new female directorships, a nominal improvement since last year when the figure was 9.0%. With some women holding multiple seats, these directorships are held by 53 different women - an increase of only three women since March 2012 when a total of 57 directorship roles were held by a total of 50 women.
Out of the total of 50 companies listed on the HSI there is a slight increase in the number of companies with women on their boards - from 28 companies (58.3%) in 2012 to 31 companies (62.0%) in 2013. However 19 companies (38.0%) continue to have all male boards.
The percentage of companies with more than one woman on their board has been steadily declining since 2009. In 2009, 35.7% of companies had multiple female directors, today that figure is 28.0%. This data point is significant because international research suggests that it is only once a critical mass of women in the boardroom is reached – with three or more believed to be the tipping point – that real culture change can occur and boards can reap the benefits of gender diversity.
Both the number of female executive directors and the number of companies with female executives has remained static since 2012 which means there has been an overall decline in the percentage of executive director roles held by women. Still only 15 women hold executive director positions (that represents 6.9% of all executive directorship roles) and still only 12 companies (24.0%) have female executive directors. This suggests that Hong Kong's leading companies are continuing to fail to create workplace cultures or environments that enable women to rise up through the organisation and take on board roles. Of a total of 77 new appointments made in 2012, just nine directorships (11.7%) were made to seven different women.
These figures are consistent with statistics recently made available by Hong Kong Exchanges and Clearing Ltd which looked at female representation on the boards of all 1,551 companies listed in Hong Kong. The overall figure as at January 31, 2013 is 10.7% compared with 10.3% as at May 31, 2012. 40% of boards listed in Hong Kong are all male.
The report includes a Women on Boards League Table which ranks the companies listed on the HSI in terms of the gender diversity of their boards, with those with the highest percentage of women on their boards appearing at the top. At the top of the list is China Construction Bank Corporation (reclaiming its 2009 position) with four women (33.3%) on its board of 12. Hang Seng Bank Ltd is second (down from top position in 2012) with five women (31.3%) on its board of 16. Bank of China Ltd is third with four women on its board of 15 (26.7%). HSBC Holdings Plc is fourth with four women (25.0%) on its board of 16 and China Resources Power Holdings Company Ltd is fifth with three women (23.1%) on its board of 13.
This report concludes that there continues to be little progress on the representation of women on boards in Hong Kong and that there is a need for a broader understanding and examination of the benefits of board diversity. "We commend the decision by Hong Kong Exchanges and Clearing Ltd (HKEx) in December 2012 to implement a new 'comply or explain' provision requiring all listed companies to have a policy on board diversity - which they must also report on, by 1 September 2013." said Shalini Mahtani, Founder and Board Director of Community Business. "We are ramping up our efforts to support the Hong Kong business community to embrace this change, broadening our focus from 'women on boards' to 'diversity on boards', engaging prominent business leaders and providing advice and training to companies."
The report released today was sponsored by Standard Chartered Bank.
"It is our hope that this report will allow us to continue building on the momentum of growing support for board diversity, and generate greater discussions and ideas towards a more diverse corporate-board landscape in Hong Kong and beyond. Standard Chartered is proud to support this work. We encourage all companies to review the findings of this report, and consider where some of the opportunities for achieving greater board diversity can be found," says Steve Bertamini, Group Executive Director & CEO Global Consumer Banking, and Chair, Group Diversity & Inclusion Council, of Standard Chartered Bank.
The report has been published in English and Chinese and is available for download on the Community Business website at http://www.communitybusiness.org/DOB.
For more information:
Joy Tsang
Communications Manager, Community Business
+852-2201-1818
joy.tsang@communitybusiness.org
About Community Business
Community Business is a non-profit organisation whose mission is to lead, inspire and support businesses to improve their positive impact on people and communities. As a thought leader in corporate responsibility in Asia, Community Business conducts research, facilitates events and networks, leads campaigns and provides consultancy and advice. Its major areas of focus include: Corporate Responsibility Strategy, Diversity & Inclusion, Work-Life Balance and Community Investment. Founded in 2003 and based in Hong Kong, Community Business works with leading organisations across the Asia region. For more information, visit www.communitybusiness.org.
About Standard Chartered
Standard Chartered is a leading international banking group. It has operated for over 150 years in some of the world's most dynamic markets and earns around 90 per cent of its income and profits in Asia, Africa and the Middle East. This geographic focus and commitment to developing deep relationships with clients and customers has driven the Bank's growth in recent years. Standard Chartered PLC is listed on the London and Hong Kong stock exchanges as well as the Bombay and National Stock Exchanges in India.
With 1,700 offices in 70 markets, the Group offers exciting and challenging international career opportunities for 87,000 staff. It is committed to building a sustainable business over the long term and is trusted worldwide for upholding high standards of corporate governance, social responsibility, environmental protection and employee diversity. Standard Chartered's heritage and values are expressed in its brand promise, 'Here for good'.
For more information on Standard Chartered, please visit www.standardchartered.com.
