A tool for regulatory transparency

1
A tool for regulatory transparency

• Case Balanced gender representation on company
  boards
• Regional Capacity-Building Seminar on RIA
• Istanbul, Turkey, November 20th 2007
• Sjur Eigil Dahl

2
The Case Balanced gender representation on
company boards

• Prepared over a long time
• Involves a number of Ministries
• Policy objective assessed in various stages
• Policy instruments analyzed

3
Defining the problem

• General aspects
• Gender equality
• Democracy
• Company boards are too homogeneous
• Necessity to make use of all human resources
• Imperfect utilization of expertise in the market
• Diversity stimulate competitiveness

4
Company incentives

• Socially aware
• Right image
• Competitive advantage

5
Government areas

• Equality rights
• Industrial economics
• Socio-economic benefits
• Company law

6
Assessing proportionality

• Scope which companies
• Transition
• Alternatives
• Policy instrument

7
Transparency

• Policy outline
• Impact assessment
• Public hearing
• Policy meetings with business representatives
• Public arrangement concerning private sector

8
Policy objective in 2003

• Private sector
• Applies to Public limited companies, PLC
• Expecting voluntary compliance
• Transitional period
• Implementation put off for private sector
• Public owned companies
• Applies from start 2004

9
Simplification
Number of persons on the board Gender representation
2 or 3 Both sexes represented
4 or 5 At least 2 of each
6 to 8 At least 3 of each
9 At least 4 of each
10 or more At least 40

10
Enforcement

• No new mechanisms
• Using Company legislation rules regarding
  composition of the board
• Requirements enforced through the normal control
  routines
• Register of Business Enterprises will refused to
  register a company board not complying
• Non-compliance to requirement may be dissolved

11
Monitoring up to 2005

• Press release in July every year
• Names of non-compliant PLC made public

Year Share of women on PLC boards
2003 8,5
2005 13,1
12
Policy objective 2005

• Implementation necessary
• New RIA
• Transition period started January 1st 2006

13
Monitoring up to 2007
Year Share of women on PLC boards
2003 8,5
2005 13,1
2006 21
2007 29,7
14
Taking stock

• All PLC must comply by 2008
• By October 2007 140 PLC do not fulfil the
  requirements
• By November 2007 79 PLC do not fulfil the
  requirements
• Minister Companies not complying in 2008 will
  be dissolved
• Incentives in PLCs are less strong than assumed

15
Developing new method

• Two stage assessment
• Investigating incentives
• Finding strata of stakeholders
• Picking at random a small number businesses
• Interviewing
• Analysing results
• Confirm results
• Survey in same strata
• Survey in larger population

16
Workshops with Government officials

• Offering workshop, containing
• Explaining the elements of the method
• Participant prepare an investigation plan
• Examining the project plan together
• Outcome
• Governments official get kick start
• Early intervention