The Gender Quota and the Gender Economics of the Nordic Countries

Dr. philos. Marit Hoel Frauenfrühstück, Nordische Botschaften, Berlin

March 8, 2011

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Center for Corporate Diversity, CCD, is a Research and Advisory Organization. On behalf of the Ministry for Trade and Industry, CCD reviewed women board directors and women executive directors in ASA companies in Norway for 6 years. (2003-2008).We also study the 500 largest companies in the Nordic countries.

About us

In 2004 CCD established the Nordic 500 data base. Data included a listing of the 500 largest companies in the five Nordic Countries.The research included the representation of women executive directors and board directors. The second Nordic 500 was published in March 2009.

The Nordic 500 Projects

The Nordic 500 2009 Study

Country Women Board Directors Total Number Board Directors

Women Board Directors %

Norway 229 732 31,3

Sweden 339 1550 21,9

Finland 114 678 16,8

Denmark 109 893 12,5

Total 792 3860 20,5

Women Board Directors in the Nordic 500 2009 study. End of data registration: November 2008

CCD Diversity Statement

The Nordic 500

“The Nordic countries have for more than 30 years applied gender equality as a unique method of increasing the general

skill level and work life participation in the population. This method has contributed to the growth of the economy and

development of Nordic societies. Is it important for the future development of the Nordic

countries to expand this model to gain from the increased diversity in corporate life”.

The Nordic Perspective

Nordic model of diversity and inclusiveness

• 40 years since women entered higher education in large numbers

• Women were strongly included in the labour market

• Investment in child care facilities

• Gradual rise in birth rate compared to other Western economies

• A strong belief that this model of inclusion and diversity can be expanded and contribute to economic growth

CCD: Iceberg of Diversity

Increased diversity representation on corporate boards and management is viewed as a contribution to:

• Innovation

• Sustainability

• Transparency

Effects of Diversity

Innovative thinking: The Quota Law2002: The Norwegian quota law was introduced by the conservative Minister for Trade and Industry Mr. Ansgar Gabrielsen. The law regulates the corporate board. The number of women board directors was 6,8 %.November 2003:The law passed in Parliament.The public limited companies (ASA companies) were given a three year period to voluntarily elect women board directors to reach the 40 % target.

Complience

2005: Companies have reached 17,8 %. The new government (Stoltenberg) puts the law into action January 1 2006.Companies now must comply within two years.

However, companies can apply for a dispensation if they are completely unable to find persons with necessary skills, and there are substantial reasons why they should continue to exist as ASA companies without complience.

CCD Data March 2007510 ASA-companies: 9 months to comply

• 21,4 % of board directors were women

• 1/3 of the companies had reached the target

• 194 companies had no women on their boards

ASA-companies 2007

The status for all of the ASA-companies, April 2008:All in complience with the lawNumber of companies dissolved: 0

Fast change: Target reached

Expectations:1.Negative: International companies will leave the Oslo Stock Exchange2.Company boards will suffer from loss of competence and skills3.Positive: Companies will recruit more women CEO’s and female managers4.Women will contribute and vitalize the board discussion

Overall expectations

First results: 1.International companies are represented on the Oslo Stock Exchange on the same level as before the law was introduced.2.In 2009 the Statistical Bureau showed that because of board women’s educational level the general level of education rose in the board rooms.3.CCD analysis show so far little increase in the number of top executive women in quota companies.4.Chairs of quota company boards express satisfaction with the women they recruited.

The results so far

International effects

Implemented Quotas

Country Included Target Time

Norway PLC/state owned companies 40 % 2003

Spain Companies 250+ employees 40% 2007

Iceland 50+ employees 40 % 2010

France* Public Companies 40 % 2010

State Owned Companies Quotas

Country Included

Finland State owned companies

South Africa State owned companies

Switzerland State owned companies

Ireland State owned companies

International effects

The Danish Presidency of the Nordic Council of Ministers stated in 2009 that they in their

presidency would profile the Nordic principles of corporate social responsibility with initiatives also to

enhance innovation.

The next step in Nordic thinking

Nordic in UN Global Compact

Country Business Members Total Number of Members

Time of registration

Norway 50 60

Sweden 104 110

Iceland

Finland

4

26

4

27

Denmark 197 220

Date of registration 17.02.2011

www.ccdnorway.comImages in this powerpoint created by CCD.

Not to be recreated or copied.

Diversity and Innovation