Women’s representation in the boardrooms of India’s top 100 companies has shown notable progress in the last four years, a recent survey has highlighted. As of March 2024, only five companies lack women independent directors, compared to 21 in 2021.
Independent directors are non-executives who help the company improve governance standards. The Companies Act 2013 mandates at least one woman director on the board, while Securities and Exchange Board of India (SEBI)’s Listing Obligations and Disclosure Requirements (LODR) mandate at least one woman independent director.
The ‘Survey on Corporate Governance’ was conducted by Excellence Enablers, a corporate governance advisory firm based in Delhi. It identified the top 100 companies using annual reports and NIFTY indices, and analysed them based on parameters such as board composition, diversity, tenure and remuneration of committee, and social responsibility among others, over the years 2021-’24.
Public sector undertakings (PSU), banks, public sector banks (PSB), and insurance companies are included in the top 100 list of the survey. While no names or specifics of any company are mentioned in the analysis, the survey’s disclaimer lists some of the names, including Bharat Petroleum Corporation Ltd, Hindustan Aeronautics Ltd, Life Insurance Corporation of India, Canara Bank, HDFC Bank, and Punjab National Bank.
In 2021, 21 companies lacked a women independent director (ID), including 12 PSUs and 3 PSBs. This number has been reduced to five in 2024, comprising four PSUs and one PSB.
There has also been an improvement in the representation of women in top leadership roles. The survey found that, as of 2024, five companies had women managing directors (MD) and chairpersons, compared to just two in 2021. However, only a few companies have been consistent in maintaining this representation. Additionally, the survey noted that 15 companies had one or more women in key managerial personnel roles in the past four years.
Although the presence of women independent directors on boards has been mandated, the survey noted that there is no similar provision for women executives graduating to board positions. “This can happen only if a sufficient number of competent women are identified and provided appropriate career progression within the organisation,” it suggested.
In recent years, women have increasingly taken charge of the secretariats of industry associations that were once dominated by men, according to an article in The Print. Examples include Jyoti Vij, who became the Director General of the Federation of Indian Chambers of Commerce and Industry (FICCI), and Sugandh Saxena, who joined as the Chief Executive Officer (CEO) of the Fintech Association for Consumer Empowerment (FACE), a self-regulatory body recognised by the Reserve Bank of India. Rekha Sethi, who joined the All India Management Association (AIMA) from CII in 2008, was the first woman leader in a national business association.
One of India’s most influential apex associations, the Confederation of Indian Industry (CII), now has many women in leadership roles. The report noted that this marks a first for the organisation, as these roles were traditionally held by men for many decades. Women leaders are gradually breaking this cycle.
Analysis of POSH cases
While the survey observed positive signs of women being placed on boards, it indicated a lack of clarity in the reporting of sexual harassment cases.
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013—often called POSH Act for short, The Companies Act, and the SEBI LODR regulations mandate companies to maintain reports on the details of cases filed and resolved.
The survey noted that 1,622 cases were reported in 2024, of which 1,464 were marked as “disposed of.” In comparison, 660 cases were reported in 2021, with 554 resolved.
When it comes to creating safer workplaces, there appears to be a lack of clarity in company reports. Moreover, more than 20 companies reported receiving zero complaints over the past four years. “The absence of complaints would seem to indicate either an ideal workplace or a lack of confidence among employees in reporting cases of this nature,” the report said. It also pointed to two major weaknesses: the mechanical manner in which cases are “disposed of” and the inadequate punishments given.
The survey also observed that one company has been reporting the highest number of cases for all four years, with the number reaching 182 in 2024. The resolution rate for these cases ranges from 76%-89%, according to the survey.
It further pointed out a major lack of awareness among the companies regarding what constitutes an offence under the POSH Act, and why certain inappropriate behavioural patterns have no place in the working environment. It suggested that more workshops and awareness programmes be conducted, as already mandated under the POSH Act.