'Early adoption' required for new ASX guidelines on gender diversity

Australian companies are being urged to make early adoption of new ASX reporting guidelines on gender diversity a top priority.

At a Diversity Council Australia event held in Sydney, employers heard that, from 1 January next year, Australian listed companies will be encouraged to disclose in their annual reports:

• The company's performance in achieving gender objectives set out by the board; and
• The proportion of women on the board, in senior management and employed throughout the whole organisation.

If companies choose not to report on these matters then they will be required to explain in their annual report why they have not done so.

Whilst the new scheme commences next year, companies are being urged to adopt the reporting guidelines as soon as possible.

"Despite decades of equal opportunity programs and anti-discrimination legislation, the representation of women at the most senior levels in Australia is extremely poor. At present less than 10% of board members of the top 200 listed companies are women," said DCA's CEO, Nareen Young

"This alone represents a serious underutilisation of valuable resources that would, if addressed, lead to significantly greater profitability and corporate efficiency," Young added.

Young said the issue was not just about the boardroom but equal opportunity for women at all levels in organisations. "The ASX proposal puts companies on notice that representation of women in leadership positions needs to increase and boards must play a role in setting governance objectives to drive change," she added, urging that companies should adopt the ASX guidelines immediately.

"Research shows that companies with the highest representation of women board directors had significantly increased financial performance measured by return on equity, return on sales and return on invested capital," Young added.

Jillian Segal AM, a director of ASX Limited who also spoke at the event said, "Improving female representation at senior levels is a competitive issue that Australian listed companies are working on. These guidelines will sharpen their focus."

Segal added that Australia is well behind the rest of the world in this area and rapid action is needed.

Also at the event, Mairi Steele, Acting Director of the Equal Opportunity for Women in the Workplace Agency (EOWA) drew attention to the upcoming release of the EOWA Census of Women in Leadership.

"Events like these help to make sure these issues stay top of mind and the Census will also ensure that the continuing problem of the under-representation of women in our most senior decision making roles stays on the public agenda," Steele said.

DCA is the independent, non-profit workplace diversity advisor to business representing around 100 organisations, many of whom are Australia's biggest employers.

Your comment