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Women in Governance Women in governance: increasing participation on State Sector Boards and Committees 2018 Women’s representation on state sector boards and committees has reached an all-time high of 47.4% © Ministry for Women – June 2019 Ministry for Women Women in governance 2018 1 Foreword I’m proud to be Minister for Women I’m pleased that this year, and enterprise tap into new ideas and working to improve women’s we’ve made great progress and markets. lives in Aotearoa New Zealand. on that target and have I’m thrilled that this year we’ve hit It’s been especially satisfying to see reached an all-time high a new all-time high of 47.4 percent. this Government make great strides of 47.4 percent – up from Our target of 50 percent is in reach, for women. From enacting equal last year’s 45.7 percent. and with continuing efforts I know pay legislation to increasing paid we will get there. parental leave, I’m ambitious We’re on the right track. However, He waka eke noa for this Government to advance we need to look at greater diversity gender equality. across boards to ensure that a A canoe which we are all range of ages, abilities, ethnicities, in with no exception Last year, with the release of the sexualities, and genders are Gender Stocktake, I announced Julie Anne Genter represented on boards. Diverse that this Government had set a Minister for Women views and experiences help boards target of 50 percent representation perform better avoiding the pitfalls of women on state sector boards of groupthink, and helping business and committees by 2021. 2 Foreword Foreword Last year, the Government announced a target of 50 percent women’s representation on state sector boards and committees by 2021. I’m proud to say that we’ve come However, our focus needs to who appoint them. We now need close to this target already. Achieving broaden. Having 50 percent women’s to keep that focus while looking at 50 percent women’s representation representation on boards isn’t enough expanding the diversity of the women on boards is a collective effort and a if those women are too similar. we appoint. shared responsibility. We need Māori women, Pacifica Poipoia te kakano kia puawai. It’s a responsibility that we, at the women, Asian women, women with Nurture the seed and it will blossom. Ministry for Women relish. My disabilities, young women, older Renee Graham staff are experienced in working women, transgender women, women Chief Executive collaboratively with government of different cultures and religions. Ministry for Women agencies that appoint to state sector We need our boards to represent our boards and committees, to ensure communities in all their diversity. they can supply the right candidates. With that in mind, we’re looking We maintain a pool of over 1,000 at how we can collect quality data women currently available for that will also measure these things nomination. The women we nominate alongside gender. Our focus is on represent a diverse range of leaders quality and providing a better service from all backgrounds and across for the pool of women looking for New Zealand. state sector board roles, and those Ministry for Women Women in governance 2018 3 Message from the steering group I’m delighted to be working with the Ministry for Women on implementing the Government’s strategy to achieve gender balance on our public sector boards. Boards are charged with providing We need to ensure that when we Robyn Smith high-quality governance, advice, talk about diversity, we don’t just Deputy Chief Executive and decision-making for their mean the appointment of a single Corporate Services, organisations. Diverse boards achieve ‘diverse’ person. This is not diversity – Ministry of Transport this high standard more effectively one person can’t provide the benefits Chair, Steering Group than those that lack a range of that real diversity delivers. different perspectives. The research Until we have gender balance, about the effectiveness of diverse along with diversity in other areas, boards is extensive and compelling. including ethnicity, disability, sexual Better-quality decision-making, orientation, and people with a alignment with community, and breadth of experience, both lived improved governance are some of and learned, we will not reap the the many benefits. I like to think we rewards we are all seeking – a high have moved past the need to argue performing, effective governance the ‘why’, to focus on how best to system that delivers great outcomes make this happen. for New Zealand. 4 Purpose Purpose Every year, the Ministry for Women leaders we’ve spoken with to get performances from Internal Affairs, does a gender stocktake on roles their insights on how we can achieve Health, The Department of the appointed by ministers to state sector more women in governance. Prime Minister and Cabinet, and boards and committees to measure Finance. Full results of the Gender Across 25 agencies, there are women’s participation in governance. Stocktake are available at the back of more than 430 state sector boards this report. A spreadsheet, showing We also use this opportunity to and committees, with over 2,500 breakdowns of individual boards, is lead the discussion on how we can appointees, to which over 800 available on the Ministry for Women increase women’s participation in appointments are made most years. website. governance. And while our focus is Representation is at its highest ever on the state sector – and achieving level at 47.4 percent – the third year This compares with the private sector, the Government’s target, set last year, in a row that it’s been over where only 22 percent of board of 50 percent women’s participation 45 percent. members in NZX’s listed companies by 2021 – these actions apply equally are women. While this is an increase As at 31 December 2018, women to the private and non-government from 19.7 percent in 2017, in sheer held 1,259 (47.4 percent) of these organisation (NGO) sectors. numbers, it signifies just four more 2,657 roles. This represents a steady women than in 2017. There are still In Women in Governance: 2018, increase from the 45.7 percent 27 NZX listed companies which have you’ll hear from a variety of business found in 2017. We had some strong no women on their boards. • Internal Affairs (31 boards, 61.3% women) 2 01 8 ’s • Health (56 boards, 60.2% women) best-performing • DPMC (5 boards, 60.0% women) major portfolios • Finance (20 boards, 48.5% women) Ministry for Women Women in governance 2018 5 Why diversity matters Crown entities and statutory boards on their boards outperform those the opportunity to contribute to a oversee the spending of billions that do not. It’s also an issue successful society. of dollars each year and manage of fairness. Women make up just However, it’s not just diversity in thousands of staff and billions of over half of our society, yet they gender that matters. We need a dollars in assets to provide services comprise only 22 percent of NZX range of ethnicities, cultures, sexual to New Zealanders. The Government directorships, and while they make identities, and abilities on boards and must ensure it receives the best value up almost 48.8 percent of executive committees to better reflect society. for money it can from these services. management positions in the public The Department of Prime Minister sector, this is only 22.7 percent in the Utilising the talents and leadership and Cabinet has updated the APH private sector. Women are also paid, abilities of women at board level organisation forms to include gender on average, 9.2 percent less than is an outstanding competitive and ethnicity tables. All government men – a gap even more pronounced advantage. There is a lot of research agencies will start to use these at the top end of the scale. Stronger showing that women directors can forms for upcoming appointments in representation of women in help companies gain competitive 2019, which should enable accurate leadership contributes to closing the advantage and increase profits, and collection of ethnicity data. gender pay gap and gives women that companies that have women Women chair 34.7 There are some portfolios doing well in this area, including Prime percent of state Minister, Internal Affairs, Housing sector boards and Urban Development, and and committees. Veterans’ Affairs, which all have 50 percent or more of board chairs being held by women. 6 Reflections on Governance Reflections on Governance world views in order to be effective It also means being able to give decision-makers. This does not mean respect and value to all different Caren diversity for diversity’s sake – it is perspectives, in order to fully unrealistic to expect that having “one utilise those perspectives in Rangi of everything” at the board table will decision making. ONZM, FCA result in effective decision-making. Boards need to put more effort into better understanding and valuing Strategically relevant the unique contributions each board The world that we live in is becoming diversity means being clear member brings so we maximise their more and more complex, and as a on the range of diversity of combined contribution. If boards are result boards are being called upon thought that will be required to be more successful in the future, to make more complex, multi-faceted in order for boards to lead then not only will they need to be decisions. It makes sense that boards their organisations to reflective of a diverse combination have a strategically relevant diverse strategic success.
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